Here are some of the questions most commonly asked by schools about NACCAS'
policies and procedures. Included is a thorough answer or explanation for
each. If you ever have a question, please check this site first, as your answer
might be here. By not having to search through the policies or make phone
calls, you will ultimately save time and money. We will continue to add to
and update this screen. If you can not find the answer to your question here,
feel free to contact us, and we will
get back to you as soon as we can.
Thank You.
Questions most commonly asked about:
Appeals:
What is the appeal process?
In the event the Commission takes an adverse action (i.e.,
to deny initial or renewal of accreditation or withdraw accreditation), the
following steps apply to the appeal process. NACCAS sends to the school, within
forty-five (45) days following the action of the Commission, a written statement
of the findings which are the basis of the Commission's action. The school
may appeal the action of the Commission by submitting an intent to appeal
that action in writing within twenty (20) days of receipt of written notice
of the action.
The school's intent document should include the
grounds for the school's appeal as set out in Section 7.6
of the NACCAS Rules of Practice and Procedure. The institution
must submit twelve (12) copies of its appeal document within forty-five
(45) days of receipt of the Commission's action. The school's
appeal will be presented to an Appeal Review Team approximately
a month prior to a scheduled Commission meeting. If the Appeal
Review Team cannot resolve the appeal, then it is referred to
the full Commission at a scheduled meeting, where the school has
a right, at its option and expense, to make a personal appearance,
with or without the presence of counsel. The intent to appear
before the Commission must be stated in the institution's notice
of appeal. The action of the Commission shall be kept confidential
until the school has either failed to appeal as prescribed, or
the Commission has completed its consideration of the school's
appeal. Notification of the Commission's action on the appeal,
including the specific reasons if the appeal is denied, will be
transmitted to the school within thirty (30) days following the
conclusion of the Commission meeting if the appeal is denied,
or forty-five (45) days if the appeal is granted. Upon termination
of accreditation, the school must immediately remove from public
view all certificates, decals, emblems, and other evidence of
accreditation and must cease using printed materials indicating
in any way that the school is, or has been, accredited. When an
appeal is denied, the school must wait at least one year from
the date of the withdrawal/denial of accreditation before it is
eligible to reapply for accreditation, unless the Commission waives
the one-year requirement.
Do I have to appear before the Commission if my school
is on appeal? Is there a benefit for me to appear?
There is no requirement that a school owner must appear before
the Commission for an appeal hearing. The only benefit to appearing is that
you have the chance to verbally tell the Commission what steps you have taken
to bring the school into compliance as well as answering any questions your
written appeal did not address. You are not allowed to enter any additional
documentation into the record during the appearance.
What does the Commission consider as an adequate response
when on appeal?
Pursuant to Section 7.8 of the NACCAS Rules
of Practice and Procedure, the Commission requires that twelve
(12) bound, tabbed and labeled copies of the appeal document be
received at the NACCAS office within forty-five (45) days of receipt
of the Commission's action letter. Along with the copies, the
Commission expects that the school will provide a detailed account
of the facts and arguments which the school believes will result
in a reversal of the adverse decision. This account should be
supported by any additional material or documentation to illustrate
the appeal response.
Why does the Appeal Review Team meet prior to a Commission
meeting?
Since appeal documents can be cumbersome and quite lengthy,
the Appeal Review Team meets before a Commission meeting to screen out those
cases where the schools' written appeal documents have clearly demonstrated
that the school has met all accreditation requirements. The Appeal Review
Team has the authority to grant an appeal outright or grant the appeal with
stipulations. The Appeal Review Team can recommend to the full Commission
an adverse action, but the Commission as a whole votes on what action to take.
If you cannot find your question here, please contact
us, and we will get back to you as soon as we can.
Addition or Change of a Course:
What is the difference between adding a course through
the renewal process and submitting an Application for Addition or Change of
a Course?
A school may add a course through the renewal of accreditation
process and have it reviewed during the on-site evaluation, provided that
the course is completely developed including having a course outline, full
set of lesson plans, instructional materials, etc. The on-site evaluation
team will review the new course for compliance. However, the school may not
train students in the course until the school has received its official renewal
of accreditation letter from the Commission.
A school may also add a new course by submitting
an Application for Addition or
Change of a Course. Provided that the school submits
its application, fee and three (3) complete copies of the
Course Self-Study, the Chief Executive Officer has the authority
to grant provisional approval for the course. The NACCAS
staff person will then send two (2) copies to outside evaluators
for review. Depending on the evaluators' recommendations
after reviewing the course, the school can receive final
approval with or without stipulations.
What does "provisional approval" mean for
a new course offering?
This grant of approval is given by the NACCAS Chief Executive
Officer and covers enrollments through the first graduating class. The period
of time can vary, but a good rule is to use the first student's enrollment
time and base the first class on the maximum time fame for course completion.
