===== PAGE 1 ===== REPORT TO THE BOARD OF REGENTS
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January 22 and 23, 2015 ===== PAGE 2 ===== # KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents 9:00 a.m., Friday, January 23, 2015 Julian M. Carroll Academic Services Building, Board Room Frankfort, Kentucky Regent Karen W. Bearden, Presiding # AGENDA # ***** I. CALL TO ORDER: Regent Karen Bearden, Chair II. ROLL CALL: Lori Davis, Secretary III. OPENING REMARKS: Regent Bearden IV. APPROVAL OF MINUTES: Action Item: Approval of Minutes from the November 7, 2014 Special Board Meeting V. BOARD BYLAWS: Action Item: Approval of Amended Bylaws of the Board of Regents VI. COMMITTEES REPORTS: A. Academic Affairs Committee: Regent Bearden Academic Affairs Update Beverly Downing Interim Vice President for Academic Affairs ### B. Finance / Audit Committees: Regent LaVaughn Henry, Chair Regent Mindy Barfield, Chair Action Item: Approval of the A-133 Audit Report Action Item: Approval of Student Fees-ESL Program Information Item: Department of Athletics Update Harry Stinson, Athletic Director Stephen Mason, Chief of Staff ### C. Student Affairs Committee: Regent Ekumene Lysonge, Chair Student Affairs Update Vernell Bennett Vice President for Student Affairs D. External Relations and Development Committee: Regent Charles Whitehead, Chair External Relations and Development Update Max Maxwell Interim Vice President for External Relations and Development ===== PAGE 3 ===== VII. TECHNOLOGY REPORT Wendy Dixie Acting Chief Information Officer Action Item: Approval of Contract with Oracle and Addvantum VIII. UPDATE TO SPECIAL EXTERNAL-INTERNAL AUDIT REPORT Melinda Impellizzeri Special Assistant to the President IX. KSU FM RADIO LICENSE PROCESS Lori Davis General Counsel X. PRESIDENT'S REPORT: The quick brown fox jumps over the lazy dog. President Raymond M. Burse A. Action Item: Approval of Revised Organizational Structure B. Action Item: Approval of Appointment of Dr. Vernell Bennett as Vice President for Student Affairs C. Action Item: Amendment of Post-Tenure Review Policy D. Action Item: Amendment of Financial Exigency Policy XI. CLOSED SESSION: A. Pending Litigation (KRS 61.810 (1)(c)) B. Individual Personnel Matters (KRS 61.810 (1)(f)) C. Property Acquisition (KRS 61.810 (1)(b)) XII. OPEN SESSION: Regent Bearden Action Item: Ratification and Approval of the President's Amended Contract XIII. CLOSING REMARKS XIV. ADJOURNMENT Regent Bearden ===== PAGE 4 ===== # KENTUCKY STATE UNIVERSITY Board of Regents Special Meeting 9:00 a.m., November 7, 2014 Julian M. Carroll Academic Services Building Board Room Frankfort, Kentucky Regent Karen W. Bearden, Presiding ## MINUTES ### I. Call to Order: Chairperson Karen Bearden welcomed attendees to the Special Meeting of the Kentucky State University Board of Regents and called the meeting to order at 9:00 a.m. on November 7, 2014. ### II. Roll Call: Chairperson Bearden asked the Secretary to the Board to conduct the roll call: Regent Barfield, Present Regent Bearden, Present Regent Farris, Present Regent Guarnieri, Present Regent Haskins, Present Regent Henry, Absent Regent Lysonge, Present after Roll Call Regent McFayden, Present Regent Reddy, Present after Roll Call Regent Smith, Present after Roll Call Regent Whitehead, Present Ten Regents were in attendance. A quorum was declared at 9:00 a.m. ### III. Opening Remarks: Chair Bearden began the meeting by welcoming the attendees to the meeting. ### IV. Approval of Minutes: Action: Motion was made to approve the minutes from the July 24, 2014 Bylaws Committee, the July 24, 2014 Executive Committee and the October 24, 2014 Regular Board Meeting by Regent McFayden and seconded by Regent Whitehead. The motion passed unanimously. + ===== PAGE 5 ===== ### V. Board Statement on Policies: President Burse presented his recommendation that all future changes to the policies of the University be amended only through approval of the Board of Regents. This statement further recommended that the Board rescind its April 25, 2003 action which separated the Faculty Handbook into administrative regulations, which did not require Board approval for amendments. All policies of the Board will be reviewed and centralized in one location on the KSU website. Action: Motion was made by Regent Whitehead to require Board approval for any proposed amendments to all University policies, including but not limited to, the Faculty Handbook, the Human Resources Manual and the Student Handbook. The motion was seconded by Regent Farris. The motion passed 8-1. Regent McFayden voted against the motion. ### VI. Academic Program Approval: Dr. Beverly Downing, Interim Vice President of Academic Affairs discussed a proposal for the approval of the Bachelor of Science in Nursing (BSN) program. Dr. Downing explained that there is a national movement away from the two (2) year Associate's Degree in Nursing (ADN) program, since hospitals are seeking nurses with higher degrees. KSU is having difficulty locating clinical experiences for ADN students as part of the students' education. Dr. Indira Tyler, Interim Chair of the KSU School of Nursing, further explained that hospitals are increasingly seeking “magnet” status of excellence which requires their nurses to be trained at the BSN level. If approval to begin a BSN is granted, KSU would begin a “teach-out” phase of the ADN program for those students currently in the program pipeline while simultaneously “starting-up” the BSN program. Students who are in the ADN program would be on-track to complete the lower level liberal studies requirements in the BSN program. Once the BSN program is fully approved, current and prospective students will be advised of the program change and advised appropriately. KSU will be unable to conduct both programs (BSN and ADN) simultaneously as there would be an increased need for more faculty and added difficulty to provide the ADN students the clinical experiences required. Action: Motion was made by Regent Whitehead to approve the pre-licensure Bachelor of Science in Nursing (BSN) program. The motion was seconded by Regent Haskins. The motion passed unanimously. ### VII. ENROLLMENT UPDATE: ===== PAGE 6 ===== Carmella Conner, Acting Vice President of Student Affairs addressed the Board. She advised the Board that the current enrollment was 1869. This number was disaggregated by categories in the board materials. The process for student withdrawal from the university was discussed. Students are required to complete a withdrawal form and specifically state why s/he seeks to withdraw from the university and obtain signatures from their academic dean. Students are also advised to speak with an advisor in the Academic Center for Excellence, Academic Advising, and/or Student Support Services if the reasons for withdrawal are academic in nature. Early intervention strategies were discussed. The Office of Academic Affairs has worked to implement “Course Signals” to assist in identifying students who are in academic jeopardy before withdrawal is contemplated. Full implementation of Course Signals is expected by the beginning of Spring 2015. Ms. Conner also discussed the November 1, 2014 Open House for prospective students. Over 785 prospective students were in attendance. A committee will review areas of improvement needed in preparation for the Spring Open House. In particular, some attendees commented that they’d like to have heard more presentations from the individual major areas of study. The Admissions Office will continue to follow-up with attendees as a part of the recruitment process. Ms. Conner stated that the goal of the Open House was to invite 1000 prospective students to showcase the University. The Board requested that in the future each recruitment activity has stated goals and metrics. Ms. Conner discussed the faculty's role in recruitment. She explained that she would like to see faculty participate as members of recruitment committee. Ms. Conner also explained that she and Dr. Downing are actively collaborating to increase University recruitment efforts. President Burse further clarified his expectations of the faculty in the recruitment of prospective students. For example, he would expect that when a prospective student contacts the Office of Admissions and indicates a major area of study of interest, the Admissions Office would contact faculty in that area to outreach to the student within twenty-four (24) hours. He expects active engagement from the faculty and every staff person on campus. Faculty members should have positive comments to say about Kentucky State when engaging with prospective students. ### VIII. SPECIAL EXTERNAL-INTERNAL AUDIT REPORT: Ms. Melinda Impellizeri, Special Assistant to the President for Strategic Planning and Development, presented a report based upon findings from KSU's external-internal auditor, Tronconi and Associates. ===== PAGE 7 ===== The report outlined Tronconi’s unannounced audit findings. The files of ten students were randomly audited to determine how the University’s processes flow. Categories of review included: 1) Application Process; 2) Student Contact Information; 3) Bursar’s Office—Student Finance and Collection; 4) Student Housing; 5) Student Immunization; 6) Academic Advising; 7) Miscellaneous Student information; and 8) Student Attendance and Timely Graduation. The report found numerous of areas of improvement required to ensure that University processes flowed properly. Suggestions for process improvement included the following: 1. Creation of a documented online repository of all processes. 2. Selection of representatives from impacted areas to form a Process and Guidelines Excellence Team. 3. Collection, inspection and where necessary, revision of University processes. 4. Create “standard work” process documentation for posting in each area. 5. Development of training and require regular and remedial training for all employees and faculty. 6. Implementation of a Scorecard process. 7. Measurement of employee compliance and tie to performance evaluations. President Burse commented that changes have been or will be implemented to fix the areas identified. Further, President Burse conveyed the sense of urgency that exists to improve in all areas. ### IX. UNIVERSITY BUDGET REDUCTION AND REORGANIZATION PLAN: President Burse presented his recommended budget reduction and reorganization plan. A written report was provided to Board Members. The recommendations include: 1. State Government Employee Tuition Reduction (25%) Plan: State government employees can take classes at KSU with a twenty-five percent (25%) tuition discount. 2. Contract and Vendor Payments: Will be reviewed to determine whether cost-savings can be realized. 3. External Relations and Development: Seven positions will be abolished as duplicative or not necessary to the operations. 4. Institutional Research: Will now report to the Office of the President. 5. Retirement Incentives: Employees with the ability to retire will be offered an incentive. Incentive Pool is budgeted at approximately $250,000. 6. Information Technology: a new position of switchboard operator will be added. Restructuring of the area will also be completed. ===== PAGE 8 ===== 7. Student Success and Enrollment Management: Rename section to Student Affairs; eliminate the Office of Enrollment Services (2 positions eliminated) 8. Student Life and Activities: Office will be re-evaluated. 9. Academic Affairs: a. Provost position will become Vice President of Academic Affairs and Dean of the University. b. All faculty contracts will be nine (9) months. c. Eliminate the dean positions. d. Eliminate all adjunct positions. Adjuncts will be hired as necessary. 10. Athletics: Reduce spending by $500,000 over the next 18 months. 11. Finance: Eliminate one (1) position; bring Internal Audit function in-house 12. President's Office: Create Facilities and Maintenance Operations; Create an Assistant for Security and Risk. 13. Elimination of Sick Leave Credit with KTRS 14. Suspend Tenure and Promotion Process for the 2014-15 year 15. Term Contracts: All term contracts will not be renewed at the end of their current terms. Tenure-track faculty will be issued notices of non-reappointment, with all tenure-track faculty to be assessed for retention based on fit and productivity during this period. 16. Post-Tenure Review Policy: Procedures for this policy will need to be developed. Action: Motion was made by Regent Haskins to approve the University Budget Reduction and Reorganization Plan. The motion was seconded by Regent Farris. The motion passed 9-1. Regent McFayden voted against the motion. ### X. CLOSED SESSION: Action: Motion was made by Regent Whitehead to enter into closed session pursuant to KRS 61.810 to discuss pending litigation, individual personnel matters and property acquisition. The motion was seconded by Regent Barfield. The motion passed unanimously. The Board went into closed session at 11:12 a.m. ### XI. OPEN SESSION: The Board returned to Open Session at approximately 11:30 a.m. No action was taken by the Board in closed session. ===== PAGE 9 ===== President Burse announced that KSU had submitted a grant application to NASA in which over 33 entities participated. This application is for the Center of Transforming Education in Science and Mathematics. President Burse also updated the Board regarding activities of the Office of Sponsored Projects. KSU currently has $19 million dollars in active grants and the indirect cost recovery back to the university from these grants is $600,000. President Burse also mentioned that KSU will partner with Fayette County Schools on closing the achievement gap and other activities that support academics at the secondary level. ### VI. CLOSING REMARKS/ADJOURNMENT: Action: Motion was made to adjourn the Board meeting by Regent Haskins and seconded by Regent Farris. The motion passed unanimously. The meeting adjourned at 11:38 a.m. Submitted by: Lori A. Davis, Secretary General Counsel Kentucky State University Karen W. Bearden, Chair Board of Regents Kentucky State University ___ Approved with no corrections ___ Approved with corrections ===== PAGE 10 ===== # Kentucky State University The Gold Book: Bylaws of the Kentucky State University Board of Regents ## Article I: Declaration Section 1.1: The governance of Kentucky State University is vested in the Board of Regents of Kentucky State University. The Board in conformity with the State Constitution and State laws, shall have exclusive jurisdiction, power and authority with regard to the supervision, management and control of Kentucky State University, shall be the final authority in all matters pertaining to the University, and it shall exercise jurisdiction over the University's financial, educational, administrative and other policies, and its relations with state, local, and federal governments. Section 1.2: The Board of Regents of Kentucky State University is a constituted entity of the Commonwealth of Kentucky. Section 1.3: The Board shall constitute a body corporate, with the usual corporate powers, and with all immunities, rights, privileges and franchises usually accorded the governing bodies of educational institutions. ## Article II: ## Powers Section 2: The Board of Regents, in governing the affairs of Kentucky State University, shall: (a) Appoint the President of the University, who shall serve at the pleasure of the Board on such terms as may be mutually agreeable to the Board and the President; (b) Review and evaluate, on an annual basis, the performance of the President of the University according to written objectives, specific and general, developed ===== PAGE 11 ===== by the President in conjunction with the Board as presented at the outset of each academic year; (c) Engage outside advisors and counsel, in its discretion, to assist the Board in carrying out its duties, including, but not limited to, the evaluation of the President; (d) Approve the employment of faculty members at the administrative level, and staff employees at the vice-president level and above, and fix their compensation and tenure of service, on recommendation of the President and prior to any offer of employment, except that the President may conditionally appoint these persons for a ninety day period until the next board meeting; (e) Approve all administrative employment contracts offered to University employees prior to execution by the parties; (f) Adopt guidelines for salary ranges and benefit guidelines for all faculty, administrative and University personnel; (g) Adopt the annual budget for the University and approve any material budget changes; (h) Approve tuition, fees and other charges; (i) Approve all loans, borrowing and issuance of bonds; (j) Approve, after consultation with the President, an administrative structure and plan of organization needed for the successful conduct of the University; (k) Act as a policy-making body by adopting policy statements of governance and operation of the University, in areas, including, but not limited to, human resources, information technology, public relations and development; (I) Entrust the internal administration of the University to the President in accordance with the duly established governing Board Policies and administrative regulations; (m)Grant diplomas and confer degrees upon the recommendation of the President and faculty; ===== PAGE 12 ===== (n) Periodically evaluate the University’s progress in implementing its mission, goals, and objectives to conform to the strategic agenda, and hold University officers and officials accountable for the status of the University’s progress; (o) Promulgate state financial management administrative regulations in accordance with KRS 164A.560, and delegate the responsibilities for these functions to the president of the University. These financial management functions include: acquisitions of funds, purchasing, and receiving, depositing, collecting, retaining, investing, disbursing and accounting for all funds received or due from any source; (p) Approve any appropriation, expenditure, disbursement or contract greater than $50,000, notwithstanding the provisions of KRS 164A.560 and 745 KAR 1:035; (q) Approve the Constitution and By-Laws of the Faculty Senate, the Staff Council, and the Student Government Association, except where in conflict with these Bylaws or with governing Board Policies; (r) Periodically review and/or approve University vision, mission, and proposed long-range strategic plans; (s) Become familiar with, committed to, and abide by, the major responsibilities of this governing board, as set out in these Bylaws and the Kentucky Revised Statutes, including: 1. defining and clarifying the vision, mission and approving long-range plans; and 2. assessing periodically the Board's performance and that of the President; and (t) Accept the spirit of academic freedom and collegial governance as fundamental characteristics of University governance. ===== PAGE 13 ===== ## Article III: Internal Governance Section 3.1: The Board chairperson speaks for the Board. No other Board member, unless designated by the chairperson, has this prerogative and responsibility. Section 3.2: The Board chairperson presents the Board's positions, interests, policies, plans, and decisions to the public, the media, and public officials. Section 3.3: The Board’s authority and influence stems from its official standing as a full Board with its assigned duties and responsibilities. No individual member, other than the chairperson, has the authority to speak for the Board. No individual member has authority to take actions or make commitments for the Board. Only the collective Board has authority. Section 3.4: All substantive issues, proposals, resolutions, plans, information, data, and inquiries come to, and from, the Board through the President of the institution. Section 3.5: Board members confronted with a University problem or concern should report this matter to the President and to the Board chairperson. In the event the problem or concern relates to the Board chairperson, the matter should be reported to the Board vice chairperson. The chairperson or vice chairperson will direct whatever action is deemed necessary in consultation with the President, if necessary, or with University internal or external counsel. The appropriate Board Committee chairperson will also be involved in the process. Under no circumstances should a Board member individually address the situation. Section 3.6: Board members should not attempt to persuade, direct, opinionate, coerce, threaten, or influence a University employee's position or practice. Section 3.7: Board members should make every effort to attend special events and other activities which promote the University whenever feasible and as scheduling permits. Section 3.8: The Board shall annually, at its retreat, develop goals and objectives for the upcoming year and evaluate its performance from the previous year. The Executive Committee shall be responsible to determine the procedure by which such evaluations are to be conducted, subject to Board approval. ===== PAGE 14 ===== ## Article IV: Membership and Appointment to the Board of Regents Section 4.1: The Board of Regents shall consist of eleven persons as provided by State law; eight members appointed by the Governor of Kentucky, one faculty member elected by members of the faculty with academic rank above instructor, one student member elected by the student body, and one non-teaching personnel member elected by members of the staff. Section 4.2: The gubernatorial appointments may include one (1) graduate of the respective institution who resides outside the Commonwealth. Not more than two (2) appointed members of any Board shall be residents of one (1) county. The appointments shall reflect the proportional representation of the two (2) leading political parties of the Commonwealth based on the state's voter registration. Membership on the Board shall reflect no less than proportional representation of the minority racial composition of the Commonwealth. Membership on the Board shall not be incompatible with any state office. A change in residency after the date of appointment shall