Leadership Changes at Project Kitty Hawk Amid Challenges

News Summary

Project Kitty Hawk, a nonprofit focused on online education in North Carolina, is in turmoil following the resignation of its CEO. After significant financial auditing issues and shifting enrollment goals projecting lower student numbers than initially aimed, the organization has appointed a new interim CEO. With a mission to enhance online education for non-traditional learners, Project Kitty Hawk faces challenges like partnerships and enrollment amidst a revised fiscal strategy. As it seeks to stabilize, the future of online education in North Carolina hangs in the balance.

Leadership Changes and Challenges at North Carolina’s Project Kitty Hawk Nonprofit

New Leadership on the Horizon

Charlotte is buzzing with news about Project Kitty Hawk, a nonprofit aimed at enhancing online education for adults attending North Carolina’s public universities. After the resignation of long-time CEO Wil Zemp in April – a decision driven by his need to care for a sick family member – the organization has appointed Andrew Kelly, the executive vice president of the UNC system, as the interim CEO.

Mission and Vision

Launched in 2021 with an impressive $97 million investment from the state legislature, Project Kitty Hawk was created with a special vision: to support online degree programs specifically designed for non-traditional learners. The organization had set its sights high, aiming to enroll a whopping 45,000 students by 2027, effectively doubling its current headcount of around 22,000.

Facing the Music: Enrollment Projections Shift

However, the journey has not been as smooth as anticipated. While Project Kitty Hawk has made strides since its inception, it has also encountered some significant bumps along the road. Factors such as shifting federal regulations led to a major pivot in the organization’s strategy. Initially, the nonprofit had plans to secure 35% of the program revenues through revenue sharing, but those plans have since been scrapped.

Unfortunately, the latest forecasts predict a far more modest enrollment figure of around 14,800 students by 2028, down from an earlier goal of 30,800. This substantial cut in ambitions is also reflected in revenue projections, with anticipated earnings dropping from $128 million to approximately $78 million for the same period.

Current Status: Working Against the Clock

As of now, Project Kitty Hawk has enrolled about 639 students across 11 online programs. In 2023, the organization is under pressure to spend its remaining $33.3 million of funding, having already allocated $33.9 million to various initiatives. Notably, some programs already launched include nursing and information technology at N.C. Central University, along with more programs on the horizon at East Carolina University.

Roadblocks and Controversies

Faculty members from the UNC System have expressed doubts regarding the organization’s effectiveness, particularly criticizing the management practices around transparency and spending oversight. Audits have unveiled multiple violations of state and federal regulations concerning financial monitoring, leading to serious concerns over fiscal responsibility.

One chief issue that led to Zemp’s resignation was the discovery of a contentious expense policy that resulted in over $102,000 in disallowed purchases, which included lavish entertainment and travel expenses. In response, Project Kitty Hawk has revamped its spending policies to align more closely with UNC System regulations. Now, there are stricter guidelines on travel expenses and an outright disallowance of alcohol purchases.

Future Directions: A New Strategy Unfolds

The organization faces the dual challenge of increasing enrollment while navigating the revised financial landscape laid out by the U.S. Department of Education. Under the careful watch of the UNC System, Project Kitty Hawk is also shifting its focus to forge direct partnerships with universities. Currently, they have secured collaborations with N.C. Central and East Carolina, halting further partnerships until future progress is assured.

In a bid to boost enrollment numbers, Project Kitty Hawk has enlisted the help of ReUp, a company dedicated to reaching out to former UNC students who left without finishing their degrees. This strategic move could play a large role in meeting those revamped enrollment goals.

Looking Forward

The road ahead is riddled with challenges, but Project Kitty Hawk is determined to balance fiscal accountability with operational efficiency. The organization’s future hinges on navigating this newly adjusted landscape for online education delivery. With Andrew Kelly stepping in as interim CEO, the hope is that stability will return to allow the nonprofit to meet – and exceed – its new vision for online education in North Carolina.