The Audit Committee Charter establishes the authority and responsibility of the Committee. The purpose of the Audit Committee is to assist the Board in fulfilling its oversight responsibilities for the financial reporting process, the system of internal controls, the internal and external audit processes, and the process for monitoring compliance with laws and regulations and the code of conduct.
John Chilton, Chair
Composition of the Audit Committee
The Audit Committee is to consist of at least three and no more than seven members of the Board of Trustees. Each Committee member will be independent, defined as "not subject to control, restriction, modification, or limitation from a given outside source."
At least one member of the Audit Committee will be designated as the "financial expert." A financial expert is an individual who possesses, among other attributes:
An understanding of generally accepted accounting principles (in this case, the accounting standards issued by the Governmental Accounting Standards Board (GASB) or the Federal Accounting Standards Advisory Board (FASAB)) and financial statements.
The ability to assess the general application of such principles in connection with the accounting for estimates, accruals, and reserves.
Experience preparing, auditing, analyzing, or evaluating financial statements that present a breadth, depth, and level of complexity of accounting issues that can reasonably be expected to be raised by the government entity's financial statements or experience actively supervising one or more persons engaged in such activities.
An understanding of internal control and the procedures for financial reporting.
An understanding of audit committee functions.
Authority of Audit Committee
The Audit Committee meets quarterly and may hold special called meetings as necessary. The Audit Committee has the authority to conduct or authorize investigations into any matters within its scope of responsibility. It is empowered to, among other things:
Appoint, compensate, and oversee the work of any registered Certified Public Accounting firm employed by KRS;
Resolve any disagreements between management and the internal or external auditor regarding financial reporting;
Pre-approve all audit and non-audit services;
Retain independent counsel, accountants, or others to advise the Committee or assist in the conduct of an investigation;
Seek and obtain any information it requires from employees or external parties; and,
Meet with officers, internal and/or external auditor, or outside counsel as necessary.
Please see our Publications and Forms page for a copy of previously issued external audit reports.