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From YouTube: Budget Review Subcommittee on Education (11-16-21)
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A
We
will
bring
the
meeting
to
order
we'll
start
to
call
the
roll,
but
I'll
go
over
this
one
more
time
for
the
thousand
thousand
time,
if
you're
present
in
the
room
say
you're
in
the
room,
if
you're
remote
say
your
remote,
please
call
the
roll.
B
D
I
D
D
Yes,
I
hope
this
is
kentucky
university
is
on
the
agenda
today.
Hope
you
don't
mind
if,
if
I
sit
in
on
this
meeting.
A
Senator-
and
I
would
remind
everyone
if
you're
remote
to
please
press
mute
when
you're,
not
speaking
at
this
time,
we'll
go
over
the
approval
of
meeting
minutes
from
the
last
meeting.
Is
there
a
motion
for
approval
of
the
meetings
we
have
motion
and
we
have
a
second
without
objection?
Is
so
ordered
we'll
jump
right
in?
We
don't
have
a
lot
of
time.
This
is
with
covet
and
everything
else
protocols.
A
This
total
meeting
time
is
an
hour
and
a
half
we've
got
a
lot
to
cover.
We
will
first
bring
up
chelsea,
couch
school
facilities,
construction,
commission
and
christy
russell.
Whenever
you
get
settled,
don't
forget
to
turn
the
mic
on
and
introduce
yourselves
for
the
record.
A
F
A
F
F
Okay,
the
sfcc
received
three
funding
polls
in
last
year's
budget.
We
were
just
going
to
go
over
those
very
briefly
with
you
guys,
house,
bill.
405
is
the
state
of
emergency
assistance
fund.
It
was
general
fund
money
in
the
amount
of
10
million
dollars
to
assist
local
districts
with
costs
for
construction
repair
renovation
due
to
flood.
F
We
had
several
districts
apply
actually
four,
they
all
received
everything
they
applied
for
and
we
gave
out
9.8
million
in
reimbursements
with
this
money.
If
they
receive
fema
or
reimbursement
from
insurance.
Obviously
they
will
pay
the
state
back,
but
that
is
what
we
sent
to
those
school
districts.
F
We
were
also
given
money
from
house
bill,
556,
section
17..
This
is
federal
money
for
the
coronavirus
capital
projects
fund.
We
received
127
million.
This
is
for
sorry,
you
threw
me
off.
This
is
for
priority
one
or
two
projects
on
the
district
facility
plan,
and
it
was.
We
used
the
k-fix
report
that
the
kentucky
department
of
education
puts
together.
F
We
did
receive
guidance
from
u.s
treasury
that
stated
traditional
school
construction
projects
may
not
meet
the
parameters
and
guidance
from
that.
So
currently,
these
projects
are
all
on
hold
and
they
will
be
on
hold
until
another
funding
source
is
identified,
so
we're
just
we're
kind
of
waiting
with
that
one.
F
We
also
were
given
money
from
house
bill,
556,
section
18..
This
is
for
local
area
vocational
education
centers.
It
was
75
million.
The
budget
bill
just
kind
of
gave
us
10
million
to
support
renovation
costs.
That's
what
each
district
could
apply
for
it
had
to
include
substance,
use,
disorder,
programs,
job
creation
and
training
programs,
bonding
capacity
and
needs
based
local
match
was
written
in
the
budget
bill
kind
of
with
that
our
board
kind
of
came
up
with
some
more
evaluation
criteria
to
kind
of
help
us
identify
who
had
the
most
need.
F
So
we
looked
at
the
age
of
the
current
facility,
their
bonding
capacity,
their
financial
need
enrollment
in
their
programs,
their
unemployment
rate
by
county,
the
level
of
detail,
because
we
did
ask
that
they
submit
a
written
proposal
for
this
and
also
the
existence
of
substance
use
disorder.
Programs.
47
districts
were
eligible,
32
applied
again.
We
had
75
million
to
give
out
and
we
had
229
million
in
need
that
was
given
to
us
and
we
funded
nine
districts
with
that
money.
F
A
I
will
start
us
out
with
a
question
on
the
atc
facilities.
You
mentioned
a
local
match.
F
F
A
A
D
Yes,
this
is
more
of
a
general
question
about
facilities.
Can
you
speak
a
little
bit
about
the
challenges
for
some
districts
as
far
as
building
or
upkeep
on
facilities,
I
sometimes
have
constituents
who
might
go
to
a
ball
game
in
another
county
and
they're
like
oh,
my
goodness,
you
would
not
believe
this
public
school
in
in
this
county.
What
what
kind
of
barriers
or
or
why?
Why
is?
Are
there
discrepancies
at
times
between
facilities
between
counties.
F
Well,
we
have
171
school
districts
in
kentucky,
so
we
have
a
lot.
I
think
the
biggest
you
go
from
eastern
kentucky
to
western
kentucky
to
central
kentucky,
there's
always
going
to
be
differences
as
far
as
your
local
tax
base
is
probably
the
biggest
eastern
kentucky
and
I
think
jobs
moving
out
of
that
area.
There's
less
tax
base
to
collect
on
so
there's
less
that
they
can
contribute
to
facilities.
F
D
F
I
think
jefferson
county
again
just
has
a
lot
of
students
that
they
oversee.
I
think
that
makes
a
difference
too,
but
really
I
mean
jefferson
county.
I
don't
know
what
their
unmet
need
is
right
now
off
the
top
of
my
head,
but
I
can
get
some
of
that
information
to
you.
If
that's
what
you're
looking
for.
I
Thank
you,
mr
chairman,
and
I
want
to
start
off
and
just
kind
of
follow
up
on
represent
representative
bulge
analysis
question.
Of
course,
you
all
testified
presented
in
the
school
funding
task
force
this
summer
and
in
the
in
the
question,
came
up
a
lot.
The
comments
came
up
about
the
district's
interstate,
who
are
losing
population
who
are
losing
property
assessment
in
relation
to
funds
like
these
75
million
for
the
lavax.
I
F
F
I
Okay,
mr
chairman,
one
more
quick
question:
yes,
sir,
I
asked
you
a
question
back
in
the
summer
and
you're
kind
enough
to
send
me
an
email
answer
and
I've
forgotten
exactly
the
total
but
and
you
may
or
maybe
you
remember
off
the
top
of
your
head.
I
asked
a
question
about
how
much
unmet
facility
need
there
was
across
the
state.
I
F
I
know
the
latest
report
is
coming
out.
We
actually
just
received
that
last
week
and
that's
right.
Around
6
billion.
D
A
Dr
thompson,
once
you
get
settled
I'll,
let
you
kind
of
drive
the
bus
here
you
take
off.
I
think
we
have
45
minutes
set
aside
for
this
set
for
your
segment.
Okay,
so
that'll
leave
members
that'll
leave
us
a
half
an
hour
to
ask
questions
after
your
part
of
the
presentation.
K
Thank
you,
sir
chair
west
committee,
good
to
see
everybody
it's
good
to
be
here.
We
do.
We
have
travis
powell,
that's
long
distance.
Here
we
kind
of
split
duties.
I
gave
a
keynote
for
western
this
morning,
he's
out
there
so
he'll
be
giving
the
report-
and
you
have
next
to
me,
acting
president
claire
stamps
to
the
right
of
me
to
the
left
of
me.
You
have
greg
rush
who's,
the
chief
financial
officer
at
ksu.
K
I
do
want
to
say,
though,
when
the
governor
issued
the
executive
order
for
cpe
to
take
an
in-depth
look
at
the
finances
and
some
other
stuff.
That's
in
the
executive
order.
You
know
we
wanted
to
make
sure
that
we
were
finding
out
everything
that
we
needed
to
find
out
in
order
to
give
you
as
much
transparency
and
what
took
place
as
well
as
what's
needed,
and
that's
what
we're
here
to
do
today.
K
I
will
thank
these
two
folks
with
me
for
really
just
opening
up
everything
we
went
in
depth.
We
did
a
third
party
review
from
cpe
led
by
travis
powell,
susan
krause,
former
treasurer
of
university
of
kentucky,
so
the
information
we
provide
you
today
is
is
about
as
deep
as
we
possibly
can
get,
and
so
I'm
going
to
shut
up
now
and
let
travis
just
for
the
sake
of
time
and
then
we'll
we'll
be
here
for
questions.
Travis.
A
If
you
could
hold
on
one
second,
these
are
available
online.
I
have
the
current
financial
status
of
kentucky
state
university.
This
is
a
cpe
assess
assessment
to
all
members.
This
stuff's
available
online,
it's
not
in
your
packets,
but
I
would
advise
you
to
read
this
at
your
leisure.
It's
very
good
information.
Thank
you.
Please,.
C
Thanks
chairman
west,
let
me
make
sure
that
we're
ready
to
go.
C
So,
first
off
again
thanks
thanks
for
having
us
today,
I'm
travis
powell
vice
president
general
counsel,
at
the
council
on
post,
secondary
education
work
with
dr
thompson
again.
We
we,
as
dr
thompson
mentioned,
we'll
go
through
this
quickly.
It's
a
very
detailed
report
and
I've,
given
a
version
of
this
a
couple
different
times
once
before
our
board
and
once
before,
kentucky
state
university's
board,
and
I
think
it
the
first
couple
times
it
took
like
an
hour
and
a
half.
C
So
I
promise
not
to
take
that
much
time
now
we'll
go
through
some
of
this
quickly
and
make
sure
that
you
all
have
plenty
of
time
for
questions
at
the
end
and-
and
I
want
to
give
obviously
some
time
for
president
stamps
and
cfo
rush
to
speak
to
you
all
as
well.
So
this
is
just
the
overview
of
the
presentation,
so
I'll
go
through
this
quickly.
The
different
areas
we'll
talk
about
we'll
start
off
here
with
the
executive
order.
C
This
was
issued
on
july
20th
2021
by
the
governor,
we're
really
going
to
focus
on
the
first
two
aspects
of
this:
the
mainly
the
the
current
financial
status
assessment.
That's
the
report
that
you
all
have
we'll
talk
a
little
bit
about
the
management
improvement
plan
at
the
end
and
dr
thompson
will
go
into
and
then
some
of
the
sort
of
next
phase
of
this
process.
C
C
We
performed
the
following
review
of
cash
reserves
and
working
capital,
and
you
can
see
here
the
all
the
items
that
we
took
a
look
at
in
order
to
get
this
assessment
reviewing
historical
financial
information,
I
had
access
direct
access
to
the
ksu's
accounting
system.
