U.S. Financial Responsibility Composite Scores
The Higher Education Act of 1965 requires for-profit and nonprofit education institutions to submit audited financial statements to the U.S. Department of Education to verify financial responsibility, which is required in order to participate in federal funding programs.
Institutions are given a score on a scale of -1 to 3 that indicates financial responsibility.
A score greater than or equal to 1.5 shows the school is deemed financially responsible. Schools with a score greater than 1 but less than 1.5 means they are considered responsible, but additional oversight is required. Scores of less than 1 mean the school is not considered financially responsible and typically requires the school be subject to cash monitoring and additional oversight.
Source: U.S. Department of Education
Credit: Graphic by Brandon Quester and Megan Wood | inewsource.org
Christian college can’t explain $20 million in expenses; agency cites 'very sketchy' budget
by Megan Wood | Oct. 30, 2017
San Diego Christian College, a nearly 50-year-old nonprofit school in Santee, can’t account for more than $20 million in expenses that are supposed to be detailed on its public tax returns.
In the meantime, current and former students complain of inadequate facilities, former staff felt they were underpaid and a vendor claimed the school often fell behind on payments. Students who attend this religious-based college full time pay $30,000 a year in tuition.
The school’s chief financial officer, Steve Chaney, told inewsource in an interview he could not say what the $20 million – spent from fiscal 2012 to 2014 – paid for. He said records would be made available, but weeks later the school’s attorney said in an email that San Diego Christian College would not provide any documents.
“It's a symptom of a problem. Nobody’s paying attention,” Marcus Owens, a former top administrator with the Internal Revenue Service said after examining the school’s financial records at inewsource’s request.
Read the full story here.