New School Seminar
Private Licensed Schools
Contents
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Foundations – Statute, Regs, and Memos
Board and staff roles
Form PDE-3775
Fees
Form PDE-1003
Facility
Type of Ownership
PDE-5004 Forms
School Name
Contents Continued
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Surety
Finances
Ethics Statement
Records Retention Agreement
PDE-340 Forms
Catalog
Enrollment Agreement
New Program Applications
Admissions Representatives
Handouts
• Regulations
• New School Application
• Internet Sites
Legal Authority
• Statute
• Regulations
• Board Policy Memos
Internet Resources
• Public Website:
http://www.pde.state.pa.us/pls
• Financial Forms ftp://ftp.state.pa.us/pub/PDE_PUBLIC/PLS
Financial/
Staff Role
• Determine if application is complete and
acceptable for Board review
• Give school feedback with 10-day “cure”
period
Staff
• Staff can answer questions and provide
guidance and insight into Board
requirements and standards.
• Staff cannot teach applicants to develop a
syllabus, prepare basic financial
statements, or operate the school.
Staff
• Ed Rech
• John Galganovicz
• Bob Kline
• (717)783-8228
Consultants
• Accountant
• Attorney
• Educational/Administrative
Role of Board
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Approve
Approve Pending
Defer
Deny
Fees
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$200 – This Mandatory Seminar
$1500 – Application Fee
$700 – Each Additional Program
$500 – Site Visit
$300 – Admissions Representatives
PDE-3775
• Follow PDE-3775
• Use as a check sheet for submission
• Include in application
PDE - 1003
• Complete all information
• Must have valid mailing address and
phone number.
• Fax and/or e-mail will speed
communications
PDE-1003 Red Flag
• Be sure the address, fax, phone number,
and e-mail that you provide are active.
Otherwise, important correspondence or
communication about your application
might not reach you!
Facility
• Must have Certificate of Occupancy
• Floor plan with measurements
Type of Ownership
• Corporate registration from Department of
State, Corporate Bureau
• Partnership agreement
• Personal financials if sole proprietorship
School Name
• Fictitious Name registration from
Department of State Corporate Bureau
unless the school name is exactly the
same as the name of the corporation.
PDE-5004 Forms
• Needed for each corporate officer
• 3 Letters of recommendation – one from a
bank
Surety
• Surety Bond
• PTAF
• Irrevocable Administrative Trust
Financial Statements
• All schools are required to submit financial
documentation as a component of the license application
(24 P.S. § 6507).
• The financial documentation is required in order to
demonstrate that the school has the financial solvency
that will be required to successfully launch the operation
and prevent negative consequences for students (22 Pa.
Code § 73.53).
• Each application must include documentation that
demonstrates that the school is appropriately capitalized,
that accurate assessments have been made regarding
operating costs, and that the individual, partnership, or
corporation that owns the school is solvent and has the
financial capacity to support the operation.
Financials Con’t
• The Financial Review Committee reviews the financial
statements and supporting documentation before each
Board meeting. A license cannot be issued until the
Financial Review Committee approves the financial
condition of the applicant school.
• Submit actual financial statements specific to the school
on the PDE-2006 form. This statement should be only
for the school site that is applying for licensure (i.e. stand
alone statement). The financial statements should not
include other schools and reflect actual results.
• All financial documentation must be less than six months
old on the Board meeting date at which the application
will be reviewed
Financial Reports for New School
Applicants
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PDE-2006
Pro Forma
Parent Company Financials
Proof of Capital
* New School Financial Statements must be
audited or reviewed
PDE-2006
• Forms and instructions located at:
ftp://ftp.state.pa.us/pub/PDE_PUBLIC/PLS%20Financial/
• A guide for the FRC to assess the financial strength and
solvency of a school / institute
• Measures the current condition and ability to operate in
the future through:
– Income Statement (page 1)- Revenue and Expenses
– Balance Sheet (page 2) – Assets, Liabilities and Stockholder’s
Equity
– Disclosure Information (page 3) – Methodologies, Terms of
Significant Notes, Parent Company Information, Pending
regulatory/legal Issues and Explanations
– Key Indicators (page 4) – Individual program information
PDE-2006 and GAAP
• All financial information must conform with
Generally Accepted Accounting Principles
(GAAP)
– The common set of accounting principles, standards and
procedures that companies use to compile their financial
statements. GAAP are a combination of authoritative standards
(set by policy boards) and simply the commonly accepted ways
of recording and reporting accounting information.
