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Financal Audits Required by BPPE
Financal Audits Required by BPPE

Dear Colleagues,
 
On behalf of the California Massage Schools Association (CAMSA), we respectfully seek your assistance and feedback on our growing concern over some of the requirements imposed by AB 48 and the regulations that followed.  Specifically, we fear that the substantial increase in fees combined with the more burdensome auditing requirements will cause many of the small schools that prepare individuals for careers in massage therapy to either close their doors or move out of state.
 
Currently, the regulations require a school to submit audited financial statements at the time of its initial application, re-application, and as part of its annual report to the Bureau of Private Postsecondary Education (BPPE).  While we understand and appreciate the importance for the BPPE to ensure a school is meeting the required financial ratio, for small schools to undergo annual audits could easily cause a financial burden.  This appears to have been recognized under the previous regulations wherein schools with revenues under $750,000 were only required to submit financial statements prepared by an individual with sufficient training to adhere to the generally accepted accounting principles.
 
We understand and appreciate the value of audited financial statements and believe that they have an important role in the BPPE's ability to ensure to its stakeholders the validity of a school and the value of any degrees and certificates issued by a school.  However, we also believe in the value small schools can provide in preparing individuals for very specialized vocations.  Limiting financial barriers will help to keep small businesses in California, encourage the entrepreneurship of its owners, and support educational opportunities for students and future massage therapists.
 
We would welcome the opportunity to meet with each of your agencies to discuss these concerns in greater detail and to explore ways that both support the BPPE's role to consumers and the small schools' role to its students and alumni. 
 
Respectfully,
 
 
Dr. Ben Drillings
California Massage Schools Association
www.camsa4u.com

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