We
interviewed
finance
and
administration
staff
as
well.
C
The
findings
here
are
probably
mainly
what
you
would
expect
as
far
as
the
major
cash
inflows
and
outflows
for
kentucky
state
university,
obviously
state
appropriation,
tuition
and
fees,
the
biggest
driver
of
revenues
on
the
campus
outflows
payments
to
employees
and
suppliers
and
payments
to
students.
As
far
as
financial
aid
goes,
capital,
assets
and
capital
improvements
and
some
other
items
related
to
debt.
C
So,
based
on
our
cash
flow
working
capital
analysis-
and
you
will
certainly
see
a
theme
as
we
go
through
this
process
and
all
the
financial
metrics
that
we
look
at
here
for
kentucky
state
university.
But
looking
at
2016
and
2017
you'll
see
that
cash
and
cash
equivalents,
you
know
relatively
high.
If
you
look
at
the
benchmarks
for
institutions
this
size,
it's
kind
of
where
you
want
to
be,
and
things
were
looking
in
a
pretty
good
situation
in
2016.
C
Current
liabilities
go
up
as
well,
and
you
have
an
increase
in
an
operating
loss
there
too,
which
which
includes
all
the
revenues
inc,
including
state
appropriations,
tuition
and
fees
and
that
sort
of
thing
coming
into
the
institution
operating
at
a
loss
so
again
a
trend.
This
is
trend.
You'll
you'll
see
further
as
we
look
at
the
other
financial
metrics
that
we
look
at
so
other
findings
in
in
our
cash
flow
working
capital
analysis
are
inappropriate.
C
Cash
and
working
capital
management
techniques
used
vendors
were
not
paid,
were
failed
to
be
paid
in
a
timely
manner.
State
construction
accounts
were
not
reimbursed.
C
There
were
draws
from
a
revenue
anticipation,
note
that
had
to
be
paid
back,
obviously
with
interest
to
the
bank
institution
didn't
didn't,
follow
the
its
policies,
related
collection
of
student
receivables
and
some
incomplete
accounting
on
draws
from
the
endowment.
C
This,
the
known
impact
of
this
and
we're
pretty
and
cfo
rush
has
has
presented
on
this
before
before
legislative
committees.
I
think
this
committee,
before
an
impact
of
15.7
million
from
prior
year
expenses
and
then
a
current
projected
seven
million
dollar
shortfall
due
to
a
structural
imbalance
in
the
current
university
budget,
and
that's
roughly
gets
you
to
the
23
million
dollar
number
that
you've
heard
discussed
frequently
as
part
of
this
process.
C
This
our
cash
position
in
the
end
of
september
was
temporary
relief
by
an
advancement
of
a
fourth
quarter,
allotment
of
state
appropriations
and
some
federal
dollars.
Who
cares
debt
forgiveness.
C
The
current
projections
indicate
that
cash
revenues
will
be
depleted
by
march
2022
and
the
revenue
anticipation
note
will
need
to
be
used
in
april
just
to
continue
basic
operations.
So
essentially,
at
the
end
of
march,
2022
asu
will
be
out
of
cash.
An
additional
non-recurring
appropriation
from
the
general
assembly
is
needed
for
continued
operations
beyond
april
and
we'll
talk
a
little
bit
about
that.
At
the
end.
C
The
next
item
we
looked
at
a
financial
health
assessment.
We
took
a
look
at
four
financial
ratios.
I
won't
read
those
to
you,
but
they
all
load
load
up
into
a
composite
financial
index
audited.
Financial
statements
are
used
to
compute
these
ratios,
which
is
why
you
won't
see
the
current
fisc.
The
most
recently
ended
fiscal
year
fiscal
year,
2021,
it's
not
as
they
don't
have.
C
The
financial
audit
has
not
been
completed
yet
and
we
were
not
able
to
to
use
that
in
the
calculations
first
item
here,
the
primary
reserve
ratio-
probably
the
most
telling
of
all
all
the
ratios
and
something
that's
for
for
non-financial
folks
non-accountants.
Like
myself,
the
thing
that's
easiest
to
wrap
your
head
around
and
look
at
that
bottom
number.
K
So
that's
up
to
aaa
rating
when
you
get
to
that
point,
not
that
they
would
give
you
that
necessarily,
but
that
that's
that's
a
good
benchmark.
C
Certainly,
a
key
indicator
for
for
for
ratings
for
bond
ratings
absolutely
and
a
key
indicator
for
financial
health.
C
C
C
Net
assets,
return
on
return
on
net
assets
ratios
the
next
one
that
that
we
look
at
in
the
consolidated
financial
index
ratios.
Really.
What
you're
looking
at
here
is
where
the
institution
is
better
off
at
the
end
of
a
period
than
at
the
beginning.
So
you
can
see
the
numbers
there,
the
negative
number
at
the
at
the
top.
C
There
is
to
basically
in
2015-16
at
3
million,
essentially
the
difference
between
this
this
beginning
of
the
year
and
6
15
16
the
beginning
of
the
year
in
1617,
and
you
can
see
there
at
the
end
of
1617.
We
actually
had
an
increase
and
you
could
see
that
the
institution
was
actually
able
to
put
some
money
in
its
reserves,
additionally
in
1617,
but
starting
in
1718,
and
then
obviously
the
big
drop
in
1819.
C
You
see
that
the
institution
actually
diving
into
reserves
and
and
taking
away
from
those
from
that
the
cash
on
hand
that
that
was
used
that
you
saw
in
in
the
previous
ratios
now.
The
next
item
is
net
operating
revenues
ratio.
C
This
looks
at
whether
an
institution
can
conduct
operating
activities
by
just
using
operating
revenues
during
a
period
and
not
dipping
into
reserves,
and
this
look,
you
know
how
much
are
you
hopefully
adding
to
your
to
your
reserves
each
year,
and
you
can
see
here
again
a
small
negative
number,
which
is
not
good
but
still
not
not
terribly
troubling
until
you
get
into
a
17-18
and
then
obviously
18-19,
where
you
have
extremely
large
negative
numbers
here,
essentially
shows
that
revenue
stream
and
expense
streams
are
unsustainable,
need
to
be
restructured.
C
C
Ksu
management
improvement
plan
that
was
reported
to
this
committee,
a
plan
approved
by
the
council,
although
the
oversight
was
was
not
by
the
council
during
that
time.
It's
basically
reports
were
just
generated
to
you
as
part
of
the
obligations
of
the
of
the
bill,
but,
as
you
can
see,
there
are
the
scores
over
time.
Go
to
see
the
the
cfi
scores
on
the
bottom.
C
There
computed
by
cpe
in
the
financially
healthy
er
above
the
relatively
financially
healthy
area,
16,
17,
17
18,
then
again
same
story
dropping
in
18,
19
and
1920
down
to
a
negative
number,
and
you
can
see
there.
The
number
above
that
is
cfi
score
previously
reported
by
ksu
and
obviously
painting
a
much
better
financial
picture
than
we
were
able
to
find.
We
could
not
find
the
working
papers
of
for
the
prior
calculations
to
see
how
they
were
calculated
to
figure
out
where
they
may
have
come
up
with
these
numbers.
C
We
actually
back
out
the
pension
impact
for
based
on
the
recommendations
to
drafters.
Here
we
do
that
because
it
skews
the
the
information
a
little
bit:
pension
impact,
we're
required
to
book
for
accounting
standards
based
on
how
the
pension
system
is
is
operating
based
on
ksu's
share
of
that
liability.
We
back
that
out
to
get
a
better
sense
of
how
the
college
is
actually
doing,
but
that's
not
what
caused
the
difference
here,
we're
really
not
sure,
but
regardless
if
it
painted
a
much
rosier
picture
than
what
was
actually
going
on
at
the
institution.
K
Travis
leave
that
there
for
a
second,
I
just
want
to
point
out
to
the
committee
be
really
clear
and
I'm
travis
was,
but
that
top
scorer
was
what
was
reported
to
you
to
us
and
to
the
board
of
regents
at
ksu
by
the
former
administration.
K
That
bottom
score
was
actual
score.
So,
if
you
look
at
all,
you
look
at
1920
as
an
example.
If
you
look
at
the
rating,
they
were
in
relatively
good
shape
and
just
to
be
clear
if
you're,
a
three
or
higher
on
this
you're
in
good
shape,
I
mean
tan
is
almost
like
utopia
right,
but
if
you're,
three
or
higher
in
good
shape,
so
in
1920,
was
reported
to
everyone
that
they
were
in
really
good
shape.
In
fact,
you
had
a
negative
which
means
that
you're
in
really
bad
shape.
K
So
I
just
want
to
make
sure
that
everybody
understood
the
difference
between
that
top
row
and
then
that
bottom.
C
The
next
item
in
the
report
is
peer
group
comparisons.
The
the
slides
you
have
in
front
of
you
sets
forth
are
our
peer
group
that
we
looked
at,
and
the
selection
criteria
we'll
just
note
that
the
enrollment
ksu
is
one
of
the
smaller
institutions,
if
not
the
smallest
institution,
on
this
list.
But
but
these
are
eight
institutions.
We
feel
pretty
comfortable
as
our
benchmarks
talk
with
ksu
staff
about
this
and
agree.
C
These
were
these
were
a
good
benchmark
set
of
institutions
to
use,
and
we
in
the
report
you'll
find
extensive
graphs
that
outline
all
these
I'll
just
hit.
Some
of
the
highlights
here
quickly,
ksu's
publish
in-state
sticker
price
is
above
the
peer
median.
C
However,
the
the
pri
and
state
prices
grew
more
slowly
than
the
medium
group
between
2017
and
2021,
but
while
but
its
net
price
is
considerably
lower
than
that
of
pure
institutions.
Ksu
had
a
lower
average
net
price
of
college
attendance
than
any
of
its
peer
institutions.
C
60
percent
of
the
group
median
ks,
using
that
price
decreased
by
23
from
17
to
19,
while
the
group
median
decreased
by
one
now
I'll
make
a
note
here,
and
dr
thompson
may
want
to
speak
further
on
this.
This
you
know
we
want
our
institutions,
our
students
to
have
low
net
price,
particularly
considering
the
the
the
demographic
of
students
that
are
that
are
served
by
this
institution.