not affect a member's ability to serve nor shall it prevent a member's eligibility for reappointment. Section 4.3: Appointments to fill vacancies shall be made in the same manner and within the same time after the occurrence of the vacancy as regular appointments. The person appointed shall hold the position for the unexpired term only. Section 4.4: The faculty member shall be a teaching or research member of the faculty of the rank of assistant professor or above. He/she shall be elected by secret ballot by all faculty members of the rank of assistant professor or above. Section 4.5: The nonteaching personnel member shall be any full-time staff member excluding the president, vice presidents, academic deans, and academic department chairpersons. He/she shall represent all nonteaching University employees including, but not limited to, building facilities and clerical personnel. He/she shall be elected by secret ballot by the nonteaching employees. Section 4.6: The student member on the Board shall be the president of the student body of the University during the appropriate academic year and may be an out-of-state resident, if applicable. Section 4.7: All persons appointed shall be required to attend and complete an orientation program prescribed by the council under KRS 164.020 as a condition of their service. Bylaws Kentucky State University Board of Regents Effective Date: _____ Page 5 of 15 ===== PAGE 15 ===== ## Article V: Term of Office of Board of Regents Members Section 5.1: Each member of the Board shall serve for the term for which he/she is appointed and until his successor is appointed and qualified. Section 5.2: The terms of the appointed members of the Board of Regents shall be for six years and until their successors are appointed and qualified. Section 5.3: The faculty member shall serve for a term of three years and until his/her successor is elected and qualified. The faculty member shall be eligible for reelection, but he/she shall not be eligible to continue to serve as a member of the Board if he/she ceases being a member of the teaching staff of the University. Elections to fill vacancies shall be for the unexpired term in the same manner as provided for the original election. Section 5.4: The student member shall serve for a term of one year beginning with the first meeting of the fiscal year which contains that academic year. If the student member does not maintain his position as student body president or his status as a full-time student at any time during that academic year, a special election shall be held to select a full-time student member. Section 5.5: The non-teaching personnel member shall serve for a term of three years and until his successor is elected and qualified. The nonteaching personnel member shall be eligible for reelection, but he/she shall not be eligible to continue to serve as a member of the Board if he/she ceases being an employee of the University. Elections to fill vacancies shall be for the unexpired term in the same manner as provided for the original election. Section 5.6: Any member of the Board of Regents may be removed from office by an order of the Governor entered in the executive journal after being afforded a hearing with counsel before the Council on Postsecondary Education and a finding of fact by the Council. However, no member of the Board of Regents shall be removed by the Governor of the Commonwealth of Kentucky except for cause. ===== PAGE 16 ===== ## Article VI: Meetings of the Board of Regents Section 6.1: The Board of Regents shall hold its first meeting within thirty days after each appointment of new members. Section 6.2: Thereafter, the Board of Regents shall meet quarterly in regular session at the University or at such other times and places as agreed upon according to a calendar adopted annually by the Board. The annual meeting calendar shall include dates for the Board's annual retreat. Section 6.3: The Chairperson of the Board shall call special meetings of the Board at the request of the President of the University or by two members of the Board. The Board may at such special meetings transact any or all business that it may transact at a regular meeting except that the business to be transacted at a special meeting shall be specified in the notice of the meeting in accordance with Kentucky's Open Meetings law. Section 6.4: The Chairperson of the Board may call an emergency meeting pursuant to this provision of the Bylaws. For purposes herein, “emergency” is defined as a situation which creates or has the potential to create a threat to the health, well being, or safety of the University or the University community. The Board shall make a reasonable effort, under emergency circumstances, to notify the members of the Board, media organizations which have filed a written request for notification, and the public of the emergency meeting. At the beginning of the emergency meeting, the chairperson shall briefly describe for the record the emergency circumstances preventing compliance with the notice provisions under the Open Meetings law. These comments shall appear in the minutes. Discussions and action at the emergency meeting shall be limited to the emergency for which the meeting was called. Section 6.5: Board members are expected to attend all Board meetings, commencement ceremonies, and participate in Board development activities. If a Board member is unable to physically attend a Board meeting, he/she may participate via any appropriate technology that allows the Board member to substantively participate via means that is consistent with the Open Meetings Act or any other applicable law. Section 6.6: Members of the University community and members of the public are welcome to attend open meetings of the Board, but may not address the Board of Regents or otherwise participate in the meetings except pursuant to a previously approved Bylaws Kentucky State University Board of Regents Effective Date: _____ Page 7 of 15 ===== PAGE 17 ===== request for appearance to be heard in accordance with this paragraph. Persons desiring to be heard by the Board shall first submit to the President in writing the subject matter and the reason for desiring to be heard by the Board. The President shall then call the request to the attention of the Board Chairperson. The Chairperson may then determine whether or not to permit the person requesting appearance before the Board to speak, or the Board by a majority vote may grant such a request of the person requesting authority to speak. The Board shall be notified of all requests that are denied. Section 6.7: The President of the University shall attend all meetings of the Board. Section 6.8: A majority of the members of the Board shall constitute a quorum for the transaction of business. Section 6.9: Meeting agendas of the Board shall be determined jointly by the President and the Board Chairperson, with essential materials provided to the Board members at least ten (10) calendar days in advance for regular meetings, and as soon as practicable for special meetings. Section 6.10: Upon the concurrence of the Board Chairperson and the President, agenda items may be designated as consent agenda items in the agenda of a regular Board meeting. Unless any Board member objects to the inclusion of an item on the consent agenda by notifying the President at least forty-eight (48) hours before the Board meeting, all items designated as consent agenda items shall be recommended for approval by a single vote by the Board without discussion of individual items. Section 6.11: All meetings shall be conducted in accordance with the principles of procedure prescribed in Roberts' Rules of Order, as most recently amended. ## Article VII: ## Officers of the Board of Regents Section 7.1: The Board of Regents shall elect its Chairperson, Vice-Chairperson, and Secretary annually at the Board's first meeting. Section 7.2: The Board shall appoint a Treasurer and the term of the Treasurer shall be at the pleasure of the Board. Section 7.3: The Board shall appoint any such officers as it deems necessary, except no member of the Board shall be appointed Treasurer. Bylaws Bylaws Kentucky State University Board of Regents Effective Date: _____ Page 8 of 15 ===== PAGE 18 ===== # Article VIII: Duties of the Officers of the Board of Regents Section 8.1: The Chairperson shall preside at the meetings of Board and shall be responsible for the management and orderly conduct of the business of the Board. The Chairperson shall issue calls to convene the Board in regular and special meetings. He/she shall determine the date, time and place of the Board meetings. Section 8.2: The Vice-Chairperson shall, in the absence or disability of the Chairperson, perform the duties of the Chairperson of the Board. Section 8.3: The Secretary shall keep and prepare all records, books and papers belonging to the Board. The Secretary shall prepare for and submit to Board members in advance an agenda of the business for discussion and decision by the Board. The Secretary shall record and keep on file accurate minutes and other documents of all Board deliberations and decisions. The Secretary shall submit the minutes of each Board meeting to members of the Board not more than thirty (30) days after each meeting, and shall ensure that the Board chairperson signs all approved minutes. The Secretary shall transmit all officially signed minutes to the University Archives in Blazer Library. Further, the Secretary shall prepare, under the direction of the Board, all reports and estimates, and shall execute all matters belonging to his office. The Secretary's compensation shall be fixed by the Board. Section 8.4: The Treasurer shall be responsible for the management of the financial affairs of the Board and the University in accordance with accepted budgetary procedures and state law. He/she shall receive and disburse money under the control of the Board, and perform all acts that pertain to his office under the direction of the Board. He/she shall present at each regular meeting of the Board a statement of the financial status of the University. Article IX: Committees of the Board of Regents Bylaws Kentucky State University Board of Regents Effective Date: ___ Page 9 of 15 Effective Date: ___ Page 9 of 15 ===== PAGE 19 ===== Section 9.1: The standing committees of the Board of Regents shall be the Executive Committee, the Academic Affairs Committee, the Finance Committee, the Audit Committee, the Student Affairs Committee, and the External Relations and Development Committee. Members and chairpersons of the standing committees of the Board shall be selected by the chairperson of the Board of Regents. Other standing committees of the Board shall be determined by the Board with members appointed by the chairperson. Ad hoc committees may be created and members appointed by the chairperson. Section 9.2: Committees shall possess no delegated authority of the Board of Regents unless approved by a majority vote of the Board or as allowed under these By-laws. All actions of each committee, unless taken with delegated authority, shall constitute recommendations to the Board and shall be subject to approval by a majority vote of the Board. Section 9.3: All Committee members shall serve for a term of one year or until their successors have been duly selected by the Chairperson. In the event of a vacancy on a committee, the successor member shall be selected by the Chairperson of the Board of Regents and shall hold office for the balance of the term of office of the person vacating their office. Section 9.4: The Executive Committee shall be composed of the officers of the Board of Regents, the standing committee chairpersons, and the past Board chairperson. The chairperson of the Executive Committee shall be the chairperson of the Board of Regents. The Executive Committee shall provide guidance to the President on matters that arise in the interim between regular meetings. The Executive Committee shall have the same powers as the Board of Regents during the interim between meetings of the board, except that it may not elect or dismiss a president of the University, create a new position in the University, abolish one already existing, nor adopt the annual budget for the University. The Executive Committee shall also serve as the Compensation Committee, and shall present recommendations concerning the President's compensation to the full Board for vote. The Executive Committee shall involve the entire Board in this evaluation process and shall also solicit input from university stakeholders. The Executive Committee shall be responsible for the planning of the Board's annual retreat. The Executive Committee shall submit to the Board of Regents for its ratification at the next full Board meeting a complete record of all actions taken by the Executive Committee. The Secretary of the Board of Regents shall attend all meetings of the Executive Committee and shall serve as its secretary. Bylaws Kentucky State University Board of Regents Effective Date: ___ Page 10 of 15 ===== PAGE 20 ===== Section 9.5: The Academic Affairs Committee shall be responsible for evaluating all recommendations coming to the Board of Regents affecting the academic and intellectual affairs of the University. The President of the University shall appoint a member of the staff to serve as administrative agent to the committee. Section 9.6: The Finance Committee shall review, evaluate, and provide guidance on financial issues, including the biennial budget requests submitted to governmental agencies, the annual operating budget of the University for each fiscal year, and all other financial, administrative, and budgetary matters. The President of the University shall appoint a member of the staff to serve as administrative agent to the committee. Section 9.7: The Audit Committee shall recommend to the Board of Regents the engagement of an external auditing firm. The Committee shall meet with the external auditor and receive and review the auditor's external reports and University comments for the annual audit. The Internal Auditor shall serve as administrative agent to the committee. Section 9.8: The Student Affairs Committee shall review, evaluate, and provide guidance on all matters related to student life issues. The President of the University shall appoint a member of the staff to serve as administrative agent to the committee. Section 9.9: The External Relations and Development Committee shall review evaluate, and provide guidance on all matters related to fund-raising, development, public relations and alumni, including providing leadership for Board of Regents' fund-raising efforts. The President of the University shall appoint a member of the staff to serve as administrative agent to the committee. ## Article X: ## The President of Kentucky State University Section 10: The President of Kentucky State University reports to the Board of Regents and serves at its pleasure. The powers and duties of the President include the following: (a) To be the chief administrative and educational officer of the University and to perform such other powers as may be prescribed by the Board of Regents; (b) To make and provide interpretation and implementation of Board Policy, through the promulgation of administrative regulations, for all aspects of the Bylaws Kentucky State University Board of Regents Effective Date: _____ Page 11 of 15 ===== PAGE 21 ===== academic and other functions of the University, coordinating it with whatever individual, groups, or organizations may be required; (c) To recommend major policies and other major actions to the Board of Regents for its final action and to be the official medium of communication between the Board of Regents and the various segments of the University and their official bodies; (d) To make final decisions for which he/she has received delegated responsibility over a wide range of activities from the Board of Regents; such actions are ordinarily taken after consultation with various concerned individuals, groups, or organizations; (e) To enforce the Board Policies, administrative regulations, and guidelines of the University; (f) To recommend to the Board the employment of administrative faculty and vice-president level and above staff; (g) To employ all other non-administrative faculty, and employees of the University whose compensation shall fall within the approved University Classification and Compensation System; (h) To recommend to the Board changes in administrative structure and organization of the University which enhance and align with its mission; (i) To recommend to the Board faculty tenure and administrative promotion decisions; (j) To prepare annual budgets after consultation with, and input from, the Board and others as appropriate, and to recommend all other budgets and any modifications of these budgets as needed to the Board; (k) To appoint University-wide committees; (I) To manage the University through officials that report to the Office of the President; (m)To provide leadership in the development of academic instruction, research, and service programs by making initiatives to the Faculty Senate and to the ===== PAGE 22 ===== faculties of academic units and their planning committees concerning changes in curriculum or academic policies which are the responsibility of the faculty; (n) To serve as an ex-officio member of all faculties and all faculty committees, to call and preside over the meeting of the University faculty and such advisory groups as the President chooses to appoint, and at his/her direction to call meetings of the faculties of the several colleges and schools of the University; (o) To be responsible for all University functions relating to student affairs and the life of students at the University, as well as intramural and extramural or intercollegiate athletics; (p) To be responsible for all aspects of the relations of the University to the community and for providing information about the activities of the University; (q) To be responsible for public relations; (r) To maintain continuing relations with governmental agencies at city, county, state, and federal levels as required by the mission of the University; (s) To be responsible for relations of the University with alumni; (t) To be responsible for raising funds from the federal government, state and local public sources, corporations, private individuals, foundations and other sources; (u) To supervise programs for constant maintenance and improvement of their quality, for effective service to students, for the adequacy of research, and for their accountability to the people of the Commonwealth, to the students, and to grantors or donors; (v) To be responsible for the University’s role in construction and renovation, in maintenance of buildings and grounds, in the acquisition of essential new facilities, equipment, and library materials, and in space allocation and utilization; (w) To prepare and submit to the Board of Regents an annual report on the work and general status of the University; and ===== PAGE 23 ===== (x) To delegate as appropriate the responsibility for carrying out any of the above functions. ## Article XI: Indemnification, Legal Defense of Board Members, Conflicts of Interest and Confidential Information Section 11.1: It is the purpose of this article to provide that any member of the Board of Regents be afforded a legal defense and indemnification for any acts or actions taken in good faith and within the scope of his/her official duties while on the official business of the University. Section 11.2: A conflict of interest occurs when any Board member has existing or potential interests that compete or could compete with the interests of the University or any directly affiliated organization, or which impairs or might reasonably impair such Board members' independent, unbiased judgment in the discharge of one's responsibility. Board members shall avoid entering into or maintaining any business or financial interests, transactions, acquisition or sale of property interest which are or may be in conflict with those of the University. Board members shall avoid any personal interest, direct or indirect, in any contract for the purchase of land, buildings, supplies, or services for the University. Board members shall not accept gifts or benefits from any person holding contracts for supplies or services to the University. Section 11.3: Board members shall refrain from using, discussing or disseminating confidential information obtained in his or her official capacity as a Board member and through board discussions during closed sessions of the board in any manner and for any reason, including, but not limited to, using, disclosing or disseminating such information with the intent to obtain financial gain for self or any other person or any other business with which the Board member is associated. Section 11.4: Whenever any conflict of interest appears to exist after taking the oath of office, the Board member shall immediately fully disclose that conflict to the Executive Committee and to the President of the University. In no event shall such disclosure be delayed longer than seventy-two (72) house prior to consideration of the matter by the Board. ===== PAGE 24 ===== ## Article XII: Amendments Section 12: These bylaws may be amended by the affirmative vote of a majority of the membership of the Board of Regents providing notice in writing of any proposed amendment is given to members at least 10 days prior to a meeting at which the amendment is to be discussed. The ten day notice provision may be waived upon a vote of the majority of the Board members. HISTORY: Adopted March 3, 1983; Revised May 9, 1992; Revised November 16, 1992; Revised January 26, 1996; Revised January 24, 1997; Revised October 30, 1998; Revised February 5, 1999; Major Revision October 24, 2003; Revised November 5, 2004; Revised: ___ ===== PAGE 25 ===== Kentucky State University KENTUCKY STATE UNIVERSITY # Board of Regents # The Gold Book: —Organization and Operation Bylaws of the Kentucky State University Board of Regents Article I Declaration Article VII Officers ___ Article II Article VIII Powers of Board Duties of Officers of Regents — or regents Article IX Article III Committees Internal Governance Guiding Principles ___ Article X Evaluation of Board Performance ___ The President Conflict of Interest ___ Article XI Article IV Indemnification Membership and Appointment ___ and Legal Defense of Board Members _Article_V_ Term of Office ___ Article XII Amendments Article VI Bylaws Kentucky State University Board of Regents Effective Date: _____ Page 1 of 21 ===== PAGE 26 ===== ## Article I: Article I ## Declaration: Section 1.1: The governance of the affairs of Kentucky State University is vested-in the Board of Regents of Kentucky State University. The Board in conformity with the State Constitution and State laws, the Board of Regents shall have exclusive jurisdiction, power and authority with regard to the supervision, management and control of Kentucky State be the final authority in all matters pertaining to the University, shall be the final authority and in all matters pertaining to the University, and it shall exercise jurisdiction over the University's financial, educational, administrative and other policies, and its relations with state, local, and federal governments. ☀ Section 1.2: The Board of Regents of Kentucky State University is a constituted agency entity of the Commonwealth of Kentucky. ☀ Section 1.3: The Board shall constitute a body corporate, with the usual corporate powers, and with all immunities, rights, privileges and franchises usually accorded the governing bodies of educational institutions. ## Article II: ## Article II ## Powers Section 2.1: The Board of Regents, in governing the affairs of Kentucky State —University, shall: 1.