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Saturday, July 5, 2025

Johnson C. Smith University Placed on Accreditation Probation Over Financial Compliance Issues


Johnson C. Smith University (JCSU) has been placed on probation for good cause by the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC), the latest in a series of growing concerns about the Charlotte-based HBCU’s financial management and institutional compliance.

Announced in June 2025, the probation does not affect JCSU’s current accreditation status but serves as a formal warning that the school has not fully addressed prior concerns raised in past evaluations. According to The Charlotte Observer, the accrediting agency cited continued issues with financial responsibility, including lapses in how the university oversees federal funding, sponsored research, and state compliance protocols.

This latest action follows a monitoring process that began in 2023, when JCSU was first notified of deficiencies in its fiscal operations. The June 2025 decision to place the university on probation signals that those concerns have not been fully resolved, despite efforts by the administration.

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What Probation for Good Cause Means

Probation for good cause is the most serious public sanction short of removing accreditation entirely. It allows institutions like JCSU a limited window — usually up to two years — to correct their deficiencies while still remaining accredited. The university is expected to demonstrate significant improvements before its next major evaluation, scheduled for 2026.

According to official SACSCOC documentation, the decision was made after a Special Committee conducted an on-site visit earlier this year. The committee found the university still fell short in meeting key standards related to financial controls, governance, and compliance.

Despite the warning, Johnson C. Smith continues to operate as a fully accredited institution. Students currently enrolled remain eligible for federal financial aid, and the university’s degrees remain valid and recognized. However, the university is now under close monitoring and must submit progress reports and prepare for another comprehensive review.

JCSU’s Response

In a statement shared with local media, President Valerie Kinloch acknowledged the decision and framed it as a challenge the university is prepared to meet.

“We have worked intentionally to improve our overall operations, and additional improvements will be made over the next academic year,” Kinloch stated. “This is an opportunity to reaffirm our commitment to excellence, transparency, and student success.”

Kinloch, who took office in 2023, also emphasized that the university’s leadership is preparing for the 2026 Special Committee visit and views the probationary period as a path toward long-term institutional strengthening.

A Broader Trend in HBCU Accountability

Johnson C. Smith University’s situation highlights a larger conversation around financial oversight and sustainability at private HBCUs. While several institutions have celebrated enrollment growth and private donations in recent years, others have struggled to maintain financial footing under tighter federal and state oversight.

The probation underscores the urgent need for updated compliance systems, audit procedures, and administrative reforms at JCSU, particularly as the university positions itself to remain competitive and financially stable in the coming years.

Founded in 1867, Johnson C. Smith University has long been a cornerstone of Charlotte’s higher education landscape. With deep roots in the African American community, the university is known for its liberal arts programming, leadership development, and historic commitment to Black excellence.

As the 2025–2026 academic year begins, all eyes will be on JCSU’s leadership and their ability to steer the institution through this critical period.

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