Finding 3: KSU Failed to Adequately Support Its Internal Audit Function and Minimal Effort was Made to Ensure Internal Audit Reviews Were Completed and Communicated to Its Board.
The KSU Board or President, as appropriate, demonstrate the importance of the internal audit function by appropriately disciplining any officer, executive, or staff who fails to fully assist the internal audit function.
Response: KSU has implemented this recommendation.
The KSU Board, or committee of the Board, continue to actively engage with the firm under contract to provide internal audit services. The Board should require that all issues encountered by the external firm in conducting its work, including delays and lack of documentation, be reported directly to the committee or full Board.
Response: KSU has implemented this recommendation.
KSU, in conjunction with its contracted internal auditor, implement a hotline to receive anonymous concerns and complaints and develop policies related to an externally managed hotline to ensure a consistent process is established that will improve and document the procedures to assign, investigate, monitor, resolve, and report concerns and complaints, including those involving potential fraud and abuse. Once the policy is developed, it should be approved by the Board, and incorporated into its catalog of policies.
Response: KSU has implemented this recommendation.
A summary report of hotline activity be periodically provided to the Board or a designated committee to ensure their awareness of any significant matters impacting the operations of the University.
Response:
KSU has not implemented this recommendation. The KSU "Tell It" hotline has been in place since May 18, 2023, and the Board will receive the first periodic update at a future meeting of its Audit Committee.
The Board develop a process by which it can independently keep track of approved contracts and follow up on the status of contracts, including when there should be a deliverable from the contract.
Response: KSU has not implemented this recommendation. The University’s “Tell It” hotline is operational. The hotline’s number, as well as information concerning where the hotline is directed to, can be found on the University’s website. The University will develop policies relating to the hotline and will add them to the catalog of policies available on the website.
KSU update its website to make the hotline more easily accessible to employees and the public.
KSU has not implemented this recommendation. The KSU "Tell It" hotline has been in place since May 18, 2023, and the Board will receive the first periodic update at a future meeting of its Audit Committee.