WILBERFORCE — Central State University has been placed on fiscal watch after it self-reported financial challenges to the Ohio Department of Higher Education.
ODHE Chancellor Mike Duffey made the announcement Friday.
The fiscal watch designation launches increased university financial reporting requirements, board of trustee engagement, and evaluation by the auditor of state, among other measures designed to stabilize and improve the financial outlook of the university.
The chancellor has authority to place a college or university under the fiscal watch designation if they determine that “immediate and decisive action is necessary to improve the institution’s financial condition,” according to a release from ODHE. Duffey has certified the declaration of the fiscal watch with Gov. Mike DeWine as outlined in state code.
“We value the support we’re receiving from Gov. DeWine, Chancellor Duffey, and the Department of Higher Education,” said Central State President Dr. Morakinyo A.O. Kuti. “We are continuing to take action to ensure we manage our way through this fiscal watch period and address what’s necessary to ensure a bright future for our students, faculty, and staff.”
Under the fiscal watch designation, CSU will adopt a financial recovery plan that will outline a path toward financial stabilization with a goal of ending the fiscal watch within three years. CSU must also furnish quarterly reports to its Board of Trustees and the Chancellor.
“I have met with Chancellor Duffey as well as Central State University President Dr. Morakinyo A.O. Kuti and Board of Trustees Chair Jacqueline Gamblin about the situation at CSU, and we are all in agreement there is sufficient cause to warrant the chancellor placing the institution under fiscal watch,” DeWine said. “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. We will continue to work closely with Dr. Kuti, his team at CSU, the Board of Trustees, Chancellor Duffey and the Ohio Department of Higher Education, and the auditor of state to stabilize the finances of the institution through the fiscal watch process.”
The consultation with the auditor of state’s office allows CSU to take advantage of technical expertise and strategic recommendations to strengthen its budgeting, financial accounting, and reporting procedures. ODHE will also work in collaboration with CSU to surge in additional accounting support.
“Central State University has a distinguished history, fulfilling a unique role in federal research and extension that is critically important to our state,” Duffey said. “Post-pandemic, institutions of higher education nationally are facing constrained finances. With today’s fiscal watch declaration, Central State University will receive assistance in adapting and positioning itself to become an even stronger and more competitive institution. The department looks forward to working with Central State and the auditor of state in navigating this challenge and restoring Central State University to a solid financial position. It is our hope that this work will position the university for a strong and successful future.”
CSU was previously placed on fiscal watch in April 2015, after an audit by the state showed the university’s financial scores dipped below an allowable number for two consecutive years. The university was removed from that fiscal watch in April 2017.
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