TOPEKA | Kansas State University has made strides to correct problems identified in an audit earlier this year, its new president told higher education officials Thursday.
President Kirk Schulz said a full report of the university’s response to the critical audit will be completed and released next month. But he said KSU has already changed procedures to ensure more accountability in financial transactions and staff compensation.
"We’re trying to put in place checks and balances to make sure we’re making the most fiscally prudent decisions," he said.
An audit released in June revealed undisclosed payments, conflicts of interest and accounting irregularities and potential tax problems at KSU and its Athletics Department.
Schulz, who started as president the week the audit was released, reviewed the university’s response to the audit at Thursday’s meeting of the Kansas Board of Regents. He said the university held a campus-wide forum to discuss the audit, created a task force to examine its findings, and ordered two additional external audits. One will focus on the Athletic Department, the other on an economic development group with ties to the university.
Other actions include:
A change at the Athletics Department that requires the Board of Directors to review each compensation package. The audit found secret payment arrangements crafted by an individual athletics official.
The university’s chief financial officer now reviews almost every transaction made by the Athletics Department.
A more centralized campus legal department, instead of five or six separate legal offices.
“We’re trying to make sure we know where our money’s going,” Schulz told the Regents.
Members of the Board of Regents said they approve of the steps Schulz is taking.
Regent Gary Sherrer said he’s withholding final judgment until he reads the final report next month. But he said early indications are that KSU is bouncing back.
“I’ve really been impressed with how you’ve handled this,” he told Schulz. “Your candor, your directness and your decisiveness… I’m extremely pleased.”
Schulz said he hopes KSU can soon put the controversy behind it once the final report is issued next month.
“I want you to look in June of 2010, after our team has had a chance to work through these things,” he said. “I think you’ll find the K-State you remember.”
