Quest University faced a “crisis” in the wake of administrative and financial challenges, but government officials who reviewed the situation are placing faith in the school’s management.
These were points detailed in a report prepared by a review panel of the Degree Quality Assessment Board (DQAB), and recently released via the Freedom of Information Act.
The report, which was obtained by The Chief in August but written Sept. 17, 2017, outlines the findings of the panel that was sent by the DQAB to review the university’s situation.
The DQAB is an independent advisory body that ensures quality assurance standards are met in post-secondary institutions in B.C. The board is appointed by the minister of advanced education and makes recommendations to the minister regarding degree programs.
“The DQAB has concerns about Quest’s financial stability and governance and administrative capacity,” reads the report.
However, Quest’s president says the university has since taken measures to meet conditions that the province imposed upon the school.
In a recent interview with The Chief concerning the panel’s report, Quest’s new president, George Iwama, said that the school is developing a plan to get itself out of tens of millions of dollars of debt.
“We’d like to address it by next year — 2019,” said Iwama. “We’d like to address it by the fall, one year from now....At least having put into place the mechanism whereby that can be addressed. A very ambitious goal, but the chancellor and I — and the board together with our executive — are ambitious people.”
Iwama noted the school’s costs have “overrun” its revenues every year that it’s been operating.
“But that gap has been closing, particularly in the last couple of years,” he said.
The report also says that Quest has undertaken intensive planning and budgeting practices that has enabled the school to match expenditures with current revenue.
Quest has also adopted a sound process for converting applicants to enrolees, which is key to meeting the school’s financial objectives, the report states.
The “crisis” alluded to occurred during the 2016-2017 academic year, at a time of “significant administrative changes.”
According to the report, those changes included the resignation of the vice president – dean of student affairs in November 2016; the chief academic officer in January 2017; the vice president admissions in April 2017; and, finally, the departure of then-president Peter Englert in May 2017.
In September 2017, the DQAB sent its review panel to look into Quest’s situation.
“The panel raised serious concerns at the site visit about the degree to which governance and administrative capacity had been undermined by the many changes outlined here,” the report says, referring to the staff departures.
However, the report also states that the turnover “had not necessarily weakened the team” as interim members managed to perform effectively, and newcomers to the board do have expertise in financial matters. Iwama noted that while turnover can seem alarming, it can and does happen.
The DQAB report also recommended that a conflict of interest policy for the board of governors be implemented.
This was in response to the panel’s observations that two members of the school’s board of governors, Michael Hutchison and David Fujimagari, had engaged in business with the university.
The pair are members of Bethel Corporation, a development company, but the panel noted they had recused themselves from school matters involving Bethel’s business interests, even in the absence of a formal conflict of interest policy. Bethel owns some of the school’s residences and has partnered with the school to find ways to monetize the university’s land.
The DQAB recommended Quest find ways to make money off its vacant properties in order to address its financial issues.
Iwama said that Quest hasn’t yet formally approved a conflict of interest policy, but one has been drafted and should be ready for adoption as early as November.
He also added that the panel was comforted by the fact that Hutchison and Fujimagari have expertise that can help the school navigate its financial challenges.
This was a sentiment echoed in the panel’s written report.
“The newcomers to the board had brought greater expertise in financial matters to the board and that would stand Quest in good stead as it embarks on new strategies to create financial stability,” the report said, referring to Hutchison, Fujimagari and Claude Rinfret, who all began their terms in the spring of 2017.
The school has also increased the number of members on its board of governors, which was also recommended by the panel, Iwama said.
There are now eight people sitting on the board, he said, and the school intends to eventually increase that number to 11, as suggested by DQAB.
The panel also called on Quest to ensure that it has a teach-out plan, which would allow students to transfer to another school should Quest close its doors, or if they simply just wish to study elsewhere.
“We maintain that an articulation arrangement or agreements...is absolutely critical, whether it be with Capilano or another institution,” the panel wrote.
“DQAB has apparently allowed Quest to operate for a decade without meeting this criterion, but we are convinced every effort must be made at this time…”
Since the report, Quest has created a credit transfer system that would allow its students to go to Capilano University.
Quest has also been in talks with the University of B.C. for a similar arrangement, Iwama said.
The panel’s conclusion was that “Quest is ‘under new management’ and that those carrying leadership and fiduciary responsibilities there at present should be accorded the opportunity to demonstrate their mettle,” according to the report.
