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The former General Counsel acknowledged that there were times when a fully executed version of the contract was not returned to her to maintain in the contract repository. Additionally, while she tried to encourage staff to document everything in a contract, they did not always ensure this was done. The former General Counsel recalled one occasion when a vendor sought additional payment for a task that was not specified in the contract. The contractor advised that KSU staff had directed the contractor to complete the task in question, though it was not specified in the contract. The former General Counsel eventually obtained an email evidencing a staff member requested the vendor to provide service that was not specifically identified in the contract. Because the former General Counsel felt that it could be argued that this was a written agreement despite it not being documented as an official amendment to the contract, she recommended KSU pay for the services.

During the examination period, KSU frequently used credit card and store accounts for daily procurement of goods and services. Between FY 2019 and FY 2021, KSU used a variety of different credit cards. The three primary credit card types were: Fifth Third credit cards/purchasing cards (P-cards), American Express credit cards, and Go Cards (pre-paid cards for per diem and travel). As identified in Finding 4, credit cards were often used instead of a purchase order and numerous staff had credit cards for which supervisor approval for spending was not required. Additionally, KSU had a Diners Club account on which travel costs could be charged, and held lines of credit with various stores, such as Best Buy, Kroger, Lowe's, Amazon, John Deere, Lyon's Lumber, and Staples.

In FY 2019, KSU used Fifth Third credit cards (P-cards), which were assigned to individual cardholders to be used for small dollar goods, services, and travel. Beginning in May 2019, with the issuance of an American Express credit card to its former President, KSU reduced its number of Fifth Third credit cards though the Fifth Third credit account remained open. Throughout FY 2020, KSU reported 17 individuals were authorized to use an American Express credit card issued to the University.

In late February 2020, the former KSU Purchasing Director advised the former EVP for Finance that American Express was reducing KSU’s $900,000 program credit limit to $191,000 based on recent credit reporting bureau information. In March 2020, the former EVP for Finance advised a Fifth Third representative that KSU was “very dissatisfied with American Express and the University would like to increase our purchasing power through” the use of the Fifth Third card program “to utilize the benefits and manage operating cash flow.” While KSU received an increased credit card limit and began using Fifth Third credit cards again in In late February 2020 American Express reduced KSU’s credit card limit from $900,000 to $191,000 based on recent credit bureau information.

In late February 2020 American Express reduced KSU's credit card limit from $900,000 to $191,000 based on recent credit bureau information.

late FY 2020 into FY 2021, KSU also continued to use American Express credit cards, although it reported a slight reduction in the number of American Express card holders in FY 2021 to 15. Additionally, in FY 2020, KSU began using Go Cards, a program offered through American Express, which works like a pre-paid card in that a specific amount is loaded to the card, and the