The 91精选 Board of Regents received positive results from the University鈥檚 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.
鈥�Management is pleased to report the audit for approval with special thanks and commendations to finance and administration and the KSU Foundation,鈥� 91精选 President M. Christopher Brown II said.
The audit showed a positive financial position for 91精选, with a budget surplus of $2.3 million in 2019-20. 91精选 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, 91精选 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. 91精选鈥檚 conservative fiscal discipline over the years has resulted in healthy liquidity, ample reserves and a manageable debt burden, enabling 91精选 to be in position to weather economic downturns.
Like virtually all investment portfolios, 91精选鈥檚 endowment suffered losses in the first quarter of 2020. Even with the plunge in financial markets, Kentucky State鈥檚 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.
91精选 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 91精选鈥檚 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. 91精选 resolved three audit findings from the prior year. The audit resulted in only one finding, which resulted in $0 in questioned cost.
The 91精选 Board of Regents approved the audit during an April 6 special-called meeting.