INDEPENDENT AUDITOR'S REPORT ..... 1 MANAGEMENT'S DISCUSSION AND ANALYSIS ..... 3 FINANCIAL STATEMENTS KENTUCKY STATE UNIVERSITY STATEMENT OF NET POSITION ..... 15 KENTUCKY STATE UNIVERSITY FOUNDATION, INC. STATEMENT OF FINANCIAL POSITION ..... 16 KENTUCKY STATE UNIVERSITY STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ..... 17 KENTUCKY STATE UNIVERSITY FOUNDATION, INC. STATEMENT OF ACTIVITIES ..... 18 KENTUCKY STATE UNIVERSITY STATEMENT OF CASH FLOWS ..... 19 KENTUCKY STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS ..... 21 REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE UNIVERSITY'S (KSU) PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AND SCHEDULE OF UNIVERSITY'S CONTRIBUTIONS KENTUCKY EMPLOYEES RETIREMENT SYSTEM ..... 45 KENTUCKY TEACHERS' RETIREMENT SYSTEM ..... 46 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ..... 47 SCHEDULE OF FINDINGS AND RESPONSES ..... 49