April 3, 2008

Overview

In September 2007, Federal Judge Carlton Tilley of the Middle District of North Carolina entered an Order granting the College’s motion for a preliminary injunction in our lawsuit against the Southern Association of Colleges and Schools (SACS).  The lawsuit arose because of a significant disagreement between the College and SACS concerning the College’s financial structure, particularly its use of debt to make capital improvements to campus facilities and to fuel enrollment growth.  SACS’s effort to remove St. Andrews from its membership is not related to the College’s academic programs.  SACS has always found that the College’s academic programs are in compliance with the principles of accreditation.  While this lawsuit is pending, the Injunction Order prevents SACS from taking any action that would adversely affect the College’s membership in the Southern Association or its accreditation. 

Current Status

On April 1, the 11th Circuit Court of Appeals agreed with St. Andrews and dismissed the most recent appeal filed by the Southern Association of Colleges and Schools (SACS) challenging Judge Tilley’s grant of our Motion for a Preliminary Injunction. This Injunction requires SACS to maintain the membership and accreditation of St. Andrews pending the final outcome of our lawsuit. With this most recent decision by the 11th Circuit, SACS has now agreed to stop challenging Judge Tilley’s order to move forward with the lawsuit. While the lawsuit is ongoing, St. Andrews remains fully accredited by SACS. St. Andrews continues to work toward a resolution of the disagreement with SACS.

President's Letter

With the agreement of the parties, Federal District Court Judge Carlton Tilley of the Middle District of North Carolina today ordered St. Andrews reinstated into full membership into the Southern Association of Colleges and Schools (SACS) until further order of the court. This action by the parties and Judge Tilley means our college will continue to be accredited as the case continues in Federal Court. Importantly and as specified in the order, St. Andrews students remain eligible to receive state and federal financial aid and full credit for their course of work.

This shall remain in full force and effect until further order of the judge.

As dates and deadlines are set by Judge Tilley, you will be kept informed about the progress of the lawsuit. We will provide information as we know. It is impossible to adequately express my sincere appreciation to each of you for your support and understanding. You are what makes St. Andrews such a unique and special place.

Paul Baldasare
President

August 24

The Appeals Committee appointed by the Southern Association of Colleges and Schools (SACS) notified us that our appeal to overturn its June decision has been denied.  Today in response, our attorneys filed a lawsuit in federal court in the Middle District of North Carolina asking the court to reverse this decision, to stop SACS from removing our accreditation, and to award monetary damages for any losses that the College may suffer as a result of this decision.  Federal District Court Judge Carlton Tilley has set Wednesday, August 29, 2007 as the date to hear and rule on our Motion for a Preliminary Injunction.  From the beginning of this dispute, we believe that we have met all of the financial standards that SACS requires, and we look forward to the Judge granting our request for an injunction on Wednesday.

In many ways, losing this appeal is not surprising because the Appeals Committee is a component of SACS, the very organization that chose to remove St. Andrews from its membership in the first place. It is important to note that the Appeals Committee refused to consider any of our new evidence that shows dramatic changes in the financial position of the College and directly addresses SACS’ concerns. The appeals hearing made it clear that the quality of our academic program is not at issue.

Over the last thirty days the College has received written commitments, totaling $4.1 million from community and area supporters. These commitments are conditioned on the College’s continued accreditation and ensure that St. Andrews would operate with a balanced budget over the course of the next two years or more. We have also reached an agreement with one of our key lenders to reduce the college’s long-term debt by up to $3 million.  By filing a lawsuit, the College will now have the opportunity to discuss these highly significant financial developments, which we believe will greatly strengthen our case in court. While I am disappointed that the Appeals Committee did not overturn SACS’ decision, I remain confident that this disagreement will be favorably resolved either through a negotiated settlement, or in the courts.

As this process takes shape, we promise to keep you informed about the progress of our lawsuit and about discussions that might lead to an equitable and just settlement of our disagreement with SACS. 

Paul Baldasare

College President

June 2007

St. Andrews Presbyterian College is fully accredited by the Southern Association of Colleges and Schools (SACS), National Council for the Accreditation of Teacher Education and the North Carolina Department of Education.

