The Pennsylvania State System of Higher Education (PASSHE) announced today that Cheyney University of Pennsylvania finished the 2005-2006 fiscal year with a deficit of $2.16 million. The deficit was revealed by an annual audit of PASSHE and its 14-member universities.

The audit findings, announced jointly by PASSHE Chancellor Judy G. Hample and Board of Governors’ Chairman Kenneth M. Jarin, triggered immediate action by PASSHE to stabilize Cheyney’s finances and ensure that students’ education will continue uninterrupted.

At the same time, the Board and Chancellor Hample announced that an independent auditing firm will be retained to perform a detailed financial analysis and review of the management practices at Cheyney. The results of this review will form the basis of a comprehensive financial recovery plan for the University.

“We will stabilize the University’s finances immediately to ensure that classes continue uninterrupted and that students’ education will not be impacted,” Mr. Jarin said. “We are determined to identify and correct the problems that caused the deficit so that we can put the University on a sound financial course for the future.”

The results of the PASSHE system audit, conducted annually at all 14 PASSHE universities, were shared with Cheyney University officials and its 11-member Council of Trustees. Robert W. Bogle, Chairman of the University’s Trustees, pledged that the University will work in partnership with PASSHE to restore the institution’s finances.

“Cheyney University of Pennsylvania has long been a national leader among Historically Black Colleges and Universities (HBCU), and we are determined to work in partnership with the state to address its financial issues so that Cheyney can continue its mission of service and education,” Bogle said.

With more than 107,000 students, the Pennsylvania State System of Higher Education is the largest provider of higher education in the Commonwealth.The 14 PASSHE universities offer more than 250 degree and certificate programs in more than 120 areas of study.More than 405,000 PASSHE alumni live and work in Pennsylvania.

The state-owned universities are Bloomsburg, California, Cheyney, Clarion, East Stroudsburg, Edinboro, Indiana, Kutztown, Lock Haven, Mansfield, Millersville, Shippensburg, Slippery Rock, and West Chester Universities of Pennsylvania. PASSHE also operates branch campuses in Clearfield, Freeport, Oil City and Punxsutawney and several regional centers, including the Dixon University Center in Harrisburg.