(a) Section 2.2-A appoint the President of the University, who shall serve at the pleasure of the Board on such terms as may be mutually agreeable to the Board and the President; 1. 1.(b) Review and evaluate, on an annual basis, the performance of the President of the University according to written objectives, specific and general, Kentucky State University Board of Regents Effective Date: ___ ===== PAGE 27 ===== developed by the President in conjunction with the Board as presented at the outset of each academic year; 1. 1-(c) Engage outside advisors and counsel, in its discretion, to assist the Board in carrying out its duties, including, but not limited to, the evaluation of the President and other staff at its discretion; 1. 1. 2.Section 2.3-Approve the employment of faculty members at the administrative level, and staff employees at the vice-president level and above, and fix their compensation and tenure of service, on recommendation of the President and prior to any offer of employment, except that the President may conditionally appoint these persons for a ninety day period until the next board meeting; (d) 2. 2. 2. 3-(e) Section 2.4-Approve all administrative employment contracts contracts offered to University yy employees prior to execution by the partie s; 3. (f) Adopt guidelines for salary ranges and benefit guidelines for all faculty, administrative and University personnel; 3.S. 3. 3. 4.(g) Section 2.5-Aadopt the annual budget for the University and approve any material budget changes; 4. 4. (h) Approve tuition, fees and other charges; 4. Approve all loans, borrowing and issuance of bonds; (i) 4. 4. ===== PAGE 28 ===== (i) Section 2.6 Approve, after consultation with the President, an administrative structure and plan of organization needed for the successful conduct of the University; 5. 5. 5. (k) Section 2.7 Aact as a policy--making body by adopting p Policy statements of governance and operation of the University, in areas, including, but not limited to, human resources, information technology, public relations and development; 6.. 6. 6. (I) Section 2.8-Entrust the internal administration of the University to the President in accordance with the duly established governing Board Policies and administrative regulations; 7.. 7. 7. 7. (m) Section 2.9 Grant diplomas and confer degrees upon the recommendation of the President and faculty; 8... 8. 8. (n) Section 2.10 Eevaluate Periodically evaluate the University's progress in implementing its mission, goals, and objectives to conform to the strategic agenda, and hold University officers and officials accountable for the status of the University's progress; 9. 9. 10. (o) Section 2.11 Ppromulgate state financial management administrative regulations in accordance with KRS 164A.560, and delegate the responsibilities for these functions to the president of the University. These financial management functions include: acquisitions of funds, purchasing, and receiving, depositing, collecting, retaining, investing, disbursing and accounting for all funds received or due from any source; 10.. 10. ===== PAGE 29 =====
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10. 10. (p) Section 2.12 A approve any appropriation, expenditure, disbursement or contract —greater than $50,000, notwithstanding the provisions of KRS 164A.560 and 745 KAR 1:035; 11. 11. 12.(q) Section 2.13 A approve the Constitution and By-Laws of the Faculty Senate, the __Staff Council, and the Student Government Association, except where in conflict with these Bylaws or with governing Board Policies; 12. 12. Periodically review and/or approve University vision, mission, and proposed long-range strategic plans for the University on an annual basis. 12. 13.(r) Section 2.14 Ddevote time to learn how the University functions—its uniqueness, strengths, and needs; 13. 14.(s) Section 2.15 B become familiar with, committed to, and abide by, the major responsibilities of this governing board, as set out in these Bylaws and the Kentucky Revised Statutes, including: a.1.defining and clarifying the vision, mission and approving long-range plans; and 2. assessing periodically the Board's performance and that of the President t; and b. ===== PAGE 30 ===== b. 15. Section 2.16—A accept the spirit of academic freedom and shared-collegial governance as fundamental characteristics of University governance. (t) 15. 15. 15. 15. 15. 15. # Article III: Article III # Internal Governance: ### A. Guiding Principles 1. Section 3.1: The Board chairperson speaks for the Board. No other Board member, unless designated by the chairperson, has this prerogative and responsibility. 1. 2. Section 3.2: The Board chairperson presents the Board's positions, interests, policies, plans, and decisions to the public, the media, and public officials. ### 2. 3.Section 3.32: The Board's authority and influence stems from its official standing as a full Board with its assigned duties and responsibilities. No individual member, other than the chairperson, has the authority to speak for the Board. No individual member has authority to take actions or make commitments for the Board. Only the collective Board has authority. 3. 4. Section 3.43: All substantive issues, proposals, resolutions, plans, information, data, and inquiries come to, and from, the Board through the President of the institution. ### 4. 5. Section 3.54: Board members confronted with a University problem or concern should report this matter to the President and to the Board chairperson. In the event the Bylaws Kentucky State University Board of Regents Effective Date: _____ Page 6 of 21 ===== PAGE 31 ===== problem or concern relates to the Board chairperson, the matter should be reported to the Board vice chairperson. The chairperson or vice chairperson will direct whatever action is deemed necessary in consultation with the President. If necessary, or with University internal or external counsel. The appropriate Board Committee chairperson will also be involved in the process. Under no circumstances should a Board member individually address the situation. ### 5. 6. Section 3.65: Board members should not attempt to persuade, direct, opinionate, coerce, threaten, or influence a University employee's position or practice. 6. 7. Section 3.76:-____Board members should make every effort to attend special events and other activities which promote the University whenever feasible and as scheduling permits. Section 3.87: B. Evaluation of Board Performance: The Board shall annually, at its retreat, develop goals and objectives for the upcoming year and evaluate its performance of from the previous year. The Executive Committee shall be responsible to determine the procedure by which such evaluations are to be conducted, subject to Board approval. ### C. Conflict of Interest: Section 3.8 A conflict of interest occurs when any Board member has existing or potential interests that compete or could compete with the interests of the University or any directly affiliated organization, or which impairs or might reasonably impair such Board members' independent, unbiased judgment in the discharge of one's responsibility. Board members shall avoid entering into or maintaining any business or financial interests, transactions, acquisition or sale of property interest which are or may be in conflict with those of the University. Board members shall avoid any personal interest, direct or indirect, in any contract for the purchase of land, buildings, supplies, or services for the University. Board members shall not accept gifts or benefits from any person holding contracts for supplies or services to the University. ☀ Section 3.9 Confidential Information: Board members shall refrain from using confidential information obtained as a Board member in any manner with intent to result in financial gain for self or any other person, or any other business with which the Board member is associated. Bylaws Kentucky State University Board of Regents Effective Date: _____ Page 7 of 21 ===== PAGE 32 ===== Section 3.10 Whenever any conflict of interest appears to exist after taking the oath of office, the Board member shall immediately fully disclose that conflict to the Executive Committee and to the President of the University. In no event shall such disclosure be delayed longer than seventy-two (72) house prior to consideration of the matter by the Board. ## Article IV: ## Article IV ## Membership of and Appointment to the Board of Regents: Section 4.1: The The Board of Regents shall consist of eleven persons as provided by State law: eight members appointed by the Governor of Kentucky, one faculty member elected by members of the faculty with academic rank above instructor, one student member elected by the student body, and one non-teaching personnel member elected by members of the staff. Section 4.2: The gubernatorial appointments may include one (1) graduate of the respective institution who resides outside the Commonwealth. Not more than two (2) appointed members of any Board shall be residents of one (1) county. The appointments shall reflect the proportional representation of the two (2) leading political parties of the Commonwealth based on the state's voter registration. Membership on the Board shall reflect no less than proportional representation of the minority racial composition of the Commonwealth. Membership on the Board shall not be incompatible with any state office. A change in residency after the date of appointment shall not affect a member's ability to serve nor shall it prevent a member's eligibility for reappointment. Section 4.3: Appointments to fill vacancies shall be made in the same manner and within the same time after the occurrence of the vacancy as regular appointments. The person appointed shall hold the position for the unexpired term only. Section 4.4: The faculty member shall be a teaching or research member of the faculty of the rank of assistant professor or above. He/she shall be elected by secret ballot by all faculty members of the rank of assistant professor or above. Section 4.5: The nonteaching personnel member shall be any full-time staff member excluding the president, vice presidents, academic deans, and academic department Bylaws Kentucky State University Board of Regents Effective Date: _____ Page 8 of 21 ===== PAGE 33 ===== chairpersons. He/she shall represent all nonteaching University employees including, but not limited to, building facilities and clerical personnel. He/she shall be elected by secret ballot by the nonteaching employees. ☀ Section 4.6: The student member on the Board shall be the president of the student body of the University during the appropriate academic year and may be an out-of-state resident, if applicable. • Section 4.7: All persons appointed shall be required to attend and complete an orientation program prescribed by the council under KRS 164.020 as a condition of their service. ## Article V: ## Article V ## Term of Office of Board of Regents Members Section 5.1: The terms of the appointed members of the Board of Regents shall be for six years and until their successors are appointed and qualified. ☀ Section 5.12:1 Each member of the Board shall serve for the term for which he/she is appointed and until his successor is appointed and qualified. Section 5.2: The terms of the appointed members of the Board of Regents shall be for six years and until their successors are appointed and qualified. ⚫ ☀ Section 5.3:1 The faculty member shall serve for a term of three years and until his/her successor is elected and qualified. The faculty member shall be eligible for re-election, but he/she shall not be eligible to continue to serve as a member of the Board if he/she ceases being a member of the teaching staff of the University. Elections to fill vacancies shall be for the unexpired term in the same manner as provided for the original election. Section 5.4:1 The student member shall serve for a term of one year beginning with the first meeting of the fiscal year which contains that academic year. If the student member does not maintain his position as student body president or his status as Bylaws Kentucky State University Board of Regents Effective Date: _____ ===== PAGE 34 ===== a full-time student at any time during that academic year, a special election shall be held to select a full-time student member. ☀ Section 5.5: 1-T The non-teaching personnel member shall serve for a term of three years and until his successor is elected and qualified. The nonteaching personnel member shall be eligible for reelection, but he/she shall not be eligible to continue to serve as a member of the Board if he/she ceases being an employee of the University. Elections to fill vacancies shall be for the unexpired term in the same manner as provided for the original election. Section 5.6:1 Any member of the Board of Regents may be removed from office by an order of the Governor entered in the executive journal after being afforded a hearing with counsel before the Council on Postsecondary Education and a finding of fact by the Council. However, no member of the Board of Regents shall be removed by the Governor of the Commonwealth of Kentucky except for cause. ## Article VI: ## Meetings of the Board of Regents Section 6.1: The Board of Regents shall hold its first meeting within thirty days after each appointment of new members. ☀ Section 6.2: Thereafter, the Board of Regents shall meet quarterly in regular session at the University or at such other times and places as agreed upon according to a calendar adopted annually by the Board. The annual meeting calendar shall include dates for the Board's annual retreat. ☀ Section 6.3: The Chairperson of the Board shall call special meetings of the Board at the request of the President of the University or by two members of the Board. The Board may at such special meetings transact any or all business that it may transact at a regular meeting except that the business to be transacted at a special Bylaws ===== PAGE 35 ===== meeting shall be specified in the notice of the meeting in accordance with Kentucky's Open Meetings law. ☀ Section 6.4: The Chairperson of the Board may call an emergency meeting pursuant to this provision of the Bylaws. For purposes herein, “emergency” is defined as a situation which creates or has the potential to create a threat to the health, well being, or safety of the University or the University community. The Board shall make a reasonable effort, under emergency circumstances, to notify the members of the Board, media organizations which have filed a written request for notification, and the public of the emergency meeting. At the beginning of the emergency meeting, the chairperson shall briefly describe for the record the emergency circumstances preventing compliance with the notice provisions under the Open Meetings law. These comments shall appear in the minutes. Discussions and action at the emergency meeting shall be limited to the emergency for which the meeting was called. ☀ Section 6.5: Board members are expected to attend all Board meetings, commencement ceremonies, and participate in Board development activities. If a Board member is unable to physically attend a Board meeting, he/she may participate via any appropriate technology that allows the Board member to substantively participate via means that is consistent with the Open Meetings Act or any other applicable law. ☀ Section 6.6: Members of the University community and members of the public are welcome to attend open meetings of the Board, but may not address the Board of Regents or otherwise participate in the meetings except pursuant to a previously approved request for appearance to be heard in accordance with this paragraph. Persons desiring to be heard by the Board shall first submit to the President in writing the subject matter and the reason for desiring to be heard by the Board. The President shall then call the request to the attention of the Board Chairperson. The Chairperson may then determine whether or not to permit the person requesting appearance before the Board to speak, or the Board by a majority vote may grant such a request of the person requesting authority to speak. The Board shall be notified of all requests that are denied. ☀ ☉ Section 6.7: The President of the University shall attend all meetings of the Board. ☀ Section 6.8: A majority of the members of the Board shall constitute a quorum for the transaction of business. ☀ ===== PAGE 36 ===== ☀ ☀ Section 6.9: Meeting agendas of the Board shall be determined jointly by the President and the Board Chairperson, with essential materials provided to the Board members at least ten (10) calendar days in advance for regular meetings, and as soon as practicable for special meetings. ☀ Section 6.10: Upon the concurrence of the Board Cehairperson and the President, agenda items may be designated as consent agenda items in the agenda of a regular Board meeting. Unless any Board member objects to the inclusion of an item on the consent agenda by notifying the President at least forty-eight (48) hours before the Board meeting, all items designated as consent agenda items shall be recommended for approval by a single vote by the Board without discussion of individual items. ☀ Section 6.11: All meetings shall be conducted in accordance with the principles of procedure prescribed in Roberts' Rules of Order, as most recently amended. ## Article VII: ## Officers of the Board of Regents Section 7.1: The Board of Regents shall elect its Chairperson, Vice-Chairperson, and Secretary annually at the Board's first meeting. ☀ Section 7.2: The Board shall appoint a Treasurer and the term of the Treasurer shall be at the pleasure of the Board. Section 7.3: The Board shall appoint any-and-such officers as it deems necessary, except no member of the Board shall be appointed Treasurer. ☀ The term of the Treasurer shall be at the pleasure of the Board. ## Article VIII: ## Duties of the Officers of the Board of Regents Bylaws Kentucky State University Board of Regents Effective Date: ___ Page12 of21 ===== PAGE 37 ===== Section 8.1: The Chairperson shall preside at the meetings of Board and shall be responsible for the management and orderly conduct of the business of the Board. The Chairperson shall issue calls to convene the Board in regular and special meetings. He/she shall determine the date, time and place of the Board meetings. ☀ Section 8.2: The Vice-Chairperson shall, in the absence or disability of the Chairperson, perform the duties of the Chairperson of the Board. ☀ Section 8.3: The Secretary shall keep and prepare all records, books and papers belonging to the Board. The Secretary shall prepare for and submit to Board members in advance an agenda of the business for discussion and decision by the Board. The Secretary shall record and keep on file accurate minutes and other documents of all Board deliberations and decisions. The Secretary shall submit the minutes of each Board meeting to members of the Board not more than thirty (30) days after each meeting, and shall ensure that the Board chairperson signs all approved minutes. The Secretary shall transmit all officially signed minutes to the University Archives in Blazer Library. Further, the Secretary shall prepare, under the direction of the Board, all reports and estimates, and shall execute all matters belonging to his office. The Secretary's compensation shall be fixed by the Board. ☀ Section 8.4: The Treasurer shall be responsible for the management of the financial affairs of the Board and the University in accordance with accepted budgetary procedures and state law. He/she shall receive and disburse money under the control of the Board, and perform all acts that pertain to his office under the direction of the Board. He/she shall present at each regular meeting of the Board a statement of the financial status of the University. Article IX: Committees of the Board of Regents Bylaws Kentucky State University Board of Regents Effective Date: ___ ===== PAGE 38 ===== Section 9.1: The standing committees of the Board of Regents shall be the Executive Committee, the Academic Affairs Committee, the Finance and Administration Committee, the Audit Committee, the Student Affairs Success and Enrollment Affairs Committee, and the External Relations and Advancement Development Committee and the Compensation Committee. Members and chairpersons of the standing committees of the Board shall be selected by the chairperson of the Board of Regents. Other standing committees of the Board shall