Could an Application for Addition or Change of a Course
be denied? If so, what action can I take?
Yes, this could happen. The remedy for the denial
of the application is to appeal the Chief Executive's decision
based on the appeal procedures found in Part 7 (Rules of
Procedure for the Appeal of Accreditation Status Decision) of
the NACCAS Rules of Practice and Procedure.
Will the Commission withdraw my accreditation if I offer
a non-approved course?
As members of the NACCAS Staff, we cannot anticipate the Commission's
decision if a school is found offering an unapproved course. We can tell you
that offering an unapproved course is considered a serious violation of the
NACCAS Rules of Practice and Procedure, especially if Title IV funds
are involved.
If you cannot find your question here, please contact
us, and we will get back to you as soon as we can.
Annual Report:
For the current annual report form and online
help, please click here
What are the new changes with the current NACCAS Annual
Report and is there any additional information required?
The NACCAS Annual Report has a different due date than in
previous years. The Annual Report will now be due on October 31 of each year
instead of December 31. Also, all schools who participate in Title IV Student
Financial Aid Programs must submit the latest audited financial statements.
How does the Commission determine what a school's outcomes
are using the NACCAS Annual Report?
Since all schools are required to submit a NACCAS Annual Report,
the Commission uses this process as a quantitative measure for all schools.
More specifically, Section II of the NACCAS Annual Report is used to report
course offerings, number of students enrolled, students scheduled to graduate,
drop-outs, graduates placed, and licensing exam results. Based on the information
submitted in the NACCAS Annual Report, the Commission can determine what a
school's completion, placement, and licensure pass/fail rates are for a particular
year. Since the minimum rates for completion, placement, and licensure pass/fail
statistics are part of the NACCAS Standards and Criteria, monitoring these
rates through the NACCAS Annual Report is a uniform way to make sure that
all schools remain in compliance with these outcomes statistics.
What will happen if my outcomes fall below NACCAS' minimum
threshold?
According to the NACCAS Outcomes
Assessment Policy, schools with outcomes that fall up
to and including 10 percentage points below the standard
may be subject to an administrative show cause. The Commission
or the Educational Quality and Compliance Committee (EQCC)
may take one or more of the following actions. Schools with
low outcomes may be required to complete the NACCAS Appendix
D Consultation and Institutional Effectiveness Analysis.
Schools also may be required to develop and submit an improvement
plan for their rate(s) and evidence of implementation of
the plan. Schools with low outcomes may also be required
to complete the Outcomes Assessment Exercise, or submit
documentation of consultation with its advisory committee.
If a school falls more than 10 percentage points below NACCAS'
threshold, the school may be required to have an on-site evaluation by an
owner of a NACCAS-accredited school and a staff member to review the school's
implementation of its plan. This visit is at the school's expense.
If you cannot find your question here, please contact
us, and we will get back to you as soon as we can.
Branch Campuses:
What are the requirements for a branch campus and how
far away does the branch have to be from the main campus?
There are two main requirements for a branch campus along
with the mileage specification. The main campus must be accredited by NACCAS
for the three most recent years. The branch campus must also be under the
exact same financial structure as the main campus. Therefore, if the school
is a corporation, the corporation must also own the branch campus.
The branch
campus must be located further than two miles from the main campus or any
other branch under the same ownership.
How quickly can I have a branch campus accredited?
As long as your branch meets the ownership
requirements and is licensed, open, and operating, the school
may submit an Application
for Initial Branch Campus, and required fees.
The application will be reviewed by a NACCAS staff member
as soon as possible. Once it is determined that everything
is in order, the school will be granted accreditation.
The institution shall then undergo an on-site evaluation
by a NACCAS representative within six months. If
concerns are raised on the school's application or the main
campus' status, NACCAS may require a staff person visit
prior to granting provisional branch campus accreditation.
If an on-site evaluation is required prior to granting provisional
accreditation, the following procedure will apply. If no limitations are cited
in the report, and there are no other problems (incomplete financial information
or unpaid fees, for example), the school's application may be approved administratively.
If limitations are cited, the school's application will be reviewed by the
Interim Committee on Changes after the school has responded to the findings.
The committee meets monthly to review schools. If problems still exist, the
committee may refer the application to the full Commission. The school will
be notified in writing of the Committee's/Commission's action within forty-five
(45) days from the close of the meeting. If the application is approved and
any stipulations have been met, the branch will have provisional accreditation
and may apply to the US Department of Education to participate in Title IV
programs.
Twelve (12) to Eighteen (18) months after receiving provisional
approval, the school will receive a full-team visit. If the team report and
response (if necessary) are approved by the Commission after the visit, the
school will receive full branch-campus accreditation.
If I own a main school and branch campus and decide
that I want to turn the branch into a free-standing institution, what do I
have to do?
