Interim President Ronald Johnson presented this agenda item, noting that Dr. Daarel Burnette, Interim Chief of Staff and Interim Executive VP of Finance & Business Affairs, and Dr. Gwyllyn Edwards, Associate VP of Finance & Business Affairs, would also be speaking throughout the presentation.

President Johnson began by outlining a timeline of events related to the release of the APA's special investigation covering KSU's accounts and activities from July 1, 2018, through June 30, 2021. He also stated that the purpose of his presentation was to update the Board on the Special Audit Report officially released on Wednesday, March 21, 2023. He noted that many of the issues and recommendations contained in the report had already been identified and addressed by the Kentucky General Assembly via House Bill 250.

The presentation focused on three main areas: 1. Reviewing the priority issues cited in the APA's Special Examination; 2. Updating the Board and community on the progress in implementing APA recommendations; and 3. Identifying challenges that may impact the implementation of the APA recommendations. President Johnson then requested that Interim EVP Burnette present the review of the APA's priority issues.

Dr. Burnette began with an update on the University's handling of the APA's findings and recommendations and introduced Dr. Edwards. Dr. Burnette provided a recap of the audit, noting that 20 findings and 90 recommendations had been identified. Of those, he stated that 25% had been completed, 55% were ongoing, and 20% were TBD (as part of the Management Improvement Plan set forth in HB 250). Dr. Burnette also noted five areas of improvement that the APA had identified and provided a video of Kentucky State Auditor Mike Harmon's press conference and release of the report.

After the video presentation, Dr. Burnette stated that KSU concurred with 88 of the 90 findings by the APA and asked Dr. Edwards to expand on some of the audit findings.

Following Dr. Edwards' comments, Dr. Burnette discussed additional responsibilities faced by KSU, including campus stability, HB 250, external financial audits, internal audit risk assessments, SACSCOC (Southern Association of Colleges and Schools Commission on Colleges), and the FY 2024 transition in terms of enrollment, campus readiness, and budget formulation.

At the conclusion of Dr. Burnette's remarks, Interim President Johnson addressed the Board regarding the severity and urgency of the challenges faced by KSU.

Chair Patton asked President Johnson about the impact of the APA findings on SACSCOC.

Regent Fields asked what the Board needs to do to help move the action items forward so the Board can be more involved in strengthening the University.

Regent Hatchett commented on the external audits conducted between 2018 and the end of the administration responsible for these issues. He inquired whether the external auditors who had produced the audits in 2018 and 2019 could be contacted to discuss their comfort level and the Board's comfort level regarding the accuracy of those external audits of KSU.

Chair Patton requested that Dr. Johnson and the Administration establish a prioritized inventory for the Board regarding the exposures and opportunities facing the University, including but not limited