Express credit card selections were found. After numerous requests and follow-up, and based on responses given by KSU since the original request was made, the APA did not anticipate receiving any additional records. As such, on November 10, 2022, the APA advised KSU that the APA was officially withdrawing its request for these items. Further discussion of issues related to expenditure testing appears in Finding 8.
Efforts to examine travel costs incurred by KSU between July 1, 2018, and June 30, 2021, found KSU was not able to run a report from its accounting system to identify all travel costs paid to an individual. Like credit card and store charge account expenditure testing, requests for supporting documentation associated with KSU travel testing remained outstanding for over two months. Twice, the same records were provided. In response to the APA’s request for “a report of all travel or expense reimbursements to KSU personnel and Board of Regents by individual for FY 2019, FY 2020, and FY 2021” KSU provided instead individual Travel Request forms. The Travel Request Forms are used in seeking approval for travel and advance payment of travel costs. Again, after numerous requests and follow-up, and based on responses given by KSU since the original request was made, the APA did not anticipate receiving any additional records. As such, on November 10, 2022, the APA advised KSU that the APA officially withdrew its request for additional travel request support.
A manual search for reimbursements from individual staff files was then performed. As noted in Finding 16 of this report, due to unpaid invoices for a travel processing system, KSU did not have access to supporting documentation so auditors were not able to determine whether staff reimbursements were valid and allowable. Additionally, review of nine additional reimbursements found two staff reimbursements with over $1,500 in unsupported expenditures.
As identified in Finding 6, numerous requests were made to current KSU staff to provide supporting documentation for transactions charged to federal programs. Many of the selected items could not be substantiated due to missing documentation or insufficient documentation provided. As with travel testing and credit card and store account expenditure testing, after months waiting for records with little to no records provided, the APA advised KSU that the APA officially withdrew its request for certain records.
We recommend:
KSU maintain supporting documentation for all expenditures so that audit procedures can be performed. Complete supporting documentation is required to determine the validity and allowability of expenditures.
KSU establish an organized system for retaining its financial and operational records. This system should ensure all records documenting financial activity are maintained in a manner by which records are readily identifiable and available for review.