IHL report shows JSU's depleted cash reserves - WLOX.com - The News for South Mississippi

IHL report shows JSU's depleted cash reserves

Source: WLBT Source: WLBT
JACKSON, MS (Mississippi News Now) -

According to a report revealed by the IHL, Jackson State University has only enough cash reserves to operate for a week. 

JSU's cash reserves have been reduced by 89% over the past 5 years, dwindling from $37 million in 2012 to $4.2 million in 2016. 

The Board of Trustees of State Institutions of Higher Learning hired a CPA firm, Matthews, Cutrer and Lindsay, P.A. who determined that JSU 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. 

According to the report, JSU has enough money in its cash reserve to stay in operation for 7.77 days. The system average is 114 days of cash on hand.

“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 full report:

JSU says it is addressing its financial issues and has taken the necessary steps to restore its cash reserves. According to the university, $10 million will be added to its cash reserve by the end of the fiscal year.

Here is the full statement from JSU:

Jackson State University is aware of financial issues as they currently stand. The university has taken the necessary steps to restore cash reserves. These measures include: 

  • Unfilled Education and General-funded positions across the university will remain vacant;
  • Purchasing and travel will be limited to critical and justifiable needs;
  • Any and all excess revenue will be held in reserve; and
  • Facility Management will begin retrofitting the residence halls with energy conservation lighting. 

Based on projections from the first quarter, with these measures in place, we will add $10 million in cash reserves by the end of the fiscal year. 

It is important to emphasize that the news release from IHL applies to the university’s cash reserves – its savings account. This in no way affects the daily operating budget of the university. At no time, past or present, has the university been under any threat of insolvency. We will continue to meet our obligations including payroll, scholarships and operating expenses. 

Our priorities remain taking care of our students, faculty and staff and providing a world-class education expected from a major research institution.

Copyright 2016 MSNewsNow. All rights reserved.

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