An Exploratory Analysis of HBCU Instructional Spending Ratios
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November 2024
An Exploratory Analysis of HBCU Instructional Spending Ratios
Donald Trump Elected President

How would mass deportation impact DACA students? Can institutions support low-income students without Federal Work Study, Supplemental Education Opportunity Grant, and TRIO? If the Office of Civil Rights is moved to the Justice Department and Federal Student Aid is moved to the Treasury Department, what would that diminished Department of Education look like? These are the types of questions being bandied about after Donald Trump’s presidential win. Although the numbers are not large enough to prevent filibusters, his return to the White House will be bolstered by Republican majorities in both chambers. He will also have executive authority in his toolkit. The president-elect nominated Linda McMahon, for secretary of education. She served as director of the Small Business Administration during his first term. She chairs the America First Policy Institute’s (AFPI) board and is co-chair of his official transition team. By all indications, she will advance the education policies of the AFPI. Higher education advocates are anxious to see what changes are made during the first hundred days—particularly where Financial Value Transparency reporting rules are concerned.

An Exploratory Analysis of HBCU Instructional Spending Ratios
Higher Education News

US District Judge Sean Jordan struck down the Department of Labor’s (DOL) latest update to the overtime exemption rule. Designed to be implemented in phases, the first part increased the overtime threshold for salaried employees from $35,568 to $43,888. It went into effect on July 1, 2024. The second phase would have increased the threshold to $58,656, effective January 1, 2025. The third phase would have introduced periodic automatic increases. Judge Jordan’s ruling pushes the threshold back to $35,568 and goes into effect immediately nationwide. The courts decision will likely be welcomed by institutions, many of which were facing considerable increases in employees qualifying for overtime. The DOL may appeal. 

 

Guidance from the Department of Education (Department) aims to clarify related party disclosure requirements. The related party must be clearly identified in financial statements. If an institution had no related party relationships and transactions, it must provide affirmation of that fact. The Department will reject submitted financial statements containing related party disclosures that are unaudited or not covered by the auditor’s report. The AICPA alternative that provides for reasonable assurance, where the related party disclosure addresses both GAAP and the Department’s requirements, is acceptable. The Department maintains an FAQ on the rule which is applicable to financial statement submitted on or after July 1, 2024. Institutions that fail to meet the requirements may be subject to administrative action.

 

To offset compliance problems in area impacted by recent hurricanes, the Employee Benefits Security Administration and the Internal Revenue Service (IRS) are extending compliance timeframes. Group health and other benefit plans, their participants and beneficiaries can take advantage of special timeframes for enrollment, COBRA continuation, claims, notifications, and external reviews. The rule applies to areas impacted by Hurricanes Helene and Milton. Additional guidance was published by the DOL and the IRS on their websites. 

 

The IRS published 2025 cost-of-living adjustments related to limitations on benefits, contributions, and deferrals in qualified retirement plans and IRAs. The thresholds used to define highly compensated employees and key employees were also adjusted.

 

In a letter to the secretaries of the Department of Education and the Department of Agriculture, over 100 organizations called on the Biden-Harris administration to take action to reduce food insecurity among college students. Food insecurity afflicts a fourth of undergraduates. The organizations say it stifles persistence and completion. They believe the Supplemental Nutrition Assistance Program could reduce food insecurity. They suggest simplifying access; eliminating the mandatory interview requirement; excluding all financial aid from eligibility calculations; and improving student outreach.

 

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Engineering for One Planet (EOP) is an initiative aimed at infusing environmental sustainability into engineering education. The goal is to ensure graduates are prepared to address the climate and sustainability issues they encounter in the field. To help institutions upgrade their programs, Engineering for One Planet provides a curriculum framework and other resources. HBCU, Virginia Union University is using an EOP Mini-Grant Award to bolster its focus on sustainability in engineering and STEM-related programs. The project lead is Dr. Terrell Strayhorn, professor of education and psychology.  

 

Updating the Higher Education Act to Better Serve Students of Color, a report published by EdTrust, includes several recommendations for Congress. The authors advocate increasing Title III and Title V funding to rectify decades of underinvestment. They suggest increasing the importance of program selection criteria used in competitive grant programs and making it a standard requirement. They also urge the Department to clarify whether Title III and Title V funds can be used for child care, supplemental instruction, mental health support, emergency aid, and other initiatives to help students.

