INITIAL 5-YEAR GRANT - File: INIT-5YR
September 1, 2016
VIA EMAIL ([email protected])
Mr. Tom Gillenwater, President Academy of Radio and Television Broadcasting 16052 Beach Boulevard, Suite 263-N Huntington Beach, CA 92647 Re: Reaccreditation Deferred; Institutional Show Cause Continued for Good Cause; Interim Report Reviewed; Interim Report Required ACCET ID #173
Dear Mr. Gillenwater: At its August 2016 meeting, the Accrediting Commission of the Accrediting Council for Continuing Education & Training (ACCET) reviewed the institution’s interim report submitted in response to the April 15, 2016 Commission Action letter, resulting from the Commission’s review of the on-site visit team report (visit conducted October 1–2, 2015), the institution’s response (dated November 18, 2015), and interim reports submitted (November 12, 2015 and February 29, 2016) in response to the show cause directive initially issued in the August 11, 2015 Commission Action letter, due to serious concerns regarding the institution’s financial stability and eligibility for Title IV Federal Student Aid program. The April 2016 action directed the institution to submit an additional interim report to include: a) documentation from the U.S. Department of Education as to the institution’s Title IV eligibility status and a narrative update on the institution’s operation under the HCM2 method of payment for Title IV funds; b) updated financial information, including audited financial statements for fiscal year 2015 and internally-generated financial statements for the period of January 1–June 30, 2016; c) an updated Teach-Out plan in the event of the institution’s closure; and d) missing supporting documentation for placements reported for the Radio Broadcasting (residential) program for the period January–September 2015. Upon its August 2016 review, the Commission voted to defer consideration of reaccreditation, to extend the institution’s accredited status until December 2016, and to continue for good cause the institutional show cause originally issued in the August 11, 2015 Commission action letter, based on issues regarding financial stability and eligibility for Title IV Federal Student Aid programs. The good cause noted by the Commission is the institution’s improved status from HCM2 to HCM1 for Title IV Federal Student Aid programs and the institution’s improved equity position. The Commission also directed the institution to provide an additional interim report to include the following specific items:
Academy of Radio and Television Broadcasting September 1, 2016 Page 2 of 3 1. Recently, the institution was removed from HCM2 and placed on HCM1 by the U.S. Department of Education. Therefore, the institution is now directed to provide a narrative update on the institution’s transition to accommodate the HCM1 method of payment for Title IV funds, along with written policies and procedures to ensure the institution’s compliance with federal HCM1 requirements. 2. In its June 29, 2016 interim report, the institution submitted audited financial statements for the fiscal year ended December 31, 2015 and internally generated financial statements for the period from January 1–June 30, 2016 indicating significant operating loss and long-term loans. Therefore, the institution is directed to provide updated financial information to include: a. Internally generated financial statements (balance sheet, profit/loss statement, and cash flow statement) for the period January 1 through October 31, 2016, along with a comparison of the actual statements to the 2016 projections. b. Financial projections for the four quarters of 2017. c. A signed statement from the CEO or CFO attesting to the truth and accuracy of the financial statements. d. A narrative update on the institution’s financial recovery plan, with reference to specific actions taken to regain financial stability and specific timeframes for completion. The institution is advised to provide sufficient details in this narrative update to give the Commission confidence in its plans for financial recovery. 3. Despite the institution’s improved HCM status, an updated Teach-Out plan is required in the event of the institution’s closure. Therefore, the institution is directed to provide an updated Teach-out Plan in accordance with ACCET Document 32 – Teach-Out/Closure Policy, including updated student rosters and any other changes made since its February 1, 2016 submission. 4. In its June 29, 2016 interim report, the supporting documentation provided for one placement waiver (R. Hayden) indicated that the student failed to meet the requirements for graduation. As a result, this student should have been reported as a non-completer and not as a completer with a placement waiver. Therefore, the institution is directed to provide: a) a revised completion and placement policy that describes the requirements for completion waivers and placement waivers in accordance with ACCET Document 28 – Completion and Placement Policy and b) an updated Document 28.1 – Completion and Placement Statistics for the Radio Broadcasting (residential) program that reflects R. Hayden as a non-completer. A copy of this report, including the attached interim report cover sheet, must be emailed to [email protected] for receipt at the ACCET office no later than October 28, 2016. As a reminder, please be advised that late submission and receipt of documents and reports are subject to significant late fees in accordance with Commission policy. These fees are outlined in ACCET Document 10, which can be found at www.accet.org.
