Johnson C. Smith University is preparing a response to a hold on its accreditation endorsement.

The Southern Association of Colleges and Schools Commission on Colleges put the school on probation regarding financial stability and control while the agency examines a disclosure in JCSU's annual audit. The Post reached out to JCSU to explain what led to probation and where the school is heading.

What is the audit disclosure that was flagged?

“Included in our audit are footnote disclosures that provide additional details that support the presented financial statements,” JCSU spokeswoman Sherri Belfield said in an email. “For the last two years, we have prepared one particular footnote in an identical fashion. This year, our auditors insisted on a change to this format with the inclusion of an additional sentence. The University cautioned that it was misleading, as it was contrary to the financials presented and a clean audit.

“Given the deadline to submit the audit to SACSCOC, the University had no choice but to submit the audit with the additional disclosure. This contradiction prompted a number of questions that could not be answered. Therefore, the SACSCOC board could not decide in favor of our reaffirmation of accreditation until a Special Committee can be convened to visit our campus to get the questions answered for themselves in Fall 2018."

Members of JCSU board’s Finance and Audit Committee and board Chair Shirley Hughes plan to meet with auditors “to better understand why the disclosure statement was added to the 2016-17 audit given that it was a clean audit for the second consecutive year,” Belfield said. “It will be up to the Board of Trustees to release the disclosure statement.”

Does the disclosure have anything to do with financial issues that became public in 2015?

JCSU earned a clean audit for the 2016-17 fiscal year, its second straight. Belfield said the school is not operating with a deficit.  

Has incoming president Clarence Armbrister been made aware of the situation and what is his role in the interim to address the issue?

Armbrister has been undergoing a "comprehensive onboarding" program with JCSU President Ronald Carter, who is stepping down Dec. 31, and Hughes since his hire on Oct. 4. Armbrister is aware of the probation and the transition includes preparation to respond to questions from and to take actions requested by SACSCOC.

Armbrister "has expressed his commitment to Johnson C. Smith University and is ready to work with faculty and staff as soon as he arrives on January 2, 2018," Belfield said.

What does JCSU have to do in order to show compliance?
SACSCOC will send a letter to JCSU outlining actions to take in preparation for an on-site visit next fall by the accrediting agency’s Special Committee.

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Johnson C. Smith University lands on probation over financial issues

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