 

A report published by Ithaka S+R examined prison infrastructure. The researchers assessed facility operations, ventilation, and lighting. They also examined the availability of libraries, personal desks, and types seating. They found at many locations the infrastructure was outdated and inadequate for education. Prisons feature construction that makes Wi-Fi impossible and retrofitting spaces difficult. The problems are compounded by differences in state systems and policies. 

 

According to ProPublica, in spite of increasing enrollment, the US Congress has annually allocated less than a quarter of what is statutorily required to Tribal Colleges and Universities (TCUs). Critics say the problem is complicated by provisions in the Tribally Controlled Colleges and Universities Assistance Act and the funding request process.

 

The Knight First Amendment Institute at Columbia University filed a lawsuit against the Department of Education under the Freedom of Information Act. The institute is requesting the court require the Department to disclose all public and private Title VI-related guidance provided to institutions regarding anti-war protests. The institute is concerned the Department may have engaged in jawboning— persuading institutions to clamp down on protected speech during private meetings. Both protestors and administrators have cited Title VI in defense of their actions.

 

The House Committee on Education & the Workforce released Antisemitism on College Campuses Exposed, a report that includes email exchanges between higher education administrators. The report is the end result of the Committee’s investigation into antisemitism at Harvard University, Columbia University, and the University of Pennsylvania.

 

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An Exploratory Analysis of HBCU Instructional Spending Ratios
An article by the Century Foundation noted that a recent study found HBCUs, long extolled for enabling economic mobility, accomplish that outcome by spending a higher percentage of revenue on instruction and student support than all other types of institutions. The authors contend that investment in HBCUs should be prioritized as a means of promoting economic mobility and ensuring the positive outcomes continue.
 
Doing More With Less: An Exploratory Analysis of HBCU Instructional Spending Ratios affirms the value of HBCUs and underscores the importance of focused and increased support. The study was commissioned by Wesley Peachtree Group, Wesley Peachtree Institute, and Genesis Ed Solutions.

The deadline to file beneficial ownership information with the Financial Crimes Enforcement Network (FinCEN) is fast approaching. Although some are exempt from the rule, many entities are required to report their beneficial ownership information. Entities affected by Hurricanes Beryl, Debby, Francine, Helene, and Milton may qualify for an extension. Failure to comply can result in a stiff civil penalty of up to $591 per day and criminal penalties of up to two years imprisonment and a maximum fine of $10,000. Whether you have a simple situation or a complicated one— such as a pooled investment vehicle or an LLC as real estate investment vehicle, WPG CPAs is available to assist with filing. Email us or call (404) 874-0555, to schedule a consultation.

An Exploratory Analysis of HBCU Instructional Spending Ratios
Leadership

The Oakwood University Board of Trustees announced it will engage FaithSearch Partners to find the best candidate to take the reins from Dr. Leslie Pollard who will end his tenure as president at the end of the 2024-2025 academic year. He has accepted a role with the Seventh-day Adventist Church as assistant to the president for pastoral continuing education and mission. The board unanimously wished him well and thanked him for his fifteen years of service as president of Oakwood University.

 

Hampton University announced Rev. Dr. Debra L. Haggins as the founding dean of the School of Religion. The Rev. Dr. Haggins was installed at the inaugural ceremony of the School of Religion held at the Hampton University. She has served as the university chaplain and pastor since 2008. 

 

Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) President Dr. Belle S. Wheelan will retire in July 2025. Dr. Wheelan has served as SACSCOC president and chief executive officer for twenty years. An executive search for Dr. Wheelan’s successor is underway.

 

The US Environmental Protection Agency named the members of its inaugural HBCU-MSI Federal Advisory Council. HBCU appointees to the council include Dr. Mark Brown, president and CEO of Tuskegee University; Dr. Melva Wallace, president and CEO of Huston-Tillotson University; Dr. Vann Newkirk, president of Wilberforce University; Dr. Jerryl Briggs, president of Mississippi Valley State University; Ms. Gail Bassette, director of economic development and strategic engagement at Bowie State University; and Dr. Darryl Ann Lai Fang, assistant vice president of institutional support at UNCF.

