The Institutions of Higher Learning posted this press release on its website:
The Board of Trustees of State Institutions of Higher Learning has engaged the CPA firm of Matthews, Cutrer and Lindsay, P.A. to provide accounting analytical services for Jackson State University.
Jackson State has been depleting cash reserves since FY 2014. The university’s cash reserves have been reduced by 89% over the past five years, dwindling from $37 million in FY 2012 to $4.2 million in FY 2016.
- FY 2012: $37,086,677
- FY 2013: $36,598,901
- FY 2014: 23,604,500
- FY 2015: 10,818,569
- FY 2016: $4,241,141 (Unaudited)
- FY 2012: 72.53
- FY 2013: 72.60
- FY 2014: 45.72
- FY 2015: 20.52
- FY 2016: 7.77 (Unaudited)
Jackson State owes $8.74 in debt for every $1 held in their unrestricted fund balance, after adjusting for net pension liability. The system average is $1.32 in debt for every $1 held.
“Since May 2014, the Board of Trustees, the Commissioner of Higher Education and IHL Staff have communicated concerns over the university’s financial position to Jackson State University personnel, including the Chief Financial Officer and President,” said Dr. Glenn Boyce, Commissioner of Higher Education. “The annual financial statement for FY 2016 received by IHL Staff in August 2016 indicated that the situation has escalated from a concern to a level serious enough to require immediate intervention.”
The Board requested an Expense Management Plan in June 2015, but did not receive a feasible plan.“Both IHL staff and Mattews, Cutrer and Lindsay will work in partnership with Jackson State to improve the situation,” said Boyce. “MCL will evaluate the financial impact of all decisions. IHL, JSU and MCL representatives will meet regularly to share information on findings and recommendations during the review.”
“Matthews, Cutrer and Lindsay is a respected firm with the experience necessary to conduct the review and identify ways to correct the structural budget imbalance,” said Boyce. “An issue of this magnitude may take several years to correct. Throughout the process, our absolute goal is to ensure that students are a top priority.”