KENTUCKY STATE UNIVERSITY Board of Regents

BACKGROUND: The governing board of any postsecondary educational institution making the election prescribed in KRS 164A.560 shall engage a qualified firm or certified public accountants experienced in the auditing of institutions to conduct an annual examination of the institution's financial statements in accordance with generally accepted auditing standards for the purpose of submitting an independent opinion, and preparing a report of findings and recommendations concerning internal accounting controls and procedures, and compliance with KRS 164A.555 to 164A.630. The secretary of the Finance and Administration Cabinet may prescribe minimum scope of any such audit. The opinion, with findings and recommendations, shall be forwarded to the Governor, the secretary of the Finance and Administration Cabinet, the Auditor of Public Accounts, the director of the Legislative Research Commission, the president of the Council on Postsecondary Education, and members of the governing board.

SUMMARY OF PROGRAMS/ACTIVITIES: N/A

ALIGNMENT WITH STRATEGIC GOALS: Goal 3 – Increase the University’s Financial Strength and Operational Efficiency.

COMMITTEE/PROGRAM ACTION: N/A

PROGRAM IMPLICATIONS: N/A

FISCAL IMPLICATIONS: Annual audits are required in accordance with State and Federal laws and failure to deliver audited financial statements may adversely impact State and Federal funding provided to the University.

ATTACHMENTS: To be provided at the Board of Regents meeting on June 7, 2018. RECOMMENDATION: Accept the Fiscal Year 2017 Audit.