14 Del. Admin. Code § 292-4.0 - Criteria for Issuance and Renewal of a Certificate of Approval

4.1 Pursuant to 14 Del.C. § 187(e), all Postsecondary Institutions shall meet the following criteria:

4.1.1 The Postsecondary Institution shall have a clearly defined mission with goals and objectives that are consistent with the purposes of higher education and related to the courses, Programs of Courses, or Degrees the Institution proposes to offer or has received Department approval to offer in Delaware.

4.1.2 The Postsecondary Institution shall be financially sound and have adequate financial resources to show that the Institution possesses sufficient liquid assets to provide timely refunds, pay expenses, and maintain continuity of operation.

4.1.2.1 The adequacy of a Postsecondary Institution's financial resources shall be judged in relation to the Institution's mission, the scope of its Programs, and the number of anticipated or current students.

4.1.2.2 For Postsecondary Institutions applying for Recognized Applicant status, evidence of sufficient liquid assets may be in cash or other assets that may be readily converted into cash to buy goods and services or to satisfy obligations in an amount equal to start-up costs, expenses and projected tuition income for the first term of enrollment.

4.1.3 The Postsecondary Institution shall maintain adequate financial records and exercise proper management, financial controls, and business practices.

4.1.3.1 The Institution shall submit financial statements that are prepared by an independent, certified public accountant that contain the Institution's:

4.1.3.1.1 Sources of income;

4.1.3.1.2 Categories of expenditure;

4.1.3.1.3 Profit or nonprofit status;

4.1.3.1.4 Nature and amount of indebtedness (if any), including how indebtedness was incurred;

4.1.3.1.5 Amortization schedule; and

4.1.3.1.6 Five-year financial projection.

4.1.3.2 The Postsecondary Institution shall provide a copy of any audited financial statement that it was required to submit to the United States Department of Education.

4.1.4 The Postsecondary Institution shall present evidence demonstrating the educational need to establish operations, offer Degrees, Programs or Programs of Courses in question in the State.

4.1.4.1 The Postsecondary Institution shall demonstrate that the proposed Degrees, Programs, or Programs of Courses for which the Institution is making application meet a critical and compelling need in the State.

4.1.4.2 The Postsecondary Institution shall present data projecting market demand and the availability of openings in the job market to be served by the new Degrees, Programs, or Programs of Courses for which the Postsecondary Institution is completing an application.

4.1.5 The Postsecondary Institution shall adopt standards for accounting and financial reporting that adhere to the widely accepted standards published by the National Association of College and University Business Officers (NACUBO). The standards shall account for federal and state monies, as well as other sources of income and expenditures.

4.1.6 The Postsecondary Institution's business and financial management shall be under the direction of a qualified and bonded business officer charged with the preparation and supervision of the budget in accordance with sound financial and educational practices.

4.1.7 The Postsecondary Institution shall have insurance in an amount sufficient to maintain the Institution's solvency in case of loss by fire or other causes, to protect the Institution in liability matters, and to assure the Postsecondary Institution's continuity of operation.

4.1.8 In order to maintain approval the Postsecondary Institution shall maintain a Surety Bond or show proof of designated funds and assets sufficient to cover the tuition and fees paid by enrolled students in the event of sudden school closure. Notwithstanding the foregoing requirement, if the Postsecondary Institution seeks to obtain Degree Granting Authority from the Department, the Postsecondary Institution shall maintain a Surety Bond to cover the tuition and fees paid by enrolled students in the event of sudden school closure in order for the Postsecondary Institution to be granted and maintain Recognized Applicant status and Provisional Approval status. Once the Postsecondary Institution obtains Full Approval status, the Postsecondary Institution shall maintain a Surety Bond or show proof of designated funds and assets sufficient to cover the tuition and fees paid by enrolled students in the event of sudden school closure. All Postsecondary Institutions shall secure the transmission of all student materials as per 14 Del.C. § 192.

4.1.9 The Postsecondary Institution shall have achieved candidacy status or the equivalent standing from an Accrediting Agency or a nationally recognized Accrediting Agency or shall be accredited as follows:

4.1.9.1 A Postsecondary Institution shall gain applicant or candidate for accreditation status and, ultimately, accreditation from an Accrediting Agency.

4.1.9.2 The Accrediting Agency must be appropriate to the Institution's mission, goals, and objectives.

4.1.9.3 The Postsecondary Institution must meet the Accrediting Agency's requirements within a reasonable period of time as determined by the Department.

4.1.10 The Postsecondary Institution's organizational pattern shall be related to its stated goals and the Postsecondary Institution shall operate under an administrative structure that effectively accomplishes the Postsecondary Institution's stated objectives.

4.1.11 The Postsecondary Institution shall provide appropriate student services.

4.1.12 The Postsecondary Institution shall admit, retain, and graduate only those students who meet quantitatively and qualitatively creditable standards of achievement appropriate to the Postsecondary Institution.

4.1.13 The Postsecondary Institution shall maintain a credentialed faculty, a Program of instruction, facilities, and resources that are regularly evaluated and are adequate to the attainment of educational quality and satisfactory realization of the Postsecondary Institution's mission and goals.

4.1.14 The Postsecondary Institution shall ensure that students have access to sufficient learning resources, including a library with a collection, staff, services, equipment, and facilities that are appropriate to the Postsecondary Institution's mission, goals, and objectives.

4.1.15 The Postsecondary Institution shall publish a catalog that gives an accurate description of the Institution's policies, Degree requirements, and Program and course descriptions and is provided to each student prior to enrollment.

4.1.16 The Postsecondary Institution shall comply with all federal, state, and local laws and regulations.

4.1.17 If a Postsecondary Institution intends to offer Degrees, programs or program of courses that lead to professional licensure, the Postsecondary Institution shall demonstrate compliance with the appropriate state licensing agency (such as but not limited to the Division of Professional Regulation or the Department).

4.1.18 If a Postsecondary Institution provides or intends to provide online instruction, the Institution shall demonstrate compliance with the Interregional Guidelines for the Evaluation of Distance Education published by the Council of Regional Accrediting Commissions (C-RAC) or 21st Century Distance Education Guidelines published by the National Center for Higher Education Management Systems (NCHEMS).

Notes

14 Del. Admin. Code § 292-4.0

26 DE Reg. 834 (4/1/2023) (final)