TSU Board of Trustees Receives Positive Recommendation for Financial Stewardship

Aerial view of Tennessee State University (Photo by TSU)

State Senators on the Government Operations Joint Evaluation Committee on Education, Health, and General Welfare unanimously gave a positive recommendation on Tuesday to extend the term of Tennessee State University’s (TSU) Board of Trustees for another three years.

Lawmakers will utilize that recommendation next year when they decide whether to approve the extension.

The recommendation is the latest milestone for TSU’s financial recovery, following the General Assembly’s decision to oust the university’s prior Board of Trustees following years of financial challenges and criticism about the fiscal management under former President Glenda Glover.

“Thank you so much for your efforts, for taking on a herculean task, and we look forward to hearing great things from TSU,” said Committee Senate Chair Paul Rose, R-Covington.

‘Shared Sacrifice’ Leads to Financial Improvement

Last month, TSU President Duane Tucker announced that the “shared sacrifices” students and staff have made since he took over late last year are putting the university on the path to a positive bottom line in as little as three years. Tucker said TSU has exceeded its deficit goals in fiscal year 2025 by $13.2 million and is expected to exceed them again in fiscal year 2026.

Dakasha Winton (Photo by TSU)

On Monday, TSU Board of Trustees Chair Dakasha Winton pointed to Tucker’s appointment as a key step the board has taken since its reconstitution in 2024, along with new policies to address fiscal deficiencies and strengthen controls.

Winton told lawmakers that the university’s financial challenges were so severe when the new Board of Trustees took over, simply determining where to start addressing them was a challenge.

“How do you try to get to a good place when you have so many difficult issues to address? I mean, the audits obviously are a concern, the finances obviously are a concern,” said Winton.

Audit Details Prior Mismanagement

Last week, the Tennessee Comptroller released the latest in a series of audits detailing the financial issues Tucker and the new Board of Trustees inherited.

The financial and compliance audit identified 11 findings of deficiencies during the fiscal year that began in July 2023 and ended in June 2024. Auditors also found that TSU ended the fiscal year with a $153 million loss in operating revenue.

“As noted in the prior two audits, former university management lacked appropriate oversight, which allowed a breakdown of controls that created an error-prone environment resulting in errors in the financial statements, inadequate daily operations, and deficiencies in oversight of federal programs, which contributed to cash flow deficits,” wrote state auditors.

Grant funding was among the issues identified in the audit. The Comptroller’s Office tested 45 grant funds and determined incorrect balances with 25 of them. That included missed opportunities to collect at least some of the $3.8 million auditors identified as “uncollectible grant funds.”

Auditors additionally found errors with how the university charged in-state and out-of-state fees to 11 percent of students attending TSU in the 2024 academic year. The Comptroller determined that these errors resulted in overcharging some students by more than $250,000 and undercharging others by more than $870,000.