Financial deficits over the past four years at the College of the Marshall Islands have raised a red flag for the US Western Association of Schools and Colleges, which says it is undertaking an in-depth review of the College's finances.
The college's president, Carl Hacker, says it expects to end the year in the black this year for the first time since 2006, which he believes will resolve any concerns about its fiscal state.
The associate vice president of the California based WASC, Norval Wellsfry, says negative ending balances and inadequate reserve funds were the reason the College was being red flagged for additional financial analysis.
Mr Hacker said the last fiscal year that the Majuro college had a positive ending balance at the end of the year was in 2006.
Every year since then, the College has ended the year in deficit, with the worst being 2009 when it reached nearly 1 point 2 million.
But last year, this deficit was cut to less than half a million and this year could end in the black.