Although SACS has continuously praised the strength of the St. Andrews educational program, two years ago it placed us on probation due to a disagreement concerning the college’s strategic plan and how the college has structured its finances.

On June 21, SACS made the decision to remove St. Andrews Presbyterian College from its membership, and the college immediately gave notice of its plans to appeal the decision.  SACS apparently took this action based on its interpretation of the college’s financial plan. This decision is not final until all appeals have been exhausted.  St. Andrews continues to be fully accredited and all students remain eligible for federal financial aid.   While this appeals process may take some time, the college remains confident that this matter will be favorably resolved. 

This action by SACS follows a two-year disagreement between SACS and St. Andrews regarding the strategic plan adopted by the St. Andrews Board of Trustees and implemented by the college’s administration. As part of its strategic plan, the college decided to increase enrollment to 1,100 students. This plan has included borrowing funds on highly favorable terms to provide the resources needed to significantly increase the enrollment. As a direct result of this plan, St. Andrews has experienced significant growth in enrollment—32% increase over the past four years; improved retention; increased net revenues by 69% over the same time period; and successfully completed a $36 million fundraising campaign.

The college’s strategic plan is working well and St. Andrews is in a strong financial position. We expect to continue to grow and make progress in the coming years. While St. Andrews appreciates the efforts of SACS to ensure the availability of quality educational opportunities, we respectfully disagree with this decision.  The St. Andrews community looks forward to the satisfactory resolution of this disagreement as soon as possible.
 
Paul Baldasare
College President

Accreditation Updates

The latest news regarding the accreditation of St. Andrews

April 3, 2008

On April 1, the 11th Circuit Court of Appeals agreed with St. Andrews and dismissed the most recent appeal filed by the Southern Association of Colleges and Schools (SACS) challenging Judge Tilley’s grant of our Motion for a Preliminary Injunction. This Injunction requires SACS to maintain the membership and accreditation of St. Andrews pending the final outcome of our lawsuit. With this most recent decision by the 11th Circuit, SACS has now agreed to stop challenging Judge Tilley’s order to move forward with the lawsuit. While the lawsuit is ongoing, St. Andrews remains fully accredited by SACS. St. Andrews continues to work toward a resolution of the disagreement with SACS.

February 28, 2008

The lawsuit has been transferred to federal district court in Georgia, and SACS has now appealed the judge’s Order to the 11th Circuit Court of Appeals.  SACS has also requested that proceedings in the underlying lawsuit be placed on hold until the 11th Circuit rules on this appeal.  The College and SACS are in the process of writing legal briefs for the appellate court. No dates have been set for oral arguments on the appeal or for further legal proceedings on the underlying lawsuit.  While the lawsuit is ongoing, St. Andrews remains fully accredited by SACS. St. Andrews continues to work toward a resolution of the disagreement with SACS.

October 25, 2007
As a result of the Order Judge Tilley entered in early September granting our motion for a preliminary injunction, St. Andrews retained its membership in the Southern Association and is, as it has always been, fully accredited.  Our students are eligible for all federal and state financial aid programs.  By the terms of this court Order, the College’s status with SACS will remain this way until a further Order by the Judge.  Last week, SACS gave notice that it intends to appeal Judge Tilley’s Order to the Fourth Circuit Court of Appeals, which sits in Richmond, VA.   We believe that this procedural move by SACS has a very low likelihood of being successful.   To overturn the Order, the Fourth Circuit Court would have to find that Judge Tilley “abused his discretion” in granting our motion, which is an extraordinarily difficult standard to meet.  The net effect of this Appeal is that it will delay our case by as much as an additional year before we can proceed with the underlying merits of the lawsuit.  During this 2-3 year time period while we wait for the Appeal and the lawsuit itself to be decided, St. Andrews will remain fully accredited as ordered by the court.

September 5, 2007

After reviewing documents, hearing additional testimony, and listening to legal arguments, Judge Tilley decided on Wednesday, Sept. 5 to grant the college's Motion for a Preliminary Injunction. In granting the preliminary injunction, the judge effectively extends the Order he entered last week so that it will last through the duration of the lawsuit. Importantly and as specified in the order, St. Andrews students remain eligible to receive state and federal financial aid and full credit for their course of work.

