The Commission determined that NSAD was out of compliance with Standard 3,
specifically with CFRs 3.4 and 3.9.
Financial strength and sustainability.
NSAD has experienced serious financial problems
with total operating expenses exceeding total revenues for the past two years. Significant operational deficits have only been avoided by subsidies from the parent entity. NSAD will need to reach a position where it is financially sustainable without being dependent on such support. In addition, the US Department of Education has placed NSAD on Heightened Cash Monitoring 2 which requires the institution to cover Title IV funds for all of its students and then be reimbursed by the Department, which further contributes to NSAD’s financial challenges. The Commission finds that NSAD is out of compliance with CFR 3.4.
Enrollment planning and growth.
NSAD’s enrollment has shown a significant downward trend over the last six years falling short of overly optimistic projections. NSAD needs to become more effective at marketing and recruiting to grow its enrollment, given the critical role enrollment and tuition play in the financial stability of the institution. The Commission finds that NSAD is out of compliance with CFR 3.4.
Board governance.
The board has experienced significant disruption, turnover, and
diminution in size and capacity. The board is in the rebuilding process and must ensure
adequate stewardship and capacity to provide effective oversight of NSAD strategy and
financial health. The Commission finds that NSAD is out of compliance with CFR 3.9.
The Commission requires the institution to respond to the following issues:
- Develop a short-term rebuilding plan that focuses on revenue generation and
financial viability. (CFR 3.4)
- Accelerate the development of a strategic marketing, enrollment, and retention
plan with adequate resources, clear measurable targets, and metrics to monitor
success. (CFRs 3.4, 3.6)
- Continue the search process for the new president, with careful consideration of
the necessary qualifications and skill set to lead NSAD in addressing its current
challenges and attaining its long-term strategic goals. (CFR 3.8)
- Prioritize the plans for future board expansion to ensure independence,
competence, and appropriate membership composition to fulfill its
responsibilities to the institution. (CFR 3.9, Governing Board Policy, Governing
Board Policy Implementation Guide)
- Identify a sustainable staffing structure to ensure adequate support for the needs
of students. (CFR 3.1)