As expected, an accreditation agency sanctioned Georgia Perimeter College Tuesday because of its recent financial problems.
Georgia Perimeter recently cut $25 million to cover a budget shortfall discovered in early May. The financial crisis was disclosed a few months before the Southern Association for Colleges and Schools was scheduled to conduct its regular review of the school.
The college remains accredited but was placed on “warning” status because of the shortfall and a lack of financial controls. It is the less serious of two possible sanctions.
Georgia Perimeter officials said they expect to have all concerns resolved within a year.
Accreditation shows whether a college meets widely accepted academic and financial standards. Students attending accredited colleges are eligible for federal loans and grants and other colleges are more likely to accept their credits and degrees.
The warning status was “anticipated” by the University System of Georgia and “officials feel confident that the conditions leading to SACS action are being addressed,” spokesman John Millsaps said. For example, new administrators and policies are in place.
Georgia Perimeter is the state’s fourth-largest public college, enrolling more than 23,000 students across metro Atlanta.
Past audits and other analysis reviewed by The Atlanta Journal-Constitution this spring showed Georgia Perimeter was overspending for the past four years.
When system auditors auditor reviewed the college’s books they concluded the shortfall was caused by chronic overspending. Their report, issued in September, found senior administrators either ignored or didn’t notice signs of financial trouble.
After the shortfall was disclosed the system removed former President Anthony Tricoli.
The system tapped Rob Watts to serve as interim president and he quickly implemented numerous cuts.
He laid off 282 people, nearly 9 percent of the staff. No campuses were closed and no tenure or tenure track faculty lost their jobs.
Ron Stark, the new vice president for fiscal affairs, said new budget controls have been put in place and has guaranteed “another shortfall will not happen.”
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