Academy of Radio and Television Broadcasting September 1, 2016 Page 3 of 3 Further, while under a Show Cause directive, the institution is restricted from making any substantive changes including, but not limited to, new programs, major program revisions, new branch campuses or other new sites, or relocations out of the general market area. Deferral of reaccreditation is not an adverse action and is explained in ACCET Document 11 – Policies and Practices of the Accrediting Commission, which is available on our website at www.accet.org. The deferral of a final decision is intended to allow for an opportunity to clarify and/or resolve the issues of concern cited herein, specifically focused on the demonstration of systematic and effective implementation of revised policies and procedures in practice over time. In accordance with Commission policy, no substantive changes including, but not limited to, new programs or major program revisions, new branch campuses or other new sites, and/or relocation out of the general market area, will be permitted during the term of the deferral period. Thank you for your responsiveness with respect to the Commission’s interim reporting directive. Your continued commitment in support of the institution’s accredited status is essential to a favorable outcome in this process. Should you have any questions or need further assistance regarding this letter, please contact the ACCET office at your earliest opportunity. Sincerely,
William V. Larkin, Ed.D. Executive Director WVL/jhh Enclosure: Interim Report Cover Sheet CC:
Mr. Herman Bounds, Chief, Accreditation Division, USED ([email protected]) Ms. Martina Fernandez-Rosario, ACD - San Francisco/Seattle, USED ([email protected]) Mr. Ron Bennett, Director, School Eligibility Service Group, USED ([email protected]) Ms. Joanne Wenzel, Bureau Chief, CA Bureau for Private Postsecondary Education, ([email protected]) Ms. Leeza Rifredi, CA Bureau for Private Postsecondary Education, ([email protected])
VIA EMAIL ([email protected])
Mr. Tom Gillenwater, President Academy of Radio and Television Broadcasting 16052 Beach Boulevard, Suite 263-N Huntington Beach, CA 92647 Re: Reaccreditation Deferred; Institutional Show Cause Continued for Good Cause; Interim Report Reviewed; Interim Report Required ACCET ID #173
Dear Mr. Gillenwater: At its August 2016 meeting, the Accrediting Commission of the Accrediting Council for Continuing Education & Training (ACCET) reviewed the institution’s interim report submitted in response to the April 15, 2016 Commission Action letter, resulting from the Commission’s review of the on-site visit team report (visit conducted October 1–2, 2015), the institution’s response (dated November 18, 2015), and interim reports submitted (November 12, 2015 and February 29, 2016) in response to the show cause directive initially issued in the August 11, 2015 Commission Action letter, due to serious concerns regarding the institution’s financial stability and eligibility for Title IV Federal Student Aid program. The April 2016 action directed the institution to submit an additional interim report to include: a) documentation from the U.S. Department of Education as to the institution’s Title IV eligibility status and a narrative update on the institution’s operation under the HCM2 method of payment for Title IV funds; b) updated financial information, including audited financial statements for fiscal year 2015 and internally-generated financial statements for the period of January 1–June 30, 2016; c) an updated Teach-Out plan in the event of the institution’s closure; and d) missing supporting documentation for placements reported for the Radio Broadcasting (residential) program for the period January–September 2015. Upon its August 2016 review, the Commission voted to defer consideration of reaccreditation, to extend the institution’s accredited status until December 2016, and to continue for good cause the institutional show cause originally issued in the August 11, 2015 Commission action letter, based on issues regarding financial stability and eligibility for Title IV Federal Student Aid programs. The good cause noted by the Commission is the institution’s improved status from HCM2 to HCM1 for Title IV Federal Student Aid programs and the institution’s improved equity position. The Commission also directed the institution to provide an additional interim report to include the following specific items:
