Penn State Trustee Sues Board Over Endowment Information Withheld
Penn State Trustee Sues Board Over Endowment Transparency
BELLEFONTE — A Penn State trustee has taken legal action against the university’s board, alleging that they have been withholding crucial information about the management of the institution’s $4.6 billion endowment. Barry Fenchak, an alumni-elected trustee, filed a lawsuit in Centre County Court of Common Pleas, claiming that he has been denied access to data regarding the university’s assets and administrative fees related to the endowment.
The lawsuit comes at a time when Penn State is facing significant budget cuts and offering incentives for some employees to leave. Fenchak’s legal action is the latest in a series of public disputes among board members regarding university operations.
Fenchak, who was elected to the board in 2022 on a platform of fiscal responsibility, has been vocal about the lack of transparency within the board. He has raised concerns about the rise in administrative fees charged to the endowment between 2016 and 2023, prompting him to request detailed information from the university.
Despite his repeated requests, Fenchak claims that he has only received aggregated financial data from Penn State, which he believes is insufficient for proper oversight. The trustee emphasized that he does not have evidence of financial wrongdoing but wants more information to evaluate how the endowment is managed and whether changes could be made to benefit the university.
Penn State trustees are responsible for creating and changing the university’s fiscal policies and ensuring its financial well-being. However, Fenchak’s lawsuit highlights the challenges faced by some board members in accessing critical information necessary for effective decision-making.
The lawsuit also sheds light on the internal operations of the Penn State board, which has faced scrutiny for its lack of transparency in recent months. Media law experts have questioned the board’s practices, with some noting a pattern of closed-door meetings and limited disclosure of information.
Fenchak’s legal action is a significant development in the ongoing efforts to improve transparency and accountability within Penn State’s governance. The outcome of the lawsuit could have far-reaching implications for how the university manages its endowment and addresses concerns raised by trustees like Fenchak.
Penn State did not respond to a request for comment on the lawsuit. The university has typically refrained from commenting on pending litigation.