– Imposed on companies so that investors have a minimum level
of consistency in the financial statements they use when
analyzing companies for investment purposes. GAAP cover such
things as revenue recognition, balance sheet item classification
and outstanding share measurements.
– Still Room for interpretation and different methodologies within
GAAP
Accrual Accounting
• Key concept of GAAP is Accrual
Accounting
– An accounting method that measures the performance and
position of a company by recognizing economic events
regardless of when cash transactions occur. The general idea is
that economic events are recognized by matching revenues to
expenses (the matching principle) at the time in which the
transaction occurs rather than when payment is made (or
received). This method allows the current cash inflows /
outflows to be combined with future expected cash inflows /
outflows to give a more accurate picture of a company's current
financial condition.
Memo #72
• Board requires audited or reviewed
financial statements for new school
applications.
Finances
• PDE-2006 – ACTUAL, REAL, income
statement and balance sheet
• MUST balance
• May not be completely zeros
• At least 4 months of operating capital
Financials Con’t
• Financial statements provided for new school
applications are expected to meet the following
criteria:
– A current ratio of 1:1 (current assets to current
liabilities)
– A positive net worth, accompanied by a reasonable
debt to equity ratio
– Net profit in one of the last two fiscal years
– Sufficient cash reserves to support 4 months of
operation without depending on tuition revenue.
– Accurate and realistic reflection of the revenue and
expenditures anticipated prior to opening and the first
12 months of operation post opening.
PDE - 2006
• ftp://ftp.state.pa.us/pub/PDE_PUBLIC/PLS
Financial/
• Both form and instructions on this site
• Use Annual Form
Owner Financials
• All applicant schools must demonstrate the
financial solvency of the owners. If the school is
a proprietorship (single owner) or partnership,
the application should include personal financial
statements. If the school is owned by a
corporation, corporate financial statements must
be provided. Audited or reviewed statements
are appreciated, but not required, unless the
committee specifically requests an audited or
reviewed statement.
Evidence of Capital
• 4 Months of Operating Costs
• In Name of School
Pro-Forma Projection
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Projection for first 12 months of operation
Be realistic – include all possible expenses
Include the costs of advertising
Include attrition
It is ok if there is no profit immediately
Proforma Projections
• Provide a pro-forma financial statement that accurately
and realistically reflects the revenue and expenditures
anticipated prior to opening and the first 12 months of
operation (post opening.) This pro-forma statement
should include all costs associated with the operation of
the school, including facilities, utilities, advertising,
printing costs, staffing, staff benefits, insurance, and all
other expenses. Failure to accurately anticipate
reasonable expenses or unrealistic revenue projections
can result in deferral or denial by the Financial Review
Committee.
Financial Summary
• PDE – 2006 is the PLS form for your income
statement and balance sheet – this is real
• Proforma – required projection of income and
expenses for first year
• Capital – evidence of capitalization of school
• Parent financials
* New School Financial Statements must be
audited or reviewed
Additional Help
• Consult an accountant
• Attend quarterly financial seminar
– April 15, 2009
– July 15, 2009
– October 21, 2009
Disclaimer re Financials
• Information is provided to guide schools
and applicants in financial planning and
financial reporting. However, the Board
and the Financial Review Committee may
look at any other indicator to determine
stability and are not limited to or bound by
the criteria outlined in this presentation.
