# COMAR Title 13B — Maryland Higher Education Commission

## Subtitle 01 — Nonpublic Schools

### Chapter 02 — Joseph A. Sellinger Program—Aid to Nonpublic Higher Education Institutions

**Authority:** Education Article, § 17-102, Annotated Code of Maryland

**Administrative History:** Effective date: March 7, 1980 (7:5 Md. R. 476)

**Administrative History:** Chapter recodified from COMAR 13.50.03 to 13B.01.02

**Administrative History:** Chapter revised effective April 10, 1995 (22:7 Md. R. 537)

**Administrative History:** Regulation .06C amended effective March 23, 1998 (25:6 Md. R. 490)

#### Regulation .01 Applicability; Effective Date.

*COMAR 13B.01.02.01*

The criteria and procedures contained in this chapter apply to the program of aid to nonpublic institutions of higher education provided for by Education Article, §17-101 et seq., Annotated Code of Maryland. These amended criteria and procedures are effective beginning with the expenditure, reporting, and verification of aid awarded for the 1994 fiscal year.

#### Regulation .02 Definitions.

*COMAR 13B.01.02.02*

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Commission” means Maryland Higher Education Commission.

  (2) “Eligible institution” means an institution of higher education satisfying the requirements of Regulation .03 of this chapter.

  (3) “Program” or “academic program” means a series of courses which are arranged in a scope and a sequence leading to a degree or certificate, or which constitute a major.

  (4) “Religious, seminarian, or theological academic programs” means a series of courses which are arranged in a scope and a sequence either leading to a degree or certificate which indicates specialization in the study of religion or in religious, seminarian, or theological studies, or which constitute a major in any of these subject matters.

  (5) “State's general fund per full-time equivalent student appropriation for the 4-year public colleges and universities” means the general fund per full-time equivalent student appropriations for Bowie State University, Coppin State College, Frostburg State University, Morgan State University, Salisbury State University, St. Mary's College of Maryland, Towson State University, University of Maryland College Park, University of Maryland Baltimore County, and University of Maryland Eastern Shore.

#### Regulation .03 Qualifications for Aid.

*COMAR 13B.01.02.03*

A. The Commission shall determine which institutions are eligible for aid under this chapter.

B. To qualify for State aid under this chapter, an institution of higher education shall:

  (1) Be a nonprofit private:

    (a) College or university that was established in the State before July 1, 1970,

    (b) Institution of higher education that formerly received State aid as a component of a private college or university that was established in this State before July 1, 1970, or

    (c) Institution of higher education that is established in this State and grants an associate of arts degree;

  (2) Be approved by the Commission;

  (3) Be:

    (a) Accredited by the Commission on Higher Education of the Middle States Association of Colleges and Schools, or

    (b) A candidate for accreditation under §B(3)(a) of this regulation that is subject to an affirmative action plan approved by the Commission, and is authorized by the Commission for participation in the program established under this chapter;

  (4) Have awarded the associate of arts or baccalaureate degrees to at least one graduating class;

  (5) Maintain one or more earned degree programs, other than seminarian or theological programs, leading to an associate of arts or baccalaureate degree; and

  (6) Submit each new program and each major modification of an existing program to the Commission for its review and recommendation as to the initiation of the new or modified program.

#### Regulation .04 Computation of Amount of Annual Award.

*COMAR 13B.01.02.04*

A. The Commission shall determine the annual apportionment available to each eligible institution in accordance with this regulation.

B. Eligible Credit Hours Generated.

  (1) The number of eligible credit hours generated in an institution during the fall semester or quarter of the fiscal year next preceding the fiscal year for which the apportionment is to be made shall be computed by adding the number of:

    (a) Credit hours of enrollment in undergraduate courses regardless of student level;

    (b) Credit hours of enrollment in graduate courses regardless of student level; and

    (c) Equated credit hours of enrollment in special courses.

  (2) From the sum reached in §B(1) of this regulation, subtract all credit hours, regardless of subject, taken by:

    (a) Undergraduates then enrolled in a religious, seminarian, or theological academic program; and

    (b) Graduate students then enrolled in a religious, seminarian, or theological academic program.

C. Special Considerations for Determining Eligible Credit Hours Generated.

  (1) Equated credit hours of enrollment in special courses are computed on the same basis as for a normal course. For example, if 3 weekly contact hours of English 101 equals 3 credits, then 3 weekly contact hours of prerequisite noncredit English are equated to 3 credit hours.

  (2) Credit hours for short courses are prorated on the basis of a full semester. For example, if the full semester course carrying 3 weekly contact hours is for 16 weeks, and the short course is for 8 weeks, then the equated credit hours are 1.5.

  (3) A student is considered to be enrolled in a religious, seminarian, or theological academic program if, on or before the date as of which enrollment figures are computed, the student has become a declared major in religion or religious, seminarian, or theological studies, or has otherwise formally advised the institution in writing that the student is seeking a degree or certificate indicating the type of specialization that characterizes religious, seminarian, or theological academic programs.