be determined by the Board with members appointed by the chairperson. Ad hoc committees may be created and members appointed by the chairperson. The Compensation Committee shall be a standing committee of the Board of Regents; however, the membership of the Compensation Committee shall be comprised of the members of the Executive Committee. The Compensation Committee shall formulate and propose compensation guidelines, salary levels and annual salary adjustments, among other items, for consideration and approval by the Board. ☀ ☀ Section 9.2: Committees shall possess no delegated authority of the Board of Regents unless approved by a majority vote of the Board or as allowed under these By-laws. All actions of each committee, unless taken with delegated authority, shall constitute recommendations to the Board and shall be subject to approval by a majority vote of the Board. ☀ Section 9.3: All Committee members shall serve for a term of one year or until their successors have been duly selected by the Chairperson. In the event of a vacancy on a committee, the successor member shall be selected by the Chairperson of the Board of Regents and shall hold office for the balance of the term of office of the person vacating their office. ☀ Section 9.4: The Executive Committee shall be composed of the officers of the Board of Regents, the standing committee chairpersons, and the past Board chairperson. The chairperson of the Executive Committee shall be the chairperson of the Board of Regents. -The Executive Committee shall provide guidance to the President on matters that arise in the interim between regular meetings. The Executive Committee shall have the same powers as the Board of Regents during the interim between meetings of the board, except that it may not elect or dismiss a president of the University, create a new position in the University, abolish one already existing, nor adopt the annual budget for the University. The Executive Committee shall also serve as the President's Review and Compensation Committee, and shall present recommendations concerning same-the President's compensation to the Bylaws Kentucky State University Board of Regents Effective Date: _____ Page 14 of 21 ===== PAGE 39 ===== full Board for vote. The Executive Committee shall involve the entire Board in this evaluation process and shall also solicit input from university stakeholders. The Executive Committee shall be responsible for the planning of the Board's annual retreat. The Executive Committee shall submit to the board Board of Regents for its ratification at the next full Board meeting a complete record of all actions taken by the Executive Committee. The Secretary of the Board of Regents shall attend all meetings of the Executive Committee and shall serve as its secretary. Notwithstanding the foregoing, in matters involving the review, evaluation and compensation recommendations for the President, the Secretary may not be present during said discussions, if the Secretary is a University employee, and in such case, the chairperson in collaboration with the Board's compensation advisor, if any, shall serve as secretary and provide an accurate record of the minutes from said meeting. ☀ ☀ Section 9.5: The Academic Affairs Committee shall be responsible for evaluating all recommendations coming to the Board of Regents affecting the academic and intellectual affairs of the University. The President of the University shall appoint a member of the staff to serve as administrative agent to the committee. ☀ Section 9.6: The Finance and Administration Committee shall review, evaluate, and provide guidance on financial issues, including the biennial budget requests submitted to governmental agencies, the annual operating budget of the University for each fiscal year, and all other financial, administrative, and budgetary matters. The President of the University shall appoint a member of the staff to serve as administrative agent to the committee. ☀ Section 9.7: The Audit Committee shall recommend to the Board of Regents the engagement of an external auditing firm. The Committee shall meet with the external auditor and receive and review the auditor's external reports and University comments for the annual audit. The Internal Auditor shall serve as administrative agent to the committee. ☀ Section 9.8: The Student Affairs Success and Enrollment Affairs Committee shall review, evaluate, and provide guidance on all matters related to student life issues. The President of the University shall appoint a member of the staff to serve as administrative agent to the committee. ☀ Section 9.9: The External Relations and Advancement-Development Committee shall review evaluate, and provide guidance on all matters related to fund-raising, Bylaws Kentucky State University Board of Regents Effective Date: _____ Page 15 of 21 ===== PAGE 40 ===== development, public relations and alumni, including providing leadership for Board of Regents' fund-raising efforts. The President of the University shall appoint a member of the staff to serve as administrative agent to the committee. *** potential name change proposed?—E. Lysonge ## ☀ Section 9.10: The Compensation Committee shall formulate and propose compensation guidelines, salary levels and annual salary adjustments, among other items, for consideration and approval by the Board. [new section from 9.1] ## Article X: ## The President of Kentucky State University Section 10: The President of Kentucky State University reports to the Board of Regents and serves at its pleasure. The powers and duties of the President include the following: A. (a) To be the chief administrative and educational officer of the University and to perform such other powers as may be prescribed by the Board of Regents; A. A. B.(b) To make and provide interpretation and implementation of Board Policy, through the promulgation of administrative regulations, for all aspects of the academic and other functions of the University, coordinating it with whatever individual, groups, or organizations may be required; B. B. B. C.(c)___ To recommend major policies and other major actions to the Board of Regents for its final action and to be the official medium of communication between the Board of Regents and the various segments of the University and their official bodies; €. €. D.(d) To make final decisions for which he/she has received delegated responsibility over a wide range of activities from the Board of Regents; such actions are ordinarily taken after consultation with various concerned individuals, groups, or organizations; D. D. ===== PAGE 41 ===== D. (e) To enforce the Board Policies, administrative regulations, and guidelines of the University. E. E. F.(f) To recommend to the Board the employment of administrative faculty and vice-president level and above staff. F. G. To employ all other non-administrative faculty, and employees of the University whose compensation shall fall within the approved University Classification and Compensation System. (g) G. H.(h) To recommend to the Board changes in administrative structure and organization of the University which enhance and align with its mission. H. H. I.(i) To recommend to the Board faculty tenure and administrative promotion decisions. I. J.(j) To prepare annual budgets after consultation with, and input from, the Board and others as appropriate, and to recommend all other budgets and any modifications of these budgets as needed to the Board. J. K.(k) To appoint University-wide committees. K. K. L.(l) To manage the University through officials that report to the Office of the President. L. L. M. To provide leadership in the development of academic instruction, research, and service programs by making initiatives to the Faculty Senate and to the faculties of academic units and their planning committees concerning changes in curriculum or academic policies which are the responsibility of the faculty. ===== PAGE 42 ===== M. N.(n) To serve as an ex-officio member of all faculties and all faculty committees, to call and preside over the meeting of the University faculty and such advisory groups as the President chooses to appoint, and at his/her direction to call meetings of the faculties of the several colleges and schools of the University. N. O.(o) To be responsible for all University functions relating to student affairs and the life of students at the University, as well as intramural and extramural or intercollegiate athletics; 0. 0. (p) To be responsible for all aspects of the relations of the University to the community and for providing information about the activities of the University; P... P. P. P. Q. (q) To be responsible for public relations: Q R. (r) To maintain continuing relations with governmental agencies at city, county, state, and federal levels as required by the mission of the University; R. R. S. (s) To be responsible for relations of the University with alumni; S. S. T.(t) To be responsible for raising funds from the federal government, state and local public sources, corporations, private individuals, foundations and other sources; T. T. ===== PAGE 43 ===== U. (v) V. V. V. V. W.(w) To prepare and submit to the Board of Regents an annual report on the work and general status of the University; and W. W. X. (x) To delegate as appropriate the responsibility for carrying out any of the above functions. ## Article XI: ## Indemnification, and Legal Defense of Board Members, Conflicts of Interest and Confidential Information Section 11.1: It is the purpose of this articleBy-law to provide that any member of the Board of Regents be afforded a legal defense and indemnification for any acts or actions taken in good faith and within the scope of his/her official duties while on the official business of the University. Section 11.2: A conflict of interest occurs when any Board member has existing or potential interests that compete or could compete with the interests of the University or any directly affiliated organization, or which impairs or might reasonably impair Bylaws Kentucky State University Board of Regents Effective Date: _____ Page 19 of 21 ===== PAGE 44 ===== such Board members' independent, unbiased judgment in the discharge of one's responsibility. –Board members shall avoid entering into or maintaining any business or financial interests, transactions, acquisition or sale of property interest which are or may be in conflict with those of the University. Board members shall avoid any personal interest, direct or indirect, in any contract for the purchase of land, buildings, supplies, or services for the University. Board members shall not accept gifts or benefits from any person holding contracts for supplies or services to the University. [Previously in article III] Section 11.3: Board members shall refrain from using, discussing or disseminating confidential information obtained in his or her official capacity as a Board member and through board discussions during closed sessions of the board in any manner and for any reason, including, but not limited to, using, disclosing or disseminating such information with the intent to obtain financial gain for self or any other person or any other business with which the Board member is associated. [New section-Barfield] Section 11.4: Whenever any conflict of interest appears to exist after taking the oath of office, the Board member shall immediately fully disclose that conflict to the Executive Committee and to the President of the University. In no event shall such disclosure be delayed longer than seventy-two (72) house prior to consideration of the matter by the Board. [Previously in article III] # Article XII: ## Amendments Section 12: These bylaws may be amended by the affirmative vote of a majority of the membership of the Board of Regents providing notice in writing of any proposed amendment is given to members at least 10 days prior to a meeting at which the amendment is to be discussed. The ten day notice provision may be waived upon a vote of the majority of the Board members. ===== PAGE 45 ===== July 24, 2014 Version HISTORY: Adopted March 3, 1983; Revised May 9, 1992; Revised November 16, 1992; Revised January 26, 1996; Revised January 24, 1997; Revised October 30, 1998; Revised February 5, 1999; Major Revision October 24, 2003; Revised November 5, 2004; Revised: ___ ===== PAGE 46 ===== Kentucky State University Board of Regents Meeting # Academic Affairs Committee January 22, 2015 Regent Karen Bearden, Chairperson Regent Mindy Barfield Regent Elaine Farris Regent Elgie McFayden Regent Syamala Reddy Regent Breana L. Smith Dr. Beverly Downing, Staff [ 1 ] ===== PAGE 47 ===== KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents Academic Affairs Committee January 22, 2015 1:00 pm to 2:30 pm Board Room – Academic Services Building Frankfort, Kentucky ## MEETING INDEX Section Page A1 Approval of Minutes 4 A2 Executive Summary Information 7 Internal Faculty Review 17 ===== PAGE 48 ===== # KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents Academic Affairs Committee January 22, 2015 1:00 pm to 2:30 pm Board Room – Academic Services Building Frankfort, Kentucky ## AGENDA I. Call to Order Regent Karen Bearden, Chairperson II. Roll Call Dr. Beverly Downing, Interim Vice President for Academic Affairs III. Opening Remarks Regent Bearden IV. Approval of Minutes Regent Bearden V. Executive Summary Report Dr. Downing VI Informational Items: Internal Faculty Review Dr. Downing VII. Discussion Dr. Downing VIII. Adjournment ===== PAGE 49 =====
Agenda Item Background
To:Board of Regents Academic AffairsDate: January 22, 2015
From:Dr. Beverly Downing, Interim Vice President for Academic Affairs
Subject:October 24, 2014 Committee Minutes
Reason for Consideration:ApprovalEnclosures: Yes
## Background: The minutes of the Academic Affairs Committee meeting for October 24, 2014, require approval in order to become an official part of the committee records. ## Recommendation: It is recommended that the Academic Affairs Committee approve the minutes of the October 24, 2014 meeting.
Approval
Initiator:Dr. Beverly Downing, Interim Vice President for Academic Affairs
Board Action Date:January 22, 2015
Effective Date:January 22, 2015
===== PAGE 50 ===== # KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents Academic Affairs Committee October 24, 2014 9:00 a.m. Board Room – Academic Services Building Frankfort, Kentucky ## MINUTES Regent Karen Bearden, Chairperson called the Academic Affairs Committee meeting of the Kentucky State University Board of Regents to order at 9:00 a.m. on October 24, 2014. Regent Bearden asked the secretary to call roll: Karen Bearden Mindy Barfield Elaine Farris Present Present Present Elgie McFayden Syamala Reddy Breana L. Smith Present Not Present Not Present A quorum was declared. Action: A motion for the approval of the Academic Affairs Committee's July 25, 2014, minutes was made by Regent Barfield and seconded by Regent McFayden. The motion passed. Dr. Downing's Executive Report affirms that Academic Affairs and Land Grant faculty and staff remain dedicated to teaching, research, and service. Action: A motion was made and seconded for approval of authorization for the President to confer the degrees at the December 13, 2014, commencement ceremony. The motion passed. A motion was made and seconded for adjournment of the Academic Affairs' Committee October 24, 2014 meeting. The motion passed. The meeting adjourned at 10:29 a.m. ===== PAGE 51 ===== Submitted by: Approved by:
Submitted by:Approved by:
Dr. Beverly Downing, Interim Vice President for Academic AffairsRegent Karen Bearden, Chairperson Academic Affairs Committee
Approved with no corrections
Approved with corrections
( 6 )
===== PAGE 52 =====
Agenda Item Background
To:Board of Regents Academic AffairsDate: January 22, 2015
From:Dr. Beverly Downing, Interim Vice President for Academic Affairs
Subject:Academic Affairs Report
Reason for Consideration:ApprovalEnclosures: Yes
## Background: The Academic Affairs Report submitted by Dr. Beverly Downing, Interim Vice President for Academic Affairs is present on the following pages. ## Recommendation:
Informational Item
Initiator:Dr. Beverly Downing, Interim Vice President for Academic Affairs
Board Action Date:January 22, 2015
Effective Date:January 22, 2015
===== PAGE 53 ===== # EXECUTIVE SUMMARY ## UNIT ACCOMPLISHMENTS ## COLLEGE OF ARTS AND SCIENCES ## Presentations, Performances, and Publications Dr. Thomas McPartland, Chair of the Whitney Young School (WYS) published an article on “Historicism” in the Encyclopedia of Political Thought (recently published by Wiley). The abstract on the article: “Historicism” is the English translation of the German “Historismus.” The WYS hosted the annual Liberal Studies Lecture Series this fall. The series was open to the campus and the general public. Three chairs were among the presenters. Topics included forensics by Dr. Tierra Freeman and Mara Merlino; the intersection of literature and music in the works of Byron and Schumann by Drs. Todd Davis and Mark Tollefsen, and the history of revolutions and ISIS by Dr. Thomas McPartland. Dr. Tucker Landy of the Whitney Young School of Honors and Liberal Studies attended the 46th Annual Conference of the Northeastern Political Science Association in Boston from November 12-15, 2014. He presented a paper entitled, “Strauss, the Two Roots of Morality, and the Non-Philosophic Erotic Man.” Dr. Erin Giles gave a presentation entitled “Social Media Strategies for Organizational Success” during a Bluegrass Project Management Institute meeting at the Paul Sawyer Library on October 9, 2014. The presentation included an overview of the current social media landscape as well as tips for using strategy in social media for organizations or businesses. Dr. George Shields is one of the subjects of an article forthcoming in the Oxford University Journal, Mind. It is perhaps the oldest and most prestigious journal of professional philosophy. Mind is so exclusive, they publish about 24 articles out of 12,000 entries per year. To be discussed in a Mind article is to be taken seriously at the highest level of professional philosophy. Dr. Karah Stokes’ poem, “Beneath Us the Dead” has been accepted for publication in Pine Mountain Sand & Gravel, the literary journal of the Southern Appalachian Writers Cooperative. Volume 18, “The Dead,” will be available in March 2015. Moffett, Joe (2014). Mysticism in Postmodernist Long Poems: Contemplation of the Divine. Bethlehem: PA Lehigh University Press. ## Student Accomplishments Senior Raven Watkins presented a paper, “The Distopia of Utopia” where, analyzing Thomas More’s famous book, she concludes that with peace comes control. Sophomores, Jade Brooks, ===== PAGE 54 ===== Rachel Clowers, and Deanna Trombley explored the nature of a tragic hero in their panel, Okonkwo’s “Tragedy: Considering the Hero of Chinua Achebe’s Things Fall Apart.” Sophomore, Andrew Teal argued for the political virtue of a balance of power and separation of powers in his presentation on “Balance of Power in the Roman and United States Constitutions”. Dr. Gary Elliott helped with the preparation of the student presenters. Dr. Thomas McPartland, Chair of Whitney Young School, who accompanied the students, is also president of the Kentucky Honors Roundtable. ## Community & University Service Drs. Mark Tollefsen and Jae Won Kim began their terms as president and vice-president, respectively, of the Bluegrass Area Music Teachers' Association (BAMTA). Dr. Erin E. Gilles was elected as the Eastern Representative for the Kentucky Communication Association for 2014-2016. Dr. Sam Oleka initiated and facilitated the meeting between President Raymond Burse and the official representatives of the Vice Chancellor from Michael Okpara University of Agriculture, Umuahia, Nigeria. During the visit, a memorandum of understanding was signed on the implementation of partnerships, research on grants proposal writing collaborations, faculty engagement, and student exchange programs. Drs. Shannon M. Brogan and Erin E. Gilles presented on a panel at the 2014 Kentucky Communication Association Conference with undergraduate students Suncearae Spears and Robert Willis titled, “Paying it Forward: Uniting Communities in Times of Need.” ## COLLEGE OF PROFESSIONAL STUDIES ## Presentations, Performances, and Publications ## School of Nursing Abdullah Alhurani received American Heart Association’s (AHA) Instructor of Basic life Support (BLS) and Advanced Cardiovascular Life Support (ACLS) certifications. This certifies him to conduct training workshops and to provide AHA certificates for BLS and ACLS. Jennifer Miller’s abstract, "A Nationwide Cross-Sectional Study of Gender Disparities in Symptoms of Anxiety, Depression and Quality of Life in Implantable Cardioverter Defibrillator Recipients," Control ID 2107764, was accepted by Southern Nursing Research Society (SNRS) as a poster presentation for inclusion in the 2015 conference program. ## Community & University Service The School of Nursing collaborated with Student Health Services to host a blood drive. Two nursing students helped with registering participants for the drive. The School of Nursing collaborated with Student Services to host a health fair on October 28, 2014. Fifteen nursing students gave sixty-five (65) influenza vaccinations and took the blood pressure of eighty (80) participants. ===== PAGE 55 ===== # COLLEGE OF BUSINESS AND COMPUTER SCIENCE Dr. Abdul M. Turay attended a “Professors Conference” organized by the Federal Reserve Bank of St. Louis. The meeting was held in St. Louis, MO, November 6-7, 2014. Presentations, Performances, and Publications Drs. Albert Assibey-Mensah and Abdul M. Turay were presenters at the 2014 Small, Limited Resources, Minority Farmers Conference at Kentucky State University. The title of their presentation was “The Economics of Small Farms.” The conference was held on November 18-20, 2014. Dr. Rene Desbborde presented a paper entitled, “Picasso: A Case Study of the Four Ps of Art Marketing” at the Atlantic Marketing Association Annual Conference in Asheville, NC, September 24-27, 2014. ## COLLEGE OF AGRICULTURE, FOOD SCIENCE AND SUSTAINABLE SYSTEMS (CAFSSS) ## Teaching