Accrediation Criteria

Accreditation is a status granted to an institution that meets or exceeds the stated criteria of educational quality. The purposes of accreditation are to assess and enhance the educational quality of an institution, assure consistency in institutional operations, promote institutional improvement, and provide for public accountability.

Accreditation functions to:

  • Evaluate whether an institution meets or exceeds minimum standards of quality.
  • Assist students in determining acceptable institutions for enrollment.
  • Assist institutions in determining acceptability of transfer credits.
  • Assist employers in determining validity of programs of study and the acceptability of graduate qualifications.
  • Assist employers in determining eligibility for employee tuition reimbursement programs.
  • Enable graduates to sit for certification examinations.
  • Involve staff, faculty, students, graduates, and advisory boards in institutional evaluation and planning.
  • Create goals for institutional self-improvement.
  • Provide a self-regulatory alternative for state oversight functions.
  • Provide a basis for determining eligibility for federal student assistance.

Accreditation is a deliberate and thorough process and is entered into voluntarily for purposes of quality assessment and institutional enhancement. Accrediting agencies assess compliance with published administrative and academic standards and seek a continuous striving for excellence on the part of the institutions they accredit. As such the accrediting agencies serve students, society, higher education, as well as their accredited institutions and entities by striving to insure academic excellence and ethical standards. Providing appropriate accrediting criteria and enhancement services to its membership are key elements in achieving these goals. Accrediting agencies through peer assessment, attention to educational trends, and a commitment to require both ethical business and educational practices at institutions, promote qualitative standards, policies, and procedures leading to institutional/organizational effectiveness.

Accreditation is either institutional or programmatic in nature, and it is intended to assess and enhance the educational quality of either an entire institution or a specific program of study within an institution. Programmatic accreditation is an assessment of a particular program of study such as law, music, or library science offered at an institution. Institutional accreditation means the entire institution has been assessed, from the governance and financial stability to the programs of study and student services of that institution.

Accreditation Guide

This is the only official guide to institutions of higher learning that are accredited by national and regional accrediting agencies. This updated edition includes more than 5,000 public, private, two-year, four-year, and vocational institutions of higher education throughout the United States, as well as U.S.-chartered schools in countries abroad. Each entry provides the institution's name and address, includes a brief description, denotes any membership in a public higher education system, and lists:

  • Date of first accreditation
  • Type of accreditation and name of accrediting body
  • Type of academic calendar
  • Levels of degrees offered
  • Specialized accreditation (s)
  • Name and title of chief executive officer
  • Latest enrollment figure
  • Professional accreditation

Financial Stability Requirements Guide

IAUCI expects that institutions evidence financial stability as required in Section 3-1-203 of the Accreditation Criteria. The Council's policy on financial stability for initial applicants for accreditation is described below.

Initial Review of Financial Stability Upon Receipt of Application

The institution must meet one of the following criteria before a resource visit will be scheduled.

  1. Submit audited financial statements for the most recently completed fiscal year which demonstrate:

    • Positive net assets,
    • Current ratio above 1:1, and
    • Annual loss of no more than the net assets reported.

    2. OR

  2. Submit audited financial statements for the most recently completed fiscal year which meet the following alternative requirements:
  3. Must have positive tangible net assets. Related-party loans may be considered as quasi-equity at this point.
  4. Must have a current ratio of at least .8:1.
  5. Must have an annual loss of less than the total net assets after adjusting for related party loans.

If the institution meets the alternative requirements, it must submit a Financial Improvement Plan which explains how it will meet the IAUCI requirements. An institution allowed to proceed under the alternative requirements is cautioned that it must improve its financial stability or it will not receive a grant of accreditation. The institution will be required to meet all of the standards outlined in Section 1 before an initial grant of accreditation will be awarded. In addition, the financial stability must be reflected in audited financial statements for the fiscal year immediately preceding the Board's consideration of the application. An institution that fails to meet either test will have its application fee returned and will be invited to reapply when the financial stability improves.

Final Review of Financial Stability for an Initial Grant
The institution must meet IAUCI requirements by submitting audited financial
statements for the most recently completed fiscal year which demonstrate:

  • Positive net assets, and
  • Current ratio above 1:1.

If the institution fails to meet the final requirements, its application will be deferred until such time as it can reasonably demonstrate through audited financial statements that it can meet these standards. If the financial condition of the institution does not improve after deferral, the application will be denied.