Chapter 3270
.010 Introduction
.020 Requirements
.030 Responsibilities
.040 Procedures
.050 Questions
.010 Introduction
The records of organizations whose operations are substantially controlled by the Kansas Board of Regents or any state educational institution shall be public records and an annual audit is required in accordance with K.S.A. 76-721.
.020 Requirements
If Kansas State University enters into a contract with a corporation whose operations are substantially controlled by the Board or any state educational institution, such contract shall provide that the books and records of such corporation shall be public record. In accordance with K.S.A. 76-721, an annual audit by an independent certified public accountant is required of the books and records of the corporation.
.030 Responsibilities
The substantially controlled corporation is responsible for employing an independent certified public accountant to conduct an annual audit of the books and records. Six copies of each annual audit is to be submitted to the Kansas State University Internal Audit Office. The Internal Audit Office will distribute copies of the audit to the Legislative Division of Post Audit, Kansas Board of Regents, University Vice President for Administration and Finance and the University Controller.
.040 Procedures
The substantially controlled corporation is to negotiate the annual audit contract to employ the independent certified public accountant. The certified public audit firm is to be changed at least every three years. An agreement with a different branch or franchise of the previous audit firm constitutes a change of the auditors and is acceptable on the condition that the audit is conducted solely at the branch/franchise office location by a totally new group of professionals. This change in auditors is a good audit practice and will provide a different audit approach or at least a different group of auditors every three years.
.050 Questions
Questions are to be directed to the Internal Audit Office, telephone number (785)532-7308.
