Kentucky Auditor Mike Harmon’s office is looking into the finances at Kentucky State University, per both KSU Chief Financial Officer Greg Rush and the auditor’s office.
Michael Goins, spokesperson for Harmon, told The State Journal that auditors have asked for data in response to “concerns” received by his office.
“We have requested financial data from the university for fiscal years 2020 and 2021 in an effort to access concerns received by our office” Goins wrote in an email. “We continue to monitor the situation at KSU.”
On Monday, Goins told the newspaper that the auditor's office made its request "in the last 10 days."
Rush told state legislators at a Joint Interim Committee on Appropriations & Revenue meeting last week that the school was working with Harmon’s office to provide those requested records. At that same meeting, legislators questioned the school’s finances and expressed disappointment at its financial performance under former president M. Christopher Brown II.
Rush added that the school plans to continue to work with Crowe LLP — a public accounting firm that has completed every school audit since Brown’s administration — to complete its audit for fiscal year 2021. Before Brown's tenure, accounting firm Dean Dorton had completed the school’s audit since 2011.
The total financial shortfall for this fiscal year is projected at $15.7 million. Currently, the school owes $5.2 million to the state in deficit construction accounts and $4.3 million in prior-year invoices were paid this year.
KSU’s operating budget for this fiscal year is just under $50 million. It’s slated to receive $27,186,100 from the state, but earlier this month the state made available to the school an advance of its $5.4 million fourth quarter allotment.
Rush told legislators that while things were shaping up, the school would need more financial assistance by next April.