Kentucky college off probation

Posted: 1/13/06

Kentucky college off probation

By Trennis Henderson

Kentucky Western Recorder

GEORGETOWN, Ky. (ABP)—One year after being placed on probation by its accrediting association, Georgetown College has been “given a clean bill of health,” President Bill Crouch reported.

The Southern Association of Colleges and Schools placed Georgetown on probation in December 2004 due to financial concerns. SACS’ Commission on Colleges reported at the time that Georgetown failed to demonstrate compliance with the requirement of financial stability.

In 2004, Crouch and other Georgetown officials expressed disappointment with the accrediting agency’s action, noting that the school had already made progress in addressing financial issues.

The 2004 SACS report, which followed a two-year monitoring period, noted that the school “has demonstrated significant recent accomplishments in addressing non-compliance” and had provided evidence to indicate “it will remedy all deficiencies within the 12-month period.”

In the wake of an economic downturn after 9/11, Georgetown’s net assets declined by more than $16.5 million, from $61 million to $44.5 million. Since that time, the school’s net assets have increased to $52.4 million, said James Moak, Georgetown’s chief financial officer. The school’s long-term endowment also has rebounded.

“We’re just glad it’s over with. It took a lot of our time and energy we could have used in other ways,” Crouch said, affirming the school’s efforts to address the accrediting agency’s concerns.

In addition to addressing the probation issue, Georgetown officials spent recent months negotiating with Kentucky Baptist Convention leaders about changing their financial and governance relationship. The plan, approved in November by Kentucky Baptist convention messengers, specifies that Georgetown will elect its own trustees beginning in 2006 and that the state convention will phase out Georgetown’s $1.3 million convention allocation over the next four years.

Citing the school’s successful efforts on both the SACS and state convention fronts, Crouch said, “We’ve had a really fine couple of months.”

Looking to the future, he added, “We think we’re going to have our most successful year ever in terms of enrollment and fund-raising.”