  (4) In deducting credit hours taken by students enrolled in religious, seminarian, or theological academic programs, all credit hours of all of these students shall be deducted even if they are in subjects that do not relate directly to these programs.

D. Commission Form MHECIS S-6.

  (1) An eligible institution shall fully complete Commission Form MHECIS S-6 and have it certified by an independent certified public accountant.

  (2) The form may be revised from time to time by the Commission in a manner consistent with these regulations.

  (3) The Commission shall furnish copies of this form to all known institutions by August 31 of each year.

  (4) Institutions using the semester system shall file the form with the Commission not later than October 15 of each year, and shall reflect the number of eligible semester credit hours as of a date on which that fall's enrollment has stabilized.

  (5) An institution using the quarter system shall file the form not later than October 15 of each year, indicating the number of eligible quarter credit hours generated during the fall quarter and, not later than January 15 of each year, indicating the number of eligible quarter credit hours generated during the winter quarter.

E. Calculation of Full-Time Equivalent Students Enrolled. The Commission shall calculate the number of full-time equivalent students enrolled in an institution using the:

  (1) Semester system by dividing the total number of eligible credit hours generated in that fall semester by 15; or

  (2) Quarter system by dividing by 15 the sum of the fall eligible quarter credit hours multiplied by 0.69 and the winter eligible quarter credit hours multiplied by 0.31.

F. Annual Apportionment.

  (1) The Commission shall multiply the number of full-time equivalent students enrolled in the institution by 16 percent of the State's general fund per full-time equivalent student appropriation to the 4-year public colleges and universities in Maryland for the preceding fiscal year. Upon approval and certification by the Commission, the resulting amount is the apportionment to the institution.

  (2) The general fund per full-time equivalent student appropriation is based on the most recent prior year's appropriation as approved by the General Assembly or as revised by the Board of Public Works, and not the appropriation as subsequently reallocated by budget amendment.

#### Regulation .05 Administration of Program.

*COMAR 13B.01.02.05*

A. Verification and Notice.

  (1) The Commission may verify the information submitted pursuant to Regulation .04 of this chapter as to eligible credit hours of enrollment by examining the registration or other data on which these submissions are based.

  (2) If the figure resulting from the verification in §A(1) of this regulation differs from the figure submitted, the Commission shall certify to the State Comptroller an award amount based upon the corrected figure.

  (3) Representatives of the institutions shall be given notice of the correction and an opportunity to discuss the basis for the correction with the Commission before the revision of the award.

B. Applications for Aid.

  (1) Applications for aid shall be completed and filed not later than September 15 of the fiscal year for which aid is sought.

  (2) Applications shall consist of a preexpenditure affidavit and a statement-of-intended-use report.

  (3) The Commission shall distribute copies of all forms constituting an application to all known eligible institutions by June 30 of each year.

C. Preexpenditure Affidavit.

  (1) The preexpenditure affidavit shall be in a form as prescribed by the Commission.

  (2) The chief executive officer of the institution shall execute the preexpenditure affidavit.

  (3) The chief executive officer shall certify under oath or affirmation that funds received from the State may not be used for sectarian purposes, and that the institution has adopted and shall maintain and follow the accounting procedures described in §G of this regulation until all State funds applied for have been expended and accounted for to the Commission.

D. Statement-of-Intended-Use Report.

  (1) The statement-of-intended-use report shall:

    (a) Be in a form required by the Commission;

    (b) Be executed by the chief executive officer or the chief financial officer of the institution; and

    (c) Describe and itemize in sufficient detail the purposes for which State funds will be expended during the fiscal year for which the application is filed.

  (2) If an institution later decides to use the funds for other purposes, the institution shall give the Commission prior written notice specifying the new purposes.

E. Certification and Payment of Awards.

  (1) Following the receipt of timely and complete applications, and based upon its determination under Regulation .04 of this chapter, the Commission shall certify proposed awards to the State Comptroller not later than October 30.

  (2) The State Comptroller's office shall make the awards by check to the institutions in two equal payments.

  (3) The Commission shall forward promptly its certification of awards and request for the first payments to the Comptroller following formal approval by the Commission of awards.

  (4) The Commission shall make the certification and request for the second payment not later than March 30.

F. The Commission may not pay an award to an eligible institution if the Commission has determined that the institution has failed to submit an adequate utilization-of-funds report in compliance with these regulations for any prior fiscal year.

G. Accounting Procedures.

  (1) Eligible institutions shall follow the accounting procedures set forth in §G(2) of this regulation in connection with their receipt, expenditure, and accounting of State funds pursuant to these regulations.

  (2) Procedures.

    (a) An institution shall prepare its annual financial statements according to generally accepted accounting principles for auditing and reporting on financial statements of nonprofit institutions of higher education, including colleges, universities, and community or junior colleges.

    (b) The budget for each institution receiving State funds shall identify the specific areas of activity for which the institution will expend grant funds.

    (c) State funds, when received by an institution, shall be placed in a special revenue account.

    (d) Each budgeted segment reflected in the accounts of an institution shall have an expense account number for recording the expenditure of State funds.

