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faculty, or staff member, or any line of work, teaching, or investigation of Kentucky State University.

On March 7, 2019, the Foundation and KSU entered into an MOU to advance KSU’s mission (Appendix B). The MOU grants the Foundation access to use the University’s name, but the Foundation is not to use the seal or other identifying marks of KSU. Additionally, the MOU states the Foundation will provide KSU access to its data and records “on a need-to-know basis in accordance with applicable laws, Foundation policies, and guidelines.”

The Foundation is managed by a Board of Trustees independent from KSU. According to the Foundation’s Code of Regulation, the Board of Trustees consists of three classes of 27 total trustees. Ex-Officio Trustees serve on the Board of Trustees until (a) the expiration of the trustee’s three-year term or (b) the trustee’s death or resignation. Elected Trustees have no limit on the number of terms they can serve and can serve until the trustee’s death, resignation, or removal.

The Foundation’s Board of Trustees is responsible for the control and management of all assets of the Foundation. The Foundation supports KSU by planning and executing comprehensive fundraising and donor-acquisition programs, including annual giving, major gifts, planned gifts, special projects, and campaigns. Funds from donors are invested and managed to support KSU student scholarships and research by students, faculty, and staff.

Executive Order 2021-504 (Appendix C), signed by the Governor on July 20, 2021, required CPE to independently review KSU’s finances. Additionally, it required CPE to assess and report on KSU’s financial status, make recommendations for the next biennial budget, and consult with the KSU Board on its administrative structure and leadership. As a result of Executive Order 2021-504, CPE released an assessment of KSU’s current financial status in November 2021.

Following CPE’s November 2021 assessment, the Kentucky Legislature passed 2022 HB 250 declaring an emergency, appropriating $23 million in FY 2022 to address “financial instability” at KSU. The Governor signed HB 250 into law on April 8, 2022. HB 250 requires ongoing financial oversight of KSU by CPE until such time as CPE reports to the Governor and the Legislative Research Commission (LRC) that KSU’s finances are stable. Financial oversight to be provided by CPE includes but is not limited to CPE approving KSU expenditures of more than $5,000, receipt and review of monthly financial reports from KSU, and CPE providing a monthly report on the financial status of the University to the Governor and LRC.

By November 1, 2022, CPE was required to submit the management improvement plan to the LRC. As a result, CPE approved KSU's Management Improvement Plan on October 31, 2022, at a special-called business meeting.