From school to university
In 1917, Edgar Hunt Goold became the institution's fifth principal, and introduced the first courses for college credit that year. [7] The number of junior college-level courses increased over the next two years, and the school became a junior college in 1924, [8] with Goold as its first president from 1925. [7] [9] The first junior college class graduated in 1925, and the institution officially became the four-year Saint Augustine's College in 1928, with the first baccalaureate degrees awarded in 1931 and accreditation from the Southern Association of Colleges and Schools (SACS) following in 1933. [7] In 1947, Harold Leonard Trigg became the first Black president of St. Augustine's and oversaw an expansion of the curriculum and the college facilities, including the completion of Pennick Science Hall in 1952. [7] In 1949, the college joined the United Negro College Fund. Trigg was succeeded in 1954 by James Alexander Boyer, the first alumnus to head the institution. Under Boyer, St. Augustine's enrollment doubled, several new buildings, including the Emery Health Center, were built, and the curriculum further shifted from that of a normal college to a predominantly liberal arts focus. [7]
In 1967, Boyer relinquished the presidency and returned to teaching. He was succeeded by Prezell Russell Robinson as the eighth leader of the school and the second alumnus to head it. [7] During Robinson's administration, enrollment reached 1,800 students, an ROTC program was instituted, and a new library, student union, and fine arts center were built. [7] In 1982, St. Augustine's created a Department of Communications and began operating a radio station, WAUG 750-AM, from 1983, followed by a television station, TV-68 (later WAUG-LD) from 1988. Robinson retired in March 1995, and was praised by the college's board of trustees for his leadership, which had earned St. Augustine's "an international reputation for quality education and public service of an unprecedented order." [7] He was succeeded by Bernard Wayne Franklin, who served as president until 1999, when Dianne Boardley Suber became the 10th and the first female leader of the college. [10] In August 2012, the college officially became St. Augustine's University. [11]
Since the 2010s, St. Augustine's has experienced significant instability in its administration. President Suber was dismissed in April 2014, shortly before her intended retirement. [12] After serving as interim president, Everett Ward was appointed president in 2015. [13] In March 2019, St. Augustine's board of trustees dismissed Ward four months prior to his intended retirement. [14] Gaddis Faulcon, the university's former vice president of enrollment management, was appointed to replace Ward as interim president. [14] In March 2020, Faulcon was himself dismissed by the board. [15] In October 2020, the new president of St. Augustine's, Irving Pressly McPhail, died from COVID-19 after three months in office. [16] He was succeeded by his widow Christine Johnson McPhail in 2021; Christine McPhail was herself fired in November 2023. The university board of trustees subsequently voted to name Marcus Burgess, vice president of institutional advancement at Claflin University, interim president. [17]
To help address significant financial difficulties, on November 26, 2024 the university announced it had partnered with 50 Plus 1 Sports, a South Florida-based sports stadium and mixed-use development firm, to lease "certain real estate" for 99 years. As part of the agreement, 50 Plus 1 Sports would split any revenues from development 65:35 between the university and itself, and would also assist the university with its payments for accrued debts and interest. [18] The development firm would pay Saint Augustine's $60 million by the end of 2024, with another $10 million payment due by June 2025. [18]
Challenges and controversies
St. Augustine's University has been severely challenged by financial and leadership instability in recent years, [19] [20] along with other controversies. In 2011, the institution barred a student from participation in commencement exercises because of a negative comment he had made on the college's Facebook page. [21] Shortly thereafter, the student initiated a lawsuit against the college in North Carolina State Court [22] [23] which was later settled out of court. [24]
In the summer of 2013, local news affiliates reported that two convicted murderers had been hired by the college to work for a children's summer camp. [25] Although the college defended the employees as "exemplary employees and productive members of the community", [26] both were subsequently reassigned. [27] A September financial audit uncovered disorganized accounting and checks being improperly issued. [28] [29] During 2012–2013, St. Augustine's experienced a 12 percent decline in enrollment, with the number of full-time equivalent students decreasing from 1,442 in fall 2012 to 1,267 the following fall, [29] leading to a $3 million shortfall in net tuition revenues. [28] By early 2014, with 203 students not returning for the spring semester, enrollment had slipped to 1,064. [29] In January 2014, a contractor building the university's new football stadium sued for breach of contract, alleging the institution had ceased payments and owed them nearly $675,000. [28]
In April 2014, amidst what The Chronicle of Higher Education characterized as "significant turmoil" and Diverse: Issues in Higher Education described as "financial problems...stemming from a loss in enrollment and revenue", the institution's board of trustees fired president Dianne Suber one month prior to her planned retirement, after nearly 15 years of leading the university. At the same time, the board reinstated two senior employees recently fired by Suber. [12] [30] In December 2016, St. Augustine's accreditor placed the university on probation, citing financial and institutional effectiveness issues. After reforms, including implementing a computer-based accounting system, the probationary status was lifted in December 2018. [19]