Judge Tilley is now in the process of writing his decision in a form that will have findings of fact and conclusions of law.

As dates and deadlines are set by Judge Tilley, you will be kept informed about the progress of the lawsuit. We will provide information as we know.

August 30, 2007

With the agreement of the parties, Federal District Court Judge Carlton Tilley of the Middle District of North Carolina today ordered St. Andrews reinstated into full membership into the Southern Association of Colleges and Schools (SACS) until further order of the court. This action by the parties and Judge Tilley means our college will continue to be accredited as the case continues in Federal Court. Importantly and as specified in the order, St. Andrews students remain eligible to receive state and federal financial aid and full credit for their course of work.

Read the order here. Read the latest posting by SACS here.

This shall remain in full force and effect until further order of the judge.

August 29, 2007

Federal District Court Judge Carlton Tilley heard opening arguments on Wednesday, Aug. 29, but due to the busy docket was unable to hear all of the arguments so that he may rule on the injunction. The hearing will reconvene at 3 p.m. on Thursday, Aug. 30.

August 24, 2007

The Appeals Committee appointed by SACS notified us that our appeal to overturn its June decision has been denied. In response, a lawsuit was filed in federal court in the Middle District of North Carolina asking for the decision to be reversed. Federal District Court Judge Carlton Tilley has set Wednesday, Aug. 29 as the date to hear and rule on our Motion for a Preliminary Injunction. Throughout this legal process, the College remains accredited and our students are eligible to participate in all federal financial aid programs.

August 20, 2007

President Paul Baldasare announces another major gift pledged to St. Andrews. Long-time friends of the college have pledged $1 million provided the college is able to resolve successfully the disagreement with SACS. This is in addition to the $3.1 million pledged earlier this month, bringing the total to $4.1 million.

“It is reassuring to know our community and our major supporters are standing strongly behind us and stepping up to demonstrate to the accrediting agency there is substantial support for the college,” said Baldasare.

SACS will hear the administrative appeal by St. Andrews on Wednesday, Aug. 22. Results of the appeal are expected within seven to ten days following the hearing.

August 7, 2007

President Paul Baldasare announces two major financial developments:

• Major donors and community organizations have pledged to give unrestricted funds totaling $3 million to the College this year, provided we are able to resolve successfully our disagreement with SACS. These commitments provide an unrestricted reserve that would ensure balanced operating budgets for the next two years at which time the College will be seeking its regularly scheduled ten-year reaffirmation of accreditation.
• The College's primary lender, the U.S. Department of Agriculture, Rural Development has agreed to reduce the College's debt by up to $3 million, which will have the added benefit of reducing the College's mortgage payment each year.

"I have communicated these significant financial changes to SACS and I look to hearing back from them soon," said Baldasare. "I do not know if SACS will agree to meet with us before our appeal is heard later this month (August), but I have indicated to them that I am willing to talk with their representatives at any time to discuss settlement of our disagreement."

July 18, 2007

The Southern Association of Schools and Colleges (SACS) issued a new statement to its website regarding St. Andrews that in part states:

“If the Appeals Committee affirms the Commission’s decision to remove accreditation, that decision is final and is not subject to further appeal.”

It is in fact true that under the SACS process there is no other recourse.  However, St. Andrews Presbyterian College firmly believes that there are remedies to this situation through the federal courts. It is the College’s intention to seek every remedy available to reach a resolution in this matter. The College contends that the actions taken by SACS are not grounded in fact and that the courts will recognize the strategy the College has used to grow enrollment, expand programs and build new facilities.

To read the complete SACS statement, go here.

July 6, 2007

St. Andrews sends the official letter of appeal to SACS. This step marks the formal start of the appeals process with SACS.

June 21, 2007

SACS announces its decision to remove St. Andrews from membership. St. Andrews officials immediately give verbal notice that an appeal would be forthcoming.

If you have questions or comments about this issue, please contact Gary Greene, Director of Communications, at 910-277-5671 or send an email.