C
However,
when
you're
looking
at
your
peer
group,
you
should
look
similar
to
your
peers,
and
what
this
tells
us
is
ksu's
is
leaving
some
money
on
the
table
here
that
they
and
they
need
to
take
a
look
at
what
they're
charging
in
the
net
price
and
how
they're
doing
institutional
scholarships
to
take
a
look
and
make
sure
that
they're
more
like
their
peers.
Because
again,
we
want
to
make
sure
that
students
are.
You
know,
having
a
good
experience
and
paying
what
they
can
pay
based
on
their
need.
C
But
but
this
is
something
that
we
should
that
case.
You
definitely
have
to
take
a
look
at
because
again
with
amongst
the
peer
groups,
you
look
more
like
your
peers.
K
K
We
had
to
re-establish
a
systematic
way
of
thinking
about
scholarships
number
three,
how
many
of
the
students
aren't
paying,
how
many
students
are
in
a
position
where
they're
you
know,
they're
not
filling
out
the
fafsa,
maybe
to
get
some
of
the
dollars
that
could
come
to
the
state.
All
of
these
things
we'll
be
taking
a
deeper
look
at
as
we
go
through
the
process.
C
Tuition
and
fees,
state
appropriation
and
government
grants
and
contracts
per
student
are
higher
than
the
group
medians
casey's
tuition
fee
revenue
personal
rank
second
highest.
Amongst
the
group.
The
state
appropriations
were
second
highest
and
its
government
grants
and
contracts
per
student
were
the
highest
at
144
percent
of
the
median
again
good
news.
There
ksu
does
have
revenue
coming
in
at
a
at
a
pretty
high
level
compared
to
its
peers.
C
Now
again,
they're
one
of
the
smaller
institutions
and
you
know,
scale
wise
just
to
run
an
institution
based
level
costs
you
need
to
have
in
place.
So
looking
at
a
per
student
basis
and
one
of
the
higher
one
of
the
smaller
institutions
is
certain,
certainly
certainly
something
to
consider
here.
However,
still
you
know
some
relatively
good
news
here
on
the
revenue
side,
my
opinion,
staffing
levels
compared
to
its
peers.
C
Ksu
employs
fewer
teachers
and
instructional
support
staff,
again
smaller
institution,
but
still
something
to
note
there,
but
more
management,
business
and
financial
operations
staff
so
that
same
semester
in
fall,
2020
the
number
of
management
staff
employed
by
ksu
ranked
third
highest,
and
it
was
127
percent
of
the
median
group.
So
definitely
something
to
consider
there
in
the
organizational
structure
when
we're
looking
at
the
organization.
C
Faculty
compensation
for
the
most
part,
average
salaries
at
ksu
faculty
are
either
at
or
slightly
above
the
median,
but
the
average
salary
of
full
professors
is
below
the
peer
median
and
then
ranked
seventh
lowest.
C
Degree
production
was
the
lowest
amongst
peer
institution
case,
you
awarded
9
bachelor's
degrees
for
every
100
fte
students,
which
was
the
lowest
amount
of
pure
group
and
in
54
percent
of
the
median
and
in
1617
ksu,
ranked
first
in
the
media
of
the
at
157
percent
of
the
meeting.
So
definitely
a
big
decrease.
C
Now
we
know
this
is
1920
and
ksu
will
show
you
some
more
recent
numbers
that
they
were
able
to
get
that
there
is
some
improvement
being
made
in
this
area,
but
still
an
area
of
concern
for
sure
and
and
also
too
with
the
graduation
rate
first
time,
full-time
degree
seeking
students
for
the
2013
cohort
was
nine
percentage
points
below
the
group
median
now
again,
ksu
will
show
you
today
some
that
that
number
has
increased.
C
So
we
got
a
good
story
to
tell,
but
at
the
time
they
were
they
were
below
the
median
significantly.
However,
good
news
retention
rate
is
highest
among
its
peer
institutions.
First
time,
full-time
bachelor
seeking
students
was
they
had
the
highest
retention
rate.
Seven
percentage
points
above
the
median
group,
which
is
definitely
a
good
sign
and
often
a
leading
indicator.
K
And
let
me
just
throw
in
here
the
graduation
rates,
of
course,
is
a
legacy
rate.
It's
six
years
in
the
past,
the
retention
rate
is
the
leading
indicator
that
tells
us
how
well
that
we
need
to
be
focusing
on
those
students
to
make
sure
that
they
do
graduate.
So
that
is
a
very
positive
story.
In
the
last
few
years,
we've
seen
the
retention
rate
increase
and
so
that
we
should
have
graduating
classes.
K
Now
we
also
have
to
parse
out
how
many
of
those
we're
paying
or
still
in
the
pool
versus
those
that
aren't,
but
as
a
whole.
I
think
this
is
a
very
positive
direction.
We've
seen
yeah.
C
And
it
shows
in
the
in
the
data
that
you'll
see
from
kentucky
state,
I
mean
in
the
next
cohort
again
we
didn't
have
the
comparison
groups
to
look
at
for
their
more
more
recent
data,
but
you'll
see
an
increase
in
the
graduation
rate
close
to
10
percent
in
the
next
two
cohorts,
which
is
very
positive
I'll
just
quickly
here
mention
you
know,
part
of
the
financial
analysis
was
to
validate
all
the
information
that
ksu
provided
to
any
public
entity,
whether
it
be
the
its
board
of
regents
or
or
legislative
committees
or
governor
or
anything
else
that
was
ported
out
publicly.
C
We
also
did
a
review
of
the
controls
over
financial
management
and
reporting.
I
won't
read
through
all
those,
but
we
looked
at
all
the
the
internal
accounting
system,
internal
audit,
receivables,
budget
budget
management
and
interim
financial
reporting
audited.
Financial
statements
talked
with
staff.
C
What
we
found
was
that
their
accounting
system
and
a
related
argos
reporting
tool
isn't
adequate
I'll.
Let
cfo
rush
speak
about
that,
but
this
makes
it
very
difficult
to
generate
financial
reports
at
ksu
without
a
lot
of
manual,
manipulation
which
is
very
problematic.
C
The
internal
audit
function
was
non-existent
for
approximately
three
years,
the
last
three
years
until
2020
and
the
tip
line
was
the
external
tip
line
was
discontinued
in
2017,
an
internal
tip
line
has
been
reinstituted,
but
not
an
external
one
in
in
the
last
few
months,
which
is
a
positive
step.
C
C
No
long-term
financial
planning
exists,
no,
no
long-term
financial
forecasts,
failure
to
follow
policies
related
to
collection
of
student
receivables,
lack
of
budgetary
controls
and
failure
to
follow
existing
policies.
C
We
were
made
staff
that
we
interviewed
told
us
that
oftentimes
leadership
at
the
time
would
would,
when
questioned
about
policies
and
procedures
in
place,
we're
told
not
to
follow
the
policies
in
place
and
to
just
get
things
things
done,
even
if
they
were
in
violation
of
policy
or
not
within
the
full
policy.
C
There
is
inadequate
interim
financial
reporting,
so
no
quarterly
financial
statements,
no
budget
to
actual
comparisons,
no
dashboards
for
for
board
of
regents
or
or
the
public
to
look
at
to
see
how
the
institution
is
is
fairing
with
regard
to
its
budget
in
a
real
time
or
on
a
quarterly
or
regular
basis.
C
C
As
you
all
know,
audited
financial
statements
are
already
backward
looking,
but
when
in
situations
where,
for
example,
in
the
audit
for
for
fiscal
year,
ending
2020,
which
is
ends
in
july
30th
2020,
the
financial
statement
wasn't
issued
final
until
march
of
2021..
C
Typically,
those
statements
are
due
in
the
fall
for
the
for
the
states
consolidated
financial
statement,
so
anyway,
you've
got
a
backward
looking
assessment
anyway
and
then,
by
the
time
it's
actually
completed,
the
current
fiscal
year
is
almost
done
and
it
just
makes
it
almost
impossible
to
do
any
kind
of
planning
and
an
assessment
of
where
the
institution
is
so
so
so
far
behind
and
the
there's
been
findings
related
to
those
as
well
with
related
to
the
u.s
department
of
education.
It
requires
that
audits
be
done
in
a
timely
manner
as
well.
C
This
we
alluded
to
this
earlier
in
the
cash
flow
analysis.
Our
board
made
a
recommendation
to
a
request
for
a
special
appropriation
of
23
million
dollars
to
current
to
fill
the
current
shortfall
at
kentucky
state
university.
C
Our
board
also
record
recommended
a
a
significant
amount
of
oversight
with
regard
to
to
those
dollars
if
they
were
to
be
appropriated
to
ensure
that
they
are
spent
correctly,
not
and
also
monitoring
the
situation
moving
forward,
so
to
assure
that
the
ksu
doesn't
get
in
the
financial
situation
again.
C
Overall,
our
recommendations,
in
addition
to
the
the
budgetary
recommendation,
I'll
just
mention
a
few
of
these-
and
these
are
obvious,
based
on
some
of
the
the
findings
that
we
found,
but
I'll
just
mention
the
first
one
and
maybe
dr
thompson.
You
can
expand
upon
this
a
little
bit
of
cultivating
a
culture
of
accountability,
transparency
and
cl
and
compliance
established
by
the
tone
at
the
top,
which
would
be
the
board
and
the
president.
K
K
I
can
tell
you
that
I
can
provide
my
board
with
what
they're
asking
for,
but
they
may
not
know
how
to
ask
for
everything
that
I
can
provide
them
with,
so
I
want
to
make
sure
I
provide
them
with
stuff
that
they
ever
never
thought
that
they
even
wanted,
and
I
think
this
has
to
be
the
philosophy
that
we
use
with
our
administration
and
board
of
regents
and
trustees
on
all
of
our
campuses,
especially
here
we
need
to.
We
have
to
develop
this
at
ksu.
K
I
don't
think
these
folks
next
to
me,
would
disagree
with
that.
So
a
part
of
this
is
really
being
transparent,
with
all
the
information
you
have
to
the
point
of
ad
nauseam,
even
and
so
this
is
what
we
haven't
seen.
We've
seen
actually
just
the
opposite
in
many
cases,
and
you
can
read
the
rest
of
these
bullets,
but
all
of
those
things
really
fall
under
that
one
big
bullet.
