Information for
Schools
Procedures for Approval
-
Submit a
complete application to the Department of Higher Education no less than 120
days prior to the date on which you plan to open your school (per Sec.
10a-22k-3 of the Regulations of State Agencies).
-
Submission of a
financial statement/forecast (see financial requirements).
-
Submit a
$20,000 Irrevocable Letter of Credit which will be held for 8 years from the
date of initial approval.
-
Submission of a
non-refundable $2,000 Application Fee filed with the application of the
proposed school.
-
A review of the
application by the Department which may require you to provide additional
information.
-
The Department
will conduct an evaluation visit (per Sec. 10a-22k-4 of the Regulations of
State Agencies), using the evaluation criteria contained in Sec. 10a-22k-5
of the Regulations of State Agencies
-
Following the
visit, the evaluation team chairperson will submit an evaluation report
based on the findings by the evaluation team which will include areas of
improvement. A recommendation of authorization or non-authorization will be
submitted to the Commissioner once evidence of corrections to any findings
is provided.
-
Once initial
approval is granted, a school is required to renew their authorization
annually for 3 consecutive years (per Sec. 10a-22k-7 of the Regulations of
State Agencies). Following the 4th consecutive year of
re-authorization, a school may be eligible for a renewal of authorization
for a period of up to 5 years.
Irrevocable Letter of Credit
No certificate to operate a new private
occupational school shall be issued by the commissioner pursuant to section
10a-22c(d) of Connecticut’s General Statutes, until such private occupational
school seeking authorization files with the commissioner an irrevocable letter
of credit in the penal amount of $20,000 guaranteeing the payments required of
the school to the private occupational school student protection account in
accordance with the provisions of section 10a-22u. The letter of credit shall be
payable to the private occupational school student protection account in the
event that such school fails to make payments to the account as provided in
subsection (a) of section 10a-22u or in the event the state takes action to
reimburse the account for a tuition refund paid to a student pursuant to the
provisions of section 10a-22v provided the amount of the letter of credit to be
paid into the private occupational school student protection account shall not
exceed the amounts owed to the account. The letter of credit required by this
subsection shall be released 8 years after the date of initial approval,
provided evidence of fiscal soundness has been verified.
Financial Forecast
Prospective financial
statements will present, to the best of the responsible party’s knowledge and
belief, an entity’s expected financial position, results of operation, and
changes in financial position. A financial forecast is based on the responsible
party’s assumptions reflecting conditions it expects to exist and the course of
action it expects to take. A financial forecast may also be expressed in
specific monetary amounts, as a single estimate of forecasted results or as a
range where the responsible party selects key assumptions to form a range within
which reasonably expects the items subject to the assumption to actually fall.
A forecast represents what the responsible party thinks is going to happen for
the first 12 months of operation.
Financial Forecast must: be
prepared by management and reviewed by a CPA or licensed public accountant,
conform to Generally Accepted Accounting Procedures, and use accrual basis of
accounting.
-
Minimum Items for Submissions:
-
Balance sheet
-
Income statement
-
Statement of change in equity or fund balance
-
Statement of cash flows
-
Footnotes or notes to financial statements
-
Cover letter prepared by the licensed certified public
accountant or licensed public accountant stating the scope of the review or
audit, any opinions, and standards and principles followed
-
Also see:
Renewal Application Process
-
The Department
of Higher Education will provide the school a renewal application packet 180
days prior to the date of expiration of the school’s most recent certificate
of authorization. The renewal application packet will include: an
application, and copies of the Connecticut General Statutes, Regulations of
State Agencies, and Financial Requirements.
-
The school will
submit a complete application to the Department with the required renewal
fees of $200 per school and $200 per branch, 120 days prior to the date of
expiration of the school’s most recent certificate of authorization.
-
The Department
will conduct an evaluation visit per Sec. 10a-22k-4 of the Regulations of
State Agencies. Please see the Sec. 10a-22k-5 of the Regulations for the
evaluation criteria that will be used for the visit.
