20 AAC 17.060. General operating standards

(a) In addition to the minimum standards prescribed in AS 14.48.060 , an institution operating, or seeking authorization to operate, in Alaska shall adhere to the following general academic standards:

(1) an institution that offers postsecondary education at a noncredit, continuing-education level for which continuing-education units (CEU's) are awarded shall use the standard measure for a continuing-education unit, which is one unit for every 10 contact hours of participation in an organized continuing-education experience under responsible sponsorship, capable direction, and qualified instruction;

(2) a degree-granting institution that offers postsecondary education for which credit is awarded shall meet the following minimum criteria for clock hour to credit hour conversion:

(A) semester credit hours:

(i) one semester credit hour for each 15 hours of classroom contact, plus 30 hours of outside preparation or the equivalent; or

(ii) one semester credit hour for each 30 hours of laboratory work, plus necessary outside preparation; or

(iii) one semester credit hour for not fewer than 45 hours of an externship, shop instruction, or the equivalent;

(B) quarter credit hours:

(i) one quarter credit hour for each 10 hours of classroom contact, plus 20 hours of outside preparation or the equivalent; or

(ii) one quarter credit hour for each 20 hours of laboratory work, plus necessary outside preparation; or

(iii) one quarter credit hour for not fewer than 30 hours of an externship, shop instruction, or the equivalent;

(3) repealed 10/11/95;

(4) an institution that offers collegiate-level degrees of masters and beyond will be treated on a case-by-case basis and will be thoroughly studied and reviewed by the commission before an authorization decision is made;

(5) a postsecondary education institution that is not degree granting shall describe its programs in clock hours except as provided in this section; and

(6) an accredited postsecondary educational institution that does not grant a degree may describe its programs in either clock hours or in credit hours as long as the credit hours are measured according to the standards set by the accrediting agency.

(b) An authorization to operate an institution is restricted to the fields or courses specifically indicated in the application for authorization. The holder of an authorization shall present a supplementary application for approval of additional fields or courses in which it seeks to offer instruction. An institution may only offer courses of study at locations for which it has been approved.

(d) An institution shall provide a program consistent with the statement of institutional purpose.

(e) An institution shall establish and maintain minimum admission standards to determine that a prospective student is qualified to study in a course or program with a reasonable likelihood of success. If the field for which the student is to train requires the individual to meet specific requirements for employment, an institution shall assess the prospective student's ability to obtain qualifications in those areas. An institution must demonstrate to the commission that its admission requirements establish a standard of competency, knowledge, and aptitude allowing a prospective student to complete the program of study and obtain employment in the field for which the training is preparatory.

(f) A student may not be required to be employed as a course requirement, unless the commission determines that it is reasonably necessary to gain practical experience.

(g) An institution authorized to operate under this chapter shall operate in accordance with generally accepted good business practices and standards. If general liability insurance is not provided by a third party, a school shall maintain general liability insurance. A school maintaining a program in which the students, in the course of their instruction, work or study with, near, or in close proximity to equipment or training devices that could cause bodily harm or damage to the student shall also maintain accident insurance.

(h) Before a school is authorized to operate under this chapter, it must provide evidence of compliance with applicable state, municipal, and federal licensing, zoning, health, and safety requirements.

(i) An institution shall provide evidence to the commission that the institution is financially sound and can reasonably fulfill commitments to and obligations it has incurred to students and creditors. An institution applying for an initial authorization to operate, renewal of an authorization to operate, or an authorization to operate under a change of ownership, shall submit financial statements audited by an independent, licensed certified public accountant and supporting documentation as requested by the commission unless the institution qualifies to submit unaudited financial statements under (j) of this section. The commission will require evidence of financial soundness at other times, if the commission determines it is in the best interest of students to require such information.

(j) The commission will accept unaudited financial statements from the institution to assess the institution's financial soundness under (i) of this section when

(1) an institution has annual tuition revenues of less than $50,000 and provides to the commission a compilation report with full disclosure, including an accountant's opinion letter stating that the institution's financial statements for the most recently completed fiscal year were prepared in conformity with GAAP; the report required by this paragraph must be prepared by an independent accounting service that is licensed as a business;

(2) an institution has annual tuition revenues of at least $50,000 but less than $100,000 and provides to the commission an independent licensed certified public accountant's compilation report stating that the institution's financial statements for the most recently completed fiscal year were prepared in conformity with GAAP; or

(3) an institution has annual tuition revenues of at least $100,000 but less than $150,000 and provides to the commission an independent licensed certified public accountant's review report stating that the institution's financial statements for the most recently completed fiscal year were prepared in conformity with GAAP.

(k) For the purposes of (j) of this section,

(1) "annual tuition revenues" include all tuition and fee revenues received from all funding sources;

(2) "GAAP" means generally accepted accounting principles.

( l ) For the purposes of (i) and (j) of this section, financial statements must include at a minimum:

(1) an accountant's opinion letter;

(2) a balance sheet;

(3) an income statement;

(4) a statement of cash flows; and

(5) notes to the financial statements.

History: Eff. 12/30/77, Register 64; am 5/10/78, Register 66; am 3/15/85, Register 93; am 8/20/86, Register 99; am 1/30/87, Register 101; am 3/25/90, Register 113; am 5/4/90, Register 114; am 10/11/95, Register 136; am 6/13/97, Register 142; am 4/24/98, Register 146; am 4/20/2000, Register 154; am 4/27/2001, Register 158

Authority: AS 14.48.050

AS 14.48.060

AS 14.48.070

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