The main requirement is that the branch campus must be licensed
and operating for two years. To achieve freestanding status, a school must
apply for early renewal of accreditation as a freestanding main campus. As
soon as the school successfully completes the renewal process, the branch
will be granted freestanding status.
If I convert my branch campus into a freestanding institution,
am I still eligible to participate in Title IV?
Converting a branch campus to a freestanding institution requires
the school to be continuously licensed by the state where it is located and
in operation training students for a period of two years. The school must
also undergo early renewal of accreditation. With regard to Title IV eligibility,
the school owner(s) must notify the US Department of Education of their intent
to convert the branch into a freestanding institution. The school will then
be considered a new institution and therefore be required to wait two years
before being able to apply for eligibility to participate in Title IV financial
programs.
What happens to the accredited status of my branch campus
if I sell it independently of my main campus?
Pursuant to Section 4.7(c) of the NACCAS
Rules of Practice and Procedure, the accreditation of the
branch campus is terminated as of the date of sale or transfer.
If you cannot find your question here, please contact
us, and we will get back to you as soon as we can.
Change
of Location/Ownership:
I plan to move my school 100 miles from its present
location. Can I do this and if so, what is the procedure?
The NACCAS Rules state that a school may move locations
from one place to the next provided that the distance between
the new location and the old location is no more than 75
miles. Since you plan to move more than 100 miles, the first
step is to submit a petition
for a variance of Section 4.3 of the NACCAS Rules
of Practice and Procedure. The school must detail all
the reasons and factors behind this decision and send any
relevant documentation. The petition will then be considered
at the next Commission meeting and a decision will be rendered.
Based on the NACCAS Rules, the school is not allowed to move farther
than 75 miles before a decision is made on the petition. Failure to obtain
the variance prior to the move could cause the school to lose its accreditation.
If the Commission grants the school's request, then the school would be required
to file an Application for Change of Location.
Is an on-site evaluation required if I move my school or change its
name?
The Commission has the authority to conduct an on-site evaluation if it feels
that the new location may not be in compliance with accreditation requirements.
However, in most cases an on-site evaluation is not required. In the case
of a change of name, the Commission does not require an on-site evaluation.
How long will it take to receive approval for a change of location
or ownership, and what is the process for each?
Applications for a change of location and ownership may be administratively
approved by the NACCAS Chief Executive Officer. These processes are relatively
quick as long as the school submitted all the proper documentation within
forty-five (45) days of the relocation or sale.
The processes for applying for a change of ownership or
location are very similar. It is the school's responsibility
to notify the Commission in writing at least thirty (30)
days prior to the proposed change. Upon notification, the
school will be sent an Application
for Change of Location, Application
for Change of Ownership or Application
for Change of Ownership/Financial Structure, which must
be completed and returned to NACCAS within forty-five (45)
days of the relocation or date of sale/transfer (these documents
may be downloaded from our website as well -- please inform
us in your notification if you will be downloading the documents).
These types of changes may be administratively approved
by the NACCAS Chief Executive Officer as long as the application(s)
are complete, the proposed change(s) do not violate the
NACCAS Standards and Criteria, no special circumstances
surround the change(s) and there is no information from
outside government entities or outside sources raising questions
about the school. If a school's application is not administratively
approved, it will be considered by the Interim Committee
on Changes between Commission meetings, or by the full Commission
at one of its scheduled meetings.
If you cannot find your question here, please contact
us, and we will get back to you as soon as we can.
Do I submit the Application for Change of Ownership before or after
purchasing a school?
The application is due no more than forty-five (45) days after the
date of purchase. You may download a copy of the application from this site
(see above).
I am planning to buy an accredited school. Will the Department of Education
hold up Title IV funding after I purchase the school?
As of this writing, it is currently the Department's policy to temporarily
stop disbursing funds until the school is through the change of ownership
process. Please contact the Department to verify that this is still the policy.
Do I need to have an on-site visit?
Possibly. If your school is only going through a change of financial
structure, then a visit is not necessary. If you currently
own an accredited school or held an administrative or management
position at the school for the past five (5) years, then
you only need a partial-team visit with a school owner and
a NACCAS staff member. If you do not meet either requirement,
you probably will have to have a full-team visit. If the
school has a visit for another purpose coming up, you may
combine the two visits for no additional fee. Please refer
to Appendix #9 of
the NACCAS Rules for a complete explanation of the
policy.
I purchased my school back in 1998 and didn't realize I needed to file
a change of ownership application. What do I do?
You still need to file the application and fees, plus an additional 150%
of the application fee in late fees. Your school will also need an on-site
visit. However, if the school has received a visit under the new ownership,
you may request that it be counted as the change of ownership visit.
I purchased my school 5 days before its visit for renewal of accreditation,
and before I had an opportunity to submit the Application for Change of Ownership.
Do I need to have another visit?