K
You
know
what
what
are
those
pieces
of
information,
and
I
think
this
has
to
be
also
with
student
success
numbers
I
mean
all
of
these
pieces
of
information
we
found
wasn't
provided,
or
at
least
not
at
the
level
that
was
transparent
and
sometimes
not
at
the
level.
That
was
truth
so
and
I'll
leave
it
there,
and
I'm
sure
you
have
questions
later
on.
C
Yeah
I'll
just
mention
too,
that
that's
already
started
with
the
two
folks
that
you
have
there
in
front
of
you,
president
stamps
cfo
rush.
I
mean
completely
accountable,
transparent,
we've,
nothing,
but
transparency
and-
and
we've
worked
so
well
with
them-
to
get
to
get
the
information
to
be
able
to
complete
this
report-
and
I
think
that's
already
starting
at
the
institution,
which
is
an
excellent
side.
C
Again,
most
of
these
are
have
already
been
mentioned
again
review
of
academic
programs.
We
didn't
really
get
into
that.
We
will
more
in
the
management
improvement
plan
piece,
but
obviously
that
has
a
financial
impact.
We
want
to
make
sure
that
that's
that's
looked
at
as
well
endowment
investment
policy
and
incorporate
a
formal
spending
policy
with
an
investment
policy.
Again
quarterly
reporting
of
to
the
board
of
regents.
C
C
Just
to
sort
of
summarize,
obviously,
their
significant
operating
deficits
in
recent
years
have
resulted
in
depletion,
complete
depletion
essentially
of
ksu's
cash
reserves,
and
the
structural
deficit
is
unsustainable.
There
was
poor
leadership
over
financial
management
at
the
institution,
with
inadequate
budgetary
controls
in
inadequate
internal,
both
internal
and
external
financial
reporting
and
an
inadequate
internal
audit
function.
C
C
C
You'll
see
there.
They
obviously
relate
to
the
the
financial
number
six
there
on
the
accounting
and
fiscal
reporting
piece,
but
we're
looking
at
all
other
aspects
of
the
institution
as
well
from
student
success,
academic
program,
offerings,
organizational
structure,
board,
member
training
policies
and
procedures,
we're
in
the
process
now
of
of
outlining
processes.
Essentially,
for
all
seven
of
these
items,
putting
teams
together
at
cpe
and
ksu
to
take
a
look
at
these
items
individually
and
get
expertise
in
each
one
of
these
individually
and
come
up
with
a
plan
moving
forward.
C
But
we
thought
it
was
important
to
put
all
the
areas
together
and
and
figure
out
which
broad
areas
that
we're
going
to
focus
on
moving
forward
in
the
next
few
months
and
fulfilling
this
part
of
our
of
our
obligation
for
the
fiscal
year,
but
also
probably
for
for
a
long
time
moving
forward-
and
you
know
we
may
add
to
these
at
some
point
too.
But
these
are
are
ones
that
we
feel
strongly
about
that
need
to
happen,
and
some
of
the
things
within
these
can
happen
immediately.
Some
will
take
a
little
more
time.
C
Some
of
the
accounting
and
reporting
pieces
are
already
in
place,
but
some
will
take
a
little
more
time
like,
for
example,
some
of
the
academic
program,
offering
reviews
will
take
a
little
more
time
but
they're
all
important.
They
all
need
to
be
addressed
and
we're
working
on
each
one
of
them
in
a
lot
of
detail,
starting
essentially
now.
Now
that
the
financial
assessment
piece
is
completed.
C
Just
to
give
you
an
overview,
we
governor
also
charged
us
to
assist
in
the
in
the
leadership
search
and
assist
and
I'll
mention
that
again
we're
we,
this
committee
here
that
you
see
in
front
of
you
of
11
member
members,
will
give
recommendations
to
the
board
of
regents.
For
for
a
new
president,
you
can
see
a
good
representation
there.
All
these
different
groups
were
chosen
by
the
individual
groups.
Now
we
we
worked
dr
thompson
and
I
worked
to
get
the
frankfurt
community
member
catricia
waldridge.
C
What
is
our
who's
on?
The
city
council
here
in
frankfurt
will
be
the
member
also
a
ksu,
alum
frankfort
k-12
representative
paul
thompson,
who's,
the
athletic
director
at
frankfort,
independent
schools,
but
but
our
other
groups
were
chosen
by
the
faculty
staff
and
students
and
and
the
alumni
association
all
had
elections
to
choose
these
individuals.
C
We
instituted
the
the
work
of
a
executive
search
firm
to
assist
with
the
with
the
search
process
and
we're
just
starting
that
so
we'll
have
our
first
meeting,
probably
next
week
or
actually
after
I
think
the
monday
or
tuesday
after
thanksgiving
to
go
ahead
and
get
started
would
like
to
have
a
new
president
in
place.
If
all
things
go
well
by
by
name
by
july.
So
that's
the
current
goal,
but
but
anyway,
that's
that's
the
outline
of
the
search
committee
and
we're
looking
forward
to
starting
that
process.
K
Mr
chair,
a
couple
things
I
want
to
say
and
then
we're
happy.
I
think
we
came
even
even
under
your
45
minutes,
but
a
couple
things
I
want
to
say:
ksu's
been
existing
for
135
years
and
the
amount
of
history.
That's
there,
the
service
they
provided.
You
know,
representative,
graham,
could
give
you
a
better
detail
than
I
can.
But
just
let
me
tell
you
it
was
important
135
years
ago
to
come
into
play
and
it's
still
important
and
it
needs
to
be
important
to
us
in
the
state
for
another
135
years.
K
But
it
is
as
important
or
probably
more
important
to
me
as
the
head
of
higher
ed
for
kentucky
to
say
how
do
we
really
do
some
long-term
strategic
ways
of
thinking
about
all
the
things
that
it
will
take
to
help
ksu
to
be
even
more
important
to
the
state,
to
the
city
and
and
and
and
in
such
a
manner
that
we
can
be
proud
that
it
happens?
So
this
is
our
report,
sir,
and
we'll
take
any
questions
you
may
have.
A
A
This
is
a
lot
to
take
in
a
lot
lot
to
digest
and
I'm
kind
of
what
I'm
doing
with
my
questions,
I'm
kind
of
going
back
and
forth
between
your
presentation
today
and
then
also
I'm
taking
a
lot
of
it
from
my
information
out
of
your
your
financial
status
report
from
cpe
cp
stated
that
there
were
significant
differences
between
what
was
originally
reported
and
what
the
actual
finances
were
between
2015
and
2020
kind
of
that
time
frame
and
the
numbers
reported
showed
that
the
university
was
financially
healthy
in
mr
powell's
presentation,
he
talked
somewhat.
K
Well,
greg
rush
will
answer,
probably
better
and
travis
can
jump
in.
What
I
would
say
is
what
we
try
to
do
to
make
sure
that
we
are
as
clear
and
as
clean
as
possible.
We
try
to
replicate
what
they
did
to
see
how
they
came
up
with
the
numbers
we
weren't
able
to
find
those
papers
to
replicate.
Travis
and
greg
can
give
you
more
detail
on
this.
C
Well
I'll
just
mention
we
attempted
to
and
even
tried
a
couple
different
methodologies
to
say.
Well,
maybe
they
tried
this
again.
The
way
it
would
have
been
done
would
have
been
incorrect,
but
still
to
see.
If
that
was
the
case,
we
were
unable
to
to
to
replicate
it.
You
know
all
this
should
have
been
based
on
audited
financial
statements,
so
I
mean
those
and
that's
what
we
use
and
those
were
out
there
in
the
public
domain,
obviously,
and
that's
what
they
should
have
been
using
to
do
these
calculations.
C
But
again
we
just
don't
really
know
because
we
weren't
able
to
find
their
work
at
all.
We
just
got
the
the
numbers
and
the
numbers
were
pulled
from
the
reports
that
were
provided,
but
we
were
not
unable
to
recreate
it
and
we
would
assume
that
they
would
use
the
audited
financial
statements.
But
again
we
just
don't
know.
A
And
the
reason
for
that
question
is,
we,
have
you
know,
fi
they're,
financially
healthy
ksu
is
financially
healthy,
they're
healthy,
they're,
healthy.
Then,
all
of
a
sudden,
we
have
a
cliff
where
there's
a
significant
structural
imbalance
2020.
I
guess
in
that
range
second
question
and
I'll
refer
you
to
page
18
on
today's
report.
Presentation.
A
Where
it
shows
the
number
of
staff
employed
by
ksu
in
business
and
financial
operations,
I
was
ranked
fourth
highest
and
was
125
of
the
group
median.
In
other
words,
there
were
staff
at
ksu
that
theoretically
were
there
to
keep
an
eye
on
this
stuff
kind
of
review.
Financials
keep
things
in
order
and
you
can
feel
free
to
correct
me
if
I'm
wrong
in
the
way,
I'm
portraying
it,
and
then
I
refer
back
to
the
executive
summary
of
the
financial
status.
A
So
just
as
an
outsider,
I'm
a
lawyer,
I'm
not
an
accountant,
but
to
me,
if
you're
going
into
if
you're,
at
a
university
with
significant
financial
challenges,
how
can
you
leave
that
interna
internal
auditor
function
vacant
for
three
years?
That's
that's
kind
of
where
that's
the
question.
How
do
we
have
on
one
hand
125
percent
in
that
area,
but
there's
no
one
in
this
position
for
three
years
have.
Has
anyone
looked
at
that
yet.
K
C
I'll,
let's
go
ahead,
yeah
greg
probably
can
answer.
I
mean
it's
a
good
question
and
you
may
know
some
of
the
background
there
greg
may
but
yeah
I
mean
there.
It
should
have.
There
should
have
been
someone
there
at
least
one,
if
not
more
people
and
actually
we're
recommending
that
they
outsource
this
function,
for
a
variety
of
reasons,
but
but
go
ahead
greg.
You
might
have
some
history
on
this.
H
H
At
that
point,
and
I
think
when,
when
president
thompson
was
there
through
the
end
of
17,
that
auditor
was
still
in
place
at
some
point
in
the
following
year
that
auditor
left-
and
I
believe,
he's
now
back
with
the
city
of
louisville,
where
he
was
the
internal
auditor
for
the
city
before
he
came
to
ksu
was
that
was
that
17
is
that
seven
yeah.
