News, Views and Careers for All of Higher Education
June 27, 2007
St. Andrews Presbyterian College in North Carolina is appealing the most severe of sanctions after the Commission on Colleges of the Southern Association of Colleges and Schools acted Thursday to revoke the college’s accreditation for financial reasons. Also at its Thursday meeting — detailed in a summary released Tuesday — the Southern association issued a warning to two other institutions, placed four on probation and extended another college’s probation period for six months.
Tom Benberg, vice president and chief of staff for the Southern association, declined to comment on the details of the financial troubles found at St. Andrews due to the pending appeal (St. Andrews, which the accrediting agency first placed on warning in June 2005 and then on probation six months later in December of that year, maintains its probationary accreditation status as the appeals process unfolds). The college was cited for failure to comply with requirements surrounding financial resources, financial stability and control of finances.
If a decision to revoke a college’s accreditation is ultimately upheld, the institution loses access to federal financial aid funds and the stream of students that that money makes possible. At St. Andrews, 68 percent of students receive federal aid.
St. Andrews’s president, Paul Baldasare, said Tuesday that while he had not yet received a letter from the Southern association explaining the reasons behind its action, his understanding is that the concerns stem from the college’s practice of funding its expansion plans — a growth of enrollment from 612 students four years ago to 1,100 by 2011 – by borrowing money. The college, which had 808 students this fall and an endowment of about $14 million, is carrying a $15 to $16 million debt, all incurred to fund improvement initiatives undertaken within the past five years, Baldasare said.
“Our goal was to make improvements on things that would have the greatest impact on the greatest number of students, all geared toward improving retention and increasing student recruitment,” Baldasare said Tuesday. For instance, a new equestrian center opened in 2003 — St. Andrews offers several equine-related majors — has proven to be a boon for enrollment. “We probably have 250 students on campus who have some interest in some shape or form in things equestrian; many of those probably wouldn’t have come” without the investment, Baldasare said.
The college has also made improvements to the residence halls and student center, and has borrowed to increase operating expenditures as enrollment has risen. College statistics show that net revenues rose by 69 percent in the past four years, during which time the college also completed a $36 million fund raising campaign.
St. Andrews has been on the Southern association’s probation list before, back in the 1990s. But Baldasare — who said the college’s Board of Trustees has authorized the institution to pursue legal action if its appeal fails — argued Tuesday that the college has never been in better shape. “You can feel it in the hallways and talking to faculty that we’re in the strongest, most vital period we’ve ever been in,” he said.
Among other actions Thursday, the association:
And, on a more positive note, the Southern association:
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This dribble of information tells students, parents and taxpayers next to nothing about the institutions accredited, and illustrates the problems that make accreditation a useless exercise.
A first step in the direction of transparency would be to make all the documents and work papers available on-line.
The only problem with this is that for one-hundred years the accrediting guilds have been assuring the public that all is well, and consequently, the states and the public have grown complaisant and lazy. For this reason, these words still ring true: Caveat emptor.
Glen S. McGhee, Dir., at Florida Higher Education Accountability Project, at 8:10 am EDT on June 27, 2007
I want to applaud the Southern Association for their recent actions. The Regionals must hold institutions to certain standards. My experience with accreditation as a consultant-evaluator and team chair with two different regional associations leaves me feeling that all too often, visiting teams are too easy on institutions, and that penalties come far too late and removals far too seldom to make the system respectable and effective. We can do better.
I believe strongly in our peer accreditation system, but it must be a system with both compassion and accountability. I think we lean toward compassion too often.
Patrick Allen, Provost at Southern Nazarene University, at 9:25 am EDT on June 27, 2007
From what I can tell from just reading the article, the leadership of St. Andrews ought to be applauded not punished for their bold, strategic actions. The strategy they are pursuing is exactly what they should be doing and is exactly the type of strategy that would be executed and rewarded in the corporate sector. It also sounds like they are succeeding. Boosting student enrollment is essential for small colleges. Larger enrollments will provide more tuition revenue as well as graduate more future donors. Their fundraising campaign sounds relatively impressive for an institution their size and stature. Their success in boosting enrollment should be evidence that they’ll be able to handle the increased debt service. If only Antioch College had followed a similar strategy, they wouldn’t be shutting down.
The move by the accrediting body, if upheld, will completely undermine the strategy and very likely destroy St. Andrews.
A larger question is what are the key variables used by accrediting agencies and do they still make sense today? Afterall, Antioch did not lose their accreditation.
John S, at 11:20 am EDT on June 27, 2007
“Larger enrollments will provide more tuition revenue as well as graduate more future donors. “
This is not a sure thing. The ideal size of an enrollment is a complex issue, and colleges try to manage it as best they can.
Sure, a large enrollment may bring in more tuition dollars, but it does change a few things. 1) The school must support those students providing everything from dorms to faculty; 2) class sizes may become largers, and degrade the quality of instruction (assuming you think that smaller classes are a higher quality of instruction); and 3) larger enrollment might mean less selectivity, which many see as a negative.
Enrolling more students is not inherently bad, but it is something that cannot be undertaken without study and being very sure that a school can handle the additional load. Even in the corporate world people understand this general concept.
Larry, at 12:45 pm EDT on June 27, 2007
If Glen McGhee wants accountability information about the FAMU situation, all he has to do is ask. After all, the Sunshine Laws in the Sunshine State make more information available about public institutions of higher learning in Florida than possibly anywhere else.