Probably not. The Commission's primary concern is that the visit occur under
the new ownership. Therefore, if your visit occurred after you bought the
school but before you submitted the application, you may request that the
visit be counted as the school's change of ownership visit.
I originally owned 49% of my school. My partner also owned 49%, and
a mutual friend owned 2%. Several days ago I purchased the 2% from the friend.
Do I have to go through the change of ownership process?
Yes. As you own 51% of the school, you are now the majority shareholder and
effectively control the school. Since the control of the school has changed,
you must go through the complete ownership process, including a partial team
on-site evaluation within six months of approval of the application.
If you cannot find your question here, please contact
us, and we will get back to you as soon as we can.
Commission Actions:
Who decides if my school can be accredited or not?
The Board of Commissioners of NACCAS makes the accreditation
decisions. There are 13 members on the board. The qualifications
they must meet and the manner in which they are elected
are found in Article III of the NACCAS By-Laws.
Any Commissioner who has an interest in a school in the
state where your school is located or who resides in the
state where the school is located must abstain for any vote
on your school.
What is the basis of the Commission’s decision to accredit or
not?
The Commission looks at the school’s application, institutional self
study, report from the on-site evaluation visit, the school’s response
to the visit report, annual report information, record of complaints, information
on default rates, program reviews or other government information, information
from third parties, and other relevant and trustworthy information. If accreditation
already has been deferred or denied, the Commission also looks at the school’s
response to the reasons for deferral, or at the appeal document and appeal
hearing if there were any.
My school had its renewal of accreditation visit in September 1998.
Why did it take until June 1999 for me to receive my letter of renewal of
accreditation from the Commission?
The reason why it took nine months before you received notice of your renewal
is that the Commission only meets twice per year to review Applications for
Renewal of Accreditation. These meetings are held in May and October. The
official agenda for these meetings close one month prior to the meeting so
that the Commissioners have time to review all the materials for that meeting.
Since your on-site evaluation was conducted in September 1998, the agenda
for the October 1998 meeting was already closed. Your Application for Renewal
of Accreditation was placed on the next meeting's agenda where schools in
the renewal process were being evaluated, which happened to be the May 1999
Commission meeting. From the close of that meeting, NACCAS has forty-five
(45) days to notify you in writing of the Commission's action.
What happens if I pass my anniversary date and I have not heard about
the status of my renewal of accreditation?
You are still accredited, even after you pass your anniversary date. What
most likely happened is that your on-site evaluation occurred too close to
a Commission meeting and therefore did not make the agenda for the meeting.
The school's application was placed on the next meeting's agenda (which may
occur after your anniversary date); however, your school remains accredited
during this period. Once you receive your final letter of renewal of accreditation,
your accreditation period will extend from your last anniversary date to the
specified number of years granted by the Commission (anywhere from one to
five years.)
Can I call the NACCAS office to find out how the Commission acted on
my application?
Pursuant to Section 3.0(e) of the NACCAS Rules,
notification of the Commission's action must be in writing. Therefore,
the NACCAS office cannot communicate any action by the Commission
in any form except in writing.
If you cannot find your question here, please contact
us, and we will get back to you as soon as we can.
- Deferrals:
I just received a letter stating that the Commission has deferred action
on my renewal application. Is that like a denial?
Not at all. The Commission has determined that there is not enough
information to take an action on your application. Once the information
stated in your letter is received (either through documentation
or another visit), the Commission will then re-review the application
at its next meeting. Please see Section 3.0(d) of the NACCAS
Rules for a complete explanation of this action.
- Reporting Requirements:
What are reporting requirements?
The Commission may order a school to comply with reporting requirements for
various reasons, such as not meeting NACCAS' financial requirements or having
systemic problems with refunds, for example. The Commission will set forth
the terms of the reporting requirement and the school must follow the time
lines established and demonstrate compliance with the NACCAS Standards
and Criteria in order to meet the reporting requirements. These can be
ordered for either accreditation or financial reasons. If the school does
not submit the requested materials by the specified dates, the Commission
may take adverse action on the school's accreditation.
If you cannot find your question here, please contact
us, and we will get back to you as soon as we can.
- Stipulations:
How many copies of my response to stipulations do I need to send to
NACCAS?
One copy is required because the response is reviewed by the NACCAS staff
and does not go back to the Commission for consideration.
If you cannot find your question here, please contact
us, and we will get back to you as soon as we can.
Complaints:
Can I call the NACCAS office and file the complaint over the telephone?
No. Pursuant to Section 6.2 of the
NACCAS Rules of Practice and Procedure, complaints
must be filed in writing and signed by the complainant.
The complainant may contact the NACCAS office for information,
clarification, as well as request a Complaint Form however,
all formal complaints must be made in writing.
Who can file a complaint against a NACCAS accredited school, initial
applicant, or a school in candidate status?
