Last December, the Southern Association of Colleges and Schools Commissioner on Colleges (SACSCOC) voted to remove SAU from membership due to its financial status. The university's appeal was denied in February and then in July, the SACSCOC arbitration committee reversed the decision and reinstated SAU's accreditation.
The SACSCOC board will vote on the next step for the university in December.
In a news release, SAU said to ensure compliance with the Southern Association of Colleges and Schools Commissioner on Colleges and keep its accreditation, the school has reduced its expenses by approximately $17 million in fiscal year 2024 compared to 2023. Reductions, totaling 50% of university employees, include 67 staff positions (41% reduction); 37 full-time faculty positions (67% reduction); 32 adjunct faculty positions (57% reduction); and stopping several under-enrolled programs.
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The university also said it will be actively settling outstanding balances with vendors and adjusting various contracts.
SAU also reported completing four financial audits for fiscal years 2021, 2022, 2023, and 2024, and restoring employee payroll and health insurance benefits.
The HBCU university -- remaining millions of dollars in debt -- secured a $7 million loan from Gothic Ventures with a high-interest rate. To get the loan, St. Aug's put up much of the university's main campus and off-campus properties as collateral.
Gothic Ventures tells ABC11 that the interest rate offered was determined by the financial difficulties faced by the university, which included a recent audit, historical revenue losses, and outstanding debt.
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Many, including SAU alumni and finance experts, are concerned about this loan.
"We are concerned about the partnership between Gothic Ventures and Saint Augustine University because if for any reason Saint Augustine is unable to repay Gothic ventures, the land will be lost and the university as we know it will cease to be," alum Bishop Clarence Laney said.
The lawsuit against the board of trustees by the SaveSAU Coalition was also recently dismissed.