An Ohio state audit released July 16 says Central State University in Wilberforce is mired in widespread financial mismanagement, citing missing controls, billing errors, and transfers that blurred the line between university and foundation accounts. The report says donors, students and federal programs were all caught in the crossfire and urges immediate corrective action from the university’s trustees and administration. The findings land as state lawmakers have already tied roughly $29 million in capital funding to state oversight of the campus’ facilities.
Audit Finds Billing Errors And Thin Controls
Auditors documented a long list of billing and recordkeeping mistakes that hurt students and scrambled donor records. According to the Cincinnati Enquirer, dozens of tuition and housing billing errors left some students overcharged, and others undercharged, while foundation contributions showed up late or in the wrong fiscal year. The picture painted is less careful stewardship and more accounting roulette.
Outdated Systems, Missing Reconciliations
The Auditor of State found that Central State’s accounting system is outdated and that crucial reconciliations and oversight were not happening as required. The report also notes that the Central State University Foundation had its 501(c)(3) status revoked on November 15, 2024, and that the school failed to file multiple required IRS Form 990s. Those red flags are detailed in the Auditor of State.
State Money Tied To Oversight
Lawmakers carved out about $29 million for campus repairs in the state budget but attached an uncommon catch: before most of that money can flow, the university has to hand oversight of its facilities to a state agency. The condition reflects concern among officials about Central State’s ability to manage its own bricks and mortar and came after the university was placed on fiscal watch in 2024. That funding hook was reported by Signal Cleveland.
Legal And Accountability Questions
The auditor’s findings also spotlight transactions that may lead to money being clawed back. Reporting by the Cincinnati Enquirer says auditors identified nearly $2.8 million pulled from endowment accounts to cover operating costs, a $100,000 donation that never made it into the intended endowment, and a $200,000 U.S. Department of Education grant for which the required local match was not provided. The paper also reports that the audit recommends a finding for recovery requiring the university’s former chief financial officer and his insurer to repay more than $105,000 tied to late pension remittances.
What Comes Next
The Auditor’s office says its investigation is still underway and urges the board to adopt stronger policies, require more frequent financial reporting and work with the Department of Higher Education on the university’s recovery plan. The audit outlines steps trustees must take to fix internal controls, file missing tax returns for the foundation and correct financial statements, according to the Auditor of State. For students and staff already feeling the squeeze, the new findings deepen worries about program cuts and layoffs that were recorded earlier this year by The Columbus Dispatch.
