Tennessee State University

The February 2026 meeting agenda covered multiple committee discussions and actions. The Governance and Governmental Affairs Committee reviewed a legislative update, including information on budget requests, the upcoming Board of Trustees sunset review in June 2026, and statutory changes affecting board size. The Finance Committee addressed the approval of the Fiscal Year 2026 revised institutional budget, which showed an improved projected deficit compared to the proposed budget, driven by increased state MOU funds and enrollment revenue. Key financial actions included approving the Bank Reconciliation Policy (with required clarification) and moving forward with the approval of the YMCA Parking Transaction, which involves leasing 100 parking spaces for recurring revenue. The Finance Committee also sought approval to proceed with the administrative rulemaking process for new Parking Rules. Institutional Advancement provided updates on fundraising totals, noting a shift toward larger average gifts, ongoing CRM migration, and the strategic plan for a comprehensive fundraising campaign with priorities set on student experiences and campus infrastructure.

The meeting focused primarily on the Presidential Selection Process and the subsequent selection of a permanent president. Key discussions involved reviewing the history of the search, including qualifications developed in 2024 and the impact of the June 2025 Memorandum of Understanding with the State of Tennessee regarding audit findings and financial stability. The Board addressed and voted on the ratification of the extension of Interim President Tucker's contract, which ultimately failed. Following this, the Board voted to proceed with outlining a selection process and then voted for a direct and immediate vote to nominate and appoint Interim President Dwayne Tucker as the permanent President of TSU. The final major action was a discussion on the delegation of authority to the Chair to execute the new presidential employment agreement, which was tabled after debate regarding the extent of Executive Committee versus full Board consultation. Finally, the Board approved academic actions concerning modifications to low-producing programs and the reorganization of certain academic units.

The Finance Committee meeting focused on reviewing and approving several financial items and budget updates. Key discussions included the approval of the revised Bank Reconciliation Policy, which involved clarifying the approval steps, and receiving an update on the Fiscal Year 2026 institutional revised budget. This revised budget showed a significant improvement in the projected net operating deficit, largely driven by increased total revenues from a state appropriation received in July and better-than-projected enrollment, despite an increase in personnel expenses. The personnel expense increase was primarily attributed to higher-than-budgeted salary and benefit costs for newly filled vacant positions, as well as missed accruals for temporary faculty benefits and new hiring expenses for recruiting, internal audit, and compliance roles. Non-personnel expenses also increased due to factors like the TBR contract, new CRM system fees, insurance premium adjustments, and lobbying services.

The Audit Committee meeting focused on reports related to internal and external audits and assessment reviews. Key discussion points included the status of the FY 2024 financial statement audit, projected for release by the end of September 2025, and the FY 2025 Single Audit expected in March 2026. Four uncorrected findings from the FY 2024 Single Audit concerning Financial Aid and Title IV fund returns were summarized, with management actively working on corrective actions due to the State by November 7, 2025. An update on the Quality Assurance Review (QAR) GAP assessment conducted by the M&A Group was provided. Discussions on outstanding audit issues highlighted recurring concerns with procurement cards and the status of bank reconciliations, which are targeted for completion by October 31, 2025. The committee also reviewed and subsequently approved an update to the internal audit plan, expanding scope to include Accounts Payable, Payroll, Procurement, Cash Collections, and Travel, utilizing external firm support funded by salary savings.

The Audit Committee meeting agenda included a review of the Audit Office's audit activities for the previous fiscal year, a report on internal and external audit items, and a review of internal and external assessment results. Key discussions involved the status of internal audits, such as the audit of the Office of the President expenses which found no findings but noted an 11% year-over-year increase, and the Internal Audit Plan status, where the total planned hours increased to 4,415. External audit findings reviewed included significant issues related to control breakdowns, untimely bank reconciliations, inadequate support for student withdrawals, non-compliance with Title IV fund handling, and issues with EEE investment policy compliance. Furthermore, the committee reviewed outstanding audit issues from previous reports, noting recurring issues like untimely deposit of gifts and procurement card control weaknesses, and planned to approve the Fiscal Year 2025-2026 Audit Plan and enter Executive Session to discuss confidential items.