[S-SARA] SARA and HCM2

[Elise A Scanlon]

Yes I agree with Jeannie and with the earlier comment by Julie that investigating early as well as on-going monitoring are important. The financial position of an institution can deteriorate quickly. With HCM2, there can be delays in reimbursements and this can disrupt cash flow.  Also, some accreditors require a teach out plan when an institution is placed on HCM2.  It would be helpful to know if there is such a plan in place.
Sorry to be late to the conversation.
Elise

Elise Scanlon Law Group
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From: S-SARA <s-sara-bounces at lists.onenet.net> On Behalf Of SARANC
Sent: Monday, October 28, 2019 4:06 PM
To: s-sara at lists.onenet.net
Subject: Re: [S-SARA] SARA and HCM2

Mark, thank you for the reminder.  I could not recall which meeting I heard this discussed.

Kyle, after Mark's comments at the meeting, I do believe Jeannie Yockey-Fine, from NC-SARA, provided more clarity.  If I recall correctly, she stated that when dealing with an institution's financial health, we as SPE's should address the issue when we are notified rather than waiting until the institution is up for renewal.

Take care,
Terrence

Terrence R. Scarborough, M.P.A.
Director of SARA North Carolina
North Carolina State Education Assistance Authority
P.O. Box 14103
Research Triangle Park, NC 27709
T: (855) SARA-1-NC (727-2162)
T: (919) 549-8614, ext. 4667
E: terrence at saranc.org<mailto:terrence at saranc.org>
www.saranc.org<http://www.saranc.org/>



From: S-SARA <s-sara-bounces at lists.onenet.net<mailto:s-sara-bounces at lists.onenet.net>> On Behalf Of Mark Stotler
Sent: Monday, October 28, 2019 2:28 PM
To: s-sara at lists.onenet.net<mailto:s-sara at lists.onenet.net>
Subject: Re: [S-SARA] SARA and HCM2

Kyle

I reported on a related issue at one the recent meetings.  We had an institution that declared financial exigency shortly after they had successfully renewed their SARA status.  Based on advice from NC-SARA, I requested a revised CFI score.  We have no stated policy or practice to cover this situation, but I would probably do some follow-up.  We have to reauthorize all degree-granting institutions annually and through this process we are have a fairly good understanding of where  institutions are fiscally.    Even if you take no official action, I would do some investigation.

Mark

Mark W. Stotler, Ed.D.
Director of Academic Programming
West Virginia Higher Education Policy Commission/
  Council for Community and Technical College Education
1018 Kanawha Blvd., E.  Suite 700
Charleston, WV   25301
Phone: (304) 558-0261
E-mail: mark.stotler at wvhepc.edu<mailto:mark.stotler at wvhepc.edu>
www.wvhepc.edu<http://www.wvhepc.edu>

From: S-SARA <s-sara-bounces at lists.onenet.net<mailto:s-sara-bounces at lists.onenet.net>> On Behalf Of Foster, Kyle
Sent: Monday, October 28, 2019 1:36 PM
To: 's-sara at lists.onenet.net' <s-sara at lists.onenet.net<mailto:s-sara at lists.onenet.net>>
Subject: [S-SARA] SARA and HCM2

[EXTERNAL SENDER]

Good afternoon, S-SARA colleagues.

I hope this Monday is treating everyone well!  I wanted to toss out a question to get everyone's perspectives and hopefully learning something new.

Our office was cc'd on a letter today informing a SARA-participating institution that they have been placed on Heightened Cash Monitoring 2 (HCM2).  The institution is set to renew in January 2020.  Do your states have a procedure when you are notified that a school has been placed on HCM?  If so, do you act immediately or wait for the renewal?

Thanks!

Kyle

Kyle Foster
Assistant Vice Chancellor for Academic Affairs
Oklahoma State Regents for Higher Education
655 Research Parkway, Suite 200 | Oklahoma City, OK 73104<https://goo.gl/maps/nMc3YG81uo72>
P: +1 405 225 9163 | F: +1 405 225 9300 | E: kfoster at osrhe.edu<mailto:kfoster at osrhe.edu>
[OK_RegentHighEdu_4c_horz]<http://okhighered.org/>

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