Core Requirement 2.11: The institution has a sound financial base, demonstrated financial stability, and adequate physical resources to support the mission of the institution and the scope of its programs and services.
The member institution provides the following financial statements: (a) an institutional audit (or Standard Review Report issued in accordance with Statements on Standards for Accounting and Review Services issued by the AICPA for those institutions audited as part of a systemwide or statewide audit) and written institutional management letter for the most recent fiscal year prepared by an independent certified public accountant and/or an appropriate governmental auditing agency employing the appropriate audit (or Standard Review Report) guide; (b) a statement of financial position of unrestricted net assets, exclusive of plant assets and plant-related debt, which represents the change in unrestricted net assets attributable to operations for the most recent year; and (c) an annual budget that is preceded by sound planning, is subject to sound fiscal procedures, and is approved by the governing board.
Audit requirements for an applicant institution may be found in the Commission policy entitled "Accreditation Procedures for Applicant Institutions."
Off-site review question:
“Section (a) The institutional audits for the June 30 fiscal years ending 2004, 2003, 2002, 2001 and 2000 were provided by the College. The institution has not presented a 2005 audit, which is the sole reason for determining non-compliance on this requirement (bold added). These audits are completed by the Auditor of Public Accounts of the Commonwealth of Virginia and contained consolidated statements of financial position including statements of net assets, statements of revenues, expenses, and changes in net assets, and statements of cash flows as well as notes to the statements. The institutional audit for the period ending June 30, 2005 has not been completed at this time; un-audited statements will be available mid-October 2005 and audited statements by March 2006. Included in the annual audits are Management’s Discussion and Analysis to enable readers to understand the financial statements, financial condition, and results of operations. In 2003 and 2004, the auditors revealed no matters involving the internal control of operations considered to be material weaknesses or instances of noncompliance required to be reported. In 2001, the auditor identified instances of internal control, but these were not material weaknesses; they issues have been corrected by the College.”
Response:
We have learned recently that the final audit for the period ending June 30, 2005 will be available April 15, 2006.