We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter dated April 10, 2013, for the preparation and fair presentation of the financial statements referred to above in accordance with U.S. GAAP.

We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud.

Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable.

Related-party transactions, including those with the primary government having accountability for Kentucky State University, component units for which Kentucky State University is accountable, other organizations for which the nature and significance of their relationship with Kentucky State University are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete, , sale and purchase transactions, long-term loans, leasing arrangements, and guarantees, have been recorded in accordance with the economic substance of the transaction and appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP.

All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed.

The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP.

The following have been properly recorded and/or disclosed in the financial statements:

Net positions and fund balance classifications.