As we dive into the complex world of higher education administration, we’re thrilled to speak with Camille Faivre, a seasoned expert in education management with a focus on financial oversight and compliance in community colleges. With years of experience navigating the intricacies of federal funding regulations and institutional accountability, Camille has been at the forefront of supporting colleges in the post-pandemic era through innovative open and e-learning programs. Today, we’ll explore her insights on the recent state audit of Eastern Gateway Community College in Ohio, which exposed significant financial mismanagement and raised critical questions about trust, governance, and the future of community education. Our conversation will touch on the systemic issues behind recordkeeping failures, the ripple effects of institutional closure on communities, and the unprecedented transition of assets to a four-year university.
How do you think systemic issues or cultural factors within an institution like Eastern Gateway Community College could lead to recordkeeping failures on the scale of $17.3 million in federal student aid spending being poorly accounted for in 2023?
I think what we’re seeing with Eastern Gateway is a perfect storm of systemic neglect and cultural disconnect around accountability. When you’re dealing with federal student aid—$17.3 million is a staggering amount for a community college—you can’t afford to have gaps in oversight, yet it happens when leadership prioritizes growth or flashy initiatives over the mundane but critical task of documentation. In my experience working with colleges on compliance, I’ve seen similar issues arise when there’s high turnover in financial staff or when training on federal Title IV requirements isn’t prioritized. I recall consulting for a small institution a few years back where the finance team was so understaffed that reconciling aid disbursements was a constant game of catch-up; it wasn’t malicious, but it created vulnerabilities that could have easily snowballed into findings like Eastern Gateway’s “pervasive deficiencies.” It’s heartbreaking because these lapses often stem from a lack of resources or institutional will to build robust systems, and the consequences—potential violations of federal law—can be devastating for everyone involved.
In light of the auditor’s description of “rampant financial mismanagement” at Eastern Gateway between July 2022 and June 2023, how do you see this kind of situation impacting public trust in community colleges as a whole?
The impact on public trust is profound and, frankly, tragic for the sector. Community colleges are often seen as accessible lifelines for working-class families, so when a report like this comes out with terms like “rampant mismanagement,” it shakes the foundation of that faith. Parents and students start questioning whether their taxpayer dollars or tuition are being stewarded responsibly, and that skepticism can spread beyond one institution to the entire community college system. I’ve seen this firsthand in conversations with community stakeholders after similar scandals; there’s a palpable frustration, almost a sense of betrayal, when they learn about funds being mishandled. The long-term effect is often a drop in enrollment or hesitancy to support local levies for college funding—something that’s hard to recover from. It’s not just numbers; it’s the stories of students who might choose a more expensive or less fitting option out of distrust, which is a loss for the whole community.
The audit highlighted a particularly striking misstep with Eastern Gateway spending $13.6 million on bonds for a parking garage that ended up costing more to demolish than the land was worth. Can you walk us through how a decision like this might come about within an institution?
Oh, the parking garage debacle is a textbook case of poor strategic planning and oversight—or lack thereof. Decisions like spending $13.6 million on bonds for a project that turns into a financial sinkhole often start with a kernel of good intention, perhaps addressing campus parking shortages, but spiral due to inadequate due diligence. In my career, I’ve observed that these missteps usually happen when there’s no rigorous cost-benefit analysis or when decision-makers bypass input from facilities experts or financial advisors. Picture a board meeting where the focus is on a shiny new asset to boost campus appeal, but no one’s asking the hard questions about demolition costs or land valuation because they’re not even on the radar. I once advised a college on a similar infrastructure project where enthusiasm outpaced reality; we caught it early, thankfully, by insisting on independent appraisals, but without that check, they could have been in Eastern Gateway’s shoes. It’s a reminder that governance isn’t just about saying yes to ideas—it’s about saying no when the numbers don’t add up.
With Eastern Gateway shutting down after the fallout from ending its free college program in 2022, what do you think are the broader implications for students and local communities in the area?
