Operations Improvement: Preserving Financial Independence

The Client

Located in Wilberforce, Ohio, Central State University (CSU) has a 112-year legacy of academic excellence. Ohio’s only public, historically African-American university, CSU graduated generations of leaders in the fields of education, business, science, fine arts, performing arts, and law.

The Challenge

After a financial audit in 1995, CSU got bad news. The State of Ohio notified the school that it would discontinue funding after the CSU budget expired in 1997. The school was using its financial systems incorrectly, especially its grants program. CSU was getting poor financial information on each grant. To make matters worse, CSU was reporting erroneous information to all its funding agencies, including the state and federal governments. Realizing the complexity of its predicament, CSU brought in BearingPoint to uncover and correct the grants-specific problems. This turned out to be an extensive job.

The Solution

After the university dismissed the previous team, BearingPoint took over the daily financial operations of the institution, such as accounts payable, purchasing, and payroll. Our team spent two months going through the financial system before we could investigate the grant problems. Next, we had to audit the grants program, reversing or revising the accounting entries for each grant. In some cases, we went back as far as ten years to research items. We immediately changed procedures and wrote guidelines for moving forward with new grants. BearingPoint identified the scope of CSU’s problem, helped correct mistakes, and reestablished the school’s control.

The Benefits

Without our help, CSU could have easily lost its funding. Thanks to BearingPoint, the State of Ohio was willing to help the school with needed money. Because we helped CSU regain control of financial management and fiscal affairs, they have extended our contract several times. Our continued presence helps ensure proper accounting and financial management. In 1997, instead of losing its state funding, CSU received a clean bill of health from both the Office of Management and Budget and a Department of Education audit.
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