-
Following the
visit, the evaluation team chairperson will submit an evaluation report
based on the findings by the evaluation team which will include
recommendations for improvement. A recommendation of authorization or
non-authorization will be submitted to the commissioner once evidence of
corrections to any findings has been provided.
-
Except for
initial visits, the Commissioner of Higher Education shall accept
institutional accreditation by an accrediting agency recognized by the U. S.
Department of Education in satisfaction of the requirements of Sections
10a-22b and 10a-22d of Connecticut’s General Statutes, including evaluation
requirements, unless the Commissioner finds reasonable cause not to rely
upon such accreditation.
-
A
representative from the Department shall be invited to participate, as an
observer, in all
initial and renewal accreditation visits by an accrediting agency recognized
by the U. S. Department of Education.
Change of Courses or Programs
Application Sections to be Revised and Submitted to the Department of Higher
Education at least 60 days before any intended revisions of the conditions of
authorization. These changes can include but not be limited to adding,
deleting, and revising a course or program.
AP Page 1 Application Cover
Page
(PDF
document)
AP Page 2-6
Instructions
(PDF
document)
AP
Page 19 Campus Roster
(PDF
document)
AP
Page 26-27 Instructor Form
(PDF
document)
AP
Page 28 Waiver of Instructor
(PDF
document)
AP
Page 29-30 Recruiter Form
(PDF
document)
AP
Page 31 Program - Course List
(PDF
document)
AP
Page 32 Program - Course Information
(PDF
document)
AP
Page 34 Student Records
(PDF
document)
AP
Page 35-36 Enrollment Agreement
(PDF
document)
AP Page 37-38 Catalog
(PDF
document)
Change of School Ownership
The school owner or director must send a letter to
the Department of Higher Education announcing the proposed change of ownership
at least 60 days prior to the proposed sale. The Department will acknowledge
the proposed change of ownership with a letter requesting the following:
From the Present Owner
-
A draft copy of the proposed sales agreement
so that we can review it prior to the signing. The purpose of our initial
review is to assure that such regulatory items as the maintenance of school
and student records , the continuation of the school’s obligation to teach
students who have not completed their program and the issuance of tuition
refunds are addressed.
-
A final copy of the duly completed and signed
sales agreement with applicable attachments and covenants.
-
Any and all outstanding documents or payments
which you, the previous owner, may owe to this office prior to the execution
of the proposed changes of ownership, for example: private occupational
school student protection account fund payments, annual fees, annual
reviewed or audited financial statements, etc.
-
Management-prepared financial statements for
the period through the transfer of ownership if this date does not coincide
with the end of your fiscal year.
From the Proposed New Owner
-
Evidence that the proposed new ownership has
net worth consisting of sufficient liquid assets pr other evidence of fiscal
soundness to operate the school during the period of authorization as
required by Sec. 10a-22k-5(i) of the Regulations of State Agencies. The
evidence should be as follows:
-
If the school is to be part
of an existing corporation, partnership or proprietorship, submit a
financial forecast for the twelve-month period following the date of the
proposed transfer.
-
If the school is to be part
of a new corporation, partnership or proprietorship, a reviewed
financial forecast of the school's operations for the twelve-month
period following the date of the proposed transfer.
-
Submission of a complete application.
-
Submit $20,000 Irrevocable Letter of Credit to
be held for 8 years from the date of the change of ownership.
