A school shall be operated in accordance with sound principles of financial management. A school shall maintain financial resources adequate for the satisfactory conduct of the school. A school shall maintain adequate financial records to indicate accurately the school's cash receipts, disbursements, assets, liabilities, and capital. The financial records as well as all other records of the school shall be open for inspection at any reasonable time by the Secretary. The accounts of the school shall be maintained in accordance with generally accepted accounting practices and procedures. The Secretary may request an audited financial statement by an applicant or an approved school. The existence of an unsatisfied judgment or a lien, whether the lien is a judgment lien or a statutory lien, against a school is a violation of these regulations and is sufficient cause to deny or revoke a school's certificate of approval if the lien or judgment threatens the financial or operational viability of a school. Public liability insurance, property damage insurance, and workers' compensation insurance in the amounts required by the Secretary shall be carried by the school with a company approved by the Insurance Commissioner of the State. Evidence of insurance shall be submitted to the Secretary. Without specific approval of the Secretary, other business may not be conducted on the school premises, nor may the school offer to the public any other services. Fees or other charges for the services or products of students or instructors may be collected when, in the judgment of the Secretary, the fees or charges are necessary to facilitate adequate practice in the area for which training is being offered. Revenue Requirements for Certain Schools. In this section, “year” means July 1 through the following June 30. This section applies to private career schools that: Are for-profit institutions; Participate in and receive funds through Title IV of the federal Higher Education Act of 1965; and Are approved by the Commission, in its role as State Approving Agency, to enroll students who receive financial assistance for education under the federal Post-9/11 Veterans Educational Assistance Act of 2008. A school described under §J(2) of this regulation may not enroll new Maryland residents unless the percentage of annual revenue from non-federal funds that has been or will be reported to the U.S. Department of Education under 34 CFR §668.28 in 2 of the 3 immediately preceding years is at least 10 percent. Institutional Responsibility. Annually and as part of an institution’s annual report submitted under Regulation .06 of this chapter, an institution described under §J(2) of this regulation shall: Provide to the Secretary, in the form and manner requested by the Secretary, the percentages of revenue from federal and non-federal funds most recently reported to the U.S. Department of Education under 34 CFR §668.28; and Review the percentages provided under §J(4)(a)(i) of this regulation and the percentages reported in the 2 preceding years to determine if the institution has met the revenue requirements in §J(3) of this regulation. An institution that determines that it has not met the revenue requirements in §J(3) of this regulation shall: Immediately cease enrollment of new Maryland residents; Immediately notify the Secretary; and No more than 30 days after notifying the Secretary, submit a plan to the Secretary outlining the steps the institution will take to come into compliance with this section prior to the due date of the institution’s next annual report. Enforcement by Secretary. The Secretary annually shall review an institution’s three most recent financial statements to determine if an institution has complied with this section and Education Article, §11-210, Annotated Code of Maryland. The Secretary may issue an order to any institution in violation of this section or Education Article, §11-210, Annotated Code of Maryland, to cease and desist enrollment and may impose a fine of up to $5,000. The Secretary is not prohibited from employing any other enforcement mechanism permitted by this chapter or Education Article, Title 11, Annotated Code of Maryland. Subsequent Compliance. An institution in violation of this section may, upon submission of its next annual report under Regulation .06 of this chapter, submit a written request to the Secretary to determine if the institution has come into compliance. The Secretary shall make a determination within 15 days of any request made under §J(6)(a) of this regulation. An institution in violation of this section may not enroll new Maryland residents until the Secretary has notified the institution, in writing, that it is in compliance with this section.