Ethics Statement
• Serious commitment
• Read carefully and comply
• Signed by owner or director
Records Repository
• Should be with another Private Licensed
School in Pennsylvania
• Must have signature for both schools
• No fee may be required after closure
• Service fees may be charged to students
• Samples
Sample Repository –
NO FORM PROVIDED
PDE-340 Forms
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For Director
For Acting Directors
Complete all sections
Include documentation of qualifications
PDE-3774
• Check sheet for Enrollment Agreement
• Blue
• Include with application
Enrollment Agreement
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Name and address of school
Student name
Program title
Hours
Document awarded at graduation
(Certificate or Diploma)
• Costs
Enrollment Agreement Con’t
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Terms of Payment
Starting date
Cancellation and termination policy
Refund policy
Placement assistance if provided
– Placement is not guaranteed
• Complaint procedure
– MUST include title of school official and address for
PLS
Enrollment Agreement Con’t
• Student’s signature must confirm that they
have received the catalog
• Student’s signature must confirm that they
have received a copy of the enrollment
agreement
• Effective date (not binding until also
signed by school official)
Enrollment Agreement Con’t
• Student (and parent or guardian if under
18) signature
• Pagination
• Completely consistent with catalog
PDE-4627
• Check sheet for Catalog (Goldenrod)
• Include with application
Catalog
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Name and address of school
Date of publication
Admission requirements
Objectives
Clock Hours
Course list
Facilities description
Student behavior policies
Catalog Continued
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Grading System
Requirements for graduation
Tuition
Refund policy
Job placement assistance – if provided
– No guarantee of placement
• Student Services – if provided
Catalog Continued
• School calendar
• Transfer of Credit Disclaimer
– No guarantee that these credits will transfer to
another institution
BREAK
New Program Application
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$700 Fee
PDE-3003
PDE-3004
PDE-279 forms
Externship information
Catalog
PDE-3776
• Instruction sheet for new programs
• Include with application
PDE-3003
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Signed
Number of hours
Tuition, registration fees, other fees
Diploma vs. Certificate
Start date – after Board meeting
Student:Equipment Ratio
Entrance Requirements compared to reading
levels of texts
• Employment opportunities
Clock Hours
• Insufficient hours of instruction is a
common problem for new schools
• Do not assume that students will have a
foundation in the field if it is not required
for admission
• Do not assume that all students are highly
disciplined with independent learning skills
Diploma vs. Certificate
• Diploma for a program – multiple courses
• Certificate for a course – one course on
PDE-3004, one syllabus
• Guideline – Not absolute
Degree
• New programs can not be degrees
• AST or ASB degrees require additional
approval by the Secretary of Education
after approval by the PLS Board at the
diploma level
• Approval to award any degree above the
AST or ASB requires authorization as a
college
Certificate vs. Certification
• Certificate – a credential awarded by the
school upon successful completion of a
course
• Certification – a credential awarded by a
3rd party after meeting established criteria
– usually involves passing a 3rd – party
exam
Accreditation vs. Licensure
• License – permission to operate
• Accreditation – by an authorized private
agency that confirms that the education
and practice meets certain quality
standards.
Entrance Requirements
• Ensure that all students admitted can reasonably
be expected to handle the curriculum
– Reading level for admission compared to reading
level of texts
– Consider a reading test
– High School diploma or GED does not demonstrate
12th grade reading ability
• Ensure that all students who meet admission
criteria can reasonably expect to qualify for
employment after completing the training.
A+B=C
A = admission requirements
B = curriculum
C = job ads
Occupational Objectives
• Narrative or list of the major occupational
skills the student will learn
• Do not list the jobs in this section – list the
skills
Employment Opportunities
• List the job titles for which graduates
should be qualified
• Provide the list of job titles on the PDE3003 form or attached
• In addition, provide evidence of job
opportunities
Job ads
• Demonstrate that there are jobs for graduates
• Local jobs or provide a disclaimer regarding
relocation
• May not require any skills, experience, or
credentials that are not either required for
admission or taught in the program.