Change of School Name
Applicable application sections submitted to the Department of Higher
Education at least 60 days before any intended change of school name:
AP Page 1 Application Cover
Page
(PDF
document)
AP Page 2-6
Instructions
(PDF
document)
AP Page 7-8 Business Status
(PDF
document)
AP Page 9 Additional Facilities
(PDF
document)
AP Page 10 Letter of Credit Information
(PDF
document)
AP Page 11-12 Letter of Credit Sample
(PDF
document)
AP Page 13 Insurance
(PDF
document)
AP
Page 19 Campus Roster
(PDF
document)
AP Page 20-22 School Director Form
(PDF
document)
AP Page 23-25 Campus Director Form
(PDF
document)
AP
Page 26-27 Instructor Form
(PDF
document)
AP
Page 28 Waiver of Instructor
(PDF
document)
AP
Page 29-30 Recruiter Form
(PDF
document)
AP
Page 31 Program - Course List
(PDF
document)
AP
Page 32 Program - Course Information
(PDF
document)
AP
Page 34 Student Records
(PDF
document)
AP
Page 35-36 Enrollment Agreement
(PDF
document)
AP Page 37-38 Catalog
(PDF
document)
AP Page 39 Diploma
(PDF
document)
AP Page 40 Complaints
(PDF
document)
AP Page 43 Non-Discrimination
Clause
(PDF
document)
AP Page 44 Affidavit of School
Closure
(PDF
document)
AP
Page 45-46 Designation of Agent of Service
(PDF
document)
Change of Location of School, Branches, Classroom
Sites
Applicable application sections submitted to the Department of Higher
Education at least 60 days before any intended revisions of the Conditions of
Authorization:
AP Page 1 Application Cover
Page
(PDF
document)
AP Page 2-6
Instructions
(PDF
document)
AP Page 7-8 Business Status
(PDF
document)
AP Page 9 Additional Facilities
(PDF
document)
AP Page 10 Letter of Credit Information
(PDF
document)
AP Page 11-12 Letter of Credit Sample
(PDF
document)
AP Page 13 Insurance
(PDF
document)
AP Page 14 Fire Marshal Approval
(PDF
document)
AP Page 15 Zoning Officer Approval
(PDF
document)
AP
Page 19 Campus Roster
(PDF
document)
AP Page 20-22 School Director Form
(PDF
document)
AP Page 23-25 Campus Director Form
(PDF
document)
AP
Page 26-27 Instructor Form
(PDF
document)
AP
Page 28 Waiver of Instructor
(PDF
document)
AP
Page 29-30 Recruiter Form
(PDF
document)
AP
Page 31 Program - Course List
(PDF
document)
AP
Page 32 Program - Course Information
(PDF
document)
AP
Page 34 Student Records
(PDF
document)
AP
Page 35-36 Enrollment Agreement
(PDF
document)
AP Page 37-38 Catalog
(PDF
document)
AP Page 39 Diploma
(PDF
document)
AP Page 40 Complaints
(PDF
document)
AP Page 43 Non-Discrimination
Clause
(PDF
document)
AP Page 44 Affidavit of School
Closure
(PDF
document)
AP
Page 45-46 Designation of Agent of Service
(PDF
document)
New Branch Campus and Classroom Sites
Applicable application sections submitted to the Department of Higher
Education at least 60 days before any intended revisions of the Conditions of
Authorization:
AP Page 1 Application Cover
Page
(PDF
document)
AP Page 2-6
Instructions
(PDF
document)
AP Page 7-8 Business Status
(PDF
document)
AP Page 9 Additional Facilities
(PDF
document)
AP Page 10 Letter of Credit Information
(PDF
document)
AP Page 11-12 Letter of Credit Sample
(PDF
document)
AP Page 13 Insurance
(PDF
document)
AP Page 14 Fire Marshal Approval
(PDF
document)
AP Page 15 Zoning Officer Approval
(PDF
document)
AP
Page 19 Campus Roster
(PDF
document)
AP Page 20-22 School Director Form
(PDF
document)
AP Page 23-25 Campus Director Form
(PDF
document)
AP
Page 26-27 Instructor Form
(PDF
document)
AP
Page 28 Waiver of Instructor
(PDF
document)
AP
Page 29-30 Recruiter Form
(PDF
document)
AP
Page 31 Program - Course List
(PDF
document)
AP
Page 32 Program - Course Information
(PDF
document)
AP
Page 34 Student Records
(PDF
document)
AP
Page 35-36 Enrollment Agreement
(PDF
document)
AP Page 37-38 Catalog
(PDF
document)
AP Page 39 Diploma
(PDF
document)
AP Page 40 Complaints
(PDF
document)
AP Page 43 Non-Discrimination
Clause
(PDF
document)
AP Page 44 Affidavit of School
Closure
(PDF
document)
AP
Page 45-46 Designation of Agent of Service
(PDF
document)
Required Documents for Financial Statement Submission
A copy of the school’s audited and reviewed annual
financial statements must be filed each year with the Commissioner on or before
the last day of the fourth month following the end of the school’s fiscal year.
