Board ratifies KPPPA 2027–2028 audit plan after debate over employer audit scope

The board ratified the audit committee’s recommended two‑year audit plan for fiscal years 2027 and 2028 after lengthy debate over a contested item about employer audits (the CS employer reviews). Some trustees argued the plan—particularly the portion assigning comprehensive employer reviews to the internal audit function and proposing a five‑year coverage plan for roughly 1,200 employers—could be premature given resource and administrative constraints.

Dr. Carver and several trustees urged additional dialogue before moving forward on the CS employer audit item; Dr. Carver said, “I think we need to have a little bit more discussion based upon some of the questions that have come up.” Others argued that the audit committee had vetted and unanimously approved the plan and that the full board routinely ratifies committee recommendations. A motion to remove the specific CS employer audit from the plan failed by roll call (amendment vote 5–3), and the full board then voted to ratify the plan as presented (recorded 5–3 in favor). The chair said the matter would continue to be discussed and could be amended later if necessary.

The debate focused on operational practicality—questions about whether existing staff could perform the workload, whether the work should remain with agency staff (the chief financial officer’s team) or be reassigned to the internal audit function, and how to sequence a proof‑of‑concept approach versus an accelerated five‑year program. Staff and committee members described a risk‑based employer selection approach and emphasized the ability to change the plan if needed.