H
I
don't
know
exactly
when,
but
sometime
president
thompson
left
it
probably
june
of
17,
and
I
believe,
sometime
between
june
and
maybe
october,
the
internal
auditor
left.
H
I
I
don't
know
what
efforts
were
in
place
to
to
find
one.
I
know
that
there
was
an
rfp
issued
at
one
point
for
internal
auditor.
It
was
not
completed
and
then
I
believe
in
around
january
of
20,
the
the
current
internal
auditor
was
hired
and
I
think
I
think
he
would
say
he
had
challenges
getting
information
from
the
accounting
and
finance
offices
and
at
ksu
I
think,
travis
you.
H
You
probably
heard
that
from
him
that
they
and
and
that's
part
of
the
function
is
the
internal
auditor
has
to
have
access
to
everything,
and
in
fact
I've
worked
with
mr
harris
over
the
past
few
months
and
we've
tried
to
set
up
where
he
can
go
in
the
accounting
office
anytime.
He
wants
pull
any
record,
he
wants
and
be
trained
on
where
all
the
documents
and
files
are
because,
in
my
opinion,
the
internal
auditor
has
access
to
everything
and
but
I
think,
we're
that
function's
got
to
get
back
in
place.
It's
more
important.
H
Now,
probably
than
it's
ever
been,
I
think
part
of
the
cpe
recommendation
is
when
you,
when
you
outsource
that
as
a
a
number
of
universities
have
you
gain
a
broader
set
of
skills
than
one
person
can
have.
So
as
you
do
your
risk
assessment
for
the
institution
from
year
to
year,
one
year,
it
may
be
an
I.t
function
that
you
want
to
look
at
one
year.
It
may
be
a
cash
control
function,
maybe
a
revenue
function
and
when
you
outsource
that
you
can
get
experts
in
all
those
areas
that
can
be
assigned.
K
Mr
terry
you're
you're
talking
about
process
protocols,
policies
in
people
right
and
everybody
knows
I
was
the
interim
president
there
in
2016
and
17..
I
could
not
imagine
operating
without
an
internal
auditor.
I
would
be
afraid
to
actually,
but
I
I
think
also
we
have
to.
We
don't
know
who
was
included
in
that
number
of
people
in
that
shop.
It
could
have
been
a
variety
of
folks.
We
know
that
that
cfo
had
a
lot
of
people
answering
to
him,
so
they
may
not
have
been
doing
exactly
the
finances
or
the
overseeing
of
finances.
K
But
your
question
is
still
a
good
question.
You
know
if
you
have
that
in
place,
that's
the
job
and-
and
it
would
be
important-
I
think,
to
note
that
all
of
us
who
are
in
administration
and
higher
ed.
You
know
I
ask
the
questions.
I
may
not
know
everything
about
it,
but
I'll
I'll.
Try
to
ask
the
questions
to
make
sure
I
can
learn
and.
A
For
clarity,
the
purpose
of
that
I
wasn't
implicating
that
of
the
125
percent,
those
weren't
other
people
in
in
you
know
different
parts
of
the
university.
My
point
was
like
that
is
one
of
the
most
important
positions
in
the
university
and
that
should
have
been
filled
but
I'll
step
aside
for
a
moment,
representative
bojanowski.
A
Thank
you,
representative
fleming.
J
Thank
you,
mr
chairman,
dr
thomas,
mr
rush,
president
stamps,
mr
pi.
You've
got
a
mess
and
a
big
challenge
and
y'all
been
before
us
on
several
occasions
and
I
think
you're
all
doing
a
spectacular
job
of
trying
to
rectify
the
ship
and
get
it
floating
once
more.
I
want
to
express
my
deep
appreciation
for
your
experience,
your
knowledge
and
go
through
and
try
to
correct
this,
this
situation,
so
so
kudos
to
that
and
being
transparent.
You
said
dr
thompson.
J
I
do
appreciate
that
I
want
to
ask
a
question
about
the
tactics
and
measurements
that
you
are
looking
at.
You
list
a
couple
of
things
in
your
presentation,
and
maybe
this
might
be
from
mr
powell
in
terms
of
quality
assurance,
quality
control
measures
and
then
making
sure
that
this
doesn't
happen
again.
J
I
know
you're
there
in
the
past
and
things
are
going
going
pretty
well,
although
I
looked
at
just
a
unit
of
score,
you
mentioned
that
they
use
a
score
of
8.35
and
the
actual
computation
was
4.42
still
good,
but
it's
still
disparity.
J
I
want
to
see
what
what
measurements
control
mechanisms
have
y'all
and
applied
or
discussed
in
order
to
make
sure
that
this
doesn't
happen
again
and
once
again,
I
I
think
you're
all
doing
a
good
job
in
getting
things
moving,
and
I
do
appreciate
that.
But
I
just
want
to
make
sure
that
we
get
some
comfort
level
and
not
go
down
this
path
again.
K
Well,
a
great
question:
by
the
way
those
numbers
there
were
not
produced
when
I
was
there
that
was
in
the
management
plan
that
started
afterwards
and
that
was
given
to
us
retrospectively
number
one
number
two.
I
think
your
question
is
really
the
ten
dollar
question
right
cpe,
I
tell
people
we
have
enough
power
to
get
us
in
trouble,
and
sometimes
I
probably
use
what
I
don't
have,
but
I
mean
in
this
case
the
governor
gave
us
an
executive
order
that
allowed
us
to
go
in
and
deeply
look
inside
these
folks.
K
I
I
can't
say
enough
positive
things
about
them.
They
just
opened
the
books,
but
we
also
did
what
I
call
a
third
party
look.
We
pretended
that
we
knew
nothing
about
him
and
just
looked
at
it
from
the
standpoint
and
verifying
not
that
I
don't
trust.
Greg
he's
been
my
left
hand
for
a
long
time,
but
we
wanted
to
make
sure
that
it's
true.
K
So
this
is
what
we've
done
up
to
this
point
now
this
executive
order
runs
out,
as
you
all
know
after
this
year,
but
we're
proposing,
as
our
board
was
proposing,
that
we
have
an
ongoing
deep
consideration
of
all
those
things
in
place.
Now,
that's
not
the
only
thing
we're
not
just
looking
at
the
finances.
We
want
to
make
sure
that
the
structures
of
the
campus
is
one
by
which
that
they
can
thrive
in
in
a
variety
of
ways:
academic
structures,
student,
success
structures
and
so
on.
K
So
as
of
now
we're
acting
as
a
even
though
we
I
have
some
control
over
ksu,
just
in
my
virtually
by
being
in
my
position,
but
we
didn't
have
that
we
didn't
have
those
deep
looks.
We
couldn't
go
in
and
open
their
records
and
go
in
deep
and
find
out
what's
going
on
right
now
we
can't-
and
so
that's
what
we
currently
have
in
place
and
greg
and
travis.
I
don't
know
if
you
want
to
add
anything
different
or
clear,
greg.
H
This
is
one
of
the
first
questions
that
the
board
asked
me
when,
when
I
got
there
is
how
do
we
make
sure
that
we
can
have
faith
in
the
information
we're
given
and
to
make
sure
this
doesn't
happen
again
and
a
part
of
it
is
working
with
the
board
to
make
sure
they
understand
the
financial
statements
and
understand
what
to
look
for
in
the
financial
statements,
and
we've
talked
about
this
a
couple
of
times
that
the
the
way
that
the
impact
of
the
pension
system
is
reflected
in
university
financial
statements
can
be
misleading.
H
I
mean
it
masks
and
hides
what's
actually
going
on
it's
there
for
a
reason,
but
it's
important
that
you
you
talk
through
that
with
the
board,
where
they
understand
when
we
see
that
net
asset
or
net
reserve
number
what
makes
that
up
and
and
that
information
wasn't
provided
to
the
board.
The
the
one
of
the
things
we're
working
with
council
on
is
what
is
a
good
set
of
solid
reports
that
the
board
should
see
every
meeting
and
and
one
of
the
things
I
did
for
dr
thompson,
who
worked
at
cpe
is
I
attended?
H
All
the
university
board
meetings,
so
I
did
that
for
two
years
and
and
attended
all
of
them,
so
I
got
to
see
a
good
sample
of
how
they
presented
financial
information
to
the
boards
and
we're
working
with
the
council
to
develop
that
kind
of
package
for
ksu
the
to
get
back
to.
I
think
chairman
west
point
earlier.
The
internal
audit
function
is
critical
and
one
of
the
things
we've
put
in
place
right
now
is
everything
I
say
to.
The
board
is
verified
right
now
by
ms
krauss.
H
Who's
been
wonderful
by
the
way
and
incredibly
helpful,
has
a
wealth
of
knowledge
and
has
has
been
essential.
I
think
in
getting
us
to
this
point,
but
she
verifies
everything
I
say,
and
our
internal
auditor
also
verifies
everything
our
I
say
and-
and
I
think
that's
that's
something
our
board
will
obviously
have
to
decide,
but
I
believe
that's
what
they
want
is
that
that
internal
auditor
works
for
them
does
not
work
for
the
president
and
doesn't
work
for
me.
H
It
doesn't
work
for
anybody's
university,
but
the
board,
and
if
we
have
that
in
place
where
that
external
set
of
eyes,
that
reports
only
to
the
board
is
reviewing
that
information
every
meeting,
then
I
think
we
get
to
to
what
your
your
goal
there
is
that
this,
that
the
board
has
faith
in
what
information,
they're
provided
and
and
cpu
would
as
well,
and
we
don't
get
in
this
situation
again.
J
Follow
up,
if
you
don't
mind
and
that's
and
that's
that's
good
and
I
think,
maybe
through
both
chairs
other
lrc-
is
that
and
I'm
sure
you'll
probably
update
us
on
a
periodic
basis
to
make
sure
that
we
can
see
the
measurement
see
how
you're
going
because,
obviously
we
want
to
partner
you
make
sure
you're
successful
successful.
Now,
I'm
looking
at
this,
I
think
the
23
27
million
dollars
that
y'all
need
to
me.
J
It's
like
a
working
capital,
loan
situation
and
that's
that's
my
business
hat
on
I
can
see
this
could
be
really
work
because
you've
gone
through
you're,
going
through
a
good
process
and
a
good
procedure
in
order
to
help
justify
going
through
that
working
capital
concept,
and,
like
I
said
I
we're
going
to
do,
we
can
to
help
you
out
and
be
so
selfish,
because
y'all
got
some
good
things
in
process.
