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Governor’s office and JBC staff disclose KPMG review of Department of Higher Education financial controls
Summary
Officials told the Joint Budget Committee that KPMG has been engaged to help the Department of Higher Education address material weaknesses and staffing turnover that delayed closeout and triggered single‑audit findings; the administration pledged ongoing updates and immediate consultant support.
The governor’s office and Joint Budget Committee staff briefed members on a KPMG engagement to assess and help remediate significant deficiencies in the Department of Higher Education’s financial controls.
Mark Ferrendino said the administration expanded a KPMG contract (initially focused on ARPA closeout work) to provide deeper consulting help at the Department of Higher Education after staff turnover and accounting shortfalls delayed the statewide close and generated single‑audit deficiencies. Ferrendino said the work includes documenting procedures, training, year‑end closeout support and developing implementation plans for improved internal control and staffing structure.
JBC staff described examples that drove the escalation: departmental accounting entries missing or late enough that state controller staff had to perform entries to complete the statewide books, and a pattern of inadequate reconciliations tied to turnover. Amanda Bickel said the situation was 'extraordinary' and prompted immediate executive‑branch attention. The administration said CDHE has hired a CFO and is recruiting a controller and budget director and that KPMG and other senior financial staff (including hires with experience in Health Care Policy and Financing) are assisting to get 24‑25 and 25‑26 closeouts on track.
Committee members pressed for clarity on where responsibility lies, what additional authority or resources the department needs, the role of the state controller, and when KPMG will deliver recommended fixes. Staff committed to provide the KPMG findings to the committee and to brief on needed policy choices once recommendations are finalized.