Any party who believes that a school has violated NACCAS'
Standards and Criteria can file a complaint.
This includes students, former students, prospective students,
instructors, former instructors, members of the public,
governmental agencies, or other accredited schools.
When can a student file a complaint against a NACCAS accredited school?
A complaint can be filed only after the student has fully exhausted
the school's internal complaint procedure. Pursuant to Standard
V, Criterion 6 of the NACCAS Standard and Criteria
effective July 1998 schools must have and follow an internal
procedure to consider student complaints. The internal complaint
procedure must be included in the school's catalog, handbook,
other published materials, and/or otherwise prominently
displayed in the school.
If the complaint can not be remedied through the student complaint procedure,
then the student can submit a written complaint to NACCAS. The complaint should
include names, dates, and a description of the actions forming the basis of
the complaint.
What happens after a complaint is submitted to the NACCAS office?
Once the complaint is received in the NACCAS office, the complainant
will receive an acknowledgment in writing from NACCAS within ten
days of receipt. At that point, the school identified in the complaint
will be notified that a complaint has been filed. The correspondence
will include the specific standard and criteria, rule, accreditation
objective, or other Commission requirement, which was allegedly
violated. The school has twenty-one days to submit its response
to the complaint. Once the school's response is received, the
complaint, the response and other related information are placed
on the agenda for the Educational Quality and Compliance Committee
(EQCC). Pursuant to Section 6.6 of the NACCAS Rules of Practice
and Procedure, the Committee may:
- Reject summarily for any of the reasons set out in Section
6.4(a). In this event, the notice required by Section 6.4(b)
will be sent to the complainant.
- Declare the complaint resolved without stipulations or recommendations
for improvement.
- Direct the Chief Executive and his/her designee to encourage an informal
resolution or encourage a settlement of the dispute. If such attempts fail,
the EQCC may refer the matter to the Commission as specified in Section
6.6(g).
- Order an on-site inspection at the school, the cost borne by the school,
unless otherwise specifically stated by the Commission.
- Order an investigation of the complaint allegations in conjunction with
any other accreditation matter the school has pending before the Commission
including an on-site visit or interim (unannounced) visit. The results of
the on-site investigation of the complaint allegation will be sent to the
EQCC for consideration at a monthly conference call.
- Place the institution on probation.
- Refer the entire matter to the Commission for consideration. In this event
the Chief Executive shall forward to the Commission copies of the complaint,
the school's response, and any and all other documents or materials pertaining
to the dispute. The Chief Executive of NACCAS shall also notify the school
in writing that the matter has been referred to the Commission for further
proceedings. The notice shall contain an explanation of why such referral
is necessary.
- Order the school to show cause why its period of accreditation should
not be shortened, or have its accreditation withdrawn on the grounds asserted
in the complaint. The show cause proceeding shall be conducted pursuant
to Part 8 of the NACCAS Rules of Practice and Procedure.
Can a complaint be filed anonymously?
No. A complaint must include a release from the complainant(s) authorizing
the Commission to forward a copy of the complaint, including identification
of the complainant. A complaint that is filed seeking redress for an individual
grievance cannot be kept confidential, since information must be obtained
from the school to address the individual's allegations.
As a school owner, do I have to inform NACCAS of a program review,
termination action, criminal or civil action filed by the state or federal
authorities, destruction of the school, etc.?
Yes. Pursuant to Section 5.1 of the NACCAS Rules of Practice
and Procedure, each accredited school or applicant for initial
accreditation must notify NACCAS in writing of any material event
which may jeopardize its continued operation as a licensed accredited
school within ten (10) calendar days of the events occurrence.
If you cannot find your question here, please contact
us, and we will get back to you as soon as we can.
Extensions:
How do I request an extension and how much time can I have?
You must submit a request for an extension in writing to the Chief Executive
Officer of NACCAS prior to the due date for the process you wish to extend.
You must specify how much additional time is needed, keeping in mind that
all schools are granted a total of forty-five (45) additional days during
one application period. This includes the application, Institutional Self-Study,
response to the Team Report, and response to any actions by the Commission.
If you cannot find your question here, please contact
us, and we will get back to you as soon as we can.
Federal Regs (answers from U.S.D.E.):
Where the federal regulations state that refunds must be made to students
within a certain number of days after the student withdraws or is terminated,
does this refer to calendar days or business days?
Calendar days. All references to 'days' in the regulations are to calendar
days unless otherwise specified.
Can a school disburse Title IV funds to students in a program which
is more than 150% the minimum length of training required to sit for the state
licensing examination?
No. The Secretary [of Education] does not consider a program to be reasonable
in length if it exceeds 150% of the state requirements for course length.