In July 2019, together with the former athletics director, acclaimed track and field coach George Williams, the university's former general counsel Kyle Brazile, and the former facilities and construction manager Clarence King, all of whom had been fired around the same time, former interim president Gaddis Faulcon filed a wrongful termination lawsuit against St. Augustine's. In the suit, which cited interim president Maria Lumpkin and the chair of the board of trustees James E. C. Perry, the plaintiffs alleged the institution's leadership, including those cited, had engaged in age discrimination, retaliation, and other unlawful conduct, such as the potential misappropriation of government funding. [15] Williams subsequently settled his suit, but did not receive any apologies from the university or its leaders. [31]
In December 2022, the university was again placed on probation "on good cause" by its accreditor, with a review of its status scheduled for December 2023. [32] In October 2023, the university fired its head football coach, Howard Feggins, for allegedly fielding ineligible players, according to the university. Feggins subsequently filed a wrongful termination lawsuit against St. Augustine's, alleging retaliation, intimidation, and the institution's deliberate neglect of its student athletes, including refusing to provide adequate healthcare, meals, and insurance coverage for its football players. [33] In November, president Christine McPhail was fired by St. Augustine's board of trustees, which she alleged was in retaliation for filing race and gender-based discrimination charges against the university with the Equal Employment Opportunity Commission (EEOC); the board of trustees rejected "the unfounded allegations." [32]
- Financial crisis and accreditation challenges
On December 3, 2023, St. Augustine's reached crisis point when its accreditor, the Southern Association of Colleges and Schools (SACSCOC), voted to rescind the institution's accreditation for continued governance and financial management issues. [3] [34] University leadership stated they would appeal the decision, thereby maintaining the institution's accreditation on probation until a final ruling. [17] In January 2024, just five days before the spring semester began, college administrators informed students that all on-campus classes would begin online, due to boiler problems in multiple instructional buildings and a women's dormitory, resulting in student complaints about the short notice. [35] [36] The following month, local media reported that the college was failing to pay all of its employees with some faculty members unilaterally cancelling their classes until they received their paychecks. [37]
Into 2024, multiple organizations accused the university of having failed to pay bills, including a $7.9 million lien filed by the Internal Revenue Service for unpaid taxes dating back to 2020, a $598,000 lien by a company who installed a turf field for the university, an insurance company who claimed that the university owed over $400,000 for unpaid student health insurance plan deductibles, and a claim by the state of North Carolina that the university had nearly $27,000 of unpaid unemployment taxes. [38] An audit revealed that existing policies regulating wire transfers were often disregarded. [39] According to interim president Burgess, the university was able to account for $10 million previously reported as unsupported by contacting vendors and creditors. [40]
On February 27, 2024, SACSCOC denied St. Augustine's appeal of its decision to revoke the university's accreditation. [4] On March 1, university officials said they would submit the matter to arbitration, followed by further litigation if necessary; until the conclusion of legal proceedings, St. Augustine's would remain accredited on probation. [41] Interim president Burgess subsequently stated the institution was also pursuing accreditation through the Transnational Association of Christian Colleges and Schools (TRACS). [40] He also stated 10 positions from various roles would be eliminated, [40] and said St Augustine's was looking into sharing essential services, including security, maintenance, and dining, with Shaw University; in an interview, he expressed confidence the university would open for the new academic year that fall. [42] He said, however, that St. Augustine's was $20 million in debt. [43]
On March 8, the university reported it had been unable to meet its latest payroll. [44] On March 20, Burgess confirmed reports that the university would transition to online learning in April. The same week, Wake County Schools announced they would discontinue leadership academy classes at St. Augustine's after 2024, [45] eventually announcing their students would instead attend Shaw University, another local HBCU. On April 3, Burgess said the institution required "$27 to 28 million, and $30 million for good judgement," to pay its creditors. [46] He said that as of April 5, the university would have gone three consecutive pay periods without having met payroll obligations, that all but approximately 120 students with senior status had left campus, and that the university would suspend football for the 2024 season. [46] According to Burgess, however, he and other employees remained committed to Saint Augustine's full recovery, with the support of alumni and other organizations. [46] The college rejected rumors that it would merge with nearby Shaw University. [47] In July, an arbitration panel unanimously reversed the SACSCOC decision to remove St. Augustine's from the accrediting agency's membership. This restored the university to its former SACSCOC status as an accredited institution on probation for good cause, until December 2024, when the university would reach the maximum possible period with its accreditor as an institution on probation. [5]
