KENTUCKY STATE UNIVERSITY
Management’s Discussion and Analysis, continued
June 30, 2016
The Statement of Cash Flows presents information related to the University's cash inflows and outflows summarized by operating activities, noncapital financing activities, capital financing activities and investing activities. The primary purpose of the Statement of Cash Flows is to provide information about the cash receipts and cash payments made by the University during the year, to allow financial statement readers to assess the University's ability to generate future net cash flows, its ability to meet obligations as they become due and its possible need for external financing.
| 2016 | 2015 |
|---|
| Cash (used) provided by: | | |
|---|
| Operating activities | $(26,876,152) | $(23,099,893) |
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| Non-capital financing activities | 27,216,483 | 28,457,420 |
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| Capital and related financing activities | (3,413,206) | (1,911,723) |
|---|
| Investment activities | - | - |
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| Net increase (decrease) in cash | (3,072,875) | 3,445,804 |
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| Cash and cash equivalents, beginning year | 23,021,767 | 19,575,963 |
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| Cash and cash equivalents, end of year | $19,948,892 | $23,021,767 |
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Major sources of cash received from operating activities are student tuition and fees of $9.86 million and grants and contracts of $14.4 million. Major uses of cash for operating activities were payments to employees for salaries and benefits of $32.4 million and to vendors and contractors of $17.2 million.
Noncapital financing activities included state appropriations from the Commonwealth of Kentucky of $23.4 million.
Capital and related financing activities include purchases and payments of $3.4 million expended for construction and acquisition of capital assets and for principal and interest payments on the retirement of the University's bonds and other capital related debt.