Schools which knowingly employ for administration of Title IV programs
a person who has been convicted, or pled nolo contendere (no contest) or guilty
to a crime involving the acquisition, use or expenditure of federal funds
are not eligible to participate in Title IV programs. If a person in one of
these categories owns a school, would he/she be considered to be employed
in Title IV administration for purposes of this regulation? Also, where can
a school get information to check if potential employees are debarred from
involvement with federal funds?
To the first question: Yes, a school owner is considered to be employed in
the administration of Title IV programs.
To the second question: Information on individuals debarred from involvement
in federal funds may be obtained on the Internet at http://www.arnet.gov/epls
or by contacting the Superintendent of Documents at the US Government Printing
Office, Washington, DC 20402, Reference No. 722-002-0000-8. The telephone
number is (202) 512-1800. It is a monthly subscription.
If you cannot find your question here, please contact
us, and we will get back to you as soon as we can.
Financial Statement Procedures:
For Schools Applying for Initial Accreditation
Schools applying for initial accreditation must submit financial statements along with the initial application. The following outline provides a detailed description of the types of financial statements required under different conditions.
The type of financial statements to be submitted depends upon the answer to the following question contained in the initial Application for Accreditation:
Does the institution plan on applying for eligibility to participate in
Federal Aid Programs (Title IV)? Check one: YES ______ NO ________
If “YES” is checked on the application, you are required to comply with NACCAS’
Standard X, which states:
Institutions that seek accreditation …and wish to participate in federal student financial assistance programs … shall comply with the foregoing goals of accreditation, standards, and criteria with HEA requirements.
Under Standard X the school needs to submit audited financial statements for the past fiscal year, prepared by an independent certified public accountant. The financialstatements prepared on the accrual basis should be audited in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in “Government Auditing Standards”, issued by the Comptroller General of the United States.
If “No” is checked on the application, the school must submit compiled financial statements prepared on the accrual basis and in accordance with generally accepted accounting principles. The school must show that they meet all three of the following requirements:
a. an acid test ratio (as described in federal regulations 34 CFR 668.15(b)(7)) of current assets to current liabilities of one to one or greater;
b. a positive tangible net worth;
c. a profit in the most recent accounting year or in two of the most recent three accounting years. In the latter instance, in no year shall the operating losses have resulted in a decrease in tangible net worth in excess of ten percent of the institution’s tangible net worth at the beginning of the first year of the two- year period in which there was a loss (or, in the rare instance this would apply to a NACCAS - accredited school, currently issued and outstanding debt obligations are (without insurance, guarantee, or credit enhancement) listed at above the second highest rating level of credit quality given by a nationally-recognized statistical rating organization).
An institution may overcome failure to meet one or more of the requirements listed above with:
a. a line of credit equal to or greater than the refunds owed by the institution on the last day of its most recent fiscal year; or
b. a lien on other property held by the same owners for the guarantee and benefit of the institution; or
c. a surety bond by an ‘a” rated company equal to the amount of refunds owed by the institution if it were to close on the last day of its most recent fiscal year.
In addition to financial statements, the school is required to submit a complete NACCAS Statement of Financial Ability Form (SFA).
If you have any questions regarding NACCAS’ financial criteria, please contact Mark Baxter, Accounting Manager at (703) 600-7600 ext 130.
Initial Accreditation/Candidate
Status: Are there any requirements before applying for accreditation?
Yes, there are two major requirements. First, a school must be licensed and
in continuous operation training students for the most recent eighteen (18)
months prior to applying for initial accreditation. Second, the school owner,
or the individual responsible for the on-site evaluation process, must attend
a NACCAS Accreditation Workshop within one (1) year but no longer than three
(3) months prior to submitting the application for initial accreditation.
How is this process different from candidate status?
"Candidate status" applies to any school applying for accreditation,
where the school owner does not currently own a NACCAS accredited school or
has not owned an accredited school in good standing with a recognized accrediting
agency in the most recent twenty-four (24) month period. The candidate process
is a precursor to initial accreditation which involves several additional
requirements that must be completed prior to being eligible to submit an Application
for Initial Accreditation.
If I am a new school owner with no prior accreditation experience,
how do I complete the "candidacy status" process?
A new school would submit an Application
for Candidate Status and pay the application fee. Included
with the application fee is attendance at a NACCAS
Accreditation Workshop for the school owner and one
other school representative. Once the school owner/representative
attend(s) the workshop, then the preparation of the Preliminary
Institutional Self-Study must be completed. Once the preliminary
document is finished and the school has submitted to NACCAS
the required documents listed under Section 1.5 (c)
of the NACCAS Rules, a consultation visit will be
scheduled by the NACCAS office. The visit will be conducted
by a NACCAS staff member and one other person (either another
NACCAS staff person or evaluator). The purpose of the visit
is to provide technical assistance to the new school on
the interpretation of the NACCAS Standards
and Criteria and Rules
of Practice and Procedure and on completing an
effective self-study. This consultation visit will also
serve as a discussion on ways that the school can comply
with accreditation requirements, the development of plans
to correct deficient areas and an implementation calendar
for the implementation of changes. After the candidate
consultation visit, the team will write a Consultation Report,
a copy of which will be sent to the school. Based on this
information, and any other assistance provided, the NACCAS
staff person assigned to the school and the school owner
will determine when the school is ready to apply for initial
accreditation and shall make the recommendation to the Chief
Executive Officer.
