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KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents Finance Committee and Audit Committee October 24, 2014 10:15 am to 11:00 am Julian M. Carroll Academic Services Building, Board Room Frankfort, Kentucky

MINUTES *****

Regent Charles Whitehead, in the absence of Regent LaVaughn Henry, Chairperson, called the Finance and Business Committee and the Audit Committee meeting of the Kentucky State University Board of Regents to order at 10:34 a.m. on October 24, 2014. Regent Whitehead asked the secretary to call roll:

LaVaughn Henry Not Present Syamala Reddy Not Present

Karen Bearden Present Charles Whitehead Present

Mindy Barfield Present Ekumene Lysonge Present

David Guarnieri Present Travis Haskins Present

Elgie McFayden Present Breana L. Smith Not Present

A quorum was declared.

Action: Motion to approve the minutes from the July 25, 2014 Finance and Business Committee was made by Regent Whitehead and seconded by Regent Barfield. The minutes stand approved as presented.

Regent Whitehead recognized Ms. Martin to carry the discussion forward.

Deborah Martin, Interim Vice President Finance Administration gave an overview of the Executive Summary. Ms. Martin stated that on the revenue side the fall tuition has a shortfall of $1.66 million versus budgeting, fall housing shortfall about a half million dollars and student tuition/fees is down $2.8 million from prior years. On expenditures to date, we have gone through 25% of the budget, expenditures are at 20.56% of the approved budget. She stated that we have an operating loss as of September 2014 of $2.7 million versus $1.4 million in 2013 and an increase in net assets of $8 million versus $8.9 million in 2013. Regent Whitehead questioned as to how we are going to make up the shortfall. President Burse stated that he had a budget reduction plan that he would give to the Board in the afternoon session.

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