Following the CPR visit in March 2011, the WASC commission sent a letter to APU endorsing the recommendations of the CPR team and also emphasizing the need for continuing attention to and development in the areas of financial stabilization and comprehensive strategic planning. In regards to financial stabilization, the commission recognized that “the past three years have been a time of financial challenge for APU, with significant operating losses and financial ratios that required major restructuring.” The commission commended APU for Project Refocus, which helped improve the university’s finances. The commission was also aware that APU was working to make new financial arrangements with some of its lenders. In fact, in early April of this year, APU completed a one-year process of renegotiating the university debt. This was a huge milestone because the previous bank was downgraded twice during the past year. APU lowered its interest rate and secured financing for several years. The university is required quarterly to meet certain covenants with the bank, and since the refinancing APU has met all required covenants. Last month the annual audit was completed and the audit committee was pleased with the results. Financially, the year finished strong and the university was able to add resources to the fiscal reserve.
The WASC Commission has recognized that APU’s finances “appear to be regaining strength and will expect to see evidence of continuing restoration and more complete financial stability at the time of the next visit” in October 2012.