FREMONT — Terra State Community College was recently placed under fiscal watch by Ohio Department of Higher Education Chancellor Mike Duffey.
The Northwest Ohio community college was initially placed on fiscal watch status after a recommendation by Ohio Auditor Keith Faber on March 17 and the college was placed on fiscal watch March 23.
Terra State did not get an annual audit for 2024 and 2025 fiscal years, did not make timely payments to vendors, and had flaws in their payment processing system, according to a letter from Duffey dated March 23.
“(Terra State) had cash flow that may not be sufficient to cover liabilities, suggesting the presence of a significant negative variance between Terra’s most recently adopted annual budget and actual revenues or expenses at the end of the fiscal year,” according to Duffey’s letter.
The Sandusky County community college remains open and is required to adopt a financial recovery plan to end fiscal watch within three years.
“Students, faculty, and staff should expect no disruption to academic schedules, campus services, or the daily operations of the college,” the college said in a news release last week.
“The College remains committed to remedy all deficiencies and continue to meet the institution’s mission of providing the highest quality education and training to our students, faculty, staff, and community.”
Terra State’s Board of Trustees appointed Cory Stine to serve as interim president last week after accepting the resignation of former president Ronald Schumacher. Stine has served in multiple roles at Terra State over the years including most recently as senior vice president for innovation and strategic planning.
“Terra State Community College is currently focused on gathering and validating data required to develop and submit a comprehensive fiscal recovery plan within the required 90‑day timeframe,” he said in an email to the Ohio Capital Journal.
“Our priority remains the long‑term fiscal stability of the institution and our mission to serve students and the region well.”
Terra State’s financial audit was done by an independent auditor, submitted to Faber, and released on March 24. The audit period was July 1, 2023 through June 30, 2024.
Terra State paid $21,344.08 to the Regional Income Tax Agency for delinquent employer payroll withholding submissions for employee municipal income taxes for 2023, according to the audit. Terra State also paid $911.38 to the Ohio Department of Taxation for delinquent sales tax payments, according to the audit.
The audit also called for a finding for recovery for public monies illegally expended, totaling $22,255.46, against two former employees.
The first is issued against Jacqueline Foos, Terra State’s former vice president of finance from July 1, 2020 to June 30, 2023, or her insurer for $818.71.
The other is issued against Mary Johnson, Terra State’s former chief financial officer from July 1, 2023 to Oct. 15, 2024, or her insurer for $21,436.75.
Terra State will be required to have monthly reviews of their finances and monthly approvals of expenditures.
“The college is to consult with the Auditor regarding steps to bring books of account, accounting systems and financial procedures and reports into compliance,” according to Duffey. “This must be treated as an urgent priority given the notable delay in completing the fiscal year 2024 and 2025 audits of the College.”
The community college opened in 1968 and had 1,240 students enrolled in fall 2025 — about half the number of students who were enrolled in fall 2000, according to the Ohio Department of Higher Education. Ohio has 22 community colleges.
Central State University, the state’s only public Historically Black University, is the only other higher education institution in the state currently under fiscal watch.
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