Thank
you,
mr
chairman.
I
Okay,
president
thompson,
president
stamps
greg
travis.
I
appreciate
you
all
being
here
today.
We've
we've
had
numerous
conversations.
I
want
to
start
out
with
the
broad
concept
of
the
rebel
cpe
with
all
our
post-secondary
institutions
and
then
dig
down
into
ksu
and
you've
kind
of
implied
this.
In
your
previous
statement.
The
reason
you
all
were
able
to
do
this
is
because
of
the
executive
order
from
the
governor.
You
could
dig
into
ksu
some
states.
I
Could
you
elaborate
a
little
bit
on
what
role
you
have
and
what
authority
cpe
has,
and
my
background
for
that
question
is:
how
do
we
know
there's
not
another
one
of
our
public
universities
or
colleges,
that's
having
similar
issues,
and
what
can
we
do
to
make
sure
that
doesn't
happen
in
another
place?
Thank
you.
K
At
the
risk
of
scaring
any
of
my
post-secondary
presidents
there's
a
couple
of
points
that
you
make
that's
true,
we
are
a
coordinating
board.
Now
we
are
what
is
called
a
super
coordinating
board
because
we
do
have
some
governance.
I
mean
we
set
tuition
ceilings,
we
can
review
programs,
we
can.
We
approve
programs,
we
set
the
strategic
agenda
for
the
state,
not
all
coordinating
boards
do
that,
so
we
do
have
certain
levels
of,
and
we
a
lot
more
as
a
matter
of
fact,
travis
said
pages
and
pages
and
pages
of
it.
K
What
we
don't
have
is
the
power
to
go
in
at
will
and
deep
deeply
into
the
finances.
As
an
example,
I
mean
we
set
the
funding
model
and
we
all
actually
approve
it,
but
we
use
that,
but
we
don't
have
that
in
place.
Now
you
ask
me
once
again
the
12
question
in
this
case.
How
do
we
know?
Well,
we
don't
know
unless
we
get
a
big
indication,
usually
after
something
happens,
but
we
can
get
this
also
with
our
private
institutions
in
which
I
actually
license.
K
So
when
it
comes
down
to
finances.
Our
hope
is
that
we
we're
transparent
with
our
campuses
and
they're
transparent
with
us,
but
when
it
comes
to
direct
powers
and
I'll,
let
my
attorney
answer
this
fully
here
travis,
but
when
it
comes
down
to
direct
power,
we
don't
have
that
kind
of
power
to
go
and
deeply
look
into
the
internal
workings
in
many
cases
or
the
internal
financial
operational
processes.
C
I'll
just
mention,
obviously
everything
dr
thompson
says:
100
correct,
but
I'll
tell
you
a
couple
things.
We
were
that
we
were
doing
and
something
that
we're
going
to
start
doing
is
number
one.
We
were,
as
I
think,
greg
mentioned
when
he
was
scp.
He
was
attending
all
the
board
meetings,
and
particularly
some
of
the
financial
committees
as
well,
and
so
not
just
sort
of
seeing
what
was
going
on
at
the
institutional
level
and
keeping
an
eye
on
it
from
that
perspective,
and
we
hope
to
continue
that.
C
Obviously,
we've
been
all
spending
a
lot
of
our
any
extra
time
that
we've
had
on
on
ksu
right
now,
but
we
hope
to
start
that
back
up
again
and
obviously
kobe
made
that
a
little
easier
because
of
of
you
know
the
virtual
nature
of
me
and
the
board
meetings,
but
we
still
want
to
get
back
on
track
and
doing
that.
The
other
thing
that
we
are
going
to
start
doing
again.
These
are
all
based
on
audited
financial
statements.
It's
doing
the
cfi
score
for
for
other
institutions
as
well,
so
we
can
still.
C
We've
got
a
process
by
which
we
were
already
working
on
this
anyway,
for
both
our
private
and
our
public
institutions,
and
then
this
when,
when
this
ksu
issue
came
about,
we
were
ready
to
use
it,
and
this
was
kind
of
our
test
case,
but
we'll
be
able
to
do
that
and
while
you
know
financial
statements
are
a
little
backward
looking,
as
I
mentioned
before,
even
when
they
are
done
timely,
they
will
be
able
to
notice
trends
over
time
and
we'll
be
able
to
see
issues,
and
then,
at
that
point
we
can
raise
issues
with
you
or
with
the
institution.
C
You
know,
while
we
may
not
have
any
direct
power
to
go
in,
we
could
still
put
some
things
in
place
to
help.
You
know
that
if
there's
any
red
flags
get
raised,
we
can
certainly
follow
up
and
ask
questions
about
it.
K
And
we
do
by
the
way,
just
let
you
know
we-
we
have
exercised
the
power
that
we've
had
and
the
way
that's
been
judicious
and
fair
and
I
think
our
campuses
have
bought
into
that.
But
bottom
line.
That's
representative,
tipton,
that's
the
powers
we
do
have.
I
Follow
up
on
that
house
bill
303
the
management
and
improvement
plan
from
a
few
years
ago.
I've
got
a
copy
of
it
at
my
office
somewhere.
Are
your
recommendations
now
similar
to
what
was
recommended
in
that
plan
and
is
the
is?
Is
the
fact
that
you
have
limited
capability
to
follow
up
part
of
the
reason
why
we
didn't
know
what
was
going
on
that
that
maybe
that
plan
was
not
being
implemented.
K
The
answer
is
kinda
and
yes,
kinda
in
that
we're
going
in
much
deeper
detail
here
I
mean
the
last
time
management
improvement
plan.
It
was
a
situation
where
you
all
just
agreed
not
to
cut
cashew
the
dollars.
You
were
cutting
the
other
institutions.
It
wasn't
23
27
million
worth
there.
K
So
what
we're
doing
here
is
something
much
more
detailed,
much
more
in
depth
now
the
way
the
management
improvement
plan-
and
I
was
the
guy
that
we
set
that
up
when
I
was
at
ksu,
but
we
were
setting
it
up
with
the
full
plan.
We
were
going
to
be
successful,
no
matter
what-
and
I
think
if
you
looked
at
the
numbers
we
were
setting
it
up
for
that.
So
there
may
not
have
been
a
deep
enough
reason
for
us
to
look
at
it,
but
cpe
was
never
in
the
mix
on
that.
K
It
was
always
you.
It
was
always
ksu
and
the
legislature
and
not
cpe,
was
actually
out
of
the
mix.
We
asked
them
to
report
it
to
us.
This
is
where
we
we
used
some
powers.
We
probably
didn't
fully
have,
but
we
asked-
and
they
did,
but
in
this
case
we're
asking
that
cpe
be
in
the
middle
of
this,
and
that
will
be
the
difference.
Travis
were
there
some
things
you
want
to
know.
C
Well,
the
other
thing
I'll
mention
too,
is
that
you
sort
of
alluded
to
this,
but
you
know
in
2016
you
know
we
had
case.
You
still
had
significant
cash
reserves,
I
mean
so
we
were
less
focused
on.
I
mean
we're
alert
focused
on
the
financial
health
and
we
looked
at
that
financial
index.
Again
we
were
trying
not
to
have
ksu
cut
what
other
institutions
were,
but
I
mean
you
know
all
these
additional
financial
controls
that
we're
talking
about
we're.
C
Not
necessarily
we
didn't
know
that
wasn't
an
issue
at
that
time,
but
now
that
it
now
it
is,
and
some
of
the
other
you
know
items
as
well
of
different
opportunities
to
look
at.
You
know
dr
thompson
mentioned
we're
going
to
be
going
a
little
bit
further.
Some
of
that
was
in
there,
but
obviously
you
know
five
years
later.
We're
in
different
landscapes,
so
there'll
be
some
overlap,
but
it
should
be
very
different.
I
I
H
We
had
a
very
positive
result
from
the
pension
system
and
that
the
the
way
the
net
the
pension
liability
was
reflected
on
financial
statements
for
all
the
universities.
Frankly
that
well
the
comprehensive
universities
that
are
in
kers
and
ktrs,
but
the
positive
impact
at
ksu-
I
don't
have.
The
numbers
in
front
of
me-
was
about
eight
or
nine
million
dollars
in
19
and
20..
There
was
also
some
capital
assets,
the
end
of
the
boiler
plant
project,
the
atwood
renovation.
H
H
The
use
of
that
note
was
not
fully
disclosed
to
the
board
during
that
period
either
the
board
was
aware:
the
note
had
been
created,
they
had
to
authorize
it,
but
there
wasn't
a
regular
reporting
of
draws
against
that
note.
So
I
think
if
you
know
a
cursory
examination
of
the
financial
statements,
you
don't
see
a
lot
of
this
in
the
bottom
line.
H
You
don't
see
a
going
concern
issue
because
it's
a
state
institution
they're
still
going
by
the
time
the
audits
are
done,
and
so
the
auditors
didn't
take
the
position
that
you
had
that
issue
either
and
also
as
as
mr
powell
mentioned
earlier,
the
financial
statements
were
coming
out
in
you
know:
nine
to
nine
to
12
months
after
the
end
of
the
fiscal
year.
So
at
that
point,
and
to
some
degree,
people
have
moved
on
they're.
H
Looking
at
the
current
year,
the
information
they
were
provided
in
budget
to
actuals
and
board
meetings
were
that
things
were
okay
and
there
was
a,
I
think
in
the
april
or
june
board
meeting
of
last
year.
They
were
asked
specifically
how
they
were
and
they
were
told.
I
believe
that
they
were
70.
I
may
get
the
number
wrong,
and
so
I
won't
say
the
number
they
were
told
that
they
were
in
the
black
from
a
budget
standpoint
and
that's
in
that's
in
the
the
board
minutes.
H
So
the
the
information
I
think
the
the
board
was
getting.
It
was
a
combination
of
delayed
to
some
degree
confusing
and-
and
I
won't
necessarily
say
that
was
intentional.
Chairman
west
asked
earlier
about
whether
it
was
multiple
sets
of
books
or
disorganization
from
what
I've
seen
it
was
disorganization.
H
You
know
and
the
they
talked
about
the
accounting
system
at
ksu.
It's
it's
banner
which,
to
be
honest,
works
perfectly
fine
at
another,
a
number
of
other
universities
when
it
was
implemented
at
ksu
in
2011.
There
were
a
lot
of
problems
with
the
implementation.