Upon written request, the Commissioner may authorize a filing extension for a
period not to exceed 60 days for good cause shown.
Required Documents for Submission:
-
Balance sheet
-
Income statement
-
Statement of change in equity or fund balance
-
Statement of cash flows
-
Footnotes or notes to financial statements
-
Cover letter prepared by the licensed
certified public accountant or licensed public accountant stating the scope
of the review or audit, any opinions, and standards and principles followed
-
Composite Scoring System for Financial Review
Composite Scoring System: The U.S. Department of
Education, with the help of KPMG Peat Marwick, LLP (Dec. 1997), developed a
composite scoring system for schools seeking to participate in the federal Title
IV student assistance programs. The scoring system is made up of three ratios
which measure five fundamental elements of financial health: viability,
profitability, liquidity, ability to borrow, and capital resources. The
Department of Higher Education, with the guidance of Carney, Roy and Gerrol,
P.C., has adopted this system to review annual financial submissions and
financial forecasts.
-
Primary Reserve Ratio - measures
viability and liquidity.
-
Equity Ratio - measured ability
to borrow and capital resources
-
Net Income Ratio - measures
profitability
A weighted average of the three ratios is derived
resulting in one final score for the school. A score of 3.0 is the highest
achievable score, while minus 1.0 is the lowest achievable score.
-
A score of 1.5 or greater is
proof that the school is financially stable
-
Require interim financial
statements for schools in the range of 1.0 to 1.4.
-
Require a letter of financial
commitment for composite scores of less than 1.0.
Fee Schedule
- Application Fee
– New Schools: $2,000;
New Branch: $200
- Annual Fee: $200
per school, $200 per branch
- Renewal of
Authorization: $200 per school, $200 per branch
- Quarterly Payments
into the Student Protection Account: .005% of Net Quarterly Tuition Revenue
- Annual Out-of-State
School Representative Fee
– $500
- Change of Ownership:
Application Fee
– $2,000
How to Close a School
The following steps must be followed in the event
private occupational school needs to cease operations:
-
Notify the Department of
Higher Education at least 60 days prior to school closure, in writing, so that we may work with
you.
-
The Department, in writing,
will acknowledge the school's intention to close and outline the necessary
procedures to follow:
- Verify that all course work will be or has been completed by current
students. If they have not completed their training, please
provide the department with names and addresses of schools, names of
students and expected completion dates since these students may be
transferring to other institutions to complete their program of study.
- Verify whether there are refunds due to any students.
- Notify the department as to whether records will be maintained by
you as prescribed in Section 10a-22k-5(f) of the Regulations of State
Agencies or shall be filed with the Connecticut Commissioner of Higher
Education. The following student records must be preserved and
maintained into perpetuity: (1)admission and cumulative records of students
including the results of achievement tests, if any, academic grades and
attendance showing the names and permanent address of each student;
(2)the date the student began instruction at the school; (3)a copy of
the individual enrollment agreement; (4)information about each program
in which the student is or was enrolled, including name of program,
length of program in clock hours or credit hours, tuition paid in each
calendar quarter; and (5)date of last instruction or of course
completion.
-
Verify whether, if
applicable, final payment has been made to the Student Protection Fund.
-
Return Certificate of
Authorization.
-
Once these steps have been
completed, if applicable, the Irrevocable Letter of Credit will be returned
to the bank of origination for cancellation.
-
The Commissioner, in
writing, will acknowledge the closure of the school.
