Regent Fields sought clarification regarding the Interim Policy on Internal Endowment Agreements.

Regent Walston inquired as to the difference between the documents used to govern the University's scholarships and funds and those used by the Foundation.

Regent Dukes asked how many internal endowment agreements would need to be established. Mr. Decourcy replied that documents would need to be established for over 80% of the University’s funds.

Regent Moyer asked how the funds are invested, and what the investment policy is behind that.

Regent Moyer asked whether KSU has any investments, individual gifts, or endowment gifts that are underwater or have a value less than the original gift.

Mr. Decourcy then turned the presentation over to Ms. Walker, who reported on the status of MIP deliverables from an accounting perspective.

Acting VP, Dr. Wendy Dixie, and Ms. Tonya Walker, Controller, presented this agenda item.

AVP Dixie explained that the budget being presented was a high-level budget, and a revised budget would be presented in September after actual enrollment numbers are known.

Regent Fletcher inquired whether any metrics were available that would allow a comparison between KSU and other institutions to determine how efficiently the University is operating. Regent Fletcher also asked what the indirect negotiated rate was prior to its expiration.

Regent Hatchett requested Dr. Dixie to elaborate on the other sources category and whether it included investment income.

Regent Moyer asked where gifts would appear in the budget, and queried whether it would be included in the revenue/other sources category. Regent Dukes echoed the question.

Regent Fletcher inquired into the amount of the state appropriation by the General Assembly.

As the presentation continued to expenditures, Regent Walston asked whether the Sodexo contract would continue after December and if so, how that expenditure would be accounted for in the budget.

Regent Hatchett asked Ms. Walker how the shortfall amount was arrived upon, sharing his concern that the shortfall may actually be greater than indicated. He also asked where the unbudgeted 2023 items were reflected in the educational and general expenditures.

Chair Dukes asked Ms. Walker for the budget line items reflecting the inclusion of the unexpected/unbudgeted 2023 expenditures, and requested supporting details for each line item.

Regent Moyer queried if he was correct in thinking that the 2023 year ended with an approximately $3 million deficit, and requested clarification that the deficit would not be carried forward heading into FY 2024. Regent Moyer also asked whether there was a surplus in auxiliary enterprises for FY 2023, or if the amount being used to cover or reduce the deficit in this year's budget would be taken from CPE funds.