November 2004

Auditors give Life good news

Life University is “stable, has increasing enrollment and is well on its way to establishing a new level of academic excellence and community health care services, according to Life President Guy Riekeman, DC. Riekeman made those comments following an announcement that an audit of the university confirmed the removal of a “going concern” qualification.

For the past two years a “going concern” qualification was issued by Life’s independent auditors who cited substantial doubt the institution could generate and/or raise enough resources to operate. The removal of the “going concern” qualification, along with remedying other issues, is key when the college presents its case to the Southern Association of Colleges and Schools (SACS) this month.

According to Jonathan Anderson, engagement partner for Anderson, Hunt & Co., the University has worked to ensure appropriate changes were made to restore confidence in senior management and external lending institutions. He elaborated that the number one reason the “going concern” qualification was removed was the new senior administration headed by Riekeman.

Other key reasons cited for the removal included:

• The creation of a tactical development plan to ensure donations continue on a regular basis.

• A secured line of credit, which is indicative of confidence in Life’s financial status.

• The option to refinance bonds that have a 50 percent loan-to-value ratio. Life is current on all payments with no outstanding debt other than the bonds.

• Conservative budgeting for this fiscal year.

Source: Life University, http://www.life.edu

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