KSU Grant personnel maintain the amount of funds under each grant, how the funds will be used, the total cost of the project, any cost-sharing source, and any other documentation necessary to facilitate an effective audit. Weekly reconciliations are completed and forwarded to CFO/VP of Finance and Administration for review.

Banner software is used to effectively and efficiently to post transactions that are properly supported to the correct grants and other operating accounts on the date of occurrence

A formal letter has been prepared and sent to request remit of interest of $31,815.

Finding 7: The University Failed to Implement Sufficient Internal Controls to Ensure an Effective Budgeting Process and Prevent Overspending.

Recommendations:

• The KSU Board of Regents implement a comprehensive internal control system over the budgeting process, including written policies and procedures for all University departments to follow.
• The Board should ensure Board members are sufficiently knowledgeable about the budgeting process and the intricacies of college and university budgeting.
• There should be sufficient time built into the budget approval process to allow the Board to comprehensively review and analyze the budget before voting for approval.
• There should be sufficient time built into the budget approval process to allow the Board to comprehensively review and analyze the budget before voting for approval.
• The accounting system should include general controls that ensure the Board receives accurate, reliable information in the budget packet and that prevent overspending of budgeted accounts.
• Strong internal controls should be implemented that would discourage and prevent any attempts to subvert the normal procurement process, including appropriate discipline for noncompliance. An effective internal control system cannot exist without a clear tone at the top that sets the organization's commitment to honesty, integrity, and ethical behavior.
• The Board of Regents and KSU's Administration develop and communicate a strong ethical tone to all faculty and staff.

Management Response: Concur

The KSU Board of Regents will implement a comprehensive internal control system over the budgeting process, including written policies and procedures for all University departments. The Budget manager shall revise/create policies and procedure with step-by-step instructions for end users. Once final approval is