comprehensive review of expenses to ensure that expenses are charged to the correct function and that costs are appropriately allocated to grants and auxiliary units, completing a review of academic programs and establishing appropriate faculty productivity metrics, creating a long-range planning process to support the strategic and capital investment decision-making process, implementing an enterprise risk management process to identify, evaluate and mitigate key risks facing KSU.

Mr. Powell highlighted the key takeaways from the assessment, including KSU's significant operating deficits in recent years, especially from 2019 forward, have resulted in the depletion of KSU's cash reserves and the existence of poor leadership over financial management. However, KSU compares very favorably to peer institutions in state appropriations, government grants and contracts, and tuition and fee revenue per student.

During the question and answer period, Regent Walston asked if much of this work would be done before the next President is appointed. Dr. Thompson replied that the work has already begun on moving towards a balanced budget and other measures such as student success.

Regent Harnice remarked that the meetings have been recorded and anyone can go back to hear the questions that were asked by the Board and to whom they were asked over the past four years. He then inquired about what is being done to rectify the faculty to administrative staff salary ratio. Dr. Thompson stated that there has been a lot of financial misreporting so further analysis is needed but the work has begun. Regent Harnice said that after hearing that employees were told to not attend the meetings and told to ignore certain policies, he wants to know if the financial tip line is now in place so employees are comfortable coming forward. President Stamps stated that a tip line was put in place by the internal auditor after learning that the former tip line had been discontinued.

Regent Banks noted that KSU needs leadership and staff, including alumni, who are not here for the paycheck and are here for the institution. Dr. Thompson agreed that alumni heeds to be included in the conversation.

Regent Jantzen commented that the Board continually asked questions about KSU's finances and always received positive answers and asked for proof but received none. He also stated that it has been recorded in the minutes that our financial position was solid.

Regent Jantzen also stated that Banner is the perfect system for those who want to hide things so multiple checks and balances need to be put in place. Dr. Thompson agreed that technology needs to be updated. He stated that KSU's audit system needs to be functioning in a way that reports to the Board. The Board will be undergoing professional development so it knows what it needs to see.

Regent Farris stated that the Board has been talking about the importance of policies and procedures for many years but when leadership that does not comply with policies, the number of policies does not matter. She stated that the Board’s disappointment lies with the leadership who chose to not follow policies and gave misrepresented and inadequate financial information. She said that KSU needs a robust evaluation system to create a culture where expectations are high.

Susan Krauss from CPE was available for questions from Board members. She commented that when interviewing financial staff members, that they truly love KSU.

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