30.32 Limitation of Liability

The liability of the University related to contractual damages is set forth in KRS 45A.245.

SECTION 40 – SCOPE OF WORK

40.1 Term of Contract and Renewal Options

The University has established an aggressive schedule for completion of the FY 2024 audit. Upon vendor selection and contract award, the University shall issue a Purchase Order Contract for a term beginning upon submission to the Government Contract Review Committee—anticipated prior to April 15, 2024—and with an expiration date of June 30, 2024, with a one (1) year renewal for completion of FY 2024 audit. Three (3) additional, optional one-year renewals may be executed upon the mutual agreement of both parties, with such optional renewals to be aligned with the fiscal year schedule.

40.2 Scope of Work

The scope of the audit shall be a financial statement audit of KSU performed in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (GAGAS). This audit must include a determination as to whether KSU's federal expenditures have met the Single Audit threshold established by the Single Audit Act and the provisions of 2 CFR 200 Uniform Administrative Requirements, Cost Principles, And Audit Requirements. This audit must also include:

• An audit of the University's financial statements for the fiscal year that ended June 30, 2024, which will include an Auditor's Opinion Letter and Management Letter;
• An audit of federal awards for the University, including Title IV student financial aid programs, in accordance with government auditing standards and the provisions of the Single Audit Act, for the fiscal year that ended June 30, 2024;
• An Independent Auditor's Report on compliance with House Bill 622 (KRS 164A.555 through 164A.630), titled “Financial Management of Institutions of Higher Education,” for the fiscal year that ended June 30, 2024, that is based on the audit of the University's financial statements;
• An Independent Auditor's Opinion on the University's compliance with the Kentucky Lease Law (KRS 56.800 through 56.823, KRS 48.111 through KRS 48.190), which also includes a summary of compliance testing procedures and results; and
• A letter to the Commonwealth of Kentucky's Auditor of Public Accounts representing that the vendor (firm) is in compliance with GAAP and governmental auditing standards concerning continuing education requirements, independence, and peer review.

New Effective Accounting Standards

As part of the Commonwealth's reporting entity, please be advised that the financial statements must be prepared in accordance with generally accepted accounting principles. Please be aware that the following new governmental accounting standards are in effect for FY 2024:

• GASB Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62.
• GASB Statement No. 99, Omnibus 2022, for requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53.

Communication

Weekly status updates shall be required. Audit manager shall update the designated university contact on a weekly basis. Quarterly reports and meetings with the KSU Board of Regents are mandatory. It is critical that communication channels be open and available at all times. Failure of the contractor to provide requested information in a reasonable amount of time shall be grounds for finding the vendor non-compliant with the terms of the agreement.