Auditor Details Financial Shortcomings at Kentucky State University

Mike Harmon, auditor for the Commonwealth of Kentucky, has released a report on the financial situation at historically Black Kentucky State University. The news is not good.

The examination report contained 20 significant findings including $3.34 million in federal grant funds being at risk, $2.7 million withdrawn from internal endowed funds to supplement cash balances, undocumented credit card transactions, wasteful spending on extravagant bonuses and benefits, and crippling budget and procurement failures, all occurring in a chaotic accounting environment that lacked effective safeguards and responsible management and board oversight.

“This is not the first time this office has conducted a special examination of Kentucky State University. In 2000, a report by former Auditor Ed Hatchett detailed 16 findings addressing university financial controls,” said Harmon. “Many of the issues identified in that report still appear to be problems within the university.”

Harmon added that “the big question now is, what’s next for KSU? Our examination makes numerous recommendations for the university to address areas of concern identified in the report. Ultimately, changes within the university will need to be made and carried out by KSU’s next president, KSU Board, university administrators, and to a certain extent the General Assembly. The many problems found in our examination did not happen overnight, and frankly they will not be solved overnight. What is clear is that past practices at KSU detailed in our exam report must come to an end.”

Auditor Harmon’s office is referring the examination to the U.S. Attorney’s Office for the Eastern District of Kentucky, the Kentucky Office of the Attorney General, the U.S. Department of Treasury, and the U.S. Department of Education.

Related Articles

Leave a Reply

Get the JBHE Weekly Bulletin

Receive our weekly email newsletter delivered to your inbox

Latest News

Two Black Scholars Appointed to Faculty Positions

The new faculty are Esther Jones at Brown University and Dagmawi Woubshet at the University of Pennsylvania.

Ph.D. in Counselor Education and Supervision is Established at Bowie State University

"The new program will help to increase the number of counselor educators within the counseling field and the number of competent Black counselor educators," says Dr. Otis Williams, chair of the Bowie State University department of counseling and psychological studies.

Elizabeth City State University Partners With the University of Tennessee Health Science Center to Increase Representation of Black Graduate...

"We are excited by this partnership with UT Health Science Center and the opportunities this brings to our students who wish to pursue advanced degrees," said Kuldeep Rawat, dean of the Elizabeth City State University School of Science, Health and Technology.

Kimberly White-Smith Honored for Outstanding Contributions to Teacher Education

“Through her leadership and scholarship, Dr. White-Smith inspires a new generation of teachers to serve students and approach their work with equity, compassion, and respect,” said Gail F. Baker, provost and senior vice president at the University of San Diego. 

Featured Jobs