department, is now set to resume. The fixed asset audit began with a bumpy start due to a disconnect in communication, but those issues are now resolved. CBIZ has verified 82 assets by identifying and documenting anything valued over $10,000, then verifying their existence with pictures and serial numbers. CBIZ also met with the Accounting Department to discuss the process for the inputting and accounting of all assets in Banner, including those purchased through Land Grant.

As to the 82 fixed assets that had been identified, Chair Hatchett queried how confident Mr. Martin was that all of the University's fixed assets have been identified. Mr. Martin explained that the 82 items were a sample size only and that all items in the sample list had been verified.

Regent Dukes queried whether the 82 items were tagged or had any other identifying markers. Ms. Miranda Borla responded that the assets had been tied to serial numbers, though a few in some of the research facilities had been tied to Kentucky State tag numbers. Mr. Martin added that the main criteria for the fixed asset sample selection was that their value was $10,000 or greater.

Mr. Martin continued the presentation, reporting that CBIZ also met with CPE to discuss the MIP, and will be collaborating with Blue & Co. to ensure that efforts regarding their fixed asset audit are not duplicated. Upcoming tasks include participating in the January 31, 2024, Ellucian Operations Support meeting, fixed asset process review, financial Aid review, Sodexo invoice review, Banner license review, and additional process areas of audit identified throughout the year.

Chair Hatchett inquired into the estimated deadline for completing the financial aid audit, as well as the overall time frame for the internal audit.

Mr. Martin also provided updates as to significant issues that had been encountered and updates regarding KSU staff support.

Following Mr. Martin’s presentation, Mr. Frank Campagna joined the meeting to discuss enterprise risk management (“ERM”), explaining why CBIZ conducts ERM assessments and the steps involved.

Chair Hatchett queried whether an ERM study had been conducted previously at KSU and whether having CBIZ potentially conduct an ERM assessment would divert their resources away from their audit functions and existing contractual obligations to the University.

Regent Moyer asked where AI and cyber risks are factored into the risk management process and what CBIZ's capabilities are in these areas.

Regent Dukes inquired into the cost of the ERM. Mr. Campagna responded that the initial set-up usually runs between $35,000–$40,000, with additional quarterly costs.

President Akakpo requested that the Committee meet with him before deciding to engage in an ERM. Chair Hatchett supported President Akakpo's comments.

Regent Ramsey queried what would happen if the audit deadline needed to be extended and further asked whether the original target date would be met.

Hearing no further questions, Chair Hatchett thanked Mr. Campagna and his team for their presentation.

This agenda item was presented by Mr. Allen Norvell, Director, Blue & Co., LLC.