February 10, 2021

MIKE HARMON AUDITOR OF PUBLIC ACCOUNTS

Dr. M. Christopher Brown, Ph.D., President Kentucky State University 400 East Main Street Frankfort, KY 40601-2355

RE: Audit of Kentucky State University for FYE June 30, 2021

Dear Dr. Brown:

As the primary auditor of the Commonwealth of Kentucky's Comprehensive Annual Financial Report (CAFR), the Auditor of Public Accounts (APA) is responsible for determining that Kentucky State University (KSU), which is part of the Commonwealth's reporting entity, is properly reported in the CAFR. To accomplish this, we need certain audit procedures to be performed by the auditors of KSU annual financial statements.

We request you communicate the following information to your CPA firm for the fiscal year ending June 30, 2021:

New Effective Accounting Standards

As part of the Commonwealth's reporting entity, please be advised that the financial statements must be prepared in accordance with generally accepted accounting principles. Please be aware that the following new governmental accounting standards are in effect for FY 2021:

  • GASB Statement No. 84, Fiduciary Activities
  • GASB Statement No. 90, Majority Equity Interests – an amendment of GASB Statements No. 14 and No. 61
  • GASB Statement No. 93, Replacement of Interbank Offered Rates – all paragraphs except 11b, 13, and 14.
  • Paragraphs 4 and 5 of GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32
  • Questions 4.3 and 4.5 of Implementation Guide 2019-2

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