Kentucky State University receives positive financial audit results
FRANKFORT – The Kentucky State University Board of Regents received positive results from the University’s annual independent financial audit for the fiscal year 2019-20. The opinion issued by Crowe Horwarth LLP was an unmodified opinion, the highest opinion offered by public accounting firms.
The audit showed a positive financial position for Kentucky State, with a budget surplus of $2.3 million in 2019-20. Kentucky State continues to be in sound financial position in spite of the health crisis and significant economic disruption caused by the COVID-19 outbreak.
From a financial perspective, Kentucky State University officials expect to be able to fully deliver all instruction and provide a robust array of services to students in the upcoming academic year despite a very challenging fiscal environment.
Kentucky State’s conservative fiscal discipline over the years has resulted in healthy liquidity, ample reserves and a manageable debt burden, enabling Kentucky State to be in position to weather economic downturns.
Like virtually all investment portfolios, Kentucky State’s endowment suffered losses in the first quarter of 2020. Even with the plunge in financial markets, Kentucky State’s endowment increased nearly $3.5 million.
Additionally, the University benefits from the ongoing generous philanthropy from loyal donors (many of whom are alumni) and new partners like Diageo, who recently gifted one million dollars for a scholarship program.
Kentucky State officials said the University remains committed to a high-quality experience for students, sustaining the workforce, and taking care of the physical plant. Maintaining the physical plant will be a central priority as the pandemic continues.
Because of Kentucky State’s financial viability, officials said it is situated to deliver on that commitment in the face of the continued uncertainty and unprecedented upheaval.
The audit found no material weaknesses in financial reporting or in internal control over federal grant awards. Kentucky State resolved three audit findings from the prior year. The audit resulted in only one finding, which resulted in $0 in questioned cost.
The Kentucky State University Board of Regents approved the audit during an April 6 special-called meeting.