Innovation Drs. Buddhi Gyawali, George Antonious, Maifan Silitonga, and Chi Shen (2014, fall) are implementing an NSF-HBCU-UP grant, “Minor in Geoscience Application” project. This 19 credit hour curriculum is being developed and will be finalized soon for approval. Scholarly Activities - Publications Twenty three (23) publications were produced by CAFSSS faculty/staff: • Agriculture and Natural Resources (ANR) = 5 (5 faculty/staff) ○ Research = 3 (3 faculty/staff), Extension = 2 (2 faculty/staff) Aquaculture (AQU) = 10 (10 faculty/staff) ○ Research = 6 (6 faculty/staff), Extension = 4 (4 faculty/staff) • Environmental Studies & Sustainable Systems (ESSS) = 2 (2 faculty/staff) ○ Research = 0, Extension = 2 (2 faculty/staff) • Food and Animal Science (FAS) = 4 (4 faculty/staff) ○ Research = 3 (3 faculty/staff), Extension = 1 (1 faculty/staff) • Family and Consumer Sciences (FCS) = 2 (2 faculty/staff) ○ Research = 0, Extension = 2 (2 faculty/staff) ## Scholarly Activities – Presentations A total of Ninety two (92) presentations were conducted by CAFSSS faculty/staff and students: • ANR = 17 (12 faculty/staff, 5 undergrad) ○ Research = 8 (8 faculty/staff), Extension = 4 (4 faculty/staff) • AQU =15 (10 faculty/staff, 3 undergrad, 2 grad) ===== PAGE 56 ===== ○ Research = 4 (4 faculty/staff), Extension = 6 (6 faculty/staff) - ESSS = 19 (14 faculty/staff, 3 undergrad, 2 grad) ○ Research = 5 (5 faculty/staff), Extension = 9 (9 faculty/staff) • FAS = 15 (14 faculty/staff, 1 grad) ○ Research = 0, Extension = 14 (14 faculty/staff) • FCS =26 (26 faculty/staff) ○ Research = 0, Extension = 26 (26 faculty/staff) ## Grants Submitted A total of eight (8) proposals were submitted for a request of $1,115,909. ## Grants Awarded A total of five (5) grants received notification of funding for a total of $225,238 awarded. ## Awards Dr. Marion Simon & Mr. Louie Rivers, Jr. received the Southern Region and National Team Award for “The Third Thursday Team” at the National Epsilon Sigma Phi Annual Meetings in Indianapolis, IN on October 8, 2014. Ms. Nancy Hubbard-Sánchez was selected by her peers as the recipient of the CCC Fellowship Mentor Award presented by North American Association for Environmental Education (NAAEE) on October 9, 2014, in Ottawa, Canada. ## DIVERSITY AND INCLUSION Dr. Vernell Bennett, the former Assistant Vice President for Diversity and Inclusion presented on KSU’s institutional diversity self-study at the Council on Postsecondary Education’s (CPE) Committee on Equal Opportunities’ October meeting. The University’s Promising Youth Center for Excellence was also featured during the quarterly meeting. The program’s director, Mr. Timothy Latham presented a PowerPoint presentation on the federal grant program and its participants. Dr. Bennett and members of the Campus Environment Team (CET) attended the annual cultural celebration sponsored by Dr. Herman Walston’s CDF 421 course. The reception was held to enable students to interact with various racial and ethnic minorities on campus and in the community, and to validate some of the various concepts they have learned and/or are studying in the course. Students enrolled in the course were required to invite at least one racial or ethnic minority and to provide an ethnic dish. Dr. Bennett is a member of the Kentucky Blacks in Higher Education’s Conference Planning Committee. During this reporting period, she attended several meetings to plan next April’s conference where she will be serving as a speaker. Dr. Bennett attended the Southern Region Education Board’s Compact for Faculty Diversity Conference and Recruitment Fair in Atlanta, Georgia. Six professionals expressed an interest in seeking employment at KSU in the following disciplines: biology, sociology, journalism, ===== PAGE 57 ===== electrical engineering, public health, and business/human resources. Curriculum vitas were provided to the vice president for academic affairs. Dr. Bennett attended The U.S. Department of Education, Office for Civil Rights' (OCR) seminar that focused on the substantive and procedural requirements of postsecondary institutions under Title IX. The seminar provided an analysis of the 2011 and 2014 Dear Colleague Letters, what constitutes a prompt and equitable response, the standards applicable to OCR's enforcement of compliance with Title IX, a college's responsibilities, possible remedies, procedural requirements, grievances procedures, recommended tools for prevention and best practices, and what to expect during an OCR Title IX investigation, including data requests and on-site visits. The seminar was held at the University of Louisville. Dr. Bennett is a member of the Central Kentucky Diversity Consortium. The consortium’s membership includes KSU, Centre College, Georgetown College, EKU, Bluegrass Community and Technical College, UK, and Transylvania University. The 2014 Multicultural Opportunities, Strategies and Institutional Inclusiveness Conference (MOSAIIC) was held December 4-5 at the Lyric Theatre in Lexington, Kentucky. Dr. Bennett transported KSU students to the two-day conference. ## University Service Dr. Vernell Bennett served as the coach for junior, elementary education major, Alexis Fonville who competed on the nationally televised Black College Quiz Show. The show was recorded in Atlanta, Georgia. ## ACADEMICS WITH ATTITUDE Kentucky State University’s SACS Quality Enhancement Plan, titled “Academics with Attitude (AWA)” completed its final fall semester on Monday, December 15, 2014, with 36/39 students from summer 2014. Courses included ENG 099, ENG 099/101, ENG 102, MAT 095, MAT 096, MAT 097, and MAT 111. The program has served 506 students over the past five years. Fifty-nine percent (300) of the students enrolled in the program have been retained. Two students have graduated. ## Supplemental Instruction Supplemental instruction, developed in collaboration with faculty, is provided by one full-time math Project Seminar Leader (PSL) and 4 part-time writing/reading Project Seminar Leaders. The professional supplemental instructors provide 3 hours per week of seminars per composition, reading, and math class, as well as tutoring at the AWA Study Tables 4 nights a week, 6:30-8:30 p.m. Attendance averaged 5 visits per week with 11 students attending more ===== PAGE 58 ===== than 4 times. PSLs saw 81 students through December 1, 2014. Students came most for reading; second for writing, and last for math although the difference was small. ## OFFICE OF REGIONAL STEWARDSHIP AND CIVIC ENGAGEMENT Since school began in August, approximately three hundred eighty (380) KSU students have participated in service projects in the Frankfort/Lexington community. The volunteered activities included The Roots and Heritage Festival in Lexington, assisting with voter registration drives, Constitution Day events, Pay it Forward Acts of Giving, mentoring in the local schools, Homecoming activities including the Stadium Clean-Up Recycling Project, hosting Halloween on the Hilltop, hosting the Green Job Fair, cleaning the fence line at the Greenhill Cemetery, Santa’s Helpers with the Franklin County Extension Office, Hosting a High School Student for a Day, Habitat for Humanity, Simon House, Franklin County Women’s Shelter, Senior Citizen Center, ACCESS Men’s Shelter and Soup Kitchen, The Center of Excellence for the Study of Kentucky African Americans, and the KSU Wesley Foundation Students’ Clothes Closet. Most of the students were fulfilling a ten-hour community service requirement for their University Orientation classes, or were members of Academics with Attitude living/learning group, or other service-learning classes that committed to one hundred (100) Days of Paying it Forward. In total, students have completed over 5,980 hours of service to date. Students participated in the Angel Tree project, mentoring in the public schools, assisting with the Kiwanis Club, Salvation Army, and other Christmas fundraising drives. One of the Pay it Forward service learning classes, Speech 103, taught by Dr. Shannon Brogan, organized students volunteering at six non-profit agencies at least two hours per week. Each of the six agencies had a group of students assigned to volunteer and learn about the non-profit agency. The Office of Regional Stewardship and Public Engagement provided each student with $100 as part of the $100 Solution, Turning $100 into a World of Change. Students submitted proposals and made presentations at the end of the semester about how they proposed to utilize the $100 donation. On November 21, 2014, The Office of Regional Stewardship and Public Engagement held a service recognition reception recognizing students, faculty, staff and community members who served the Frankfort community. Over one hundred thirty honorees were present and received awards and certificates for their service. ## THE GRADUATE SCHOOL ## Activities and Accomplishments The Graduate Studies Office has established folders for the graduate programs (DNP, MASPE, MBA, MCS, MES, MIBS, & MPA, & MSA) under the Graduate Studies OneDrive account. Each graduate program folder will store scanned graduate application materials for the program. The purpose of this initiative is to improve the handling of graduate application documents in the ===== PAGE 59 ===== short run until information for all admissions requirements have been coded in Banner. The short run measure will help achieve: 1. Timely access to application materials by approved interested stakeholders (e.g., Program Coordinators, Department Chairs, etc.). 2. Reduction in the number of copies of application materials distributed. 3. Reduction in costs of making multiple copies of application materials. 4. Better secured handling of application materials. The Graduate Studies website continues to be regularly updated as necessary. Recently, an “Opportunities for Graduate Students” webpage was added. The webpage is set up to provide information about employment, the profession, research, grants, and internship opportunities for KSU graduate students. The webpage can be accessed at www.kysu.edu/grad. A similar implementation has been made on Blackboard under Graduate Studies Community Site. The Director of Graduate Studies worked with the KSU Web Content manager to design websites for the Doctor of Nursing Practice (DNP) and the Master of Arts in Interdisciplinary Behavioral Sciences (MIBS). The MIBS website is accessible from http://kysu.edu/academics/graduate-studies/graduate-programs/. The DNP website will be available upon approval. Graduate Council meetings were held on September 10, 2014 and October 22, 2014. The Council recommended some changes in graduate studies policies. The changes are being finalized for Faculty Senate approval, and eventually the approval of University administration. A Graduate Students get-together event was held on September 12, 2014. Fifteen graduate students and several graduate faculty members participated in the event. ## BLAZER LIBRARY The Library has been given the approval to participate in the migration from the ExLibris Voyager Library system to the new OCLC Worldshare Management System. All Library faculty and staff will participate in the training and implementation. The system will go live May 15, 2015. The Library and Academic Affairs sponsored the Faculty Academic Fair on November 20, 2014 from 1:00-4:00 pm at Blazer Library. Twenty-one faculty from various units presented their recent publications and creative works at the event and the Library also promoted its databases and services. The library plans to make it an annual event to promote faculty scholarship. Blazer Library faculty; Nkechi Amadife, Raphael Jackson Sharon McGee, and Bobby Walter presented publications, poems and creative works during the Faculty Academic Fair. The Library extended its hours from December 8-11 from 8:00 am to 3:00 am, for finals exam week. Refreshments were provided by Academic Affairs for the students each night. ===== PAGE 60 ===== Education Librarian, Mr. Bobby Walter donated 158 children's books from the Library's State Textbook collection to the Rosenwald Center for Families and Children for its 2014 Fall Festival held on November 1, 2014. The Division of Fine Arts’ Art faculty and students displayed their creative paintings in the Library during the month of October and November. The idea was to share with the University community what the Art students are learning and creating in their painting classes. A special thanks to Drs. Jae Won Kim and Mark Tollefsen, professors from the Division of Fine Arts who donated copies of their newly released CD’s, Piano Works by Poulenc and Francaix, and Works for Solo Piano by Allende, Mompou and Pew to the Library. Blazer Library received a donation of philosophy and civil rights books from Dr. Alan B. Anderson, retired professor from the Department of Philosophy and Religion at Western Kentucky University and his wife Mrs. Denise Anderson. A special thanks is given to the Andersons for this educational and historic collection. Mrs. Dantrea Hampton coordinated the “An Afternoon with Santa” event which was held on December 14, 2014 from 4:30-6:00 pm at Blazer Library. The event was sponsored by KSU, Paul G. Blazer Library, Frankfort/Franklin County Branch of the NAACP, Beta Upsilon Omega Chapter of Alpha Kappa Alpha Sorority, Inc., and Friends of Santa and the Library. Fifteen children participated. ## UPWARD BOUND/TRIO/I3 GRANTS COLLEGE READINESS In keeping with the pride and tradition of helping students graduate from high school and enroll in college, the Upward Bound (UB) and GO College programs at KSU are performing well. The purpose of this summary is to provide an overview of the various activities and events that help prepare high school students for college. The Upward Bound program has been extremely busy during the academic year. The program began its tutoring program during the month of October with five KSU student tutors. On average, 12-15 students received tutoring on Tuesdays and Thursdays over 8 weeks of the semester. In addition, forty-five Upward Bound students participated in the college and academic workshops which included Criminal Justice, ACT test preparation, and financial aid during the Fall semester. The students participated in campus tours at Western Kentucky University and Morehead State University. Moreover, during the month of October, students participated in Kentucky State University’s Homecoming and dedicated a float to the mother of one of our Upward Bound participants who was recently diagnosed with breast cancer. A total of $347.00 was collected and donated to the family to assist with medical expenses. The students were featured in Frankfort’s State Journal newspaper. The Upward Bound program concluded the academic year with its Fifty Years of Upward Bound National Celebration. President Raymond Burse was the guest speaker. The UB students ===== PAGE 61 ===== participated in a service learning activity for the youth of Frankfort’s Kings Center on December 19th. The program is also focusing on its Annual Performance Report which is due on December 31. ## GO College Summary GO campus tours have taken place at Kentucky State University, Morehead University, and Northern Kentucky University. During KSU's Homecoming week, the program brought 40 seniors to campus for a campus tour, 30 of the seniors applied to KSU. GO College programs brought over one hundred students to KSU during the Open House. The GO College staff conducted workshops on college readiness and preparedness and hosted speakers to advise the students on financial aid, the college application process, and business decorum. The coaches also invited Kentucky State University's Student Support Service Counselor, Ms. Jacqueline Ford to speak about Kentucky State University and Student Support Services. ## OFFICE OF GRANTS AND SPONSORED PROGRAMS From October 28, 2014 through December 31, 2014, the Office of Research, Grants, and Sponsored Programs (ORGSP) was awarded grants totaling $636,435. ===== PAGE 62 =====
Agenda Item Background
To:Board of Regents Academic AffairsDate: January 22, 2015
From:Dr. Beverly Downing, Interim Vice President for Academic Affairs
Subject:Internal Faculty Review
Reason for Consideration:ApprovalEnclosures: Yes
## Background: ## Recommendation:
Informational Item
Initiator:Dr. Beverly Downing, Interim Vice President for Academic Affairs
Board Action Date:January 22, 2015
Effective Date:January 22, 2015
===== PAGE 63 ===== # KENTUCKY STATE UNIVERSITY Frankfort, KY Office of Academic Affairs Internal Faculty Review Kentucky State University ## Executive Summary An external organization with numerous years of experiences and resources to do this work for institutions across the country will conduct the faculty productivity study. Kentucky institutions (see Appendix A) like Kentucky State University have found this tool most helpful in the absence of other affordable tools and personnel to conduct these types of analyses. Additionally, this organization maintains such data on a daily basis. In the absence of a full-time assessment and evaluation professional, the Delaware Cost Study (Appendix B) is the ideal solution to provide valuable analysis of data to inform institutional decision-making. This service costs the University $2,000 to join and $1,000 per year of subsequent participation. The Delaware Cost Study uses an analytical tool to benchmark teaching workloads, instructional costs, and productivity by academic discipline for the institution. Specifically, the results of the study will provide analyses that respond to Kentucky State University's (KSU) ability to determine: - How teaching loads of tenured faculty in academic programs compare with national benchmarks? What proportion of undergraduate teaching at KSU is done by regular full-time faculty, and how that compares with other colleges and universities? - Does it cost more to deliver a student credit hour of instruction at KSU than it does at peer institutions? - How does externally funded research and service within academic departments measure up against competitors? The detailed database will provide answers to these questions and more (see Sample Data Reports in Appendix C). Participation in the Delaware Cost Study affords KSU a clear, concise analyses of data on teaching loads by faculty category, direct cost of instruction and externally funded research and service productivity. The Delaware Cost Study will also enable KSU to compare its data with national benchmarks arrayed by Carnegie institution type, highest degree offered and undergraduate/graduate program mix within a discipline. ===== PAGE 64 ===== The data collection phase is currently underway with the submission deadline of January 30, 2015. Academic Affairs is working with the Office of Institutional Research to complete the data collection process. Unfortunately, the results of the study will not be received until July 31, 2015. Allowance of time for the institution to analyze this data and input it into the 2015-16 academic year is, therefore, limited. The data will, however, contribute to the institution's ability to plan its course of action strategically for the future. Therefore, this review has been expedited. This report precedes a more comprehensive report inclusive of data to be collected through March 1, 2015. As a result of significant attrition in student enrollment, changes in the institutions tuition structure and much administrative realignment (relocation of academic support programs from Student Affairs to Academic Affairs), it is imperative that data from the current academic year be used to establish benchmarks. In so doing, the institution will be able to plan for enrollment growth and retention. In the following report, we will review data relative to program enrollment by major, faculty loads, recruitment and retention, and graduation. This report will provide the data, observations derived from the data, and recommendations. While not the optimal approach, this report will provide input for discussion and further analyses in decision-making to improve the institution's operational and financial efficiency. This report only includes full-time faculty (some with release time in other areas of work) and full-time students. The full internal productivity study is due on March 1, 2015. This document represents a preliminary review. A full report will follow in March prior to the completion of the Delaware Cost Study that is scheduled for July 2015. ## Enrollments by Program The data in this section reflects program students by major. It does not indicate the number of students who have declared minors in any program. The Banner system is not set up to track “minors.” We will be working with Information Technology to correct this problem. The good news is that the way we operate is reflective of an atmosphere of increased accountability. It is notable that more than 1,300 students attempted the pre-registration process for the Spring 2015 semester. Increases in students engaging in this process resulted in more than 300% improvement in the pre-registration process, based on the previous year's pre-registration numbers. ===== PAGE 65 =====
ClassTotalNumber of FacultyPh.D.ABDMasters
FreshmanSophomoreJuniorSeniorUG Non DegreeMastersGR Non DegreeHigh School
African Studies41000000511
Agriculture/Aquaculture16167190000581717
Biology32171526000090651
Business653029390000163871
Business Administration00000100010981
Chemistry352800001833
Computer Sciences11121122028008455
Criminal Justice36283736000013733
Electronic Technology00010000111
Elementary Education2825132400009033
English123100000161679
Environmental Studies000001500151010
Fine/Studio Arts3416000014312
Human Development & Family Studies32142300004211
Information Technology3321200002011
Liberal Arts/WYS5431300002577
Mass Communication & Journalism1913162200007011
Mathematics1410970000401165
Music13525000025844
Non Degree00002309104136
Nursing48535787000024514410
Physical Education2413231700007711
Political Sciences524900002033
Psychology2119192900008844
Public Administration35310055007622
Social Sciences331213000031431
Social Work1418202700007933
Spanish21010000422
Special Education0000015001544
