Fisk University, struggling to right its financial ship, cleared a major hurdle toward that goal last week with news that it has raised $4 million in unrestricted cash since December, allowing it to collect $2 million more in a challenge grant, pay past due bills and finish its fiscal year with a small surplus.

“This phenomenal accomplishment comes at a special time for our university,” said P. Andrew Patterson, vice chair of the Fisk board, in a statement released last week by the university. “Our alumni, trustees and friends are engaged,” said Patterson, whose school has been plagued by a steady decline in its financial health for most of the past five years.

Fisk urgently needed to finish its fiscal year ending June, 30, with a significantly improved set of financial records, including a surplus for the current year, as it prepares to seek renewal this fall of its accreditation from the Southern Association of Colleges and Schools (SACS).

The financial health of an institution is one of three major focuses of the 10-year accreditation process. Weaknesses in finances can lead to warnings and even loss of accreditation, a determination that could cause a school to be disqualified from receiving federal student aid. Fisk depends on federal student aid for more than 75 percent of its students.

Since its last review, Fisk’s fortunes have sunk to new lows, with nearly all of its assets mortgaged and half its endowment borrowed to keep the small historically Black college afloat. At various times over the past year, Fisk officials have said the school owes its endowment between $6 million and $8 million.

Fisk officials feel showing a surplus for the current year and a significant reduction in debt will go a long way toward easing concerns the SACS team may raise. In its announcement, Fisk said it paid $4 million in bills this month, eliminating “accounts payable” dating to 2004.

The urgently needed financial boost traces its roots to a December surprise from the Andrew W. Mellon Foundation in New York. It came to Fisk’s rescue, after hearing about the historic school’s declaration last fall that it would be out of working capital by December 2007, absent an urgent infusion of money.