FRANKFORT, Ky. (LEX 18) — Mike Harmon, Kentucky's Auditor of Public Accounts, held a press conference to review the findings of a special examination of Kentucky State University. The audit started last spring after the Kentucky General Assembly directed the APA to conduct it.
In the conference, Harmon said, "Our work identifies a poor radically functioning internal control environment which resulted in a variety of issues."
The audit reviewed the university's finances over a three-year period from 2018 to 2021. The report had 20 findings of what the APA called significant issues — including putting $3.34 million of federal funds at risk, $2.7 million pulled from supplemental cash balances, undocumented credit card transactions, and more including excessive spending by the former president and other senior employees.
Harmon gave examples like, "$637 at the hotel in Nassau, Bahamas... $313 at Church Hill Downs... $238 spent with a Las Vegas florist... $322 to pay for a Sirius XM subscription... $180 for edible arrangements... as well as a $5.78 purchase of a kids meal…"
This isn't the first time the university's finances have been under a microscope. In 2000, former auditor Ed Hatchett performed an exam with 16 findings. Now, the university's interim president, Dr. Ronald Johnson, who came on last year, says now is the time for the university to work on its plan to move forward.
"Only by working together will we be able to reach the potential of an institution that's been here since 1886,” says Johnson.
He knows public trust in the university is gone. He says the university is currently working to reach out to alumni, stakeholders, and donors to make their plans known. To KSU's faculty, staff, and students, he had this to say, "We have a team that's actually working on not only for their good but for the overall good of the taxpayers of the state. And that we are working to provide them with the best educational opportunity possible."
The APA says that the school has a weak communication system which has ultimately led to these issues going unchecked.
Harmon said, "What is clear is that past practices at KSU detailed in our exam report, well it just must end."
With the APA's recommendations in hand, he says now the big question is, what will be next for the university?
Auditor Harmon’s office is referring the examination to the U.S. Attorney's Office, Kentucky’s Attorney General, and the U.S. Departments of Treasury and Education.
The school's interim president indicated that there will be a meeting with the university's board tomorrow to address changes that need to be made.
To view the complete report, click here.
