Central State University is working with the state to stabilize its finances.
The Ohio Department of Higher Education puts a college or a university on fiscal watch when the school is having financial challenges and when their accounting practices and books are under review.
Chancellor Mike Duffey, who heads this state agency, said Central State University’s leadership alerted his group of its challenges. The school meets multiple conditions that warrant fiscal watch status including
- a request for additional state money,
- failing to pay vendors in a timely fashion
- and having more expenses than reflected by the school’s original budget.
Duffey and his team are working with Central State’s leadership to help the Wilberforce-based university regain financial stability.
"The first thing that they have to do is adopt a financial recovery plan. This needs to occur within 90 days," Duffey said.
He also said CSU is working to "...securing expertise from an accounting firm and other consultants that are specialized in budgeting and financial analysis for higher education. It also includes the Auditor of State looking at the books of account, the accounting systems, financial procedures and ensuring that they come into compliance. The auditor is also tasked with authoring a written report to the board and making recommendations."
Central State does not pay for any of these service and Duffey anticipates this process will take about three years.
According to Duffey, nationwide, there are other institutions navigating financial challenges because of new trends.
"They’re not immune to trends that are happening nationally, which is to say declining birth rates, a constrained market in higher education, I think it's affecting all colleges, as far as I can tell," said Duffey. "Institutions are experiencing a decline in enrollment."
Duffey said this intense financial reorganizing should not impact CSU students nor future enrollment.