Undeclared130391490000192
Total5063303164752312391041886151116332
Table 1 shows the actual number of students enrolled during Fall 2014 by major and classification. The top five most populated programs are nursing, business, criminal justice, biology, and education. Also couched in the top are the undecided category and the non-degreed groups that primarily consists of dual credit students. ===== PAGE 66 ===== There is much-needed effort in the recruitment of students for all programs. Our Nursing program lists 245 majors, and is the only program with over 200 students enrolled. There are 16 programs with fewer than 50 students and of those, 9 programs have fewer than 20 majors. (Table 3) It is only by staffing the general education requirements that many faculty members are able to fulfill their full-time teaching load of 12 credit hours per semester. ## What the Data Tells Us? The data tells us that we have a pressing need to recruit students to our under-enrolled programs. There are sixteen (16) programs where fewer than fifty (50) students are enrolled. These programs tend to rely heavily on providing general education service area courses to complete their teaching loads. ## Recommendation The following recommendations are offered given the data on program enrollment: 1. That each program area develop and implement an aggressive recruitment plan to increase the number of students in its major programs. 2. That each academic program actively engage in helping students who are undecided to consider majoring in its program. 3. That faculty identify and pursue possible scholarship and internship opportunities for their students. 4. That faculty strengthen their teaching and learning, and assessment skills, to keep students engaged and hungry for knowledge. 5. That the institution considers combining appropriate programs to reduce the number of major fields. 6. That the registrar's office develops a method of identifying student minors in the student management system. 7. That a full-time Director of Graduate Studies be identified and hired. 8. That a Graduate School Recruiter be hired to coordinate recruitment efforts for graduate students. ## Faculty Instructional Loads Faculty instructional loads can be assessed in several different ways. When considering which calculation of the Full-time Equivalence for Faculty (FTEF) to be used one of the most difficult variables to capture is where to factor in the teaching of cross-referenced and developmental coursework. Therefore, the “Origin of Instructor” method will be used here in this calculation. This method is consistent with that employed by the Delaware Cost Study in its analyses of data. A trained statistician should only undertake the calculation of data related to FTEF. ===== PAGE 67 ===== Therefore, what you will find here are charts that outline data fields that are critical to making these calculations. The first area, to be reviewed, is the faculty to student ratio based on program enrollment. Many of KSU's programs are overstaffed with faculty. Likewise, there are a few programs where significant enrollments exist, but an inadequate number of faculty are available to deliver instruction. ## Faculty by Program and Degree Level Table 2 demonstrates that Kentucky State University has ample faculty with the doctoral degree. Every degree program has at least one full-time faculty member with the doctoral degree except for Health and Physical Education. In that program, there are two part-time faculty members with the doctorate and care is taken to ensure that the students are scheduled to receive at least twenty-five percent of their degree required course hours from instructors with doctorates. While inadequately staffed in this one program, through strategic management of the schedule, the university can ensure compliance with SACS Standard 3.5.4 (see Appendix D). Dr. Beverly Downing and one other faculty member hold earned doctoral degrees in health and physical education. Of the 29 credit hours in the content area 10 credit hours are taught by these individuals in the physical education teaching program. This represents 34% of the content. In the physical education non-teaching program, there are 42 content hours of which 12 credit hours are taught by these individuals. This represents 28.5% of the content. In both cases, the 25% SACS requirement is exceeded. There are 151 full-time teaching faculty at Kentucky State University. Of these faculty members, 116 (77%) faculty members hold doctoral degrees and 35 (23%) faculty members hold Master’s degrees (including three that are all but dissertation). The terminal degree is defined differently in some disciplines. The Juris Doctorate (JD) and Master of Fine Arts (MFA) are considered terminal degrees in their disciplines. These latter levels are not included in the doctoral calculation. If added to the doctoral category, then the number of faculty with the doctorate would be increased by five (5). It is also important to note that the faculty size currently in place at KSU once served a student population of more than 2,300. Over the past two years, that enrollment number has dropped drastically to less than 1,800 students. With only 49% of the faculty tenured (49% of 151=74), there is opportunity for reduction of faculty. ===== PAGE 68 =====
Table 2: Percentage of Faculty by Degree Level
Total Number of
Teaching FacultyPh.D.Masters
African Studies11
Agriculture/Aquaculture1717
Biology651
Business871
Business Administration981
Chemistry33
Computer Sciences55
Criminal Justice33
Electronic Technology11
Elementary Education33
English1679
Environmental Studies1010
Fine/Studio Arts312
Human Development & Family Studies11
Information Technology11
Liberal Arts/WYS77
Mass Communication & Journalism11
Mathematics1165
Music844
Nursing14410
Physical Education11
Political Sciences33
Psychology44
Public Administration22
Social Sciences: Sociology22
Social Sciences: History211
Social Work33
Spanish22
Special Education44
Total151116 (77%)35 (23%)
===== PAGE 69 ===== ## What the Data Tells Us? To KSU’s advantage, seventy-seven percent (77%) of its faculty hold the doctoral degree. The Southern Association of Colleges and Schools (SACS), our regional accreditation agency, requires that students receive at least 25% of their major degree course hours from a person who holds the earned doctorate or the equivalent of the terminal degree. (See Appendix D). ## Recommendation While the university possesses a well-qualified teaching faculty, this report represents the starting point of reassessing the distribution of faculty relative to institutional programs and their enrollments. As an example, the data outlined in Table 3 shows areas where the institution is understaffed in red. There are five programs (Criminal Justice, Human Development and Family Studies, Mass Communication and Journalism, Physical Education, and Public Administration) where student demand outweighs the institution's ability to provide adequate faculty to serve in the roles of advisement and teaching. The student to faculty ratios for these programs far exceeds the institution's ability to serve these students adequately. Traditionally, these areas are served by extending resources to hire adjunct faculty to teach courses, but still leaves a shortage of faculty to advise students majoring in these programs. Table 3 also indicates that there are 16 overstaffed programs (African Studies, Agriculture/Aquaculture, Biology, Business Administration, Chemistry, Electronic Technology, English, Environmental Studies, Fine/Studio Arts, Information Technology, Mathematics, Music, Political Sciences, Social Sciences, Spanish, and Special Education). Keep in mind that student to faculty ratios for many of the programs that appear overstaffed with faculty based on the number of majors in their program (Table 3) are not overstaffed when their support of the general education requirements are considered. (Biology, Chemistry, English, Fine/Studio Arts, Liberal Arts/WYS, Mathematics, Music, Social Sciences, Spanish) (Table 5) This review is the first step in considering a serious reduction of faculty. Our tenure-track faculty members (44 faculty members are tenure-track) have received official notification of “non-reappointment.” We also have 33 faculty members who as “non-tenure-track faculty” are subject to yearly term appointments. We will be using the data provided by this report to make decisions regarding areas where additional faculty members are needed (Criminal Justice, Human Development and Family Studies, Mass Communication and Journalism, Physical Education, and Public Administration) and reducing the number of faculty members in overstaffed areas (African Studies, Agriculture/Aquaculture, Biology, Business Administration, Chemistry, Electronic Technology, English, Environmental Studies, Fine/Studio Arts, Information Technology, Mathematics, Music, Political Sciences, Social Sciences, Spanish, and Special Education) while maintaining our ability to meet the needs of our students in the area of general education requirements. ===== PAGE 70 =====
First Program of ChoiceNumber of Students by ProgramNumber of Faculty by ProgramFaculty to Student Ratio
African Studies511 to 5
Agriculture/Aquaculture58171 to 4CODE
Biology9061 to 15Under Staffing
Business16381 to 20Over staffing
Business Administration1091 to 1Adequate Staffing
Chemistry1831 to 6
Computer Sciences8451 to 17
Criminal Justice13731 to 45
Electronic Technology111 to 1
Elementary Education9031 to 30
English16161 to 1
Environmental Studies15101 to 2
Fine/Studio Arts1431 to 5
Human Development & Family Studies4211 to 42
Information Technology2011 to 20
Liberal Arts/WYS2571 to 4
Mass Communication & Journalism7011 to 70
Mathematics40111 to 4
Music2581 to 3
Nursing245141 to 18
Physical Education7711 to 77
Political Sciences2031 to 7
Psychology8841 to 22
Public Administration7621 to 38
Social Sciences/Sociology/History3141 to 8
Social Work7931 to 26
Spanish421 to 2
Special Education1541 to 4
Undeclared192
Non Degree136
TOTALS1886151
===== PAGE 71 ===== ## What the Data Tells Us? There are sixteen (16) programs at the institution where the faculty to student ratios are lower than 1 to 15. Despite the low ratios for these programs, there is no indication that retention rates for these programs are any better than those programs that are understaffed or adequately staffed. As an example, two of the programs listed in Table 3 are Criminal Justice (1-15) and Child Development (1-42). Many would believe that the program with the lowest ratio (Criminal Justice) would be poised to have the strongest graduation rate. However, Criminal Justice had a 10.3% graduation rate for the 2007 graduation cohort while Child Development registered a graduation rate of 37.5% during the same period. While the faculty to student ratio does not always have an impact on student retention and graduation, it is inferred in this data. There is an opportunity in our ability to drive change in the quality of faculty advisement through professional development and monitoring accountability. These interventions could provide significant impact on our graduation rates. ## Recommendation The most critical recommendation is for immediate impact to enhance KSU's efficiency of operations and fiscal position is two-fold. First a reduction in the faculty workforce is unavoidable. Secondly, the number of degree programs offered will have to be reduced strategically. KSU should also consider a more interdisciplinary approach to its academic programs. This would reduce or streamline the course work and the members of faculty needed to deliver the course content. ===== PAGE 72 =====
Table 4: Full-Time Equivalent Faculty (FTFE) Coverage of Service Courses Fall 2014
First Program of ChoiceNumber of Students by ProgramNumber of Faculty by ProgramFaculty to Student RatioCredit Hours of Required Service CoursesStudents Taught
African Studies511 to 50
Agriculture/Aquaculture58171 to 40
Biology9061 to 153257
Business16381 to 20358
Business Administration1091 to 1
Chemistry1831 to 3358
Computer Sciences8451 to 1730
Criminal Justice13731 to 450
Electronic Technology111 to 10
Elementary Education9031 to 300
English16161 to 112628
Environmental Studies15101 to 2
Fine/Studio Arts1431 to 56200
Human Development & Family Studies4211 to 420
Information Technology2011 to 200
Liberal Arts/WYS2571 to 4658
Mass Communication & Journalism7011 to 700
Mathematics40111 to 42116
Music2581 to 33153
Nursing245141 to 180
Physical Education7711 to 770
Political Sciences2031 to 70
Psychology8841 to 223414
Public Administration7621 to 190
Social Sciences:Sociology/History3141 to 86368
Social Work7931 to 260
Spanish/ASL421 to 26
Special Education1541 to 4
Undeclared192
Non Degree136
TOTAL1886151
===== PAGE 73 ===== ## What the Data Tells Us? Table 4 addresses those areas at the institution that serve in the capacity of teaching general education courses for all students at the University. All of the general education courses are mandatory although some are provided as options in satisfying knowledge in a particular category. For example, every student is required to complete English 101 and 102, English Composition courses six (6) credit hours. Student may choose an additional English course as they seek to satisfy a categorical general education requirement listed under Liberal Studies. Some programs, such as English and Fine Arts, have few student majors in their programs. However, these programs serve the general institutional population through providing service courses in general studies. English provides from four (4) to twelve (12) credit hours of courses through general education. (See Table 4 above). ## Recommendation The institution could greatly benefit from increased enrollments in English, Mathematics, and other programs where low enrollments exist. With sixteen English majors and a faculty to student ratio of 1 to 1, there is ample time for faculty to engage in recruitment. Likewise, Mathematics has 40 student majors and eleven (11) faculty members constituting a 1 to 4 ratio. It is strongly recommended that both of these areas develop recruitment plans and actively engage in recruitment activities to increase the core number of students in their majors. The institution is carrying a costly burden to support the general education program through these programs. It is further recommended that the institution consider removal of and consolidation of some programs. For instance, the removal of the AIT program. The plan is to create an area of focus in network engineering to be housed in the Computer Science program. If approved, a “teach out plan” will be designed to manage the twenty-one (21) students currently enrolled in the programs. Kentucky State University needs to think more strategically about an interdisciplinary approach in the delivery of other programs such as the social sciences and the arts where low enrollments exist. There are one hundred ninety-two students enrolled that have not declared a major. The Center for Academic Persistence will engage these students in a series of programs to encourage them to select a major earlier in their matriculation. By guiding students into a major program earlier, the student's course choices would lead to a more efficient use of time allowing the student to complete his/her studies in an effective and appropriate time frame. This will help the institution improve our persistence and graduation rates. ===== PAGE 74 ===== ## The Data The following formula was used to calculate the Full-Time Student to Full-Time Equivalent Faculty. ## FTE Students/FTE faculty = FTE Students Taught Instructional FTEF
Table 5: Student and Faculty FTE Calculations Including Required General Education Courses
Program Providing the Service CoursesFTE Students Taught in Service CoursesFTE Students (majors) in ProgramTotal FTE Students Taught by programNumber of Instructional Faculty (FTEF)Calculated Equivalent Faculty/Student Ratio
Biology33590425670
Business/Finance58163221828
Chemistry581876325
English628166441640
Fine/Studio Arts20014214315
Liberal Arts/WYS658256831257
Mathematics116401561114
Music15325178822
Psychology414885024125
Social Studies: Sociology/History36831399492
Spanish/ASL28842922146
Speech (not a program)24902491249
## What the Data Tells Us? Full-Time Student to Full-Time Equivalent Faculty is the number of students served by faculty in each of the programs. It is important to note that Speech, which is a minor program, possesses the highest FTEF with service to 249 students through this equation. Mathematics, Fine Arts, and Music faculty maintain a low equivalence of students being served by their faculty despite the general education service course requirements. ===== PAGE 75 ===== ## Recommendation The institution has one of three choices in dealing with the matters of low enrollment, overstaffing (faculty) and curriculum inflation in the general education core. Those choices are as following: 1) Increase enrollment through the efforts of every stakeholder especially faculty that are under load; 2) Reduce faculty membership strategically in overstaffed areas, and: 3) Eliminate programs of lesser demand and/or reduce general education requirements. ## Recruitment Faculty have been engaged in the recruitment of students during Fall 2014 (see Appendix E). They have partnered with admissions staff at Kentucky Community and Technical Colleges System (KCTC) Schools and specifically at Bluegrass Community and Technical Colleges (BCTC). Faculty have also been engaged in recruitment at the following events during the Fall 2014 semester. In addition to participation in recruitment events at KCTC and specifically at BCTC more than 32 faculty members also participated in the following events. Fall Open House - November 1, 2014 Regional Round-up at Harrodsburg, KY – November 15, 2014 Regional Round-up at Lexington, KY – December 6, 2014 • Kentucky College and Career Day DuPont Manual/Youth Performing Arts School, Louisville, KY – November 7, 2014 Western High School – Nov. 11, 2014 • Woodford High School – Oct. 20, 2014 • Frankfort, Franklin County and Western Hill High Schools – Oct. – Dec., 2014 Waggoner High School, Louisville, KY- November 19, 2014 It is important to note that recruitment results are reflected in the Spring 2015 academic semester, but also in the Fall 2015 entering class. ===== PAGE 76 =====
Table 6: Jointly Recruited Students Admitted for the Spring 2014
ProgramRecruits Spring 2014
Nursing17
Public Admin & Public Affairs12
Business Administration6
Computer Science6
Criminal Justice6
Psychology6
Undeclared5
Biology2
Environmental Studies2
Applied Information Technology1
Aquaculture1
Chemistry1
Elementary Education1
Liberal Studies1
Mass Communications1
Mathematics1
Non-degree1
Physical Education1
Social Work1
Sociology1
Total73
## What the Data Tells Us? Faculty participation in recruitment has not been tracked in the past. We are encouraged by the efforts we see faculty now taking towards recruitment. These numbers provide a benchmark to measure future engagement. ## Recommendation While less than 25% of full-time faculty members were engaged in the joint recruitment While less than 25% of full-time faculty members were engaged in the joint recruitment opportunities provided by Student Affairs (admissions) and Academic Affairs, this is a start in the right direction. The recommendation is to increase the engagement of faculty and staff in collaborative recruitment efforts moving forward to 100% participation. The recruitment efforts bring students to the university and provides visibility for Kentucky State University in communities throughout the Commonwealth. It also helps potential students and competitors understand who we are and what we do well. ===== PAGE 77 ===== ## Persistence Rate of 2009 and 2010 Cohorts ## The Data Graduation rates are calculated using the Council on Postsecondary Education (CPE) definition. Specifically the definition is as following: “The proportion of students who enter as first-time, full-time degree-seeking students in a given summer or fall who also earn a credential within 150 percent of the time normally needed to complete the degree. For example: bachelor’s degree graduation rates are calculated over six years, associate’s degrees are calculated over three years.” In accordance with the CPE definition outlined above, the 2009 cohort consists of 457 first-time, full-time freshmen bachelor degree seeking students. There were 69 students that entered as first-time students who pursued the associate of arts degree. Below you will find the annual persistence rate for students in the 2009 cohort. As of fall 2014, a total of 69 students (13%) from the 2009 cohort have graduated. The six (6) year period for Kentucky State University's 2009 Cohort ends after the summer 2015 academic semester. Therefore, what is presented in this report is a progress report of the persistence rate of the 2009 cohort as we approach the end of this cohort period. The 2009 cohort consist of 526 students who met the definition as outlined by CPE. Persistence rates may be viewed in Table 7.
Table 7: Persistence Rate for the 2009 Cohort
Degree TypeBaseline2009-102010-112011-122012-13
Associate Cohort694058.0%2637.7%2231.9%1623.2%
Bachelor Cohort45724954.5%17438.1%14531.7%12226.7%
Total52628954.9%20038.0%16731.7%13826.2%
In accordance with the CPE definition outlined above, the 2010 cohort consists of 519 first-time, full-time freshmen bachelor degree seeking students. There were 93 students that entered as first-time students who pursued the associate of arts degree. Below you will find the annual persistence rate for students in the 2010 cohort. As of fall 2014, a total of 19 students (3%) from the 2010 cohort have graduated. The six (6) year period for Kentucky State University's 2010 Cohort ends after the summer 2016 academic semester. Therefore, what is presented in this report is a progress report of the persistence rate of the 2010 cohort with an additional year still to track. The 2010 cohort consist of 612 students who met the definition as outlined by CPE. Cohort 2010 persistence rates may be viewed in Table 8.
