State of Pennsylvania Takes Control of Cheyney University’s Finances

James Dillon, the vice chancellor of the state system of higher education, was placed in charge of all financial operations of Cheyney University of Pennsylvania, the historically black educational institution west of Philadelphia. The action came after the controller of the university was fired and the finance director took time off following the death of his wife. The university had a $2.1 million operating deficit in 2007.

Dillon immediately prohibited the use of all university-owned credit and debit cards and required all purchase orders for goods and services to be funneled through his office. Dillon calls the problems serious but not catastrophic.