 

The American Association of State Colleges and Universities is accepting applications and endorsements for its Leadership Development Program. The program includes the Becoming a Provost Academy, the Emerging Leaders Program, the Executive Leadership Academy, the Millennium Leadership Initiative, and the Student Success Institute. The deadline for applications and endorsements is February 10, 2025.

 

The University of Arkansas System announced it is accepting nominations and applications for position of chancellor of the University of Arkansas at Pine Bluff, an 1890 land-grant HBCU. The system is requesting applications be submitted by December 3, 2024.

 

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An Exploratory Analysis of HBCU Instructional Spending Ratios
Grants and Gifts

Prairie View A&M University was awarded a $8,000,000 grant from the Department of Defense for advanced data analysis and artificial intelligence research. Endowed Professor Dr. Lijun Qian will lead the project. Drs. Xishuang Dong, Xiangfang Li, Annamalai Annamalai, John Fuller, Pamela Obiomon, and Lin Li are co-principal investigators for the project.

 

Stillman College raised over $3,000,000 in donations during a community giving reception held earlier this month. The donors included Alabama Power Foundation, Google, Wells Fargo, and the descendants of Dr. Charles Allen Stillman, the college’s founder, Dr. Charles and Susan Stillman. The event is part of a fundraising campaign that includes an online donation option available through December 3, 2024.

 

Spelman College was awarded a five-year $2,500,000 grant from the Office of the Director of National Intelligence. The grant will be used to establish a center for training leaders in international strategic affairs and intelligence.  The center will be affiliated with Spelman College Center of Excellence for Black Women in STEM and collaborate with other departments on campus. 

 

President Biden signed Executive Order 14214, formally establishing the White House Initiative on Advancing Educational Equity, Excellence, and Economic Opportunity through Hispanic-Serving Institutions (HSIs). Currently, two HBCUs are designated HSI—Palo Alto College and Huston-Tillotson University. The administration also announced $49,400,000 in grants to HBCUs, TCCUs, and MSIs, of which $19,000,000 was awarded to HSIs. 

 

Dr. Mark Lighta 4-H STEM specialist at North Carolina A&T State University Cooperative Extension will lead an AI literacy project. The goal is to boost AI literacy in states that are members of the National AI Curriculum Committee and among members of several youth organizations. Dr. Light was awarded a two-year $225,000 grant from Google for the project.

 

Clark Atlanta University Center for Cancer Research and Therapeutic Development received a five-year $11,000,000 renewal grant from the National Institute on Minority Health and Health Disparities. Part of the funds will be used to renovate the core facilities and expand prostate cancer research. Dr. Shafiq A. Khan will serve as principal investigator.

 

Morgan State University received a five-year $5,000,000 grant from the National Nuclear Security Administration to establish the Scholarly Partnership in Nuclear Engineering project. The project will focus on increasing the number of graduate and postdoctoral students in nuclear engineering and cultivating partnerships in academia and industry.

 

The Department of Defense announced awardees under their HBCU/MI Research and Education Program. Seventy-one institutions were selected to receive awards for their research and education programs. The awards totaled $50,100,000.

 

North Carolina A&T State University received a $250,000 gift to establish the Dr. Leonard C. Uitenham and Dr. Daniel T. Weidenthal  Endowed Professorship in Bioengineering. Dr. Daniel Tilles Weidenthal, an ophthalmologist, bestowed the gift to honor Dr. Leonard Curtis Uitenham, founding chair of the university’s bioengineering program and professor emeritus. The University of North Carolina will provide matching funds through its Distinguished Professors Endowment Trust Fund, doubling the gift's value. 

 

A $50,000 UNCF donation enabled Voorhees University to establish a charter school authorizer to serve as an advisory hub for independent charter schools across the state of South Carolina. The Voorhees University Charter Institute of Learning will offer essential resources, guidance, and support. 

 

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An Exploratory Analysis of HBCU Instructional Spending Ratios
Kudos

Howard University is on course to reclaim R1 status this spring when the 2025 Carnegie Classifications are released. From 1987 to 2005—when the requirements were changed, the university had been designated R1. An additional ten HBCUs have R2 status. In the 2025 Classifications, research designations will be listed separately. They will no longer be restricted to doctoral-granting institutions and there will be no cap on the number of institutions that can be classified as R1.