They've
never
been
corrected.
When
I
was
there
before
we
tried
to
correct
them.
We
made
some
limited
progress,
but
it's
not
where
it
should
be,
and
we're
actually
taking
a
project
to
our
board
on
december,
2nd
to
begin
the
process
of
having
the
company
that
that
operates.
H
That
system
come
in,
do
a
thorough
analysis
of
of
how
we
use
it,
how
it's
set
up
and
what
we
need
to
do
to
fix
it,
and
part
of
that
is
in
the
whole
process
of
making
sure
the
board
has
the
information
that
they
need
on
an
ongoing
basis,
they're
not
relying
on
one
financial
statement
that
may
be
coming
in
9
to
12
months
after
the
fact,
and
that
we
make
sure
that
they
have
the
tools.
They
need
to
understand
that
financial
statement
when
it's
presented
to
them.
A
I
jump
in
I'll
come
right
back
to
you,
I'm
asking
this
question
because
it
seems
to
fit
right
here.
I
had
it
on
my
list.
You
mentioned
the
point
about
operating
expenses.
Basically
a
loan
against
operating
expenses.
H
A
And
you
mentioned
it
earlier,
but
just
to
just
be
a
little
bit
more
specific.
Did
anyone
advise
the
board
that
hey
guys
this
this?
This
is
serious.
This
is
a
red
flag.
We
are
now
borrowing
money
against
day-to-day
operating
expenses
that
we're
going
to
receive,
I'm
assuming
from
the
state
or
tuition
or
whatever
pot
of
money
that
is
was
anybody
advised.
H
But
it
was
the
my
understanding
and
how
that
note
was
discussed
as
it
was
just
a
part
of
normal
operations
at
the
university,
there
was
a
a
reference
to
cash
flow
issues
right
and
I
think
the
board
was
made
aware
of
cash
flow
issues.
Okay,
yeah.
D
No,
I
don't
think
that
the
board
was
made
aware
of
that
at
all.
They
were
informed
when
they
approved
the
note,
but
it
was
in
reference
to
some
potential
construction
projects
that
were
coming
up,
but
they
were
not
informed
that
there
was
a
draw
on
the
note.
A
Thank
you
represent
back
to
you,
yeah.
I
And
just
I
want
to
direct
a
comment,
talk
a
little
bit
about
the
presidential
search
process
and
I
I'm
grateful
to
see
that
there
is
a
broad
section
of
people
from
the
community
that
who
are
invested
stakeholders.
I
think
that's
very
important
and
really
I've
got
a
comment
toward
those
people.
You've
accepted
a
tremendous
responsibility
and
I
think,
through
this
whole
process,
we've
been
reminded
of
one
thing
any
entity.
Any
organization
leadership
is
essential
leadership
at
the
top
so
yeah
to
those
to
those
members
on
the
committee.
You
have
a
tremendous
responsibility.
I
I
encourage
you
to
be
diligent
and
prudent
in
your
search,
and
I
want
to
wish
you
the
best
and
pray
that
y'all
can
come
up.
You
all
know
100
who
you
want
as
the
next
president,
so
I
appreciate
your
willingness
to
serve
in
that
role.
Thank
you.
E
Thank
you,
mr
chair.
Thank
you
all
for
being
here
today.
Certainly
I
know
this
has
to
be
a
difficult
time
and
I
am
grateful
that
you
all
are
looking
into
that.
So
I
I've
got
some
comments
that
I
know
you
know
well
and
when
dealing
with
the
sacks,
but
I
will
say
the
kentucky
state
university
is
absolutely
vital
to
the
state
and
to
our
students.
E
So
we
have
in
kentucky.
We
have
accreditation
in
this
sacs.
We
have
boards
that
are
kind
of
overseers
or
watchdogs
of
what's
going
on,
but
somehow
that
has
broken
down.
So
I'm
gonna,
I'm
gonna
read
what
you
know
well
from
section
13
of
sax,
and
you
know
it
about
about
about
every
word
of
it.
But
I'm
going
to
read
this
and
just
so
everybody
else
understands
from
sax.
It
says
that
the
institute
shall
have
financial
and
physical
resources.
E
E
If
you
fail
to
do
that,
if
they're
not
you,
but
if
any
institution
fails
to
do
that
they're
in
jeopardy
of
losing
their
accreditation,
what
does
that
mean?
That
means
that's
going
to
hurt
those
current
students,
the
past
students
and
and
the
future
students
and
and
and
the
institution
and
the
state,
so
how
that
slipped
through
you
know
right
now,
where
we're
at.
I
don't
see
that
we're
very
stable
at
this
point
now
we'll
get
there,
and
I
think
it's
a
good
thing
that
you're
looking
at
it.
E
In
addition
to
that,
the
institution
audits
must
have
the
most
recent,
and
it
was
noted
in
the
comments
that
hadn't
been
done
in
three
years
must
be
approved
by
the.
Where
was
the
board?
I'm
not
faulting
the
board.
Maybe
they
did
not
know
this,
but
it's
critical,
as
my
colleagues
have
said,
that
leadership
be
responsible
and
accountable
for
these
types
of
things
and
the
institution
exercises
appropriate
control
of
all
financial
resources.
E
That's
what
it
says,
and
you
know
that,
and-
and
I
know
you
know
that
so
I
guess
is
kentucky
state.
Your
university
has
its
financials
shortfalls.
Are
you
taking
the
hard
reviews
on
making
sure
that
you're
focusing
on
your
mission?
What
I
see
sometimes
is
institutions
wants
to
do
all
things
for
everybody.
E
This
is,
although
it's
a
difficult
time,
but
it's
also
an
opportunity
to
to
bring
out
transparency
and
show
we're
all
in
this
together
and-
and
we
can
get
to
this
together,
but
at
the
same
time
it's
critical
and-
and
so
I
don't
really
have
a
question.
I
just
wanted
to
bring
that
point
out
and
say.
Thank
you
for
what
you're
doing.
I
am
very
concerned
I'll
be
watching.
E
I
will
be
watching
and-
and
thank
you
for
today,
representative.
K
Mccool,
I
did
want
to
comment
on
that.
I've
been
in
close
contact
with
bill
whelan.
We
talked
this
weekend
about
ksu
in
great
detail.
Yes,
if
we
don't
get
23
million,
we're
probably
in
serious
trouble
right
in
more
ways
than
one.
That's
number
one
number
two,
it's
saks
just
reaffirmed
in
what
year.
D
K
K
Once
again,
you
heard
me
say
the
need
for
it
to
remain
in
hbcu,
but
there's
some
other
things
that
we
can
do.
I
mean
we
can
build
a
top-notch
educational
program
there
that
really
feeds
the
needs
of
the
state
in
more
ways
than
one
number
two.
We
can
really
reformulate
our
public
administration
to
serve
frankfurt
and
state
government,
there's
a
whole
lot
of
things
that
fall
in
that
mission,
great
liberal
arts,
then
some
of
the
areas
you've
seen
earlier
that
we
were
number
one
in
public
services
on
are
land
grant.
K
You
have
to
remember:
we
have
the
best
aquaculture
program
in
the
world,
one
of
two
and
surely,
and
so
our
land
ground,
so
so
there
I.
I
don't
want
us
to
have
all
these
conversations
for
me,
not
to
mention
the
strengths
of
the
mission
right
and
for
us
not
to
refocus
what
we're
doing
on
that.
I
know
we're
talking
about
money
a
lot,
but
we
have
to
as
much
as
anything
else
from
cpe
now
I'll
talk.
K
We
have
to
make
sure
that
they
also
put
in
place
strong
processes
built,
possibly
a
new
culture
around
this
whole
idea
about
what
it
means
to
be
mission.
Related
mission
focused,
but
also
focusing
on
the
needs
of
kentucky
in
more
ways
than
one,
and
there
is
a
reason
why
ksu
exists
and
still
a
reason
why
it
should
so.
I
really
appreciated
that
last
statement.
D
And
if
I
may
represent
mccool
and
represent
film
fleming,
I
just
want
to
say
in
our
first
meeting
on
day
one
after
all
of
this
broke
out
and
cfo
rush
was
not
officially
employed
by
ksu
at
the
time,
but
was
allowed
to
come
over
and
he
was
in
the
room
and
one
of
the
first
conversations
we
had
dealt
with
our
responsibility
to
our
students
and
so
representative
mccool.
When
you
mentioned
that.
D
I
really
appreciate
that
because
that's
why
kentucky
state
university
exists-
and
I
want
to
just
share
with
you
all
representative
filming-
you
asked:
what
did
we
do
to
ensure
that
this
will
not
happen
again
and
one
of
our
first
conversations
centered
around?
We
must
act
as
leaders
of
the
institution.
D
We
must
be
held
accountable
for
our
actions
for
our
non-actions,
our
inactions.
We
we
don't
make
excuses,
we
will
get
back
to
the
basics
and
one
of
the
things
we
talked
about
in
acting
is
accountability.
Communication
we
talked
about
compliance,
we
talked
about
institutional
policies
and
our
procedures
and
what
we
will
follow.
We
talked
about
the
importance
of
our
promise
and
that
promise
was
to
our
students
and
the
way
we
uphold
that
promise
to
them
is
to
ensure
that
as
an
institution
we
act
responsibly
and
that
we
do.
D
What
we
know
is
right
on
behalf
of
kentucky
state
university
and
as
institutional
leaders.
If
you
want
to
remain
here
at
kentucky
state
university,
then
you
will
follow
institutional
policies,
processes
and
procedures,
and
cfo
rush
will
tell
you,
because
I've
sent
several
things
back
to
his
office.
If
it
does
not
aligned
with
policy,
it
will
not
happen
at
kentucky
state
university.
We
will
ensure
that
we
can
protect
this
institution
for
years
to
come
and
I
just
wanted
to
say.
D
I
appreciate
your
comments,
because
our
students
have
been
alarmed
and
very
concerned,
and
I
think
oftentimes
we
forget
why
we
exist
and
our
mission
is
important
to
what
we
do
every
day,
senator
senator
west.
This
is
senator
thomas.
I
realize
I'm
not
a
member
of
the
committee,
but
if
you
could
indulge
me,
I
would
like
to
ask
a
question
or
two
to
dr
thompson.
A
Senator
thomas,
I
I'll
put
you
on
the
list.
We've
got
two
ahead
of
you,
and
hopefully
that
will
be.
