JEFFERSON COUNTY, W.Va. – Now-defunct Eastern Gateway Community College in Steubenville allegedly mishandled more than $17 million in federal student aid before its closure in 2024, according to an audit released by Ohio State Auditor Keith Faber.
The review covered the period from July 1, 2022, through June 30, 2023, and identified 44 findings, including unauthorized expenses, financial reporting errors, failures in record-keeping, problems with financial aid disbursements, and multiple accounting deficiencies. Auditors questioned more than $17.28 million in Title IV Pell Grant disbursements due to a lack of documentation showing students actually began attending classes.
The audit found the college failed to properly track transactions, did not reconcile accounts regularly, and lacked basic financial policies related to credit card use, Amazon purchases, rental cars, and a PayPal account that was opened without apparent approval or oversight. The former board of trustees did not adopt a formal appropriation measure, and required financial certifications were not submitted to the county auditor, leading to additional violations of state law.
Auditors also found incomplete and unreliable documentation for federal programs such as TRIO and adult education grants, improper handling of public records, and the absence of a records commission. In another finding, the former board authorized a $13.6 million bond for a Youngstown parking garage project, despite demolition costs exceeding the value of the property.
Eastern Gateway was placed on probation by the Higher Learning Commission in November 2021 and ultimately closed in the fall of 2024 following mounting financial and legal issues. The state’s Special Investigation Unit continues to investigate the college, with multiple law enforcement agencies having executed a search warrant as part of the ongoing probe.
Eastern Gateway previously operated campuses in Steubenville and Youngstown, serving students in Jefferson, Belmont, Harrison, Columbiana, Trumbull, Mahoning, and Columbiana counties as well as students in the Northern Panhandle of West Virginia and western Pennsylvania.
