How a $10-Million Accounting Error Rattled the U. of Hartford

Nothing seemed obviously amiss when the University of Hartford (CT) shared its end-of-year expense projections for the 2022 fiscal year with bondholders last summer. Anticipating a 3-percent decline in operating revenues, the university forecast that it would wind up spending around $171 million by the close of the fiscal year, around $4 million less than it had the year before. And even though a $3.8-million gap between operating revenues and expenses was expected, the university had enough cash on hand and credit available to absorb the losses without raising alarm. But when Hartford released its audited financial statements last December, a more distressing set of circumstances began to surface.