May 5th 2024.
As we previously reported, Saint Augustine's University is facing some tough financial challenges as it works to maintain its accreditation. Losing accreditation would have serious consequences for the students, so the university is under close scrutiny from the IRS and the Southern Association of Colleges and Schools Board of Trustees. This all stems from past mismanagement of the university's budget, which has left them with a staggering $32 million debt.
Interim President Marcus H. Burgess spoke with ABC News in March, revealing that the university's new financial team had to start from scratch and recreate audits from 2021, 2022, and 2023. "We're still in the process of unraveling everything, but the biggest issue is the missing audits from those years," Burgess explained. "We had a $34 million budget, but only $130,000 can be accounted for. So we had to bring in a new finance team to recreate all of the financial records, which took about two years."
According to WRAL, Saint Augustine's has been on the brink of losing its accreditation for the past four years, from 2014 to 2018. However, they were able to regain their accreditation after being placed on probation. In July of 2023, the outlet began investigating the university's finances and discovered several concerning issues. These included taking out a $7 million line of credit, owing $7.9 million in unpaid taxes to the IRS, and failing to pay employees and students in a timely manner.
The university's last appointed president, Dr. Christine McPhail, was fired in December of 2023. McPhail claims that she was let go after a heated board meeting, which the university denies. Burgess was then hired as the interim president. In April, a group of alumni called Save SAU called for the resignation of the current university board.
John Larkins, a former board member and current member of Save SAU, explained that their organization is focused on finding ways to improve the university and potentially save it from its financial troubles. "We're not only looking to replace the current leadership of the board of trustees, but we're also exploring other ways to help the university get back on track," Larkins stated. "This includes looking at the curriculum and programs to see how we can better support the success of the students."
Larkins expressed concern over the frequent turnover of presidents at the university, which he believes has caused instability and hindered progress. "It's a revolving door of presidents, which creates chaos and uncertainty among the staff. If you keep bringing in new leaders with different ideas, it just adds to the instability," he explained. Larkins also noted that the board tends to be made up of people with similar mindsets, rather than a diverse range of individuals with different perspectives and skills.
He concluded by expressing his sadness over the current state of the university and the potential consequences for the students and their families. "The institution and its students have been victimized by this situation. Families have invested in their children's education and futures, and it's concerning to see the university in such a dire situation," Larkins stated.
In response to these concerns, the university's attorney, Nana Asante Smith, assured WRAL that both the board and administration are committed to improving the university's financial stability. "They are working diligently to restore the strength and well-being of the university and are open to partnering with the Saint Augustine's community and others to ensure its future," Smith said in a statement.
On top of these financial struggles, the university recently announced the suspension of its football program. This decision was made in order to cut costs and focus on addressing the larger financial issues at hand. As the university continues to work towards financial stability, it is clear that the support and collaboration of the community will be crucial.
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