For the benefit of those Committee members who were not also Board members, Mr. Norvell began by summarizing past audit update presentations which had been made to the Board of Regents. Mr. Norvell then discussed the current status of the external audit.
Chair Dukes requested that Mr. Norvell identify the other five components of the financial aid cluster which are captured by the compliance audits.
Chair Dukes asked what types of obstacles had been faced in getting the information that Mr. Norvell needed.
Regent Fletcher asked whether the completed audit would fulfill OMB requirements and single audit requirements to receive federal funds.
Regent Moyer inquired into the possible negative consequences upon audit completion if KSU does not have a clean audit.
Regent Fletcher queried whether there was any risk that federal funds might be stopped due to past non-compliance with audit requirements.
Regent Hatchett requested that Mr. Norvell remind the Committee when the firm deadline is for KSU's information to be sent for inclusion in the Commonwealth's annual comprehensive financial report.
Dr. Obielodan asked whether the audit report would include private gifts and donations, and whether there would be timelines for completing components of the assessment.
Dr. Obielodan further inquired as to steps needed to ensure stability with KSU’s financial transactions and reporting as the University prepares for a change in leadership, and to reduce the impact of human factors on budget management. Chair Dukes responded to Dr. Obielodan’s question. Regent Moyer concurred with Chair Dukes’ comments.
Chair Dukes thanked Mr. Norvell for his presentation.
Chair Dukes invited Mr. Ben Martin, CBIZ Senior Manager, and Ms. Miranda Murray, CBIZ Senior Associate, to present this agenda item.
Mr. Martin remarked that Ms. Murray would not be present, then updated the Committee as to CBIZ’s activities since February 2023. Mr. Martin reported that six complete audits and one analysis have been worked through. The last three draft reports with recommendations were submitted the previous day. Mr. Martin stated that CBIZ will be following up on recommendations, noting that a recurring recommendation has been bringing policy and procedure manuals up to date.
Chair Dukes stated that the Committee would like to see the observations that were identified at a detailed level.
Regent Hatchett asked Mr. Martin to identify who currently has the three draft reports. Mr. Martin replied that AVP Edwards was carbon-copied on all three, as well as Dr. Holloway, Dr. Pomper, and Ms. Tonya Walker.
Chair Dukes requested that AVP Edwards ensure that there is a process in place to communicate the status of the various audits to the Audit committee as well, and to share the final report with the Audit Committee.
Mr. Martin continued his presentation with a discussion of the next steps to be taken, and observed that KSU staff had been very helpful in providing requested information to CBIZ.