NASHVILLE, Tenn. (WTVF) — A new 160-page report from the state comptroller's office reveals Tennessee State University has continued to make financial errors involving taxpayer dollars, with many issues being repeat findings from previous audits.
The report lists 15 total findings at the historically Black college during the last half of 2022 and the first half of 2023, with at least six of these issues having been identified in previous audits.
According to the comptroller's office, university leaders failed to properly oversee their finances in the past eight audits, resulting in millions of dollars in errors.
The audit shows TSU overstated its cash holdings by more than $5 million and mishandled money related to university housing charges, debt and scholarship allocations.
Students have faced significant financial consequences from these errors. The report indicates TSU undercharged graduate students a total of $1.5 million.
The audit also revealed instances where students were charged for tuition, housing or meal plans despite TSU having no record of those students attending classes.
Additional findings include inappropriate charges to students, particularly involving grants and financial aid, and failure to verify students' eligibility for these funds.
The report states TSU didn't follow federal guidelines for COVID-19 relief funds, totaling an estimated $318,000 for 2023 and 2024. As a result, the university may be required to repay at least $85,000 of those funds to the U.S. Department of Education.
Both prior and current university management had the opportunity to respond to the findings, though their comments weren't always aligned for each issue.
Regarding the COVID-19 relief funds finding, current management pointed to new policies and oversight measures, including new approval processes.
The following is the University's statement on the audit in its entirety:
Tennessee State University acknowledges the recently released Financial and Compliance Audit Report for fiscal year 2023, by the Tennessee Comptroller of the Treasury, and understands the seriousness of these findings. Under the newly appointed Board of Trustees and administration, TSU is actively addressing the State audit findings by working diligently with third-party entities and university leadership to implement proper processes, reporting, training, and safeguards to strengthen financial oversight and compliance at TSU.
“Tennessee State University is operating in a new era of transparency and accountability to create a bridge to financial sustainability. With improved financial and compliance policies implemented, we secure the TSU legacy for the next generation of Tigers," Interim President Dwayne Tucker said.
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