Central State University incorrectly charged students tuition and rent, according to State Auditor Keith Faber. 

Faber recently released an audit of Central State University’s finances from July 1, 2022, through June 30, 2023.

He is requiring Central State’s former CFO Curtis Pettis and his insurance company United Educators to pay back more than $105,000 of penalties that added up from the university’s late payments to the Ohio Public Employees Retirement System and the State Teachers Retirement System of Ohio. 

Three of the monthly STRS contributions were sent late and seven of the 12 OPERS monthly contributions were sent late, according to the over 100 page report. 

“We identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies,” according to the audit. 

Central State, Ohio’s only public Historically Black College, was placed under fiscal watch by the Ohio Department of Higher Education in October 2024, which continues to be ongoing. 

Central State President Morakinyo A.O. Kuti took over in July 2024 and alerted state officials of the university’s financial situation. 

“While we cannot comment specifically on charges or criminal investigations, CSU is demonstrably more financially secure than when the fiscal year 2023 audit began,” the university said in a statement to the Capital Journal in response to the audit. 

“In a short amount of time, CSU has made several improvements that have strengthened financial processes and footing, implemented strong internal controls and necessary austerity measures, ensured tax reporting compliance, and certified past due student accounts to the Office of the Ohio Attorney General.” 

What did the audit find? 

Some students were inaccurately charged tuition and fees, according to the audit. 

  • 37 students were charged part-time tuition instead of full-time tuition rate, resulting in more than $54,000 being overcharged to students. 

  • 11 students were incorrectly charged a fee amount, totaling $666. 

  • 23 students were correctly charged for part-time tuition, but the amount of hours the students were charged did not match their transcripts — totaling $23,869 being under-charged to students. 

  • Three students were charged for a semester, but their transcript did not have any classes listed — totaling $5,350 being overcharged to students.  

Five students incorrectly received unsubsidized loans that were above their eligibility amount, totaling $3,754. 

Some students were incorrectly charged rent for residence halls.  

  • 33 students were included on rent rolls, but did not live in the applicable halls — resulting in an adjustment to decrease revenue by more than $100,000. 

  • Six students were charged for a double room, but were living in a single room — causing a discrepancy of $1,200. 

  • Three students had rent charges reversed twice on their account, resulting in rent being understated by $9,000.

  • Seven students were charged twice for rent, meaning rent was overstated by $21,120. 

The audit was unable to get certain documents from the Central State University Foundation including endowments, payroll and benefit expenses, and operating expenses, among others. 

“Even after issuing a subpoena for the records, nothing further was provided by the Foundation,” according to the audit. 

“The Foundation has noted the University has all records pursuant to a memorandum of understanding; however, the University has confirmed no further records are available for audit.” 

Faber is conducting an on-going investigation. 

“Dependent on the outcome of the investigation, results may be reported on at a later date,” according to the audit. 

Central State University’s Foundation tax-exempt status was revoked by the IRS in November 2024 after not filing their annual Form 990 for three consecutive years, according to the audit. 

More than $2.7 million were transferred from five different investment endowment accounts to the operating cash account to fund operating expenses. 

A $100,000 contribution for an endowment was received, but was not deposited into the endowment investment account.

“We recommend the University does not transfer funds from the investment endowment accounts to the operating account unless the conditions meet the endowment agreement requirements,” according to the audit. 

“All endowment contributions should be directly deposited into the investment account.” 

A required endowment contribution match of $200,000 was never made during fiscal year 2021, 2022, or 2023. 

“In addition, there were transfers made from the endowment investment account in the amount of $1,107,619 that was not for purposes outlined within the endowment agreement,” according to the audit. 

The $1,107,619 was repaid to the account in April 2024. 

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This story is republished from the Ohio Capital Journal under a Creative Commons license. View the original article.