KENTUCKY STATE UNIVERSITY Board of Regents

BACKGROUND: In accordance with KRS164A.170, the corporation shall also cause an audit to be made by a resident independent certified public accountant of its books, accounts, and records, with respect to its receipts, disbursements, contracts, mortgages, leases, assignments, loans and all other matters relating to its financial operations. The persons performing such audit shall furnish copies of the audit report to the secretary of the Finance and Administration Cabinet, where they shall be placed on file and made available for inspection by the general public.

SUMMARY OF PROGRAMS/ACTIVITIES:

FY2019 Audit Summary:

• The University received an unmodified opinion which is the highest level of assurance our external audit firm can provide
• The University resolved six audit findings from the prior year.
• The University closed the fiscal year with a negative net position of $(3,911,645).
• On the day the university closed the fiscal year (6/30/2019), the institution had claims on cash of $4,456,000 for expenditures incurred to be reimbursed by the Federal Government.
• Federal cash drawdowns from 2019 were deposited on July 3, July 10, July 11, and August 13 respectively.
• The delayed drawdowns resulted from new management verifications policies designed to delimit audit findings from return of cash.
• The University would have closed FY2019 with a positive net position if the cash was drawn and deposited timely.

ALIGNMENT WITH STRATEGIC GOALS:

Goal 3: Increase the University's Financial Strength and Operational Efficiency.

PROGRAM IMPLICATIONS: N/A

RECOMMENDATION: Approve the FY2019 Audit.

ATTACHMENTS: YES