DATE: April 6, 2021

SUBJ ECT: Approval of Fiscal Year 2020 Audit

FROM: FINANCE AND ADMINISTRATION

ACTION ITEM: YES

BACKGROUND: In accordance with KRS164A.170, the corporation shall also cause an audit to be made by a resident independent certified public accountant of its books, accounts, and records, with respect to its receipts, disbursements, contracts, mortgages, leases, assignments, loans and all other matters relating to its financial operations. The persons performing such audit shall furnish copies of the audit report to the secretary of the Finance and Administration Cabinet, where they shall be placed on file and made available for inspection by the general public.

SUMMARY OF PROGRAMS/ACTIVITIES:

FY2020 Audit Summary:

• The University received an unmodified opinion -- the highest level of assurance an external audit firm can provide
• The audit was issued with the inclusion of the completed KSU Foundation, Incorporated audit as a component unit of the University
• The University closed FY2020 with an increase in net position of $2,340,515
• The University reported no material weaknesses in financial reporting
• The University reported no material weaknesses in internal control over federal grant awards
• The University resolved three audit findings from the prior year
• The University received only one audit finding resulting in $0 questioned cost

ALIGNMENT WITH STRATEGIC GOALS:

Goal 3: Increase the University's Financial Strength and Operational Efficiency.

COMMITTEE/PROGRAM ACTION: N/A

PROGRAM IMPLICATIONS: N/A