Office of Internal Audit Risk Mitigation – University President’s Travel Expenses Alternative Strategies
Risk
While there are policies and procedures in place regarding business related travel costs for Kentucky State University employees and officials, there is an opportunity to further strengthen the effectiveness of the policy to ensure compliance with state and federal regulations and administrative regulations of the University. The Travel Policy states that any University employee or official can incur travel expenses on behalf of the University provided the expenses are related to official business, are substantiated, are not disallowed by University or regulatory policy, and are approved by the cognizant University official or supervisor. Although there is an approval hierarchy for employees, supervisors, Directors, and Vice Presidents, there appears to be no approval or review of the University President's travel plans and subsequent expenses. This increases the risk that inappropriate travel and related expenses may go undetected and result in noncompliance with federal, state, and administrative regulations.
Alternative Risk Mitigation Strategy Option
The Kentucky State University Board of Regents should implement a policy to have the Board Chair or a designated staff person (e.g., Chief of Staff, VP of Business Affairs) review and approve the University President's travel plans and/or travel expenses. The approval could be for estimated travel costs and/or expenses that exceed a certain dollar threshold which would reduce the frequency of instances requiring approval. If a staff person is delegated to approve presidential travel plans and/or travel expenses, the Board should have the ability to review travel plans/expenditures at any time. Such a policy could be implemented through a resolution approved by the Board and included in their policy handbook. This policy should be disseminated to appropriate personal (e.g., President's Office, Purchasing, Accounts Payable) to ensure awareness and understanding of the requirements. The Board could request, at any time, the Office of Internal Audit to perform an audit of presidential travel expenses to determine whether expenses were appropriate, accurate, and in compliance with applicable institutional policies and state/federal regulations.
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