KENTUCKY STATE UNIVERSITY

Schedule of Findings and Responses

Year ended June 30, 2013

Section I – Summary of Auditors' Results:

Financial Statements:

  • The type of report issued on the financial statements: Unmodified Opinion
  • Internal control over financial reporting:
  • Material weaknesses: Yes
  • Significant deficiencies identified that are not considered to be material weaknesses: Yes
  • Non-compliance which is material to the financial statements: No

Section II – Financial Statement Findings:

Finding 2013-001:

Condition:

During the year ended June 30, 2013 the University did not have adequate controls over financial reporting to allow for timely, accurate financial reporting. All general ledger accounts were not reconciled to subsidiary ledgers or other supporting detail at least on a quarterly basis.

Effect:

During the audit several adjusting journal entries which impacted the years ended June 30, 2013, 2012, and prior years, were recorded to accurately reflect the financial position of the University as of June 30, 2013. These journal entries primarily related to the reconciliation of student accounts receivable, grants receivable and the accrual of the sick leave liability. The sick leave liability was required by KRS 61.456 beginning with the year ended June 30, 2011. Net Position for years prior to the year ended June 30, 2012 was decreased by $2,368,336 as a result of these entries and Change in Net Position for the year ended June 30, 2012 was decreased by $809,127 as a result of these entries.