    (e) Each institution shall retain sufficient documentation of the State funds expended to permit verification by the Commission that no funds were spent for sectarian purposes for a period of 1 year following submission of a utilization-of-funds report in accordance with §I of this regulation.

    (f) If the Commission determines that a verification or audit of an institution is necessary or appropriate in connection with the institution's expenditure of State funds, the institution shall:

      (i) Cooperate fully with the persons designated by the Commission; and

      (ii) Supply all information reasonably necessary to facilitate the fastest possible completion of the verification or audit.

H. End of Fiscal Year Reports.

  (1) By the end of each fiscal year, the Commission shall send a utilization-of-funds report and a post-expenditure affidavit to all eligible institutions receiving funds for that year.

  (2) An institution receiving funds shall complete and file the utilization-of-funds report and post-expenditure affidavit before the Commission may act upon any application for aid from that institution for a subsequent fiscal year.

I. Utilization-of-Funds Report.

  (1) The utilization-of-funds report and the post-expenditure affidavit shall be in the form prescribed by the Commission.

  (2) The chief executive officer or chief financial officer of the institution shall certify the utilization-of-funds report.

  (3) The institution shall describe and itemize in the utilization-of-funds report the purposes for which State funds have been expended during the fiscal year in sufficient detail to

J. Post-Expenditure Affidavit. The chief executive officer of an institution shall:

  (1) Execute the post-expenditure affidavit under oath or affirmation; and

  (2) Certify that none of the monies covered in the utilization-of-funds report have been used for sectarian purposes.

K. Whenever an institution reports that it has expended any State funds for capital construction or permanent improvements, it shall report periodically, on forms and at intervals specified by the Commission, on the use being made of the building or facility in question and certify under oath or affirmation, given by its chief executive officer, that the building or facility is not being used for religious instruction or worship for any religious activity or sectarian purpose.

L. Unexpended Funds.

  (1) An institution shall fully expend and report upon any funds that it did not expend by the end of the fiscal year in which the funds were paid, in the next fiscal year.

  (2) In addition to the requirements of §L(1) of this regulation, the institution shall submit a new statement-of-intended-use report and a new preexpenditure affidavit by October 31.

M. Verification of Expenditures.

  (1) The Commission may verify or have audited an institution's expenditure of State funds, with respect to any report required by these regulations, to determine whether funds awarded to the institution have been expended as authorized by these regulations.

  (2) Before conducting a verification or audit requiring a physical examination of an institution's books or records, the Commission shall make reasonable efforts to satisfy its concern on the basis of data submitted by the institution.

  (3) A verification or audit shall be conducted with the greatest possible speed and the least possible disruption of an institution's activities.

#### Regulation .06 Prohibition of Sectarian Use of Funds.

*COMAR 13B.01.02.06*

A. Education Article, §17-107, Annotated Code of Maryland, prohibits recipient institutions from using State funds for sectarian purposes. That provision generally prohibits the use of State funds to support religious instruction, religious worship, or other activities of a religious nature.

B. Prohibited Uses.

  (1) Listed in §B(2) of this regulation are several potential uses of State funds that would violate the sectarian use prohibition. The list is not intended to be all inclusive and, if an institution is in doubt whether any other possible use of the funds might violate the sectarian use prohibition, it may consult with and seek the advice of the Commission in advance.

  (2) An institution may not use State funds for:

    (a) Student aid if the:

      (i) Institution imposes religious restrictions or qualifications on eligibility for student aid, or

      (ii) Students are enrolled in a religious, seminarian, or theological academic program;

    (b) The salary, in whole or in part, of an individual who:

      (i) Is engaged in the teaching of religion or theology,

      (ii) Serves as chaplain or director of the campus ministry, or

      (iii) Administers or supervises a program of religious activities;

    (c) The portion of the cost of maintenance or repair of a building or facility used for:

      (i) The teaching of religion or theology,

      (ii) Religious worship, or

      (iii) A religious activity;

    (d) Utility bills, if the institution has a building or facility that is used in whole or in part for the teaching of religion or theology, religious worship, or religious activity, unless the building is separately metered;

    (e) Utility bills for a separately metered building or facility that is used in whole or in part for the teaching of religion or theology, religious worship, or religious activity; or

    (f) The construction or renovation of a building or facility that is or will be used for the teaching of religion or theology, religious worship, or religious activity.

C. The Commission shall require an institution that violates the prohibition against sectarian usage set forth in this regulation to repay to the State all monies expended in violation of this prohibition. The institution is ineligible to receive further State aid until it has repaid these funds. If the Commission determines that an institution has violated the prohibition and that the responsible officers knew or reasonably should have known that it was doing so, then the Commission shall notify the institution, and the Commission may declare the institution ineligible to receive further State aid either for a specified number of years or permanently, and so notify the institution. The institution shall be given notice and an opportunity for a hearing before the Commission before any declaration of ineligibility. The hearing before the Commission shall be conducted in accordance with the Administrative Procedure Act, State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and COMAR 13B.04.01.

#### Regulation .07 Review by Board of Public Works.

*COMAR 13B.01.02.07*

These criteria and procedures are subject to the review of the Board of Public Works.