Academy of Radio and Television Broadcasting September 1, 2016 Page 2 of 3 1. Recently, the institution was removed from HCM2 and placed on HCM1 by the U.S. Department of Education. Therefore, the institution is now directed to provide a narrative update on the institution’s transition to accommodate the HCM1 method of payment for Title IV funds, along with written policies and procedures to ensure the institution’s compliance with federal HCM1 requirements. 2. In its June 29, 2016 interim report, the institution submitted audited financial statements for the fiscal year ended December 31, 2015 and internally generated financial statements for the period from January 1–June 30, 2016 indicating significant operating loss and long-term loans. Therefore, the institution is directed to provide updated financial information to include: a. Internally generated financial statements (balance sheet, profit/loss statement, and cash flow statement) for the period January 1 through October 31, 2016, along with a comparison of the actual statements to the 2016 projections. b. Financial projections for the four quarters of 2017. c. A signed statement from the CEO or CFO attesting to the truth and accuracy of the financial statements. d. A narrative update on the institution’s financial recovery plan, with reference to specific actions taken to regain financial stability and specific timeframes for completion. The institution is advised to provide sufficient details in this narrative update to give the Commission confidence in its plans for financial recovery. 3. Despite the institution’s improved HCM status, an updated Teach-Out plan is required in the event of the institution’s closure. Therefore, the institution is directed to provide an updated Teach-out Plan in accordance with ACCET Document 32 – Teach-Out/Closure Policy, including updated student rosters and any other changes made since its February 1, 2016 submission. 4. In its June 29, 2016 interim report, the supporting documentation provided for one placement waiver (R. Hayden) indicated that the student failed to meet the requirements for graduation. As a result, this student should have been reported as a non-completer and not as a completer with a placement waiver. Therefore, the institution is directed to provide: a) a revised completion and placement policy that describes the requirements for completion waivers and placement waivers in accordance with ACCET Document 28 – Completion and Placement Policy and b) an updated Document 28.1 – Completion and Placement Statistics for the Radio Broadcasting (residential) program that reflects R. Hayden as a non-completer. A copy of this report, including the attached interim report cover sheet, must be emailed to [email protected] for receipt at the ACCET office no later than October 28, 2016. As a reminder, please be advised that late submission and receipt of documents and reports are subject to significant late fees in accordance with Commission policy. These fees are outlined in ACCET Document 10, which can be found at www.accet.org.
Academy of Radio and Television Broadcasting September 1, 2016 Page 3 of 3 Further, while under a Show Cause directive, the institution is restricted from making any substantive changes including, but not limited to, new programs, major program revisions, new branch campuses or other new sites, or relocations out of the general market area. Deferral of reaccreditation is not an adverse action and is explained in ACCET Document 11 – Policies and Practices of the Accrediting Commission, which is available on our website at www.accet.org. The deferral of a final decision is intended to allow for an opportunity to clarify and/or resolve the issues of concern cited herein, specifically focused on the demonstration of systematic and effective implementation of revised policies and procedures in practice over time. In accordance with Commission policy, no substantive changes including, but not limited to, new programs or major program revisions, new branch campuses or other new sites, and/or relocation out of the general market area, will be permitted during the term of the deferral period. Thank you for your responsiveness with respect to the Commission’s interim reporting directive. Your continued commitment in support of the institution’s accredited status is essential to a favorable outcome in this process. Should you have any questions or need further assistance regarding this letter, please contact the ACCET office at your earliest opportunity. Sincerely,
William V. Larkin, Ed.D. Executive Director WVL/jhh Enclosure: Interim Report Cover Sheet CC:
Mr. Herman Bounds, Chief, Accreditation Division, USED ([email protected]) Ms. Martina Fernandez-Rosario, ACD - San Francisco/Seattle, USED ([email protected]) Mr. Ron Bennett, Director, School Eligibility Service Group, USED ([email protected]) Ms. Joanne Wenzel, Bureau Chief, CA Bureau for Private Postsecondary Education, ([email protected]) Ms. Leeza Rifredi, CA Bureau for Private Postsecondary Education, ([email protected])
