Move the Board to enter closed session to discuss pending and possible litigation. Seconded by Regent Ramsey and passed without dissent.
When the Board reconvened from its closed session, Chair Dukes announced that no action was taken while in closed session. She then called for a motion to enter open session.
MOTION by Regent Fields:
Move the Board to enter open session.
Seconded by Regent Walston and passed without dissent.
Next, Chair Dukes presented all Consent Agenda items. Before calling for a motion to approve the Consent Agenda, Chair Dukes invited Regents' questions and comments.
Regent Moyer shared his observations regarding the KSU Foundation, including excerpts from a certified letter that he had recently received from the KSU Foundation’s Executive Secretary, Mr. Donald Lyons. He also discussed recommendations for renegotiating the MOU between the University and the KSU Foundation.
Chair Walston asked whether any conversation had occurred between the Foundation and the University prior to the development of the recommendations presented by Regent Moyer.
Regent Adams sought clarification regarding the number of meeting requests that had been extended to the Foundation.
Regent Fletcher asked whether the Foundation receives any federal funds and inquired as to what the Foundation's audit requirements might be, based upon the sources of funding.
Regent Walston inquired whether the Foundation's audits occur on a yearly basis.
Regent Fletcher wondered about the Foundation’s lack of fidelity to the University and contributors to the Foundation, finding it odd that they are collecting money “with Kentucky State on it” but deferring it for purposes and individuals not related to KSU.
Regent Hatchett stated that it was his understanding that in the past KSU had turned over to the Foundation certain Covid-related federal funds and queried whether the federal audit requirement follow those funds into the Foundation, and further inquired whether this was the only incidence of the Foundation handling federal dollars. General Counsel Atwell and President Akakpo responded that the Foundation does hold some Title III funds on behalf of the University.
Regent Fletcher asked whether the Foundation’s audit shed any light onto the basis for which 35% can be charged to the University under the current MOU.
Regent Ramsey requested that the recommendations for renegotiating the MOU include a requirement that the Foundation provide the University with quarterly financial updates rather than annual reports.