By: Jordan Meadows
Staff Writer
In October 2023, a five-member team of higher education professionals arrived at St. Augustine University (SAU) on behalf of its accreditor—the Southern Association of Colleges and Schools Commission on Colleges (SACS)—to evaluate the university’s finances and leadership.
Their findings: the university faced “dire and fundamental financial challenges,” and its board of trustees lacked even the most basic systems for risk evaluation and fiscal oversight. The committee found that the board had approved budgets since 2019 without any verified, externally audited financials. There was no evidence of long-term strategies to address growing deficits.
Despite a brief return to probationary status following an initial appeal, SACS withdrew SAU’s accreditation again in December 2024. That revocation, based on six violations including board mismanagement, struck a major blow to the university’s viability. Without accreditation, students cannot access federal financial aid, and the institution becomes ineligible for most forms of government and philanthropic funding.
SAU’s leadership—specifically its board of trustees—has been at the center of growing controversy. More than a dozen former trustees and administrators allege misconduct and power consolidation under the two most recent board chairs: current chair Brian Boulware and former chair James Perry, a retired Florida Supreme Court justice. Accusations range from silencing dissent to the wrongful termination of employees, improper documentation of board meetings, and the marginalization of faculty and staff voices. Several internal complaints and lawsuits corroborate these claims.
The alumni-led organization Save SAU filed a lawsuit seeking to reconstitute the board altogether. The North Carolina Attorney General’s Office launched an investigation into the university’s governance, citing concerns over potential violations of nonprofit oversight laws.
In a statement issued by the university, officials denied all wrongdoing and defended Boulware and Perry as committed stewards trying to save SAU from inherited dysfunction: “We remain dedicated to our mission and the well-being of the university amidst all opposition.”
Boulware insists that the financial collapse long predates his leadership and has emphasized steps taken by the board since 2023, including hiring an internal auditor and renegotiating financial processes. But critics argue that under Boulware and Perry, transparency diminished and internal dissent was squashed. By the end of Perry’s first year as chair, 15 of the 21 board members had resigned.
Leadership turnover has further destabilized the university. In 2019, then-President Dr. Everett Ward—a popular alumnus and former executive director of the NC Democratic Party—announced his retirement after five years of attempted reform. Under Ward, enrollment had started to rebound and annual donations nearly tripled. Yet his departure was expedited by board leadership, with then-chair Perry announcing an interim replacement before Ward’s intended retirement date.
That move drew immediate criticism. Longtime general counsel Charles Francis resigned in protest, warning trustees that bypassing shared governance could breach accreditation requirements. What followed were years of presidential transitions and a revolving door of key staff.
Within weeks of the December 2024 decision, SAU was hit with two lawsuits totaling more than $18 million. SBA Connect, a wireless provider, alleged that the university defaulted on a contract within a year of signing it, demanding over $16.8 million in early termination fees and interest. Avaria, the university’s IT services provider, followed with its own lawsuit seeking $1.3 million in unpaid bills dating back to 2020.
In response, SAU filed an emergency motion to delay any enforcement of the levies, warning that doing so would“exacerbate institutional disruptions and further erode the public’s confidence in SAU’s viability.”
The university has touted a $70 million “bridge loan” as a critical financial lifeline. However, officials have refused to disclose key details, including the lender’s identity, the terms of repayment, or how the money will be used. SAU also drastically cut its workforce in November.
At the center of the university’s financial recovery plan is a controversial real estate deal with Florida-based 50 Plus 1 Sports. Originally proposed as a lease of the university’s entire 105-acre campus, the plan triggered a required review by the state Department of Justice. The DOJ flagged the deal for potentially undervaluing the property by “tens of millions of dollars,” warning that it could compromise SAU’s nonprofit status. In response, the university and the developer restructured the agreement to cover less than half the campus, effectively avoiding regulatory review.
In a dramatic twist on April 25, Boulware requested an investigation by the State Bureau of Investigation (SBI) into the possible mismanagement of federal COVID-19 relief funds received by the university. In a statement, he accused prior administrators of wiring millions of dollars in relief funds to “unknown sources.”
As the university prepares for another appeal of accreditation to SACS, SAU must demonstrate sustainable financial operations, compliance with legal and regulatory requirements, and—most crucially—a functional and accountable board of trustees.
The SAU community is not taking these developments quietly. In April 2025, more than 300 alumni, students, faculty, and former administrators packed Martin Street Baptist Church in Raleigh for a town hall organized by journalist Roland Martin.
