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KSU paid bonuses totaling over $138,000 to select administrators in FY 2020 and FY 2021. These bonuses were awarded though no policy or contract existed to permit the award. Further, payroll records identify supplemental medical insurance, costing KSU over $97,000, was granted to only the former President, former EVP for Finance, and other select members of the former administration. Additionally, over $84,400 was awarded in December 2018 to the former President as a retroactive payment for a housing allowance for calendar year 2018. This retroactive payment, along with an additional $5,329, were paid to the former President though he did not reside in his own private residence at that time. Finally, KSU paid $3,752 for the former President’s home utilities for his personal residence for the period July 1, 2019 through December 2019. Not only were these payments unjustified, but the spending was also irresponsible given the financial condition of the University at the time. Good fiscal governance should promote integrity and transparency.

Emails maintained by KSU contain evidence that the Human Resources (HR) Director and former EVP for Finance were engaging KSU’s insurance provider for supplemental medical insurance proposals in June 2019. The extra coverage provided executive health care benefits including coverage for a broad range of healthcare expenses, reimbursement to members for out-of-pocket medical expenses, and travel and medical emergency services. The proposed coverage at that time included coverage for seven KSU administrators, including three for “Employee Only” coverage, three for “Family” coverage, and one for “Employee + Spouse” coverage. Additionally, the proposal presented four different plan levels with varying premium costs: Diamond Plan (most costly), Platinum Plan (2nd most costly), Emerald Plan (2nd least costly), and Sapphire Plan (least costly). Ultimately, KSU began coverage for five administrators in July 2019, with the former President, former EVP for Finance, and the SVP for Brand Identity and University Relations on the Diamond Plan and the former Interim Provost and former Vice President of Student Engagement and Campus Life on the Sapphire Plan.

KSU’s HR Director stated that the coverage was initiated by the former EVP for Finance, and she and the former Payroll Director attempted to push back on the idea, noting that other employees would be upset to discover this coverage was being provided only to select administrators. In discussing the matter with the SVP for Brand Identity and University Relations, she was unaware how this benefit, or the level of coverage provided to each individual, was determined. The SVP stated that she was first advised of this coverage when she and other recipients were called into a room,

handed insurance cards, and informed by the former EVP for Finance that the former President had selected an additional layer of executive insurance coverage. The former President stated that the coverage came from the former EVP for Finance and Human Resources and he was not aware of the associated cost as the budget to actual reporting was not detailed to determine where that type of spending was included. The former Board Chair advised that the supplemental insurance

HR Director and former Payroll Director pushed back on idea of executive supplemental medical coverage as it would upset other employees. KSU’s HR Director stated that the coverage was initiated by the former EVP for Finance, and she and the former Payroll Director attempted to push back on the idea, noting that other employees would be upset to discover this coverage was being provided only to select administrators. In discussing the matter with the SVP for Brand Identity and University Relations, she was unaware how this benefit, or the level of coverage provided to each individual, was determined. The SVP stated that she was first advised of this coverage when she and other recipients were called into a room,