How long can I be considered in "candidacy status"?
Candidacy status will expire once the school receives its grant of initial
accreditation. It can also expire twenty-four (24) months from the date that
the school received its notice of "candidacy" status from NACCAS,
if the school has not applied for initial accreditation.
How long does it take a school to go through the initial or candidate
status processes?
To complete the candidate status process, a school must submit the application
and subsequent fees, attend a NACCAS Accreditation Workshop, prepare the Preliminary
Self-Study, submit proof of workshop attendance, a copy of the school's catalog
and contract, identify the school liaison for the accreditation process, and
then have the consultation visit scheduled. Based on the outcome of the visit,
the NACCAS staff person in connection with the school will make a recommendation
to the NACCAS Chief Executive Officer when the school is ready to apply for
initial accreditation. Please note that a school is still required to be in
operation for a period of eighteen (18) months prior to being eligible to
apply for Initial Accreditation. In regard to a time frame, it all depends
on the quality and completeness of the application submitted.
The same holds true for the initial accreditation process.
A school must still submit the Application
for Initial Accreditation, fees,
Institutional Self-Study,
undergo a full-team on-site evaluation, have the opportunity
to respond to the Team Report, and be considered by the
full Commission. The process can take from six months to
a year and sometimes longer based on the quality of the
institution's efforts to come into compliance with accreditation
requirements and its submission of materials.
How much does it cost for each process?
Please refer to Appendix #2
of the NACCAS Rules for the current fees as of
July 1.
Is my Preliminary Self-Study the same as the Institutional Self-Study?
Yes, the Preliminary Self-Study will eventually be the Institutional Self-Study
(ISS). Depending upon the technical assistance visit, the school may be able
to immediately submit the Preliminary Self-Study as its ISS.
What if I do not declare my intention to apply for eligibility to participate
in Title IV when I apply for initial accreditation, what do I need to do?
If you declare your intention to apply for eligibility prior
to having your on-site evaluation, you need only submit
a revised Institutional
Self-Study (ISS) which includes Standard X. If you declare
your intention after the on-site evaluation, you would need
to submit a revised ISS, the required application declaring
your intent and have a partial-team on-site evaluation.
If you cannot find your question here, please contact
us, and we will get back to you as soon as we can.
Interim Visits:
When do interim visits occur and am I notified ahead of time?
Interim visits are unannounced and therefore, schools will not know ahead
of time when visit will occur.
Where can I find out what will be reviewed by the NACCAS staff during
my interim visit?
The NACCAS Handbook contains the Rules of Practice and
Procedure, which includes the policy
for Interim Visits and the Interim
Visit Checklist. All of the items listed are reviewed
during an interim visit.
I have two schools and keep most of my documentation at my main campus.
Will I receive a limitation if the NACCAS staff person cannot review the materials
during my interim visit?
Based on the situation described above, the NACCAS staff person would cite
the missing information as "Unavailable," which is considered a
limitation. The school would then need to respond to the NACCAS Interim Visit
Report and submit all of the information that was not available during the
interim visit with their response to the Visit Report.
If you cannot find your question here, please contact
us, and we will get back to you as soon as we can.
On-Site Evaluation (Visit)
Process:
How are the on-site evaluations scheduled and do I have any say in
the members of the on-site team and date of visit?
A school must have filed both its application and Institutional Self-Study
in order to be placed on the list of schools to be visited before an on-site
evaluation is scheduled. For schools applying for initial accreditation, the
school is not placed on the visit-ready list until the NACCAS staff person
assigned to review the school's application and Institutional Self-Study has
deemed everything to be in order and the school has submitted all of the required
documentation. At that time, the NACCAS staff person will notify the school
that they are "visit-ready" and are on the list of schools to be
visited. The NACCAS Visit Coordinator arranges all the logistics of the on-site
evaluation. The Coordinator will contact you with the date of the visit and
a list of the team members, including the NACCAS staff person. The school
has the right to reject any team member or request a different date for the
on-site evaluation if such a request is for just cause. Schools are only allowed
one postponement per application process. Please note that the school may
not request that a specific person serve as a team member.
What happens if I cancel my scheduled on-site evaluation the week prior
to the visit?
Pursuant to Section 2.5 of the NACCAS Rules of Practice
and Procedure, requests for postponement will be granted only
once and must be for good cause (such as severe illness, etc.).
