A new state audit criticizes Kentucky State University and Frankfort for wasteful spending on bonuses and benefits and sloppy record keeping that left investigators unsure how or why some money was spent.

The report covers KSU spending over a three year period from July of 2018 to June of 2021.

It says former administrators received benefits that shouldn't have been allowed, including bonuses and supplemental health insurance.

The audit says KSU might have to pay back more than $3 million to the federal government because of missing or incomplete records into how KSU spent federal grant money.

And it says internal communications were so poor, financial problems went unaddressed.

Here's state auditor Mike Harmon.

Our examination contains 20 findings, noting multiple issues which include poor to nonexistent record keeping little to no financial oversight, high level of staff turnover and questionable expenditures.

Now, because of the seriousness of the findings, we are making referrals to the U.S. Attorney's Office for the Eastern District of Kentucky.

The Kentucky Office of the Attorney General and Findings six specifically to the US Department of Treasury and the US Department of Education.

The audit says the historically black college used several different credit cards and during the three year period examined those credit cards were used to make about $1.3 million in purchases.

But because of the poor recordkeeping, it's not always clear why those purchases were made.

CASE You couldn't provide documentation for all the transactions selected for review.

For example, cash.

You could not provide documentation to support any of the selected transactions or fifth third cards.

GO cards.

And the Diner's Club card.

Now, because of that, auditors could not review the appropriateness of some of the purchases.

Those included $657 at the hotel in Nassau, the Bahamas, and $313 at Churchill Downs.

In addition, other expenses were found that are considered of questionable benefit to KSU or the public.

Among those were $238 spent with a Las Vegas florist on flowers for the spouse of the former KSU president.

$322 to pay for a Sirius XM subscription for the university's former AVP for finance, $180 for edible arrangements sent as a birthday present to the former board chair by the President's office, as well as a $5 and 78 cent purchase of a kids meal by the senior vice president.

CSU's interim president, Dr. Ronald Johnson took over eight months ago, which is after the three year period examined in this audit.

He took over for President Christopher Brown.

Dr. Johnson says KSU is already working to fix the problems described in the audit.

Kids who's made great strides due in no small part of the dedication of this team, of folks that I that I identify.

We will share additional news as we go forward in terms of progress in the weeks to come and the months ahead.

One of the things that is really mind blowing is that my entire career has been largely in the financial realm.

I am a fiduciary.

I still sit as a fiduciary and I have worked on countries as well as companies, as well as go as well as universities.

And as a fiduciary, it is the sole responsibility of that individual to make sure that other people's money are protected.

The board invited me to come here because of that background, and I assure you that we are working in and with with great haste to ensure that the public trust in Kentucky State University is maintained.

Last year, the Kentucky General Assembly voted to provide $38 million in emergency funding to KSU with conditions on how it could be spent in order to help the university deal with its ongoing financial problems.