POLICY TITLE: Debt Management

APPLIES TO: All Divisions and Departments

ADMINISTRATIVE AUTHORITY: Division of Finance and Administration Chief Financial Officer (CFO)

APPROVED BY: Kentucky State University Board of Regents

EFFECTIVE DATE: August 8, 2025

NEXT REVIEW DATE: August 8, 2028

This policy provides a disciplined framework for the strategic use of debt to finance capital investments that support the mission of Kentucky State University (KSU). To protect the long-term financial health and credit rating of the university, debt is managed prudently, and its use is limited to mission-critical projects after a thorough evaluation of all available funding sources and financing strategies.

A long-term investment project to build, improve, or maintain a capital asset, such as facilities and infrastructure.

The maximum amount of debt an organization can incur without threatening its financial health or ability to meet its repayment obligations.