“It just seems like such a big number,” said trustee Jason Manns.
About 33% of the students at the university who are on a payment plan are in default, said Adrian Petway, chief financial officer for CSU.
The university was placed on fiscal watch in October 2024 due to financial challenges, including not being able to pay some bills. Factors contributing to that designation included the university’s rapid decline in online enrollment alongside an increase in expenses.
The school has been working with state auditors to fix its finance records and payment issues. The state designation increases university financial reporting requirements, board of trustee engagement, and evaluation by the state auditor, among other measures designed to stabilize and improve the school’s financial outlook.
Central State President Morakinyo A.O. Kuti, announced soon after CSU was put on fiscal watch a change in the university’s policies to require all students to pay their tuition and fees in full before they can enroll in the upcoming semester.
The university, a historically Black university located just outside of Xenia in Wilberforce, is a public university. It will need to fix a significant number of issues with accounting and policy as it recovers before the state will take it off fiscal watch.
Kuti said during the finance meeting that other ideas are being discussed, such as cutting off student access to services if they do not pay tuition. But Central State has not yet done this. Students will have to be told ahead of time, he said.
Kuti noted that some students have financial challenges and said he did not want to imply the students or their families were doing badly.
But he said: “Students will have to pay to continue.”
He said some students may not be paying on their payment plans, if they have one, because they are waiting on other documents from the university. He also suggested offering $1,000-$1,500 scholarships to students who need them, using private gifts.
Petway said the university is still working through a 2023 state audit.
Shon P. Anderson, a university trustee and president of Anderson Financial Strategies, said the process of matching up records with bank statements is still difficult because there are incorrect or nonexistent entries into the university’s financial software.
A university spokeswoman, TiaMarshae E. Johnson, said CSU has rebuilt its financial control system since being put on fiscal watch.
“All expenditures are cataloged into University’s enterprise management system, Banner and require supporting documentation before payment,” Johnson said. “Banner entries are reconciled monthly, and the Board of Trustees receives monthly financial statements for oversight.”
She said these reforms directly address the issues cited in the audit and are already in effect.
“We are committed to ensuring audits are completed on time going forward. Fiscal year 2024 and 2025 CSU financial transactions were closed monthly. CSU conducts routine reconciliations, and we maintain a detailed response tracker to the Auditor of State report that is reviewed by leadership to ensure ongoing compliance,” Johnson said. “These safeguards prevent the delays experienced in the past.”
Anderson and Petway said the university is also looking at changing some parts of the accounting system. The university’s current budget would count each student as someone who paid tuition in full, whether or not they actually had.
“We are looking to change the budget to better reflect actual cash flow,” Anderson said.
The university reported about 2,253 enrolled this fall, according to the Ohio Department of Higher Education. The university fell about 50 students short of budgeted enrollment, according to a spokesperson.
Petway said the university ended up enrolling slightly fewer students than expected, but more students are living on campus, bringing in revenue for the university.
A state auditor’s report found the university’s trustees had not been properly overseeing some aspects of the university.
The report additionally says, “We encourage the Board to redouble their efforts to provide oversight particularly in the areas of financial reporting, contractual/debt obligations, cash reconciliations, long term forecasting and related budgetary matters, and staff turnover within the fiscal operation of the University.”
Johnson said many of the issues that had been outlined in the audit have been resolved.
“Many findings - particularly around internal controls, documentation, and financial reporting - have already been resolved,” Johnson said. “Others are actively being addressed as part of the State-approved Fiscal Recovery Plan. CSU is working closely with state agencies to ensure all corrective actions are completed and sustained.”
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