INDEPENDENT AUDITOR'S REPORT ..... 1 MANAGEMENT'S DISCUSSION AND ANALYSIS ..... 3 FINANCIAL STATEMENTS KENTUCKY STATE UNIVERSITY STATEMENT OF NET POSITION ..... 15 KENTUCKY STATE UNIVERSITY FOUNDATION, INC. STATEMENT OF FINANCIAL POSITION ..... 16 KENTUCKY STATE UNIVERSITY STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ..... 17 KENTUCKY STATE UNIVERSITY FOUNDATION, INC. STATEMENT OF ACTIVITIES ..... 18 KENTUCKY STATE UNIVERSITY STATEMENT OF CASH FLOWS ..... 20 KENTUCKY STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS ..... 22 REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE UNIVERSITY'S (KSU) PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AND SCHEDULE OF UNIVERSITY'S CONTRIBUTIONS KENTUCKY EMPLOYEES RETIREMENT SYSTEM ..... 66 KENTUCKY TEACHERS' RETIREMENT SYSTEM ..... 68 SCHEDULE OF THE UNIVERSITY'S (KSU) PROPORTIONATE SHARE OF THE NET OPEB LIABILITY AND SCHEDULE OF UNIVERSITY'S CONTRIBUTIONS KENTUCKY EMPLOYEES' RETIREMENT SYSTEM ..... 70 KENTUCKY TEACHERS' RETIREMENT SYSTEM ..... 72 SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ..... 73 NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ..... 76 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ..... 77 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH UNIFORM GUIDANCE ..... 79 SCHEDULE OF FINDINGS AND QUESTIONED COSTS ..... 81