Saint Augustine’s University, the older of two historically Black Episcopal colleges, “is utterly cash-strapped because of poor financial guidelines and checks and balances,” according to a bishop who sits on the board of trustees.
The Rt. Rev. Samuel Rodman, who as Bishop of North Carolina sits on the board of trustees of Saint Augustine’s, briefed the Executive Council April 18 on the first day of its three-day meeting in Raleigh, North Carolina. The council’s thrice-yearly meetings rotate from city to city, and the local bishop always is invited to speak.
Rodman said the previously reported $8 million in debt to the IRS is only a fraction of the problem. “The total debt load for the university at this point is north of $25 million,” Rodman said.
In February, the IRS filed tax liens against university property, alleging that for years, the university failed to turn over to the IRS the income tax it withheld from employees’ paychecks. Rodman did not describe the nature of the university’s other debts.
He described Saint Augustine’s as “land-rich,” and said the university is negotiating with the IRS for permission to sell property to cover its debts. “No one is talking about, at this stage, liquidating the campus,” he said. “But the university owns quite a bit of land in Raleigh that is non-contiguous to the campus.”
Most students have been sent home to take classes remotely, and local churches are pitching in to feed the students who remain, since the school no longer has campus dining.
The school is contesting a decision to strip its accreditation, which would prevent students from receiving federal financial aid. It remains accredited during an arbitration process, which means students graduating in the spring will graduate from an accredited institution. “So that is one silver lining in a really horrific situation,” Rodman said.
Saint Augustine’s was co-founded in 1867 by then-Bishop of North Carolina Thomas Atkinson, for the education of formerly enslaved people.
A previous version of this article quoted Rodman saying there is “an active criminal investigation” ongoing with respect to some employees. He subsequently told TLC that while the quotation was accurate, it was based on a misunderstanding on his part, and there is “no current active criminal investigation.” He also said a section on accreditation incorrectly referred to an arbitration as an appeal. The article has been updated.
Kirk Petersen began reporting news for TLC as a freelancer in 2016, and was Associate Editor from 2019 to 2024, focusing especially on matters of governance in the Episcopal Church.
