threshold for financial health. KSU is projected to exceed that score by a significant amount through 2021 as remaining debt is retired. However, the Return of Net Assets ratio is one measure where the University has a sub-par score and efforts will be made to improve efficiencies and increase revenues to exceed these targets over the next four years in that measure.
KSU's goals for the Composite Financial Index are as follows:
| Fiscal Year | Industry Standard | Goal |
|---|
| 2017-18 | 3.00 | 5.02 |
| 2018-19 | 3.00 | 6.52 |
| 2019-20 | 3.00 | 10.12 |
| 2020-21 | 3.00 | 17.54 |
As can be seen in Attachment C, when the impact of GASB 68 is taken into account, the Composite Financial Index decreases from 17.54 to -36.52 (fiscal 2020-21). This is a situation faced by all the comprehensive universities in Kentucky. The University has little to no control over the pension situation.
Each December for the next four years, the University will provide a report on the prior year's financial results. This report will evaluate both the changes in unrestricted net assets and changes in the measures that make up the Composite Financial Index.
The report will also compare each year's actual results to the goals included in this management plan and detail any differences.