St. Augustine’s University facing financial problems

Monday, February 24, 2014

St. Augustine’s University – the proud, historically black campus near downtown Raleigh – is facing questions about its financial health.

A recent audit obtained by The News & Observer turned up problems with financial controls. Enrollment was down in 2013, resulting in a $3 million drop in net tuition revenue, according to a financial statement included in the auditor’s report.

A contractor on the school’s football stadium sued for breach of contract, alleging that the university stopped payments and owes nearly $675,000.

The university has eliminated 15 positions, mostly through attrition and retirements, according to a statement from President Dianne Boardley Suber. St. Aug’s will try to avoid layoffs, she said, but a one-week furlough is likely for employees.

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