If that is too much work, he could read the Tallahassee Democrat’s ongoing, detailed coverage of the financial situation at FAMU.
Florida Reader, at 1:55 pm EDT on June 27, 2007
Why would St. Andrews be cited for “failure to comply with requirements surrounding financial resources,financial stability and control of finances” if enrollment is up and “College statistics show that net revenues rose by 69 percent in the past four years, during which time the college also completed a $36 million fund raising campaign”? That seems completelyillogical. It sounds like St. Andrews is improving their financial situation, not the opposite.
Besides, borrowing money to improve facilities to attract students is no crime. In fact, it’s to be applauded, especially when you look at how many universities are interested in dollars that have little or no impact onthe student body at all.
Southern Ed, at 1:55 pm EDT on June 27, 2007
Larry is correct in pointing out that enrollment increases do not necessarily translate into dollar-for-dollar net gains, but I question his connection between enrollment and academic standards. New programs typically attract a new cohort, and not necessarily one that is less well-prepared. Re-positioning the institution in this way, or via in any number of other programmatic, aesthetic, or strategic initiatives can effectively increase the pool of well-qualified applicants. The only institutions that resort to lowering standards simply to increase enrollment are those that are sufficiently desperate to stay in business that they sacrifice their integrity in the name of survival. Rare though it is, I applaud those colleges whose mission have either been fulfilled, or are no longer relevant and they choose to close their doors. Antioch may represent such a case, but I would not presume to have enough of its circumstances to offer an informed decision.
Russell Kitchner, H.E. consultant, at 4:50 pm EDT on June 27, 2007
After spending 14 years in a SACS college, I can verify that SACS “pulls the trigger” far more rapidly than other Regionals. One could well argue that if St. Andrews were in a different Regional, they would not be facing this action. While we can argue the merits of the decision, what is difficult to argue is that this demonstrates a growing national concern that Accrediting Associations apply different standards in different ways, thus making the public question whether we really know how to measure quality.
A. Wayne Lowen, V.P. for Business & Finance, at 8:00 pm EDT on June 27, 2007
Mr. Kitchner, As to a connection between enrollment and academic standards. I seriously doubt that there is a “dollar for dollar” connection, but on the other hand, just like the federal reserve controls the money supply via careful management of lending and borrowing money, a college must carefully avoid overextending itself. Like the Federal Reserve, a college must realize that it has limits, but also has needs, and it needs to service them. But, this is a very difficult process, which needs to be undertaken with great care.
Larry, at 11:35 am EDT on June 28, 2007
St. Andrews is a national gem. In addition to having an outstanding and innovative honors program, St. Andrews has a significantly larger percentage of students with disabilities than most colleges, to whom it provides an incredible amount of support, in terms of both facilities and moral support, to ensure the success of these students. And I agree with the other comments — increasing your net revenues by over 60% is not a good thing? Someone needs to take another look!
Susan H, at 4:45 pm EDT on June 29, 2007
Previous comments about the harshness of SACS are not out of line. I’ve often thought that many in SACS tend to like playing ‘hardball’ as if the organization’s mission is to be elitist in many respects. St Andrews doesn’t deserve this sanction, nor does it deserve to have to spend valuable dollars to go through an appeals process that is a joke, or even consider litigation beyond an appeal.
Rob, at 6:30 pm EDT on June 29, 2007
SAPC has been on probation with SACS for a long time. It was removed from the list for 6 months by “accidentally” providing inaccurate financial records but was put back on the list as soon as the mistake was discovered.
SAPC ceased being an ineffective, inbred institution for about 30 years ago and has been in slow death since then. SACS has just been giving them rope until it is finally time to pay the piper! Rather than waste time with an appeal doomed to failure, SAPC should bow out gracefully and save its students the troubles of trying to find a place to finish their educations with credits and partially fulfilled obscure degrees that will not transfer.
Insider Knowledge, at 12:20 pm EDT on July 6, 2007
With the way SAPC discounts tuition, having additional enrollments does nothing to help their finances. Depending on who you know, who your parents are and what sort of strings you pull, your tuition can be discounted as much as 50%. Is this a good business practice? Does this bring in revenue? Does this help to pay the large debt they have?
They were not only on probation in the 90’s but also in the 2000’s. If I remember correctly, SACS rule was that they could only keep you on probation for two years, then they either had to pull you off or terminate accreditation. SAPC had played the game so many times that I presume that SACS was tired and pulled the plug!
Another insider, at 10:40 pm EDT on July 11, 2007
I have been following closely the case of St. Andrews, and I have just written a piece on the matter. It appeared today (November 21) on the web site of the John William Pope Center for Higher Education Policy. Here is the link:
http://www.popecenter.org/clarion_call/article.html?id=1928
Robert Blumenthal, Professor of Mathematics at Oglethorpe University, at 1:35 pm EST on November 22, 2007
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St. Andrews Faces Bishop State
Bishop State is on continued probation and St. Andrews faces loss of Accreditation. Over 14 Bishop State employees have been arrested for fraud but St. Andrews has borrowed too much money. I guess it is better to have low tuition and no integrity than to have high tuition and be in debt.
Car54, at 7:00 am EDT on June 27, 2007