Saint Augustine’s University is facing a deadline to show federal agencies how it spent millions of dollars in grant money. The university, which filed for Chapter 11 bankruptcy earlier this year, must provide documentation on the spending by noon Wednesday.
Grant Spending Under Scrutiny
The grants in question were awarded for various purposes, including student improvement, renovations, and high-tech expansion. However, federal agencies are now seeking answers on how the money was used, particularly given the university’s financial troubles.
The Department of Education was the largest grant provider, giving the university over $13 million since 2020 to strengthen its management and fiscal operations. Additionally, the university received grants for historic building restoration and internet bandwidth expansion.
However, there are concerns that some of the grant money may not have been used for its intended purpose. For example, one company is suing the university for failing to pay for work on the campus chapel, which was supposed to be restored using grant funds.
Federal agencies are also investigating why some large grants were never drawn down. The university’s financial struggles, including record low enrollment and millions of dollars in debt, have raised questions about its ability to manage grant funds effectively.
Original reporting: WRAL Raleigh — read the source article.