Table 8: Persistence Rate for the 2010 Cohort
Degree TypeBaseline2010-112011-122012-132013-14
Associate Cohort934851.6%2729.0%2628.0%1920.4%
Bachelor Cohort51925849.7%17934.5%16030.8%11922.9%
Total61230650.0%20633.7%18630.4%13822.5%
===== PAGE 78 ===== ## What the Data Tells Us? Kentucky State University (KSU) has not performed well in its persistence rates for the 2009 and 2010 cohorts. However, through a reclamation project, KSU has identified and guides students through Project Graduate to complete their degrees and continues to do so. The current persistence rates of 26.2% for the 2009 cohort and 22.5% for the 2010 cohort are undesirable and KSU is working to improve its persistence and graduation rates through the use of numerous retention tools. However, these tools have not been designed in a way that works collaboratively towards the goal of graduation. Neither have they been structured to demonstrate accountability in their impact on persistence and graduation rates. ## Recommendations A comprehensive review of the academic support resources is underway at KSU. This review will lead to a re-visioning and strategic planning process for these resource areas. The results expected are that the institution will demonstrate accountability and impact on the persistence and graduation rates of its students by providing a more systematic and substantive support network for students at KSU. Staffing, pooling of resources, logistics and systematic interventions will be the foundation of this re-engineered student academic support services program. The Office of Academic Affairs is working with the Office of Student Affairs to reclaim students who have left the university and have the potential to be able to complete their degrees in the necessary 6 years for the 2009 & 2010 cohorts. If successful, this effort could improve the persistence and graduation rates for these cohorts. Further, we are implementing the same efforts with the 2011-14 cohorts to improve the persistence and graduation rates. ===== PAGE 79 ===== ## APPENDICIES A Delaware Cost Study (DCS) Kentucky Participants B Delaware Cost Study (DCS) Information C DCS Sample Data Reports D Southern Association of Colleges and Schools Standard 3.5.4 E Faculty who have Participated in Recruitment Events ===== PAGE 80 ===== ## A Delaware Cost Study (DCS) Kentucky Participants
Asbury College
Eastern Kentucky University
Lindsey Wilson College
Morehead State University
Northern Kentucky University
University of Kentucky
University of Louisville
University of the Cumberland
Western Kentucky University
===== PAGE 81 ===== ## B Delaware Cost Study (DCS) Information A Data-Centered Approach to Managing Instructional Costs and Enhancing Faculty Productivity Michael F. Middough Assistant President for Institutional Research and Planning University of Delaware National Director Delaware Study of Instructional Costs and Productivity ## The Delaware Study Over the past decade has grown and matured from small beginnings into a major data-sharing consortium of close to 400 colleges and universities that have elected to participate since its inception. It is the tool of choice for benchmarking data on faculty teaching loads, instructional costs, and externally funded research and service activity, all at the academic discipline level of analysis. ## The Delaware Study - Begun in 1992 with initial participant pool of 15 research universities, 16 doctoral universities, and 65 comprehensive and baccalaureate institution. Today, the participant pool in any given year embraces 50+ research universities, 30+ doctoral universities, 60+ comprehensive institutions, and 30+ baccalaureate colleges. (Note that the Delaware Study continues to employ the 1995 Carnegie Institutional Taxonomy). ===== PAGE 82 ===== ## C DCS Sample Data Reports ## Teaching Load Data Undergraduate Student Credit Hours Taught per FTE T/TT Faculty
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===== PAGE 83 ===== ## Science Department
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Total Student Credit Hours Taught per FTE T/TT Faculty
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Total Class Sections Taught per FTE T/TT Faculty
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Total Student Credit Hours Taught per FTE Faculty (All Categories)
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===== PAGE 84 ===== ## Science Department (continued) Direct Instructional Expenditures per Student Credit Hour
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Separately Budgeted Research and Service Expenditures per FTE T/TT Faculty
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===== PAGE 85 ===== 3.5.4 "At least 25 percent of the course hours in each major at the baccalaureate level are taught by faculty members holding an appropriate terminal degree—usually the earned doctorate or the equivalent of the terminal degree. (Terminal degrees of faculty)") (Institutional credits for a degree) The Principles of Accreditation: Foundations for Quality Enhancement. (2011) 5^{th} edition. Pages 29-30. ===== PAGE 86 ===== ## E Faculty who have Participated in Recruitment Events 1. Abdul Turay 2. Abdullah Alhurana 3. April Pilcher 4. Arthur Hayden 5. Beverly Downing 6. Chi Shen 7. Cortrell Davis 8. Dantrea Hampton 9. Egbunam Amadiefe 10. Fred Sheffler 11. Gashaw Lake 12. Ibukun Amusan 13. Indira Tyler 14. Irma Johnson* 15. James Obielodan 16. John Sedlacek 17. Karen Heavin 18. Ken Andries 19. Lori Davis 20. Michael Kosonga 21. Patricia Higgins 22. Rene Desborobe 23. Robert Durborow 24. Roosevelt Shelton 25. Sandra Birch* 26. Scott Treadway 27. Shannon Brogan 28. Stephen Graham-Hill 29. Sylvia Mason 30. Tierra Freeman 31. Vicky Moore 32. Wasim Al-Hamdani*Staff Members ===== PAGE 87 ===== ## LIST OF TABLES 1 Enrollment by Major – Fall 2014 2 Percentage of Faculty by Degree Level 3 Faculty to Student Ratio by Program Fall 2014 4 Full-Time Equivalent Faculty (FTFE) Coverage of Service Courses Fall 2014 5 Student and Faculty FTE Calculations Including Required General Education Courses 6 Jointly Recruited Students Admitted for Spring 2014 7 Persistence Rate for the 2009 Cohort 8 Persistence Rate for the 2010 Cohort ===== PAGE 88 ===== ## Kentucky State University Board of Regents Meeting ## Finance Committee January 22, 2015 Regent LaVaughn Henry, Chairperson Regent David Guarnieri Regent Syamala Reddy Regent Chuck Whitehead
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（1） ===== PAGE 89 ===== # KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents Finance Committee January 22, 2015 2:30 p.m. to 4:00 p.m. Board Room – Academic Services Building Frankfort, Kentucky ## MEETING INDEX ection Page B1 Minutes of October 24, 2014 4 B2 Executive Summary 9 B3 Unaudited Comparative Financial Statements 12 B4 English as a Second Language Program Fees 20 B5 A-133 Report 21 （2） ===== PAGE 90 ===== # KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents Finance Committee January 22, 2015 2:30 p.m. to 4:00 p.m. Board Room – Academic Services Building Frankfort, Kentucky ## AGENDA I. Call to Order Regent LaVaughn Henry, Chairperson II. Roll Call III. Opening Remarks Regent Henry IV. Approval of Minutes Regent Henry V. Executive Summary Report VI. Informational Items: 1. FY 2015 Budgeted vs. Actuals 2. FY 2015 Unaudited Comparative Financial Statements VII Action Item: Approval of ESL Program Fees VIII Action Item: Approval of A-133 Report IX. Discussion X. Adjournment （3） ===== PAGE 91 =====
Agenda Item Background
To:Board of Regents FinanceDate: January 22, 2015
From:
Subject:October 24, 2014 Committee Minutes
Reason for Consideration:ApprovalEnclosures: Yes
## Background: The minutes of the Finance and Audit Committees meeting for October 24, 2014 require approval in order to become an official part of the committee records. ## Recommendation: It is recommended that the Finance and Audit Committees approve the minutes of the October 24, 2014 joint meeting.
Initiator:
Board Action Date:January 22, 2015
Effective Date:January 22, 2015
[F3]
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===== PAGE 92 ===== # KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents Finance and Audit Committees October 24, 2014 10:30 a.m. Board Room – Academic Services Building Frankfort, Kentucky ## MINUTES Regent Charles Whitehead, in the absence of Regent LaVaughn Henry, Chairperson, called the joint Finance 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 HenryNot PresentSyamala ReddyNot Present
Karen BeardenPresentCharles WhiteheadPresent
Mindy BarfieldPresentEkumene LysongePresent
David GuarnieriPresentTravis HaskinsPresent
Elgie McFaydenPresentBreana L. SmithNot Present
Elaine FarrisPresent
A quorum was declared. ### I. Approval of Minutes Action: Motion to approve the minutes from the July 25, 2014 Finance Committee was made by Regent Whitehead and seconded by Regent Barfield. The minutes stand approved as presented. Regent Whitehead recognized Mrs. Martin to carry the discussion forward. ### II. Vice President's Report ## Executive Summary Narrative Deborah Martin, Interim Vice President Finance, 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 \ 5; \ ===== PAGE 93 ===== 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. The President instructed Ann Knotts, Director Budget Policy and Planning to distribute copies of the reforecasted budget plan to the committee. Regent Guarnieri inquired as to what the difference was between the $2.1 million and $813,644 in other sources listed under other revenue in the reforecasted budget plan. Ms. Knotts stated that it consisted of indirect costs recovery, nursing lab fees, homecoming fees, scholarships through endowments and student activity fees. She stated that with enrollment going down these will also go down. Regent Whitehead inquired if 235 is the number of students we are going to lose because they were unable to pay their first installment. President Burse stated that the 235 students are those who were on a payment plan but didn't make their first installment. Mrs. Martin stated that she had just received an updated number this morning. She further stated that the Bursar's Office worked with Enrollment Services and Residence Life to notify students who were on a payment plan but didn't make their first installment and students who had their payments returned by the bank. President Burse referred to the financial plan that was distributed and stated the $1.6 million is the amount owed by students with PIO's and the $2 million is the amount owed by students without PIO's. He said he had Ms. Knotts add in the $3 million which leaves a $6.7 deficit to show what the potential could be. He further stated that we are collecting some of the money even as we speak. Regent Whitehead asked about the agreement with the state to assist with some of the collection. President Burse stated there has not been a single account sent to them. Regent Guarnieri stated that they were told the first 80 or 120 had been sent. President Burse said he had a meeting with the Revenue Cabinet Secretary. One of the problems was that our data feed and their data feed didn't match and then they changed their system. The Revenue Commissioner has agreed to help us get in the front of the line when their system gets turned back on. KCTCS will assist us in making certain our data is in the proper format so it can be received by Revenue and Revenue has agreed that we will become their priority. Ms. Martin stated that Revenue has contacted our IT department. Regent Whitehead inquired if the $800,000 expenditure allowed for bad debt was large enough. Ms. Martin stated that they were going to review bad debt expenses quarterly instead of annually as had been done in the past. ### III. Audit Crissy Fiscus, Director of Assurance Services with Dean Dorton Allen Ford provided an overview of the 2014 audit. She stated that total assets are roughly $124.4 million and has declined from prior year by roughly five million dollars, total liabilities are consistent with the prior year and the total net position is $110 million. She also stated that total overall operating revenue was $38.7 million and total operating expenses were $73.3 million. She also informed the committee that due to recent pronouncements and a GASB amendment, going forward the University's portion of state pension liabilities will have to be reported in the financial statements. Ms. Martin stated that the annual closing package and audit reports were submitted to the Finance and Administration Cabinet on October 15th. ===== PAGE 94 ===== ### IV. AUDIT COMMITTEE - External Audit Report President Burse directed the Board members to the External Audit Report of Tronconi Segarra and Associates that was included in the Board package. He stated that the report lays out what they are going to do and that findings are not reported. Per the President, in his conversation with the auditor he was told that the process and procedure has been as they audit they collect findings and share with the university staff to get a response, collect all of them and then give them to the President and at that point they are provided to the Board. President Burse stated he told the auditors that he never knew of any audit process that worked that way. He further stated that going forward the process and protocol will be different. He informed the auditors that as findings are found they should be shared with the Board at that point in time and then given to staff and administrators to address the findings. President Burse informed the committee that the auditors will be on campus next week and when they are finished with the findings they will share them with him and he will immediately share them with the Board so that they will be getting real time information. Melinda Impellizzeri, Special Assistant to the President, gave a summary of the Preliminary Audit Report of Tronconi Segarra and Associates. Ms. Impellizzeri stated that she, Mrs. Martin and Mrs. Conner uncovered quite a few observations with the reconciliation of student balances while trying to better understand the shortfall. She stated that there seemed to be gaps between processing in various functions. This information was shared with President Burse with a request to have the external auditors perform a special audit. Ten students were randomly chosen for the Special Audit and the audit findings show in every area a lack of processes, unknown processes, missing processes and contradictory processes. Ms. Impellizzeri stated that as directed by President Burse we have undertaken a project to process map every area, re-educate everyone in the university and make sure it is an integrated process so we no longer work in silos and that we are supporting the goals of the university. Ms. Impellizzeri informed the committee that the auditor's full report will be delivered next week which will include examples of process findings and recommendations. President Burse spoke about several issues with the Banner system. He informed the committee that work on the contract with Banner had been initiated but we are at an impasse as Ellucian has refused to include in the contract a provision which states what Ellucian advertises as the capabilities of Banner. President stated that we are struggling through with Banner but at the same time we are looking at other vendors and possibly what they have will cost us a fraction of what we were going to pay Ellucian to fix Banner. Regent Barfield inquired as to the arrangement we have with Tronconi Segarra and Associates. President Burse stated that we have a one year personal services contract with them that ends June 30th and can be terminated at any time with a 30 day notice. ### V. Approval of Minutes Action: Motion to approve the minutes from the July 25, 2014 Audit Committee was made by Regent Farris and seconded by Regent Whitehead. The minutes （7） ===== PAGE 95 ===== stand approved as presented. Approval of External Audit Report Action: Motion to approve the External Audit Report was made by Regent Bearden and seconded by Regent Haskins. The motion passed. ### VI. Adjournment Motion to adjourn the Finance and Audit Committees was made by Regent Whitehead and seconded by Regent Guarnieri. The Finance Committee and the Audit Committee adjourned at 11:30am.
Submitted by:Approved by:
.Charles Whitehead and Mindy Barfield
Chairpersons
Finance Committee and Audit Committee
.Approved with no corrections
.Approved with corrections
（ 8 ） ===== PAGE 96 =====
Agenda Item Background
To:Board of Regents FinanceDate: January 22, 2015
From:
Subject:Executive Summary
Reason for Consideration:Informational ItemEnclosures: Yes
## Background: Please see attached. ## Recommendation:
Initiator:
Board Action Date:January 22, 2015
Effective Date:January 22, 2015
[ 9 ]
===== PAGE 97 =====
KENTUCKY STATE UNIVERSITYBOARD OF REGENTS
Report to the
Finance Committee
January 22, 2015
===== PAGE 98 ===== KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents Finance Committee January 22, 2015 2:30 p.m. to 4:00 p.m. Board Room – Academic Services Building Frankfort, Kentucky ### Fiscal 2015 Budget vs. Actual and Financial Statements (unaudited) For Fiscal 2015, planned budget results and unaudited comparative financials are presented in item B3 as of December 30, 2014. ## Audit Update Dean|Dorton|Allen|Ford has completed the work on KSU's annual A-133 audited financial statements. This item is presented in the Audit Committee agenda as an action item. ## Inventory A physical inventory of University fixed assets was started in November 2014. No physical inventory was taken during the month of December. To meet full inventory completion, a weekly schedule has been established through March and additional resources have been allocated. To date, nine of sixty-four buildings have been completed. ## Enrolled Students Students previously enrolled in the 12-month Payment Installment Option and who were current on their payments are able to add their Spring 2015 balances to their current plan with monthly payments adjusted accordingly. As of December 17, 2014, there were 249 students who had a balance remaining on their 12 month payment plan, with a total amount due of $827,292. All other students were required to pay their prior balance in full before registering for Spring 2015. These students were offered a 4-month Payment Installment Option, with the first payment due on January 17, 2015, and the final payment due on April 17, 2015. To be eligible for the payment plans, a student must have paid fifty percent (50%) of their Spring balance. ## Calendar Year 2014 W-2's The Payroll Office will mail out calendar year 2014 W-2s on or before January 30, 2015. ## Other Items 1099's and 1098-T's for calendar year 2014 will be mailed on or before January 30, 2015. ===== PAGE 99 =====
Agenda Item Background
To:Board of Regents FinanceDate: January 22, 2015
From:
Subject:Unaudited Comparative Financial Statements for the five months ending December 31, 2014
Reason for Consideration:Informational ItemEnclosures: Yes
## Background: The comparative Statement of Net Position (SNP), Statement of Revenues, Expenses and Changes in Net Position (SRECNP) as well as the Statement of Cash Flows (SCF) as of December 31, 2014 and 2013, respectively. The following are specific key points related to the December 2014 and 2013 financial statements. ## Statement of Net Position - Accounts Payable and Accrued Liabilities went up by $524K which is due in large part to a change in the timing of financial statement preparation where now an accrual entry is required for payroll whereas in the past no payroll accrual entry was necessary. The financial statements were prepared after payroll was posted. ## Statement of Revenues, Expenses and Changes in Net Position ## Revenues • Student Tuition and Fees totaled $13.6M of which $6M is for Spring Assessment. Dining Revenue was $1.95M of which $735K is for Spring Assessment. • Residence Halls Revenue was $2.1M of which $819K is for Spring Assessment. - Operating Revenue went up by $322K over the prior year which is due primarily to an increase of $263K in Indirect Cost Recovery and an increase of $57K in Other Tuition and Fee related items. ===== PAGE 100 ===== ## Expenses - Academic Support went up by $305K over the prior year which is due primarily to an increase in Salaries and Benefits of $46K and an increase of $259K in Non-Capital Equipment, Major Renovations and Computer Equipment - Institutional Support went up by $738K over the prior year which is due primarily to Bad Debt Expense of $735K. An increase in Salaries and Benefits of $281K and a decrease of other expenses of $278K net to the remaining change. ## Non-Operating Revenues (Expenses) • Investment Income went down by $2.96M which is due primarily to gains/losses. Realized Gain/Loss went up by $0.17M while Unrealized Gain/Loss went down by $3.1M.
