Higher Learning Commission Puts Wheeling University on Probation
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Read the Higher Learning Commission’s action letter to Wheeling University by clicking here
WHEELING -- The Higher Learning Commission has placed Wheeling University on probation after determining the school "does not have sufficient fiscal resources to support its operation," and relies too heavily on subsidies it receives from the Diocese of Wheeling-Charleston.
HLC President Barbara Gellman-Danley sent a letter to WU President Ginny Favede dated March 4, notifying the school of its probation and outlining the reasons behind its decision.
In a response released Monday, Favede said Wheeling University remains "fully accredited by the HLC" while working to address concerns raised by the group's decision. She added that, though the school is on probation, the commission also has removed the "financial distress" designation imposed on WU in May 2019.
Favede, who took over as university president in October 2019, said that WU is "strongly committed to remedying the issues necessary to lift the sanction quickly and decisively."
"It is equally important to note that the HLC did not cite nor alter the degree award position or status of the University's academic programs," she added. "The sanction has no negative impact on academics and will not affect students in terms of the awarding of credits or degrees."
The Chicago-based HLC is an independent corporation that accredits degree-granting postsecondary educational institutions in the North Central region of America. Its jurisdiction includes schools in West Virginia and 18 other states.
The HLC determined WU has relied heavily on financial support from the Diocese of Wheeling-Charleston since the school's declaration of financial exigency in March 2019. The Diocese has committed to a total subsidy of $7 million to WU through 2025, including for $2.5 million for fiscal year 2021. This, Gellman-Danley said, is what has enabled WU to balance its budget and improve its financial standing.
She added that while WU's fiscal year 2021 budget is projected to be balanced by year's end, the school has a line of credit of $4.25 million that has a short payoff period, in addition to $6 million it has borrowed from its endowment.
"Utilizing such sources of revenue to maintain operations is a financially unsustainable model, and there is no evidence that additional fundraising or enrollment growth will be able to close future budget gaps," she said.
Tim Bishop, spokesman for the Diocese, said the Diocese "has no operational control" over financial decisions at WU and can't speak as to its financial health.
"However, the Diocese will continue to fulfill the obligation it made and honor its commitment," he said.
Whether the money will continue to come to WU after 2025 is still being determined, Bishop said.
"Those discussions have not been had," he said.
The HLC also believes WU has overreached in stating its financial objectives and goals for the coming years.
The HLC has determined that the financial sustainability plan and strategic plan WU completed in September 2020 both contain "exceedingly optimistic targets for critical indices of fiscal health" as they pertain to enrollment growth, retention, and discount rate.
In her letter to Favede, Gellman-Danley refers to Wheeling University's stated goal in its strategic plan to increase "Freshmen retention" from a historic baseline of 71 percent in fall 2020 to 85 percent by fall 2023. The metric "does not have a clear and widely understood definition within the Institution," according to Gellman-Danley.
The HLC also saw a discrepancy between the new plan and unaudited first-quarter fiscal year 2021 information in WU's discount rate, the amount of financial aid the university provides. WU's plan indicated it would be held at 67 percent beginning last fall. The first-quarter numbers the university provided indicated a 68.9-percent rate.
"Wheeling (University's) discount rate directly affects its net tuition revenue and is, therefore, a critical component of the Institution's attempts to achieve financial sustainability," Gelman-Dailey said.
HLC policy requires that WU inform its constituencies -- including board members, administrators, faculty, staff, students, prospective students -- of the probation. WU also is required to disclose its probationary status whenever it refers to its HLC accreditation, and where it is listed on its website.
The HLC will monitor these disclosures to make sure they are accurate and in keeping with commission policy, according to Gelman-Dailey.
WU already has begun to address the HLC's issues of concern, which the commission acknowledged in its statement, Favede said.
As part of the probationary process, WU will provide a report to the HLC that it has addressed the issues that led to the sanction no later than July 1, 2022. The HLC will then conduct an on-site evaluation no later than September 2022.
Wheeling University officials remain confident that the school will fully address all of the HLC's concerns and resume its regular accreditation status at the earliest possible time, Favede said.
"We remain committed to excellence for our students, their families and our alumni," she said. "Our Catholic mission calls for us to reflect on our work and continuously seek ways to enhance our programs and service to others throughout the world."
The HLC decision serves as an additional impetus to continue the work already begun in right-sizing Wheeling University, Favede added. That includes permanently establishing best practices in fiscal management and controls, financial stewardship, operational efficiency, institutional assessment and effectiveness, and enrollment management.
"While the University is taking the HLC's action seriously, students will feel no ill effects in a day-to-day matter," she said. "We will still have our excellent professors teaching the same great courses. We will be fielding the same athletic teams, and our student-athletes will continue to compete. Not one student will lose their financial aid due to this decision, and we are not anticipating any reductions in faculty or staff due to the HLC's actions.
"We know what work we have in front of us, and we have already made many of the improvements," Favede continued. It is important to emphasize that although the University is on probation, it remains fully accredited."