On August 16, St. Augustine's secured an initial $7 million line of credit with Gothic Ventures, a Durham-based venture capital firm, against a lien on all of the university's property, with the main campus and 40 other properties as collateral. [48] [49] The funds would allow the institution to cover essential operating expenses, including paying employees their back wages, issuing student refunds, and covering the costs of financial audits. [48] According to the terms of the initial loan, scheduled to come due in 2025, $3 million was earmarked for past due and future payroll and taxes, $1.8 million for payments to the U.S. Department of Education, $650,000 for completing overdue financial audits for the 2022 and 2023 fiscal years, $600,000 for student refunds, $545,000 for property insurance, $375,000 for fees, title insurance and expenses, and $30,000 for appraisals. [49] With an interest rate of 24 percent, an additional 2 percent "management fee," and a $75,000 "due diligence and documentation fee," the lending agreement was strongly criticized by alumni and advocates for the university, who characterized the terms as unsustainable and predatory. [49] The lender, however, defended the high interest rate as due to the "...financial challenges facing the University, which included its most recent audit report indicating concerns about the University’s ability to continue operating as a going concern, the lack of audited financial statements for the last several years, historical losses because revenues exceeded expenses, significant outstanding debt, IRS liens...and the suspension of the University’s accreditation [in 2023]." [49]
After a delayed opening on September 3, due to the need to conduct maintenance to campus buildings, St. Augustine's began the 2024–2025 academic year with a diminished enrollment of 200 students. [1] That month, Wake County Superior Court Judge James F. Ammons Jr. ruled FieldTurf USA could recover unpaid bills for installing artificial turf on a St. Augustine's football field by placing a lien on university property. [50] Another suit concerning over $1 million in unpaid fees to Management Professionals, a maintenance and custodial services vendor, was also ruled in the vendor's favor, allowing Management Professionals to likewise pursue recovery of their fees from the university, potentially through another property lien. [50] Due to doubts about the university's ability to remain in compliance with their requirements, on October 4 the CIAA suspended all St. Augustine's athletics teams from conference competition for the remainder of the academic year, with immediate effect. [51]
In early November, the university reported completion of two overdue audits for the 2022 and 2023 fiscal years; among other issues, the audits revealed inaccurate accounting, a lack of oversight concerning financial reporting and major transactions, inappropriate procurement and approval procedures for "certain significant contracts," and that as of November 8, the university had unpaid payroll withholdings and taxes outstanding "of approximately $8.4 million, excluding interest and penalties." [52] According to the audits, St. Augustine's responded to the findings by creating monthly financial statements, establishing a more rigorous approach towards recording business ledger entries, and implementing internal policies to ensure audit deadlines would be met in future, among other measures. [52] In the 2023–24 fiscal year, the university recorded a deficit of $6.4 million, in addition to a $9.1 million deficit the previous fiscal year. [53] The audits also revealed that net tuition and fee revenues had declined by nearly 50 percent between 2022 and 2024, to $7.9 million, although operating expenses had decreased to $27.3 million in 2024. [53]
On November 14, a judge dismissed a lawsuit filed on May 31 by "Save SAU," a coalition of university alumni and supporters suing to remove the university's board of trustees for alleged financial mismanagement, and alleging Brian Boulware, as board chairman, had benefited from loan brokerage fees and had permitted large wire transfers without documentation. Judge Becky Holt ruled the coalition lacked standing under state law to file suit against a nonprofit institution. [54] A forensic audit subsequently found no evidence of such fees having existed or that Boulware had received any unethical payments. [55] On November 22, university leaders announced that to reduce costs and reduce annual operating expenses by $17 million, several programs with low enrollment would be discontinued and half of all employees - totaling 67 staff and 69 faculty members - would be fired. [53]
On December 10, SACSCOC voted to remove St. Augustine's University from membership, but noted it had resolved most of its accreditation-related concerns apart from those related to finances. As the university will appeal the decision, St. Augustine's remains an accredited institution on probation, pending the verdict of a SACSCOC appeals committee in February 2025. [6] The same day, the CIAA announced it had indefinitely suspended St. Augustine's athletics program from conference participation until "...such time the university proves readiness to fulfill and maintain a holistic NCAA Division II athletics program, in accordance with NCAA and CIAA bylaws." [56]
