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As reflected in Figure 10, KSU could not provide any supporting documentation for Fifth Third credit cards, Go Cards, Diners Club, and Staples transactions. Additionally, almost 30% of supporting documentation for American Express cards was not provided or could not be found. As such, review to determine the appropriateness of certain expenses could not be performed, such as over $8,000 to Men’s Warehouse, $657 payable to a hotel in Nassau, $313 to Churchill Downs, and $138 to Shari’s Berries (online fruit vendor).
Though some support was provided for transactions made through other credit and store accounts, the documentation did not consistently identify the purpose or details associated with an expense to determine whether the expense was beneficial to the public or personal in nature. For example, no purpose or explanation was documented to support a $1,437 American Express card charge for airflight for the former President to travel from Cincinnati to Atlanta, and then to Las Vegas where the former President lived. Additionally, no evidence was provided for 12 of those 36 American Express transactions, totaling $16,185, to verify the expenditures were recorded in Banner and coded to the appropriate account/budget unit.
Beyond the lack of documentation encountered, examining the credit card expenditure process during the period revealed multiple issues that were the result of a lack of effective oversight by the responsible parties. Issues noted include:
Evidence of questionable spending that does not appear to be beneficial to the public or may be personal in nature, such as:
○ $238 paid to a Las Vegas florist for flowers for the former President's spouse,
○ $322 paid for Sirius XM Radio for the former EVP for Finance,
○ $20 for airflight seat upgrade for the former EVP for Finance,
○ $180 for an edible arrangement sent to the former Board Chair with a message stating, “Happy birthday office of the President! – Kentucky State University,”
○ $5.78 for a kid's meal at a local restaurant for the SVP.
Funds are not encumbered when KSU personnel use credit cards and budgeted funds may not have been available to cover expenses charged.
Between July 1, 2018, and June 30, 2021, the amount of late payment fees, interest, and other fees on KSU credit cards totaled $7,621. The American Express credit cards also incurred sales tax totaling $467, and Best Buy transactions included $62 in sales tax.
Inconsistent support for store accounts, such as:
For four of the five John Deere transactions, two invoices, and zero requisitions were provided to explain the rationale for the purchase and approval signatures.
No requisitions, receipts, or invoices were provided for Kroger and Lowe's transactions.
One requisition was provided for the five Lyon's Lumber transactions, but no invoices or receipts.
No requisitions were provided for the five Best Buy transactions.
Only four of 35 requisitions were provided to support Amazon transactions.