 

Dr. Haithim Eid, head of the museum studies program at Southern University of New Orleans, won the prestigious Elizabeth McLundie Bolton Award. The Louisiana Association of Museums bestows the award in recognition of dedication to advancing the field of museum studies.

 

The Institute for the International Education of Students presented a Lifetime Achievement Award to Dr. ‘Dimeji Togunde. He is the vice provost for global education and a professor of international studies at Spelman College. The award was bestowed in recognition of his dedication and innovation. 

 

The Council for American Overseas Research Centers selected Ms. Kimberly Tyson to attend the Overseas Faculty Development Seminar. The seminar, titled Senegal: West Africa and the Diaspora – Continuities and Transformations, will take place in Senegal in January 2025. Ms. Tyson is the director of North Carolina A&T State University’s office of international affairs.

 

President Biden awarded a National Humanities Medal to  Dr. Ruth Simmons, former president of Prairie View A&M University. The 2022 and 2023 National Medals of Arts and National Humanities Medals were presented during a private ceremony at the White House.

 

Texas Southern University (TSU) hosted the TSUxAfroTech Networking Exchange to provide students and alumni an opportunity to network with industry leaders and tech innovators who were attending the AfroTech Conference 2024 in Houston.

 

The American Association of State Colleges and Universities published Leadership Matters: Answering the Call, an article by Dr. Charlie Nelms. In the article, Dr. Nelms reflects on the founding and continuing importance of the Millennium Leadership Initiative (MLI).  He is a co-founder MLI and a former HBCU chancellor.

 

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An Exploratory Analysis of HBCU Instructional Spending Ratios
Programs

Voorhees University and Des Moines University (DMU) Medicine and Health Sciences signed an agreement that establishes a pathway for Voorhees students to pursue advanced degrees at DMU. The advanced degrees include Doctor of Podiatric Medicine, Master of Science in Biomedical Sciences, and an Interdisciplinary PhD in Biomedical Sciences.

 

Benedict College announced it is partnering with Rize Education to launch neuroscience, digital marketing, and supply chain management programs. 

 

Tougaloo College opened a Cybersecurity Clinic to provide free digital security services to under-resourced organizations. The clinic is part of a collaboration between the Consortium of Cybersecurity Clinics, an international network of university-based cybersecurity organizations, and Google. 

 

Texas Southern University School of Communications launched an open-access journal, research initiative, and website. The Texas Southern Journal of Media Innovation & Creative Communication includes a research initiative. Anticipated coverage includes climate change, economic inequality, healthcare access, and other timely topics. Dr. Chris C. Ulasi, interim dean of the School of Communication, will serve as editor-in-chief. 

 

The University of Arkansas at Pine Bluff announced Bristol Myers Squibb will sponsor its leadership and achievement building program (LAB). In its inaugural run, the LAB program will provide fifteen students professional training, networking opportunities, and hands-on-experiences. 

 

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An Exploratory Analysis of HBCU Instructional Spending Ratios
Federal Student Aid (FSA)
Contact agencies or call 404-874-0555 to schedule a consultation with Strategic Financial Aid Management. 

Deadlines

To comply with Financial Value Transparency/Gainful Employment regulations (FVT/GE ), institutions must evaluate Completers Lists and (separately) submit required reporting data via National Student Loan Data System (NSLDS) by January 15, 2025.

 

The deadline to review and validate TG/FT Numbers (SAIG Mailboxes) and Electronic Services User Accounts is December 10, 2024.

 

The deadline to make revisions, edits, and corrections to the Fiscal Operations Report for 2023–24 and the Application to Participate for 2025–26 (FISAP) is December 13, 2024. Note that the Federal Supplemental Educational Opportunity Grant (FSEOG) and Federal Work Study expenditures reported on the FISAP must reconcile with drawdown activity in G5.

 

The deadline for all participants in the Federal Perkins Loan Program to update and submit cash on hand and in depository as of 10/31/2024 on the FISAP is December 13, 2024. The deadline applies to those in the liquidation process.

