that CBIZ is also in the process of confirming or validating whether their recommendations have been implemented. Risk assessment is in progress across all University areas. The financial aid audit, originally set to begin in October, was moved forward and has begun.
Moving ahead, Mr. Martin described the next steps to be taken, including a fixed asset existence audit, Sodexo invoice review, Banner license review, and additional process areas of audits and reviews identified throughout the year.
Regent Dukes asked whether CBIZ was planning for any other finance-related audits aside from the fixed asset and financial aid audits.
Mr. Martin also identified significant issues, including those relative to policy updates. He suggested that finance- and student-related policies be brought to the forefront to ensure that they are being reviewed, updated, and communicated to the University.
Finally, Mr. Martin stated that KSU staff has been responsive and extremely helpful in answering questions and providing any requested information. In conclusion, he felt that CBIZ is making good progress according to the timeline agreed upon with the University’s CFO.
This agenda item was presented by Mr. Allen Norvell, CPA, a director for Blue & Co. Mr. Norvell began with an update regarding the external audit status, reporting that the 2021 audit is nearing completion. Following a format similar to the CBIZ presentation, Mr. Norvell first discussed accomplishments to date.
As to the financial and compliance audits, Mr. Norvell stated that difficulty obtaining sufficient documentation to support an opinion on the financial statements and a high level of employee turnover exacerbated anticipated challenges.
The compliance portion of the FY 21 audit is complete and preliminary findings were shared with management. Mr. Norvell shared some of the high-level findings with the Committee, including reporting and notification findings.
The field work of the financial portion of the audit is now complete and has resulted in several adjustments. Mr. Norvell shared what he described as the most significant high-level findings. Blue and Co. is currently working with University management on finalizing several other potential adjustments.
As the loss revenue calculation relative to a lost revenue grant available to HBCU universities was discussed, Chair Hatchett inquired how Mr. Norvell's understanding of reporting requirements did not comport with the University's calculation. Regent Dukes queried whether the $688,000 difference was an overage or underage. Mr. Norvell responded that he understood it to be an overage, as the loss revenue was overstated.