KENTUCKY STATE UNIVERSITY BOARD OF REGENTS

The University is actively seeking solutions to avoid this risk. To avoid this risk in the future, the University is seeking the approval from the Board to remove the Foundations designation as a component unit for audit purposes.

Upon review of Statement No. 39 of the Governmental Accounting Standards an amendment of GASB Statement No. 14. The University should be able to successfully establish that the Foundation is not a component unit of the University because the Foundation does not meet one or more of the following requirements:

1. The economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the primary government, its component units, or its constituents.
2. The primary government, or its component units, is entitled to, or has the ability to otherwise access a majority of the economic resources received or held by the separate organization.
3. The economic resources received or held by an individual organization that the specific primary government, or its component units, is entitled to, or has the ability to otherwise access, are significant to that primary government.

SUMMARY OF PROGRAMS/ACTIVITIES: N/A

ALIGNMENT WITH STRATEGIC GOALS:

Goal 3: Increase the University's Financial Strength and Operational Efficiency.

COMMITTEE/PROGRAM ACTION: N/A

PROGRAM IMPLICATIONS: N/A