Thursday, August 30, 2012

Harrisburg University fails to make bond payment. Again.


Source: HU Bond trustee report 8-24-12



Source: HU report to bondholders 8-24-12 


The Patriot-News Aug 8, 2012

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Saturday, August 18, 2012

Attention HU Freshman

Some free advice:

-You should read this: How the Provost screws every single freshman.
-Take another class or two (if you can find any) so you aren't a freshman next year.
-If you found this blog, you probably already realize that the University is in deep financial trouble. If they go under, your degree will be worthless
- You should read this: Harrisburg University and financial exigency.
- You should read this: HU in danger of losing federal financial aid.
-You are getting seriously screwed on the cost of a university sponsored apartment. You can rent a really nice two bedroom apartment in the city for about $1K/month. (See The Apartment Guide.)
-You are getting screwed on parking fees. Leave your car at home if you can.
- Most of your credits from your freshman year won't transfer. So if like the majority of freshman before you, you decide to not come back for a second year, you will have $10K+ in debt and 3 college credits to your name.
- HU will most likely lose accreditation in the near future. HU violates virtually every standard of accreditation. I've personally prepared a comprehensive complaint detailing HU's failures to meet these standards and will file the complaint with The Middle States Commission on Higher Education in the near future. Without accreditation your degree would be worthless and you won't be able to get financial aid. 

Do you guys really need all of this BS? It's your freshman year at college. You shouldn't have to worry about all this nonsense.
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Harrisburg University Defaults on Bonds


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Thursday, August 16, 2012

Harrisburg University fails to increase freshman enrollment.

According to the Central Penn Business Journal, HU has stated there is no growth in their freshman enrollment over last year. "HU announced Tuesday that it has commitments from 151 freshmen" said Heather Stauffer, a CPBJ reporter. In the Fall of 2011, HU had 148 commitments from freshman, with only 91 actually enrolling. (See my last post.)
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Thursday, August 9, 2012

Is Eric Darr misrepresenting enrollment numbers again?! Is Harrisburg University making fraudulent claims to bond holders?

You may recall that the Editorial Board over at the Patriot-News decided to throw any type of journalistic integrity out the window and let HU use them for some much needed positive PR. Apparently, all those pencil holders HU keeps sending over to the Patriot-News really paid off. The July 2012 article includes this gem:

Source: Patriot-News July 2012

Did ya' catch that? Notice how Darr quickly equates "commitments" to enrolled freshman? That's extremely disingenuous. I'm just a blogger and I know commitments don't equate to enrollments. Do you think Darr, the acting president of a university doesn't know that? Is he incompetent or is he a liar? Here are HU's historical commitments:


HU's Enrollment data for the quarter ending 6/30/2012

You'll notice that in the Fall of 2011, HU had 148 commitments, but only 91 students actually enrolled. In the Fall of 2010, HU had 126 commitments, but only 78 students actually enrolled. The story is the same for every other year.

But wait, there's more! Below is a chart that HU submitted as part of their financial documents related to their bonds. Notice anything about the chart?

HU's Enrollment data for the quarter ending 6/30/2012

If you said "HU is comparing commitments to actual past enrollment to make it appear that there is growth" give yourself a cookie! This appears to be an attempt to mislead bondholders into thinking HU is in a better position than it really is. This could very well be fraudulent. I wonder who prepared that chart?

The reality is that HU had 148 commitments last year and currently has about 157 commitments. You don't need to be a university president to figure out that that is extremely poor growth and falls far short of the enrollment numbers HU needs to become financially sound.

[Edit 8/13] Darr continues his deceptive numbers game in an Op Ed printed by the Patriot-News. He states "From 2011 to 2012, HU’s first-year student commitments leapt by 38 percent." I guess it sounds a lot better than "We got 8 more freshman than last year!"
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Harrisburg University "technically" defaults on bond payments

On Aug 8, 2012 the Patriot-News reported "Harrisburg University's trustee says 'technical default' caused by failure to make early debt payment." Harrisburg University has failed to meet their obligations regarding bonds again. HU has failed to meet their financial obligations because apparently Interim-President Eric Darr thinks the terms HU agreed to are "ridiculous." The terms:

HU Bond Limited Offering Memorandum Page E25

Darr claims that in the past, under the university’s arrangement with its former trustee, T.D. Bank, it was not required to make the advance payment as long as it made the payment on time. A report from Roxbury News in May of 2012 seems to contradict Darr's claims:

 "...on January 6, 2012, Dauphin County Commissioner Chairman Jeff Haste and Harrisburg University's Vice President of Finance/CFO Duane Maun received a letter from TD Wealth's Vice President Joan Wallett's informing the parties that per the Guaranty Agreement and the Credit Support Agreement, TD Wealth was giving the Guarantor Dauphin County the required 55 days notice of the need to transfer its obligation of $1.5 million into the debt service account since Harrisburg University was deficient. Unwilling to adjust its conditions, TD Wealth stated it expected the funds to be deposited no later than 3 days before the March 1st due date."

In other words, TD Bank was going after the guarantor (Dauphin County) 55 days before the due date, because those were the terms of the agreement. It does not appear that TD bank altered the terms of the bond agreement as Darr claims.
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Harrisburg University of Science and Technology unaudited balance sheets June 30, 2012 and 2011


Check out the last set of balance sheets

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