Regent Dukes requested that, in order to maintain transparency, any hotline reports received by the University also be channeled directly to the Board, stating her preference for reports to come directly to the Board from the source.
Regent Dukes asked Dr. Edwards whether a detailed status update of the MIP deliverables could be presented at the next Audit Committee meeting.
VI. External Audit Update
Chair Hatchett invited Mr. R. Allen Norvell, Director of Blue & Co., LLC, to present this agenda item.
Mr. Norvell began by sharing what has been accomplished to date, including the review of predecessor audit work papers; interviews of accounting personnel, documentation of accounting processes and controls in place during FYE June 30, 2021, and June 30, 2022, including completion of walkthroughs; compilation of initial document request lists for FYE June 30, 2021, and June 30, 2022, most of which have been fulfilled by KSU; assisting KSU staff with structure of FYE June 30, 2021, working trial balance (WTB) to generate in a format appropriate for audit purposes (just completed March 28, 2023); and initial draft of financial statements and note disclosures for FYE June 30, 2021.
Chair Hatchett queried how Blue had been interacting with Protiviti, then asked Dr. Burnette to expand on Mr. Norvell's comments.
Mr. Norvell also addressed the next steps to be taken as he moves forward through the audit process.
Chair Hatchett requested Dr. Burnette to comment on Mr. Norvell's recommendations, especially as to the feasibility of posting updated financial information on the University's webpage as soon as possible.
Mr. Norvell also addressed five significant issues identified to date. Regarding those identified issues, Chair Hatchett asked Dr. Burnette whether the University has a designated HEERF compliance officer. Dr. Burnette responded that KSU has a Federal compliance officer, but it does not have a HEERF campus compliance officer.
Chair Hatchett asked Dr. Burnette whether he could add to Mr. Norvell's comments regarding his conversation with the Department of Education, during which potential accounting/reporting issues related to the Perkins loan portfolio were discussed.
In conclusion, Mr. Norvell stated that progress on the audit has been steady but slow due to staff turnover that occurred subsequent to the audit periods and the current staff's lack of knowledge regarding the periods under audit.
Chair Hatchett asked Mr. Norvell whether a hard deadline for completion had been established and whether he was still comfortable with the calendar/timeline he described.
Regent Ramsey queried whether the audit timelines could be incorporated into this presentation so the Committee will have a basis for knowing when each step is to be completed.
Chair Hatchett thanked Mr. Norvell for his presentation.
VII. Banner Accounting System Discussion
Dr. Edwards and Dr. Wendy Dixie, Chief Information Officer, presented this agenda item.
Dr. Dixie began the presentation, sharing accomplishments to date, next steps needed, significant issues (including policies and procedures, cross-training, and continuity books) and comments regarding KSU staff support.