Central State University has been placed on fiscal watch following self-reported financial difficulties to the Ohio Department of Higher Education. ODHE Chancellor Mike Duffey made the announcement Friday, highlighting a proactive approach to improve the university’s financial condition.
The fiscal watch designation imposes stricter financial reporting requirements, enhances engagement with the board of trustees, and mandates evaluations by the auditor of state. These measures aim to stabilize CSU’s financial health and create a pathway for improvement.
The chancellor has the authority to designate any college or university under fiscal watch when “immediate and decisive action is necessary” to address financial issues. Adhering to state regulations, he has coordinated with Governor Mike DeWine to certify this declaration.
What Led To The Fiscal Watch?
CSU President Dr. Morakinyo A.O. Kuti addressed the situation, noting that the university has struggled with expenditures outpacing revenues in previous years. While traditional enrollment remains stable, it has not met anticipated targets, exacerbated by a significant decline in online student enrollment.
In response to this fiscal watch status, CSU will develop a financial recovery plan to restore stability within three years. This plan will include quarterly reports to the Board of Trustees and Chancellor Duffey.
CSU has already taken steps to mitigate expenses and enhance revenue streams. This includes changes in leadership across several departments, staff reductions in global online programs, and a halt on non-mandatory travel.
Governor Mike DeWine reaffirmed a commitment to assist the university in its recovery efforts. “As the only public HBCU and one of only two land-grant universities in the state, Central State and its students are a unique and important piece of the higher education landscape in Ohio,” he stated.
The collaboration with the auditor of state’s office will enable CSU to utilize technical expertise and strategic advice to strengthen budgeting, financial accounting, and reporting practices. The ODHE is also set to provide additional accounting support during this transitional phase.
CSU previously faced a fiscal watch designation in April 2015, which stemmed from an audit revealing below-acceptable financial scores for two consecutive years. The university successfully exited this status by April 2017.