The closure of Eastern Gateway is a gut punch to students and the surrounding community, especially in a region like Steubenville, Ohio, where educational options might already be limited. When a community college shuts down, it’s not just about losing a place to learn; it’s about losing a hub for economic mobility, workforce training, and social connection. Students who relied on the college—many likely first-generation or low-income—now face disrupted education plans, potential transfer hassles, or simply dropping out altogether, which can have lifelong impacts on their earning potential. I remember working with a rural college facing closure threats a few years ago; the anxiety among students was palpable, with some driving hours to the next nearest school or giving up because they couldn’t manage the logistics. For the community, the loss means fewer skilled workers, less local engagement, and a hit to the area’s reputation. It’s a domino effect—local businesses suffer, families feel the strain, and the hope that education brings starts to dim.
Given the state auditor’s mention of ongoing investigations by the Special Investigations Unit, including a search warrant executed in January 2024, what’s your perspective on why these probes continue even after the college has closed?
The continued investigations, even post-closure, signal that there’s a deeper accountability at play here, and I think it’s both necessary and telling. When you have allegations of financial mismanagement on this scale, closing the doors doesn’t erase the responsibility to taxpayers or the federal government, especially with potential Title IV violations tied to millions in aid. These probes likely aim to uncover whether there was willful misconduct or negligence that could lead to legal consequences or recovery of funds, and they serve as a deterrent for other institutions. I’ve followed cases where shuttered colleges faced similar scrutiny, and often, it’s about tracing where every dollar went—sometimes uncovering fraud or personal gain. There’s also the public trust angle; without thorough investigations, there’s no closure for a community left wondering how things went so wrong. What’s at stake is not just Eastern Gateway’s legacy but setting a precedent that mismanagement has consequences, no matter the institution’s status.
Youngstown State University stepping in to absorb Eastern Gateway’s remaining assets marks a first for Ohio. How do you envision this unique merger unfolding for students and staff, and what might be some key challenges or opportunities?
This merger is a fascinating and unprecedented move in Ohio, with both promise and pitfalls for students and staff. On the positive side, it could mean continuity for some students—access to programs, credits transferring more seamlessly, and a lifeline to a larger institution with more resources. For staff, there might be opportunities to transition into roles at Youngstown State, preserving some institutional knowledge. I can imagine students walking onto a new campus, feeling a mix of relief and uncertainty, but hopeful for a fresh start. However, the challenges are significant: aligning curricula between a community college and a four-year university isn’t straightforward, and some programs might get cut, leaving students stranded. Staff could face layoffs or cultural clashes in a new academic environment. I’ve seen mergers like this struggle when communication isn’t transparent—think students learning last-minute that their major isn’t offered anymore. The key will be a step-by-step integration plan, starting with clear messaging, then tackling credit transfers, and finally ensuring support services match student needs. It’s a rare chance to reinvent access to education in the region, but only if handled with care.
Looking ahead, what is your forecast for the future of financial oversight in community colleges, especially in light of cases like Eastern Gateway?
I believe the fallout from Eastern Gateway will serve as a wake-up call for community colleges nationwide, pushing financial oversight to the forefront of institutional priorities. We’re likely to see stricter state and federal scrutiny, with more frequent audits and possibly new regulations around federal aid compliance. There’s also a growing recognition that colleges need to invest in skilled financial teams and technology to track spending—something many have delayed due to tight budgets. I envision a future where boards and administrators are trained more rigorously on governance, with an emphasis on transparency to rebuild trust. But I worry about smaller institutions that might struggle under the weight of new requirements without adequate support; they could face similar crises if resources aren’t allocated. My hope is that this case sparks a broader conversation about sustainable funding models, so oversight isn’t just about catching mistakes but preventing them through systemic change. It’s a challenging road, but one that could ultimately strengthen the mission of community colleges as pillars of opportunity.