Canceling one week prior to a scheduled visit means that the school
will be charged a $250 cancellation fee plus any cancellation
costs (such as airline ticket exchange fees, etc.) associated
with the visit, as all arrangements for that visit have been made
and there is not enough time to re-schedule another school.
Why do some schools have two-day visits while others have their visit
performed in one day?
The Two-Day Visit Policy
stipulates that schools that meet any of the following four
categories must undergo a two-day on-site evaluation: 1)
a school which offers more than five courses and enrolls
over 200 students per year, or has a current enrollment
of 125 students; 2) a school whose last Application for
Renewal of Accreditation was denied and who prevailed on
appeal; 3) a school whose Application for Initial Accreditation
was denied and later reapplied; and 4) a school which has
had serious complaint allegations raised against it which
would warrant a special investigation. [The determination
of a two-day visit in this situation would be made by the
Educational Quality and Compliance Committee.]
How long do I have to respond to my team report?
You are required to submit five (5) bound and tabbed copies of your response
to the on-site evaluation's Team Report within forty-five (45) days after
receiving the report. It is highly recommended that you submit the response
via certified mail or other traceable shipping means.
Can I ask for assistance when I am putting together my response to
the Team Report?
Yes, you are encouraged to contact the NACCAS staff person who
visited your school for technical assistance and guidance
with preparing your response. Please note that the staff
person who visited your school can assist you with your
response up until it is filed with our office. Once we have
received your response it is no longer reviewed by our staff,
but mailed to the Commissioners for their review and analysis.
As a reminder, it is best to submit a detailed narrative
response explaining how each limitation has been corrected
and any supporting documentation to show that the school
is in compliance with the particular accreditation requirement
cited. Please also remember to review the Guidelines
for Responding to Team Reports prior to calling,
as you might find the answer to your question there.
If you cannot find your question here, please contact
us, and we will get back to you as soon as we can.
Petitions:
I was reading in the NACCAS Handbook about petitions. How do I put
together a petition for a variance of NACCAS' Rules and is there a fee for
this process?
Submitting a petition
for a variance of the NACCAS Rules is a simple
process and there is no fee associated with it. A school
that wishes to receive a variance of the NACCAS Rules
must submit a letter to the NACCAS Chief Executive Officer,
which details the specific reason(s) for the variance and
the specific section of the NACCAS Rules from which a variance
is sought. The school is advised to submit an explanation
of all factors and include relevant documentation so that
their request is clear to the Commission. The Commission
considers petitions four times a year during their regularly
scheduled Commission meetings. The school must submit a
petition at least forty-five (45) days prior to the start
of a new meeting so that it will be considered in a timely
manner. The school will receive written notification on
whether or not the petition has been granted within forty-five
(45) days of the close of the meeting.
If you cannot find your question here, please contact
us, and we will get back to you as soon as we can.
Renewal of Accreditation:
Do I have to send my application and ISS the same time?
No, you are not required to file your application and ISS
at the same time. You are required to submit your Application
for Renewal of Accreditation within forty-five (45)
days after receiving the document. Your Institutional
Self-Study is due to NACCAS sixty (60) days after the
due date for your application, which gives you a total of
105 days to submit the Institutional Self-Study.
What financial documents am I required to submit with my Application
for Renewal of Accreditation?
Schools in the renewal of accreditation process are no longer required to
submit financial information with their application. The Commission now monitors
the financial status of an accredited school through the Annual Report process.
How often do I have to receive approval for my catalog and contract?
An approval for a school catalog or enrollment agreement is valid for one
year unless changes are made which lead to reprinting. Any time changes are
made to these documents where reprinting is necessary, you are required to
submit a copy to the NACCAS office for a compliance review.
I just received my letter stating that the accreditation of my school
has been renewed for five years, but the renewal date is only three years
away. How can this be?
Whenever the Commission grants a renewal of accreditation, the length of
the cycle is calculated from the school's anniversary date. Since there are
times when the renewal of accreditation period extends past the anniversary
date, the school's next renewal date will seem less than the period specified
in the letter.
For example, a school has an anniversary date of May 1998. The on-site evaluation
takes place in April 1998, and the school's application is considered at the
September 1998 Commission meeting. The application is deferred, and the school's
application and response is again reviewed at the May 1999 meeting. The Commission
acts to approve the application for five (5) years with stipulations, and
the school receives the notification of the Commission's action in June 1999.
The school's response is due and received in mid August 1999. The response
does not fully meet the stipulations, and additional material is requested
of the school. The additional material meets the stipulations and in January
of 2000, the school receives the final letter informing it that its next anniversary
date is May 2003. This is exactly five years from May 1998, not the date of
the final letter. Although the Commission tries to have the entire process
complete by the school's anniversary date, sometimes this is not possible.
Remember! If you cannot find the answer to your question, please contact
us, and we will get back to you as soon as we can.