Hopefully
they
can
be
brief.
Representative,
graham.
G
Mr
chairman,
you
and,
and
both
chairman
have
asked
the
questions
that
I
I
wanted
to
talk
about,
but
I'm
going
to
say
this
as
a
graduate
of
this
university,
of
which
I
love,
we've
got
to
get
this
right,
absolutely
there's,
there's
no
time.
This
is
it's
a
bad
time,
but
it's
also
a
good
time,
because
what
we're
seeing
from
the
general
assembly
standpoint
is
that
over
the
past
we
may
not
have.
G
That
starts
with
the
general
assembly
that
starts
with
the
administration.
That
starts
with
the
governor's
office
in
terms
of
making
sure
that
all
of
our
institutions
are
doing.
What's
right.
I
sponsored
legislation
years
ago
that
would
give
more
responsibility
to
cpe
when
your
predecessor
and
what
we
came
out
with
was
a
a
program
in
which
we
did
orientation
for
new
members
who
were
coming
on
a
board
of
regents
and
many
times.
Many
of
those
people
who
want
to
be
on
board
of
regents.
G
They
want
to
be
on
the
big
institutions
such
as
uk
and
uofl,
and
we've
got
to
find
people
who
are
going
to
be
engaged
all
the
time,
24
7
on
the
board
of
regents,
just
as
they
would
be
if
they
were
on
the
uk
or
uofl
aboard.
G
So
we've
got
to
get
this
right
and
we've
got
to
make
sure
that
we,
if
we
are
able
to
talk
to
those
people
who
are
at
the
institution
at
the
time.
All
of
this
took
place
between
15
and
and
now.
If
we
can
talk
with
them,
although
many
of
them
will
probably
not
want
to
talk,
but
we
need
to
find
out
what
happened,
why
it
happened
and
what
we
can
do
to
improve
the
methods
by
which
these
reportings
should
be
made
on
time.
G
So
that's
the
focus
that
we
should
have
on
dealing
with
kids
who
have
the
opportunity
to
improve
their
lives
because
every
parent,
all
of
us
who
are
parents
in
this
room.
What
we
want
is
for
our
children
to
do
better
than
what
we
did
just
as
our
parents
did,
and
that
should
be
the
focus
of
the
university,
and
that
should
be
the
focus
of
this
commonwealth
and
that's
what
I
know
in
this
community.
G
We
want
to
do
and
to
work
with
the
university
in
a
way
in
which
we're
hand
in
hand
and
we're
benefiting
from
those
graduates
and
from
those
graduates
bringing
in
economic
development
and
all
those
things
are
important
to
a
community.
So
thank
you,
mr
chairman,
both
of
you
and
all
of
you
who
are
on
this
this
committee-
and
I
thank
you
all
for
bringing
this
presentation
to
us.
Thank.
A
You
representative,
graham
we've,
got
two
more
just
if
you
could
hold
it
to
one
minute,
we're
already
over
time,
representative
bridges.
B
Thank
you,
mr
chairman
and
dr
thompson,
each
one
of
you
on
the
board.
This
question
is
not
directed
at
you.
Please
understand
that,
but
we
have
to
have
ask
the
hard
questions
and
you
talk
about
transparency.
We've
heard
you
know
what
I've
heard
is.
You
know,
there's
been
some
documents
not
found.
There's
been
some
missing
links
that
you
can't
come
up
with
two
questions.
One
has
all
the
funds
been
accounted
for,
or
are
you
sure
all
the
funds
have
been
accounted
for
and
the
reason
I
say
this,
I'm
I'm.
You
know
we.
B
We
say
it's
misleading
information,
we
say
it's
missing
information
and
when
you
get
right
down
to
it,
is
it
neglect
or
is
it
intent
and
could
there
be
some
criminal
activities
that
need
to
be
looked
into?
And
the
last
thing
I
want
to
do
is
bring
a
harsh
note
against
the
university
because,
as
you
say,
president,
the
students
are
the
purpose
and-
and
I
appreciate
my
fellow
representative-
graham
that's
his
university
and
he's
proud
of
it
and
we
we
are
proud
of
it-
and
we're
thankful
to
have
him
here
because
of
that
university.
B
But
at
the
end
of
the
day,
we've
got
to
look
at
the
brass
tax
and
can
you
assure
us
that
the
funds
are
accounted
for
and
if
you
don't,
I
mean
I
know
you,
you've
got
so
much
information
it's
hard
to
tell.
But
could
this
go
from
negligence
to
intent,
which
could
be
some?
You
know
and
we
talk
about
accountability.
B
I
know
the
group
here
before
us
is
highly
accountable
and
your
intentions
are
to
not
let
it
happen
again.
But
let's
look
at
this
window
these
two
or
three
years.
If
there's
people
in
there
that
were
in
there
for
the
wrong
reasons
or
whatever,
then
you
know
jus
just
I
hate
to
put
you
on
the
spot,
but
just
that's
looming
into
silence
and
I
tend
to
speak
where
most
are
silent.
So.
K
H
We
at
this
point
have
not
seen
any
evidence
that
there's
anything
missing
I'll,
just
put
it
that
way.
When
you
look
at
the
financial
statements
and
you
look
at
the
expenditures
over
the
past
three
four
years,
what
you
see
is
a
lot
of
spending
in
a
lot
of
areas:
staffing,
salaries,
contracts,
just
a
broad
range
of
it,
and
and
to
be
fair.
H
Some
of
that
spending
led
to
results
university
has
the
highest
retention
rate.
It's
had,
maybe
even
its
history,
I'm
not
absolutely
sure.
Graduation
rate
has
moved
from
in
the
20s
to
I
think
this
year,
37
percent
not
trying
to
say
that
is
an
excuse,
but
some
of
the
things
that
were
done
were
done
to
improve
student
success.
H
The
problem
is,
they
were
done
without
an
eye
on
the
budget
without
an
eye
on
the
resources
available,
and
it
just
led
to
just
a
lot
of
stuff
and
doing
a
lot
of
things.
Over
the
past
three
or
four
years,
we've
we've
worked
with
the
state
auditor's
office.
We
continue
to
provide
them
information,
anything
they
request.
H
The
the
we've
talked
a
bit
about
the
audits
being
late,
and
part
of
that
is
a
result
of
several
years
of
of
accounting
entries
that
are
hard
to
follow.
And
again
I
think
it's
probably
disorganization
from
what
I
see,
but
we
will
continue
that
review
and
we
continue
to
look
through
the
past
three
or
four
years
of
expenses
and
we'll
continue
to
do
that.
So
I
can't
definitively
tell
you
right
now
that
there's
nothing
there,
but
I
have
not
seen
anything
to
this
point.
H
You
know,
there's
been
there's
been
things
in
the
press
about
credit
card
expenditures
and
those
kind
of
things
and
those
are
serious
issues
we
need
to
look
at.
But
but
at
this
point
we've
not
I've
not
seen
anything
that
can't
be
explained
through
just
mismanagement
and
overspending.
K
H
K
Me
be
clear:
that's
what
we've
seen
so
we
have
a
few
things,
we're
still
looking
in
detail
on
to
be
honest
with
you
and
we
may
find
something
there.
But
if
I
thought
there
were
something
there,
I
would
call
for
friends
that
caught
it
a
heartbeat.
I
mean
for
a
lot
of
reasons.
Let
me
just
say
that
the
second
point
I
know
we're
out
of
town
time
almost,
but
the
second
point,
I
think,
is
very
fair
to
say:
intent
goes
a
long
way.
You
know.
K
Spending
when
you
know
you
don't
have
the
money
to
spend
is
intent.
You
know
getting
to
a
point
where
you
know
the
numbers
are
wrong
and
you
tell
me
something
different,
that's
intent.
So,
although
no
criminal
activity,
I
don't
want
to
see
here
and
sugar
coat,
that
there
are
things
that
I
I
forgot
who
said
it
representative
tipton.
I
think
the
idea
that
leadership
matters
here
and
I
so
but
we've
so
far-
have
seen
no
criminal.
B
A
B
D
I
will
certainly
do
my
my
very
best.
First
of
all,
let
me
say
I
appreciated
representative
graham's
thomas
I
like
him.
I
have
a
rich
family
legacy
there.
Both
of
my
parents
are
graduates
of
kentucky
state
university.
In
fact
they
were
there
at
kentucky
state.
At
the
same
time,
representative
graham's
parents
were
at
kentucky
state
and
my
grandparents
also
graduated
from
kentucky
state
so
kentucky
state.
D
Is
it
it's
very
rich
and
deep
in
my
bloodline,
a
couple
of
questions,
dr
thompson,
I
appreciate
your
comments
about
the
strengths
of
kentucky
state,
so
I
don't
want
to
let
that
go
unacknowledged.
D
K
Not
only
would
I
recommend
that
I
recommend
more
than
the
next
two
years,
and
I
also
would
recommend
that
there
would
be
some
other
things
we
bring
to
you
from
ksu
and
that
not
just
as
a
way
of
looking
at
the
audit,
but
I
think
I
would
like
for
this
legislature
to
hear
also
about
those
things
that
representative
mccool
was
talking
about
the
progression
toward
a
thriving
school.
That
representative,
graham,
has
called
us
the
task
on
here.
K
A
Thank
you
senator
thomas.
That
concludes
our
meeting
for
today.
I
just
want
to
make
a
parting
comment.
I
would
advise
each
committee
member
to
read
this
financial
status
report
from
cpe.
It's
a
good
work
product,
we'll
answer
a
lot
of
questions
that
have
been
brought
up
today.
A
This
is
clearly
thanks
to
all
the
presenters
on
this
topic.
This
is
clearly
one
of
the
most
important
issues
we
will
attempt
to
address
this
upcoming
session
for
sure
we,
as
with
many
committees
today
we
just
scratched
the
surface
of
what's
there
and
and
what
what
needs
to
be
addressed.
A
I
would
like
to
thank
personally
president
stamps
for
your
role
in
this.
I
forget
which
founding
father-
well,
maybe
it
was
george
washington
talked
about
summer
soldier.
You
know
you're
a
winter
soldier.
You
know
it's,
it's
not
not
always
good
to
come
in
at
a
bad
time
when
things
are
the
bleakest,
but
I
appreciate
your
work
and
these.
Ultimately,
these
students
at
k-state
deserve
excellence,
and
that
should
be
our
ultimate
goal.