 

Reminders and Guidance

 

The Department provided guidance for state grant agencies and institutions regarding permitted and prohibited access, disclosure, and use of personally identifiable information from the FAFSA form. The notice references the applicable privacy regulations and stipulates types of data that are considered FAFSA data and who is permitted access. FSA also provided guidance on the use and disclosure of FAFSA data to identify students for outreach regarding means-tested benefits programs such as Medicaid; Section 8 Housing Assistance; Special Supplemental Nutrition Programs; Supplemental Security Income Program; Temporary Assistance for Needy Families; Earned Income Tax Credit; Child Tax Credit; and the Affordable Care Act.

 

FSA provided information and guidance clarifying the maximum program length for certain Gainful Employment programs, the Ability to Benefit rule, and program licensure and certification requirements.

 

FSA published information on the permissibility of providing information about hate crimes to members of the campus community beyond what is required by the Clery Act.

 

 FSA published a reminder about the regulations governing Title IV aid disbursement reporting, excess cash requirements, and reconciliation.

 

Resources and Downloads

 

The 2025-2026 College Financing Plan is available. It can be used to notify students about their financial aid package. 

 

EDExpress for Windows 2025–26, Release 1.0 is now available for download in the software and other tools area of the Knowledge Center website. 

 

The FVT/GE Program Enrollment Detail Report has been updated to assist schools with FVT/GE reporting compliance. It is available on the National Student Loan Data System (NSLDS) Professional Access website.

 

The Frequently Asked Questions page for FVT/GE has been updated to include a information on institutional debt.

 

The Department has provided resources for the 2025-2026 FAFSA Cycle. The application is scheduled to be released on December 1, 2024. 

 

FSA published details of the Incarcerated Student Report, which lists Pell Grant recipients who have been flagged as confined or incarcerated without a reported release date in the NSLDS. Institutions can use this data to aid in fulfilling the Pell Incarcerated Student Spreadsheet Submittal reporting requirement.

 

FSA published the 2025-2026 Student Aid Index (SAI) and Pell Grant Eligibility Guide. It includes worksheets, tables, and the methodology to be used to determine SAI for the 2025-2026 award year.

 

FSA published an electronic announcement regarding the methods and data the Department will use to determine compliance with financial responsibility, administrative capability, certification procedures, and ability to benefit rules.

 

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An Exploratory Analysis of HBCU Instructional Spending Ratios
Events

Event: FSA Training Conference for Financial Aid Professionals

Date: December 3-6, 2024

Location: Virtual

Information: Registration

 

Event: SACSCOC Annual Meeting

Date: December 7-10, 2024

Location: Austin, TX

Information: Details

 

Event: SSTI Annual Conference

Date: December 10-12, 2024 

Location: Phoenix Metro, AZ

Information: Agenda

 

Event: Middle States Commission on Higher Education Annual Conference

Date: December 11-13, 2024 

Location: Philadelphia, PA

Information: Registration

  

Event: Council of Independent Colleges Presidents Institute

Date: January 4-January 7, 2025

Location: An Antonio, TX

Information: Agenda

 

Event: Carnegie Elective Classifications: 2024 Year in Review

Date: January 14, 2025

Location: Virtual

Information: Registration

 

Event: ACE Experience 2025 (ACEx)

Date: February 12-13, 2025

Location: Virtual

Information: Registration

 

Event: Association for Biblical Higher Education Annual Meeting

Date: February 19-21, 2025

Location: Orlando, FL

Information: Registration

 

 

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About this Publication
 
WPG HBCU News is a monthly email published by the Wesley Peachtree Group, CPAs (WPG) as a service to the sector. It consists of short summaries of news articles, government regulations, and announcements found online.

WPG HBCU News is available at no cost to HBCU administrators, trustees, and senior stakeholders. It is not intended as legal or financial advice. WPG's staff, writers, editors,  publishers, web hosts, email distributors, and others involved with the production and presentation of this newsletter are not liable for errors, omissions, losses, injuries, or damages arising directly or indirectly from use of this newsletter or any information presented therein.

WPG is a full-service accounting firm serving privately held businesses and clients in the education, government, faith-based, and not-for-profit sectors. We specialize in higher education with a particular emphasis on minority-serving institutions. We hope you find this publication useful and welcome your feedback.
 
The Wesley Peachtree Group, CPAs


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An Exploratory Analysis of HBCU Instructional Spending Ratios
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