FREQUENTLY ASKED QUESTIONS ABOUT THE AUDIT
* Why was an exit review done? A Kansas Board of Regents policy requires an exit review/analysis when there is a change in a university's CEO leadership and involving the CEO's handling of certain non-state funded accounts. The analysis was required because of Jon Wefald's retirement and was not undertaken because of any actions involving the athletics department.
* Who requested it? The Kansas Board of Regents.
* Who conducted it? The Kansas City office of Grant Thornton LLP, an auditing, management consulting, corporate finance, risk management and information technology firm.
* How much did it cost? $126,000 paid to Grant Thornton LLP.
* Who paid for it? The Kansas State University Foundation.
* What is covered by the exit review? It includes K-State entities that are not audited by the state: the president's office, the KSU Foundation, K-State Alumni Association and the athletics department.
* Does the university anticipate making any additional changes?
President Kirk Schulz and Athletics Director John Currie intend to review the exit analysis as soon as possible. After they see the details, they will analyze what actions need to be taken.
* Is the athletic department in the red right now; if so, by how much?
Athletics is nearing the end of a very tight budget year. At this point it is not clear whether or not athletics will break even this year. Like many units, the athletics department owns some restricted endowments which were invested by the KSU Foundation in a pool. With the poor performance of the stock market, many of these funds have lost money.
* Will there be further follow-up investigations to see if anything else was missed by the audit?
The new administration is considering follow-up reviews, in addition to new policies to ensure strong financial controls.
* Regarding the future of the athletic department: the declining economy slowed down the Wildcat Victory campaign -- will this slow it down further?
The entire economic climate has caused us to move forward cautiously and we are working to rebuild the trust and support of the entire K-State fan base.
* Will the Olathe Innovation Campus be filling the position vacated by Bob Krause?
Not at this time; there is a "soft" hiring freeze in effect due to budget cuts from the state.
* Was there any kind of buyout for Bob Krause?
No.
