Southeastern is in compliance with Financial and Physical Resources Comprehensive Standard 3.10.1.

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Southeastern Louisiana University recognizes that financial stability is a vital component in providing quality educational programs. The University continually strives to maintain such a status by prioritizing financial resources based upon the University's strategic priorities, with sound financial management following the completion of its annual comprehensive budget. The University can demonstrate its achievement and maintenance of financial stability in the following ways:

• The University's Budget Office completes a balanced budget each year (2002, 2003, 2004), which is approved by the by the University of Louisiana System (item G.2). This comprehensive budgeting process ensures that state appropriations, self-generated fees, and other funding sources are generated to meet projected expenses and adhere to the University's Strategic Plan. The expended funds during the fiscal year are made according to the budget plan approved by the University and the Board. In adherence to Louisiana Revised Statute 39:77, the University controls the expenditures closely. Deficits in any fiscal year constitute reasonable cause for removal from office of any appointed individual, including the University President.
   
• Based upon the nine-year funding chart (compiled from information submitted to the Board of Regents during the budgeting process) , the University's Operating Fund has not had a deficit balance in the past nine years. In fact, the University's operating resources have increased 59.64% over the last nine years, and 26.96% over the past five years. During the same period, the University's enrollment increased 9.19% and 3.05% respectively, providing the University a solid financial base for operational activities. Annual increases demonstrate financial stability and allow for effective allocation of resources according to the University's Strategic Plan. This trend is continuing with a preliminary operating budget for the 2004-2005 year reflecting an increase of approximately 4.6%.
   
• The University prepares annual Financial Statements (2001, 2002, 2003), which the State Legislative Auditors use in order to audit the University of Louisiana System. The financial statements prepared by the University have shown an increase in growth of the total fund balance for the past five fiscal years. At no point during this period was the University dependent upon past surpluses to meet current operating requirements.
   
• Achievement of an investment grade bond rating and the ability to obtain bond insurance attest to the financial stability of Southeastern. During the 2003-2004 fiscal year, the University obtained approval through the University of Louisiana System to partner with Capstone Development, in order to upgrade the entire housing inventory for the University (item G.2). The approval was updated as per Board minutes of June 25, 2004 (item I.3). The University, through University Facilities, Inc. and the Louisiana Local Government Environment Facilities and Community Development Authority, has the authority to issue up to $85,000,000 in revenue bonds to complete this renovation. Moody's Investor Services evaluated the financial strengths of the University's Facilities, Inc. and Southeastern Louisiana University and issued a Baa1 Bond rating. A 2004 Moody's Opinion Letter describes the University as one with increasing student demand and stable enrollment, despite new admissions standards; strategic importance of and demand for improved housing facilities; sound financial operations and satisfactory debt service coverage; and an adequate resource base and limited borrowing plans. As a result, the University has obtained bond insurance through MBIA, which subsequently led to a Aaa Moody's designation.