Regent Willis called the meeting of the Kentucky State University Board of Regents Audit Committee to order at 12:11 p.m. on October 24, 2008

Regent Willis asked for the roll call, which was recorded as follows:

Regent E. Scott Willis-Present Regent Karen Bearden-Present Regent Jeremy Lane-Present Regent Stephan Turner-Present Dr. Ralph Kimbrough-Present Quorum Established: Yes

Quorum Established: Yes

Regent Willis recognized Dr. Kimbrough to present the minutes of the July 25, 2008, Audit Committee meeting.

Action: Motion to approve the minutes from the July 25, 2008 Audit Committee meeting was made by Regent Willis and seconded by Regent Jeremy Lane. The motion passed.

Dr. Kimbrough briefly discussed his audit activities in the internal audit area. He completed an operational review of Student Financial Aid and made some corresponding recommendations. Also, a review of computer usage across campus was performed. This review provided an opportunity to inform KSU employees of university and state policies regarding proper computer usage. Also, it provided some ideas as to how to improve KSU's inventory process for computers. Dr. Kimbrough stated that he had just completed a review of the internal controls at the Jordan Warehouse. As a result of this review, recommendations were made regarding the inventory processes and internal control procedures at the Jordan Warehouse.

4