Findings, Recommendations, and Kentucky State University (KSU) Responses
Finding 1: KSU's Weak Internal Control Environment, Coupled with Poor Fiscal Management Practices, Led to a Pervasive Lack of Accountability.
Recommendation:
- While each finding of the report provides specific recommendations, we recommend that KSU management work to improve the “tone at the top” of its internal control environment. Internal controls should be enforced at all levels, expenditures should be fully supported by documentation that is properly retained, budget limits should be consistently enforced, and monitoring efforts should be fully implemented and supported.
Response: KSU has implemented this recommendation.
Finding 2: Examination Procedures Were Limited Due to the Condition of KSU Records, Policies, and Significant Staff Turnover.
Recommendations:
- KSU maintain supporting documentation for all expenditures so that audit procedures can be performed. Complete supporting documentation is required to determine the validity and allowability of expenditures.
Response: KSU has implemented this recommendation.
- KSU establish an organized system for retaining its financial and operational records. This system should ensure all records documenting financial activity are maintained in a manner by which records are readily identifiable and available for review.
Response: KSU has implemented this recommendation.
- KSU staff receive training on the retention of documents. This training should be repeated periodically.
Response: KSU has implemented this recommendation.
- KSU invest in an updated financial accounting system and provide appropriate level training to financial personnel. Training should be given on a continual basis to build staff to a proficiency level so that they can run the reports necessary to perform their work duties and readily address operational and financial issues as they arise.
Response:
KSU has implemented this recommendation. The University has invested in an updated financial accounting system and has provided training to its financial personnel. Nevertheless, staff members have not yet reached the proficiency level necessary to conduct reports as needed. Additional training will be provided until proficiency has been achieved.
KSU has implemented this recommendation. The University has invested in an updated financial accounting system and has provided training to its financial personnel. Nevertheless, staff members have not yet reached the proficiency level necessary to conduct reports as needed. Additional training will be provided until proficiency has been achieved.