Regent Hatchett asked how much documentation Mr. Norvell would be able to share with the Committee at this stage of the audit process. Mr. Norvell replied that he would be able to provide a draft once all adjustments were finalized.
Regent Dukes asked whether the adjustment for the non-expendable portion was a reclassification. Mr. Norvell responded affirmatively.
As to the discussion regarding notification findings, Regent Fields inquired how it was determined that some students were not properly notified as to specific graduation and withdrawal-related events and sought further clarification as to the time period under examination.
Chair Hatchett queried whether Mr. Norvell could share the nature of what might make a potential adjustment involving the self-insured health plan a liability or not.
Regent Dukes sought confirmation that the FY 21 audit would be completed by the end of September. Mr. Norvell replied that his firm was working diligently to meet that goal, though they were still working on finalizing outstanding items. Chair Hatchett asked again whether Mr. Norvell felt confident that the September date could be met.
Chair Hatchett then thanked Mr. Norvell for his presentation.
This agenda item was presented by the University's Controller, Ms. Tonya Walker. As of September 20, the University has an outstanding student debt of $4.7 million, with a headcount of 1,461 students. Of the $4.7 million, $1.4 million is in payment plans which are due on the 28th of each month.
Chair Hatchett asked Ms. Walker to describe how student debt payment plans work. Ms. Walker deferred the question to the University's Bursar, Ms. Danyel Tolbert.
Regent Walston asked Ms. Tolbert whether payment plans begin in July. Ms. Tolbert responded affirmatively. Regent Walston then asked whether work study was accounted for in the payment plan.
Next, Ms. Walker discussed outstanding student debt balance categories and provided an update as to debt collection efforts. Approximately 2,800 delinquent accounts totaling $13,637,720 were sent to Keys 2 Recovery in April 2023; of that amount, KSU has received $30,801.07 as of August 31. The next collection agency file will be sent on October 31.
Chair Hatchett asked what numbers would result in an account being turned over to a collections agent, and wondered how long a debt has to be outstanding before it is turned over to collections and whether there is a minimum amount that can be turned over.
Regent Walston asked Ms. Tolbert if students were coming forward to bring their account up to date so they could return to the University.