KBOR > News > 2004 > Release

February 16, 2004

BOARD OF REGENTS CONCLUDES FINANCIAL ACCOUNTABILITY REVIEW
State Universities Report on Implementation of Financial Integrity Measures

(Topeka) - In the wake of corporate financial scandals and Congressional enactment of the Sarbanes-Oxley Act of 2002, the Kansas Board of Regents (KBOR) has seized the initiative to go beyond what is required on matters of institutional financial accountability. In a letter to Governor Kathleen Sebelius and members of the Kansas Legislature, KBOR reported the findings of a review conducted by its Fiscal Affairs and Audit Committee.

"As the governing body of Kansas’ state universities, we have a fiduciary responsibility to protect the system’s financial integrity," said Janice DeBauge, Chair of the Kansas Board of Regents. "While we have the utmost confidence in our university CEOs, we have an important obligation to Kansas taxpayers to ensure that our state universities are financially accountable."

The Fiscal Affairs and Audit Committee, in a review of policies, procedures and practices for institutional financial accountability, asked each state university CEO to submit a report on the status of the university’s internal and external financial controls. This report included: 1) a complete description and thorough assessment of the university’s internal and external financial controls; and 2) a status report on the university’s compliance with the Board’s policy on internal audit.

Upon its review of the university reports, the Board of Regents concluded that adequate internal financial controls are in place. Each university reported the establishment of an internal audit function, as required by KBOR policy. The reports also outlined important financial controls in the areas of budget/position controls, hiring/payroll process, accounts payable/purchasing, travel, student registration/accounts receivable and retirement funds. Department of Administration (DOA) external controls are also applied to the university payroll, purchasing and voucher payment processes. DOA also performs an annual on-site audit at each university, and each university is subject to the statewide audit conducted by independent auditors from the Legislative Division of Post Audit.

Reginald Robinson, President and CEO of the Kansas Board of Regents, noted that, "While the Sarbanes-Oxley Act does not apply to institutions of higher education, the concerns this legislation addresses are universal. I am confident our state universities will continue to hold themselves to the highest possible standards."

For more information contact Kip Peterson, Director of Government Affairs & Communications, at (785) 296-3421.

February 16, 2004 1:24 PM