June_3_2022_Special_Called_Meeting_Press_Book__.pdf — PaddleOCR-VL (Baidu)

The results of this analysis will be incorporated into the Management Improvement Plan. While the focus of this project is on this portion of the Plan, it is expected that there will be recommendations for process improvements in other areas as well.

The analysis of the Finance system was completed on May 18, 2022, and the recommendations are currently under review by the university. The review of the Financial Aid system is expected to begin within the next two weeks, and the review of all areas ideally will be complete by fall 2022.

As of the date of this report, KSU has not been able to complete financial statements for fiscal year 2021 and is not prepared to issue draft statements for fiscal year 2022 on time. This is the result of significant turnover in accounting leadership at the university over the past eleven months. To address this, the KSU Board of Regents contracted with Protiviti Government Services for accounting staff and support from May through September 2022. This contract will allow the university to quickly complete financial statements for fiscal years 2021 and 2022 in time for its scheduled financial audits. CPE supports this decision and will monitor the contract and preparation of the statements for each fiscal year.

The support provided by the contractor during this four-month period will give the university time to recruit permanent accounting management personnel and put the university back on a financial reporting schedule.

While further financial reports are under development, and the newly appointed KSU Board of Regents Finance Committee will be engaged in this process when they begin to meet, the Council is required to provide a monthly update on the financial status of the university to the governor and the General Assembly, per HB 250. The Council's first update for the month of May will be provided no later than June 15, 2022. CPE staff worked with the KSU chief financial officer (CFO) and will receive the following information for that update:

Revenue and Expenditure detail for each of the following funds (including comparisons to the budget and to the prior year):

○ Education and General Fund:

Land Grant Match;

Auxiliaries; and,

Asset Preservation.

Payroll registers for each payroll in the month.
Cash balances as of the end of the month.
Revenue Anticipation Note balances as of the end of the month, or any other short term.
Aging schedule of payables as of the end of the month.
Student receivables as of the end of the month.
Investment account balances (endowment) as of the end of the month.

HB 250 also requires CPE to approve all KSU expenditures of $5,000 or more until the institution reaches financial stability, as determined by CPE. On April 15, 2022, CPE adopted a policy governing those approvals that requires certain information to be provided before approval (see Appendix A). Due to the requirements of that policy, certain internal controls have been adopted, including but not limited to review of procurement authority underlying the expenditure, budgeted amount remaining after expenditure, and approval of both the CFO and president before submission to CPE.