Out-Of-State Representatives
All
representatives of out-of-state private occupational schools that are not
authorized currently by the Department of Higher Education as a private
occupational school in Connecticut must obtain a permit from the
Commissioner. This permit will allow you, as a representative of your
school, to visit the residence of any prospective student, solicit
enrollments, sell occupational instruction in any form or manner, make
representations, and give counsel to prospective students in Connecticut.
Application for a permit (per Sec. 10a-22k-11 of the Regulations of State
Agencies) must be in writing and must include the following information:
·
name, resident address, business address, and
telephone number of the representative;
·
name and address of the school or schools he or
she represents;
·
evidence that the school is authorized to give
instruction by the State where the school is located and is in good
standing;
·
evidence that the school, if a corporation, is
in good standing where incorporated, and is registered in good standing to
do business in Connecticut; and
·
copies of the school catalog, sales literature,
and enrollment agreement.
·
Click here for
application.
Upon receipt
of the application and $500 fee (per Sec. 8. Section 10a-22h(b) of
Connecticut’s General Statutes), the Commissioner will, if all requirements
are met, issue a permit to the school representative that is valid for a
period of one year from the date of issuance. The issuance of a permit does
not imply that the school or its courses of instruction are approved by the
Commissioner.
FAQs
-
What is a Private Occupational School?
It is a person, board, association, partnership, corporation, limited
liability company or other entity offering instruction in any form or manner
in any trade, industrial, commercial or service occupation for any
remuneration, consideration reward or promise of whatever nature.
-
What is the role of the Connecticut Department
of Higher Education? As charged by statute,
the Department is to maintain standards of quality, assure the fullest
possible use of available resources, promote responsiveness to economic,
societal and student needs, offer education and training opportunities key
to the state's development, protect academic freedom, and ensure educational
opportunity.
-
What types of schools does our Department
authorize? The Department has approved a
variety of schools that provide vocational training which can lead to entry
level employment. These schools range from offering programs in
electronics, automotive, dog grooming, bartending, certified nurses aid,
massage therapy and many more.
-
What types of schools are exempt from
authorization by our Department? Exempt from
authorization are schools that offer instruction under public supervision
and control; instruction conducted by a firm or organization solely for the
training of its own employees; or instruction offered by a school authorized
by the General Assembly to confer degrees.
-
How do I apply to become a Private
Occupational School? Refer to the
Initial/Renewal Application section of this web site and/or contact our
Department directly using the Contact Information section of this web site.
-
Can I operate a school while my application is
pending? No. In Connecticut, only schools
approved by the CT Commissioner of Higher Education can operate. Filing an
application indicates the intention of becoming approved but does not assure
that all the conditions of authorization have been met.
-
Can I submit a partial new school application
and submit the remaining documents at a later date?
No. The application must be submitted in it’s entirety. In addition to the
application, this would also include the financial forecast and irrevocable
letter of credit.
-
What is an Irrevocable Letter of Credit?
It is a document used to guarantee payments required of the school to the
private occupational school student protection account in accordance with
the provisions of section 10a-22u of the Connecticut General Statutes. The
$20,000 letter of credit shall be made with a bank and made payable to the
private occupational school student protection account in the event that
such school fails to make payments to the account or in the event the school
closes improperly and a tuition refund needs to be paid to a student.
-
At what intervals are school authorizations
renewed? All schools must receive one
initial authorization followed by three annual renewal visits. Following
the final annual visit, a school may be eligible for an extended
authorization of not more than five years.
-
What is the difference between authorization
and accreditation? A school receives
approval/authorization by the Connecticut Commissioner of Higher Education
to operate in the State of Connecticut. This is the first level of
approval. Once a school receives the Commissioner’s approval, it may
voluntarily apply for accreditation by an independent accrediting council
that has been recognized by the U.S. Department of Education. Accreditation
is a separate approval process where the school meets an independent
accrediting council’s evaluation standards. A school that has met the
independent accrediting council’s evaluation standards and has received
accreditation, may apply to the federal government to participate in Title
IV financial aid.
|