• No jobs that require degrees
– Unless required for admission
• No jobs that require job experience
– Unless required for admission
• No jobs that don’t require any training
Job Ads Continued
• Include actual ad – do not retype
information
• Show name of employer
• Include entire ad – not just a list of
openings
• Letters from prospective employers can be
used
• Occupational Outlook is not sufficient
Sites
• Provide the address if you will offer this
program at an approved branch
• This is very uncommon for new schools
Remote Facilities
• If part of the training is provided at another
site, list the address.
– Driving range, clinical facility, lab
• Site visit required
• $500 additional site visit fee.
• Remote vs. Externship Site
Equipment
• List all equipment
• Give specifications – model number,
speed, etc.
• Provide student to equipment ratio – best
to list for each item of equipment
• If there is any doubt about whether it is
equipment or supplies, list it.
• Usually requires an attachment
Instructors
• List all instructions and assigned courses
on PDE-3003 or attachment
• Do not simply refer to PDE-279’s
• Ensure that PDE-3003 list matches PDE279 forms
PDE-3004
• Credit Conversion
• Course List
– Check Math on Hours and Credits
• Signed
• Syllabus for EACH Course
Syllabi
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One Syllabus per Course
All elements required in each syllabus
Must be detailed
See sample
SAMPLE SYLLABUS
NO FORM PROVIDED
Elements of Each Syllabus
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Course Title
Objectives
Course description
Course schedule
Instructor
Pre-requisites (differ from admissions
requirements)
Elements of Syllabus Con’t
• Policies
• Specific policies on make-up work and
whether there is any charge for make-up
work
• Grading System
• Author/Title/Publisher of Texts and
Software
Elements of Syllabus Con’t
• Course outline
– (DETAILED)
Syllabus Reminder
• Don’t forget to include a syllabus for the
externship, if the program has an
externship
Sample Reading Levels
NO FORM PROVIDED
Reading Levels of Texts
• Grade Level of each text
• Method used to determine
– Publisher
– Reading level specialist
– Flesch-Kincaid
PDE-279 Form
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Complete all sections
Sign
Complete section 6
Provide documentation
Externships
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Site Selection Criteria
Sample Written Agreement
Site Responsibilities
School Responsibilities
Evaluation Instrument
Include externship syllabus in syllabus
section
Externship Hours
• Enough to ensure appropriate experience
to compete for jobs
• Enough to ensure compliance with
certification requirements
• Do not turn the program into on-the-job
training
Externship Supervision
• The school must supervise the externship
• The externship site should be visited
Externship Sites
• Highly recommended to provide letters
from prospective sites to demonstrate that
sites are available for all students in each
cohort
• Highly recommended to have a procedure
for student to select own site, but not to
require students to find their own site
Externship Evaluation Rubric
• Specific to professional skills
• A tool for site to use to formally evaluate
student extern for the school
• Provide sample
Admission Representatives
• Required if students will be asked to sign
enrollment agreement anyplace off the
school property
• Not required for marketing – education
fairs, etc – if students do not enroll
• PDE-5006
• $300 Fee
• Must be renewed annually
Cure Period
• Cure Letter
• Cure Memo – see sample on public site
• Deadlines
Submissions
• All applications must be in by deadline
• All revisions must be submitted to staff by
deadline in “cure letter”
• Do not bring revisions to the Board
meeting
Board Meeting and Deadlines 2009
Meeting Dates
Submission Deadlines
February 12, 2009
December 5, 2008
May 14, 2009
March 6, 2009
August 13, 2009
June 5, 2009
November 19, 2009
September 11, 2009
Common Pitfalls
• Organize application
– Tabs for each section
• Prepare a neat, readable application
– Avoid handwriting, keep copies readable
• Ensure that any changes are incorporated
consistently throughout the application
• Be consistent throughout
Additional Common Pitfalls
• If experienced in another state, do not use
their forms or procedures – take the time
to learn the PA requirements.
• Do not expect the Board to change
requirements.