The university in Squirrel Hill North has said little about its accounting and budgeting systems, but some faculty saw little beyond spreadsheets.
As Chatham University grapples with a multimillion-dollar budget deficit, several current and former faculty members are describing their past interactions with the university’s budgeting and accounting practices as “chaotic,” “god-awful” and “always an adventure.”
The private, nonprofit university estimates that, after making significant cuts, it now faces a $6 million deficit, which it attributes to declining graduate student enrollment, rising costs and an “aging financial system and reporting infrastructure,” among other factors. The concerns of the current and former employees reveal, at least, that some lacked confidence in the university’s financial management prior to the deficit’s announcement.
The university’s auditor, Schneider Downs & Co., has not found “material weaknesses” in Chatham’s internal financial reporting mechanisms, according to a review of 10 fiscal years’ worth of audited financial statements. The next report, covering the fiscal year ending June 2023, is expected to be released in December.
Three key takeaways from this story:
- Chatham University says it faces a projected $6 million budget deficit, which it partly attributes to an “aging financial system and reporting infrastructure.”
- Some current and former faculty have criticized or expressed concern with the university’s budgeting and accounting practices relating to program budgets and grants.
- The university created a new office last month to help administer grants and contracts.
Reliance on spreadsheets could lead to errors in budgeting or grant management, according to some experts in nonprofit accounting and financial management.
Michael Collyer, a professor of biology, said that the spreadsheets he received from Chatham left him unsure about how grant funding had been credited.
“I had to trust that the bookkeeping was good because I couldn’t reconcile it,” said Collyer, who has managed a roughly $112,000 federal grant from the National Science Foundation by requesting Excel spreadsheets from the university.
Late last month, the university created a new office to help administer grants and contracts.
Board of Trustees Chair David Hall told faculty that the board became aware of the deficit ahead of its June meeting, adding that the influx of COVID-19 relief funds had delayed the impact of the budget shortfall. The audited statements from the fiscal year ending in June 2022, however, show a roughly $19 million gap between revenue and expenses.
The university said the statements include expenses that “are not necessarily” in the operating budget, where the deficit is.
Bill Campbell, a spokesperson for Chatham, declined to comment on internal university business operations or the statements of current or former employees, citing university policy. He did not respond to questions from PublicSource that asked how the university managed its finances prior to June; what role Excel spreadsheets have played in its management practices; and how administrators ensured that the financial information shared with faculty was accurate.
People walk through Chatham University’s campus, in Squirrel Hill North, on Tuesday, Sept. 19, 2023. (Photos by Stephanie Strasburg/PublicSource).
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