Informational Item
Initiator:
Board Action Date:January 22, 2015
Effective Date:January 22, 2015
===== PAGE 101 ===== Kentucky State University Budget vs. Actual Six months ending December 31, 2014 (Amounts shown in dollars)
Approved BudgetYTD Actual ActivityYTD Actual % of Budget% VarianceYTD ACTUAL BY FUND GROUP
Education and GeneralAuxiliaryLand Grant and Action Agenda
REVENUE
State appropriations23,429,60012,886,28055.00%-45.00%11,000,605
Student tuition & mandatory fees20,205,50013,580,21567.21%-32.79%13,580,215
Auxiliaries6,187,5003,964,00064.06%-35.94%3,964,000
Other3,682,0001,267,97134.44%-65.56%1,267,971
Total revenue53,504,60031,698,46659.24%-40.76%25,848,7923,964,0001,885,675
EXPENDITURES
Instruction12,985,0004,490,18134.58%-65.42%4,458,081
Research1,942,100596,80930.73%-69.27%32,100
Public Service1,621,100626,24738.63%-61.37%59,918596,809
Academic Support2,174,600744,70034.25%-65.75%744,700566,329
Student Services5,749,1002,963,91051.55%-48.45%2,963,910
Institutional Support12,351,6004,696,81038.03%-61.97%4,696,72684
Operations & Maintenance5,450,6002,349,12843.10%-56.90%2,349,128
Student Financial Aid5,043,0002,958,64858.67%-41.33%2,958,648
Residence Halls2,957,200636,15321.51%-78.49%636,153
Dining2,513,8001,078,99442.92%-57.08%1,078,994
Other Auxiliaries716,500393,30454.89%-45.11%393,304
Total expenditures53,504,60021,534,88340.25%-59.75%18,231,1112,108,5341,195,238
Surplus (deficit) before transfers-10,163,5837,617,6811,855,465690,437
Mandatory & non mandatory transfers-----
Surplus (deficit) before other activity-10,163,5837,617,6811,855,465690,437
Other fund net activity-(4,480,455)
Increase (decrease) in net position-5,683,128
Year to date – 50.00% of budget has expired
===== PAGE 102 =====
Statement of Net Position (Unaudited)
DecemberDecember
20142013
ASSETS
Current assets:
Cash and cash equivalents24,400,93323,501,127
Accounts, grants, and loans receivable, net12,537,02910,911,173
Inventory and other current assets150,050690,083
Total current assets37,088,01335,102,383
Noncurrent assets:
Accounts, grants, and loans receivable, net556,741329,336
Investments13,431,59614,599,418
Capital assets, net78,844,77481,672,348
Total noncurrent assets92,833,11296,601,102
Total assets129,921,124131,703,485
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities3,483,5472,959,477
Accrued compensated absences1,870,8782,007,623
Unearned revenue1,027,9121,265,430
Deposits177,595159,505
Other current liabilities103,836(160,663)
Bonds and capital lease obligations, net440,973606,012
Total current liabilities7,104,7416,837,384
Noncurrent liabilities
Bonds and capital lease obligations6,580,8057,300,371
Other long term liabilities534,914534,914
Total noncurrent liabilities7,115,7197,835,285
Total liabilities14,220,46014,672,668
NET POSITION
Invested in capital assets, net of related debt
Restricted72,934,20975,739,430
Nonexpendable8,657,50611,409,979
Expendable694,9333,134,731
Unrestricted33,414,01626,746,677
Total Net Position115,700,664117,030,816
===== PAGE 103 ===== ## Kentucky State University ## Statement of Cash Flows ## Periods Ending December 31, 2014 and 2013
(Unaudited)
December 2014December 2013
Cash flows from operating activities
Tuition and fees4,291,0726,354,315
Grants and contracts10,838,68010,030,694
Payments to suppliers(9,760,656)(11,260,754)
Payments to employees(16,693,486)(17,349,243)
Student financial aid(3,738,837)(4,670,485)
Loans issued to students(440,344)22,183
Collection of loans issued to students124,63392,361
Auxiliary enterprises
Residence halls and dining4,098,5653,314,793
Bookstore4,99075,000
Other auxiliaries14,70552,373
Other receipts1,460,2771,127,410
Net cash from operating activities(9,800,401)(12,211,351)
Cash flows from noncapital financing activities
State appropriations12,886,28012,945,572
Federal grants and contracts2,658,4543,187,807
Gifts for other than capital purposes3989,102
Student organization agency receipts87,68868,693
Student organization agency disbursements(79,314)(70,044)
Other receipts (payments)-500
Net cash from noncapital financing activities15,553,14716,221,629
Cash flows from capital financing activities
Capital appropriations--
Purchases of capital assets(418,323)(720,149)
Proceeds from capital debt--
Principal paid on capital debt(380,329)(726,397)
Interest paid on capital debt(129,124)(161,621)
Net cash flows from capital financing activities(927,776)(1,608,166)
Cash flows from investing activities
Interest received on investments1,198,513185,030
Investment expenses-(32,721)
Proceeds from sale of investments3,009,7272,640,197
Purchases of investments(4,208,240)(2,634,271)
Other Investments-(167,205)
Net cash flows from investing activities-(8,970)
Net increase (decrease) in cash and cash equivalents4,824,9702,393,142
Cash and cash equivalents at beginning of year19,575,96321,107,984
Cash and cash equivalents at end of year24,400,93323,501,127
===== PAGE 104 ===== ## Kentucky State University ## Statement of Cash Flows ## Periods Ending December 31, 2014 and 2013
(Unaudited)
December 2014December 2013
Reconciliation of net operating gain (loss) to net cash from operating activities
Operating gain (loss)(7,861,018)(14,175,859)
Adjustments to reconcile operating income to net cash from operating activities
Depreciation expense2,234,5692,233,418
Gain (loss) on disposal of capital assets--
Bad debt expense734,709-
Changes in assets and liabilities:
Receivables, net(5,052,007)78,710
Inventory and prepaid expenses7,794(151,562)
Accounts payable and accrued liabilities81,305(331,537)
Accrued compensated absences313,528374,072
Other liabilities12,136(223,946)
Unearned revenue(271,416)(14,648)
Net cash from operating activities(9,800,401)(12,211,351)
===== PAGE 105 ===== ## Kentucky State University ## Statement of Revenues, Expenses and Changes in Net Position (By Function) ## Periods Ending December 31, 2014 and 2013
(Unaudited)
December 2014December 2013
REVENUES
Operating revenue:
Student tuition and fees (gross)13,646,77811,193,069
Less: Scholarship allowances(2,724,825)(2,502,272)
Student tuition and fees (net of scholarships)10,921,9538,690,798
Federal grants and contracts4,284,6723,301,020
Federal appropriations3,286,7063,524,365
State and local grants and contracts1,226,892910,192
Auxiliary enterprises
Residence halls2,147,9401,705,951
Dining1,950,6251,608,842
Bookstore4,99075,000
Other auxiliaries14,70552,373
Other operating revenues1,458,5221,136,526
Total operating revenue25,297,00521,005,067
EXPENSES
Operating expenses:
Educational and general
Instruction4,647,4955,442,567
Research2,548,0372,737,421
Public service3,593,2113,752,454
Academic support1,542,1861,237,605
Student services3,664,2443,631,050
Institutional support6,376,4255,638,608
Operations and maintenance of plant2,419,2382,733,958
Student aid4,024,0964,973,948
Depreciation2,072,5602,068,248
Auxiliary enterprises
Residence halls636,153776,507
Dining1,078,9941,553,054
Other auxiliaries393,304470,337
Depreciation162,081165,170
Total operating expenses33,158,02235,180,927
Operating income (loss)(7,861,018)(14,175,859)
===== PAGE 106 ===== ## Kentucky State University ## Statement of Revenues, Expenses and Changes in Net Position (By Function) ## Periods Ending December 31, 2014 and 2013
(Unaudited)
December 2014December 2013
NON-OPERATING REVENUES (EXPENSES)
State appropriations12,886,28012,945,572
Federal grants and contracts2,658,4533,187,807
Gifts-89,102
Investment income (net of investment expenses)(1,871,502)1,089,050
Interest on capital asset related debt(129,124)(161,621)
Other non-operating revenues (expenses)-500
Net non-operating revenues13,544,10717,150,410
Income (loss) before other revenues, expenses, gains or losses5,683,0892,974,551
Endowment Gifts39-
Capital appropriations--
Increase (decrease) in net assets5,683,1282,974,551
Net assets, beginning of year110,017,536114,056,265
Net assets, end of year115,700,664117,030,816
===== PAGE 107 =====
Agenda Item Background
To:Board of Regents\nFinance AdministrationDate:\nJanuary 22,\n2015
From:
Subject:Approval of Fees for ESL Program
Reason for Consideration:ApprovalEnclosures:\nYes
## Background: Kentucky State University has re-started its English-as-a-Second Language (ESL) program for the Spring semester 2015. KSU's ESL program will serve foreign students visiting the University for a month-long English intensive seminar. Course cost is proposed to be $3,650 per participant. The program fee would include course instruction, room and board. KSU expects to have a minimum of twenty (20) students per seminar. ## Recommendation: Approval of the fee of $3,650 per student
Approval
Initiator:
Board Action Date:
Effective Date:January 22, 2015
===== PAGE 108 =====
Agenda Item Background
To:Board of Regents FinanceDate: January 22, 2015
From:Mike Pinkard, Interim Vice President of Finance
Subject:A-133 Audit Report
Reason for Consideration:ApprovalEnclosures: Yes
Background: The A-133 Report is the audit of federal grants and programs at the University. ## Recommendation: The recommendation is to accept the A-133 report
Initiator:Mike Pinkard, Interim Vice President of Finance
Board Action Date:January 22, 2015
Effective Date:January 22, 2015
===== PAGE 109 ===== KENTUCKY STATE UNIVERSITY Single Audit Reports Under OMB Circular A-133 ===== PAGE 110 ===== ## CONTENTS ## Pages Report of Independent Auditors ..... 1 - 2 Management's Discussion and Analysis ..... 3 - 19 Financial Statements: Kentucky State University Statements of Net Position ..... 20 Kentucky State University Foundation, Inc. Statements of Financial Position ..... 21 Kentucky State University Statements of Revenues, Expenses and Changes in Net Position ..... 22 - 23 Kentucky State University Foundation, Inc. Statements of Activities ..... 24 - 25 Kentucky State University Statements of Cash Flows ..... 26 - 27 Kentucky State University Notes to the Financial Statements ..... 28 - 46 Kentucky State University Foundation, Inc. Notes to the Financial Statements ..... 46 - 54 Schedule of Expenditures of Federal Awards ..... 55 - 58 Notes to the Schedule of Expenditures of Federal Awards ..... 59 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..... 60 - 61 Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by OMB Circular A-133 ..... 62 - 64 Schedule of Findings and Questioned Costs ..... 65 - 69 Summary Schedule of Prior Audit Findings ..... 70 - 77 ===== PAGE 111 ===== # Report of Independent Auditors Members of the Board of Regents Kentucky State University Frankfort, Kentucky Secretary of Finance and Administration Cabinet of the Commonwealth of Kentucky ## Report on the Financial Statements We have audited the accompanying financial statements of the business-type activities of Kentucky State University (the University) as of and for the years ended June 30, 2014 and 2013 and the related notes to the financial statements, which collectively comprise the University's basic financial statements as listed in the table of contents. We have also audited the financial statements of the Kentucky State University Foundation, Inc. (the Foundation), the University's discretely presented component unit, as of and for the years ended June 30, 2014 and 2013. ## Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. ## Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. ## Opinion In our opinion, based on our audits, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and discretely presented component unit of the University as of ===== PAGE 112 ===== June 30, 2014 and 2013, and the respective changes in financial position and cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America. ## Other Matters ## Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis on pages 3 through 19 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. ## Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Kentucky State University's basic financial statements. The accompanying Schedule of Expenditures of Federal Awards as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, is presented for purposes of additional analysis and is not a required part of the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying Schedule of Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. ## Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 19, 2014, on our consideration of the University's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the University's internal control over financial reporting and compliance. Dean Dorton Allen Ford, PLC December 19, 2014 Lexington, Kentucky ===== PAGE 113 ===== # KENTUCKY STATE UNIVERSITY Management's Discussion and Analysis June 30, 2014 ## Introduction Management’s Discussion and Analysis of Kentucky State University’s (the University) financial statements provide an overview of the financial position and activities of the University for the year ended June 30, 2014, with comparative information for the year ended June 30, 2013. This discussion has been prepared by management and should be read in conjunction with the financial statements and the notes thereto, which follow this section. The financial statements and related notes and this discussion and analysis are the responsibility of management. Kentucky State University is a Commonwealth of Kentucky coeducational institution for higher education. The University's mission is to build on its legacy of achievement as a historically black, liberal arts, and 1890 land-grant university, afford access to and prepare a diverse student population of traditional and non-traditional students to compete in a multifaceted, ever-changing global society by providing student-centered learning while integrating teaching, research, and service through high-quality undergraduate and select graduate programs. Kentucky State University is committed to keeping relevant its legacy of service by proactively engaging the community in partnerships on civic projects driven by the objective of positively impacting the quality of life of the citizens of the Commonwealth. ## Basis of Presentation The annual financial report and statements include the University and Kentucky State University Foundation, a component unit of the University. Kentucky State University Foundation, Inc. (the Foundation) is a not-for-profit Kentucky corporation which was established to receive, invest and expend funds to promote and implement educational and developmental activities at Kentucky State University (the University). The Foundation is managed by a Board of Trustees independent from that of the University. The Foundation is supported primarily through contributions from alumni. ## Financial Highlights - The University's financial position at June 30, 2014, reflected total assets of $124.5 million and total liabilities of $14.5 million. Total net position was $110.0 million. - Total assets decreased $5.2 million or 3.0%, primarily due to decreases in student accounts receivable (net of bad debt allowance), grant and loans receivables, capital assets, and cash and cash equivalents. Total liabilities decreased by $1.1 million or 7.3% primarily due to decreases in bond and lease obligations and in compensated absences. Total net position decreased $4.0 million, due to bad debt write-off. ===== PAGE 114 ===== # KENTUCKY STATE UNIVERSITY Management's Discussion and Analysis, continued June 30, 2014 ## Financial Highlights, Continued - Unrestricted net position decreased $2.2 million, which the University reserves for spending in programs and other capital-related contingencies. The University classifies amounts earned on endowments as spendable or non-spendable in accordance with the endowment's donor stipulations. Nonexpendable restricted net assets represent amounts, which must be maintained in perpetuity. Expendable restricted net assets include endowment earnings that are spendable, consistent with the University's spending policy. - Operating revenues were $38.7 million and operating expenditures were $73.7 million, resulting in a loss from operations of $35.0 million. Net non-operating revenues were $30.9 million, including $23.5 million in state appropriations, which, when combined with the loss from operations and capital appropriations, resulted in an overall decrease in net position of $4.0 million. ## Using the Financial Statements The University's Financial Statements consist of three financial statements: a Statement of Net Position (Balance Sheet); a Statement of Revenues, Expenses and Changes in Net Position (Income Statement); and a Statement of Cash Flows, along with the accompanying Notes to the Financial Statements. These financial statements are prepared in accordance with Governmental Accounting Standards Board (GASB) Statement No. 35, Basic Financial Statements – and Management's Discussion and Analysis – for Public Colleges and Universities. Kentucky State University is a component unit of the Commonwealth of Kentucky. ## Statement of Net Position The Statement of Net Position presents the financial position of the University at the end of the fiscal year and includes all assets and liabilities. Net position, the difference between total assets and total liabilities, is an important indicator of the current financial condition, while the change in net position is an indicator of whether the overall financial position has improved or worsened during the year. ===== PAGE 115 ===== ## KENTUCKY STATE UNIVERSITY ## Management's Discussion and Analysis, continued June 30, 2014
Condensed Statement of Net Position
20142013
ASSETS
Current assets$ 28,269,249$ 32,521,844
Noncurrent assets96,205,14897,130,896
Total assets$ 124,474,397$ 129,652,740
LIABILITIES
Current liabilities7,272,9067,303,864
Non-current liabilities7,183,9558,292,611
Total liabilities14,456,86115,596,475
NET POSITION
Invested in capital assets, net of related debt73,258,91475,009,634
Restricted
Nonexpendable8,657,5068,657,506
Expendable5,849,6905,905,037
Unrestricted22,251,42624,484,088
Total net position$ 110,017,536$ 114,056,265
Assets: As of June 30, 2014, total assets amounted to 124.5 million. Of this amount, investment in capital assets (net of depreciation) of 80.7 million, or 64.8% of total assets, represented the largest asset class. Investments amounted to 15.3 million or 12.3% of total assets. During the year, total assets decreased by 5.2 million, primarily due to decreases in student accounts receivable (net of bad debt allowance), grant and loans receivables, capital assets, and cash and cash equivalents. Liabilities: As of June 30, 2014, total liabilities amounted to 14.5 million. Long-term debt includes bonds payable for housing and dining system and energy-related equipment and technology equipment purchased under a Master Lease Agreement. During the year, total liabilities decreased by 1.1 million, primarily due to decreases in bond and lease obligations and in compensated absences. Net Position: Net position of the University was $110.0 million at June 30, 2014 and was reported in four net position categories: invested in capital assets, net of related debt $73.3 million (66.6%), restricted nonexpendable $8.6 million (7.8%), restricted expendable $5.8 million (5.3%), and unrestricted $22.3 million (20.3%). ===== PAGE 116 ===== # KENTUCKY STATE UNIVERSITY Management's Discussion and Analysis, continued June 30, 2014 ## Statement of Revenues, Expenses and Changes in Net Position The Statement of Revenues, Expenses and Changes in Net Position is prepared on the accrual basis of accounting, whereby revenues and assets are recognized when the service is provided and expenses and liabilities are recognized when others provide the service, regardless of when cash is exchanged. All items that increase or decrease net position must appear on the Statement of Revenues, Expenses and Changes in Net Position as revenues, expenses, gains or losses. Financial activities are reported as either operating or non-operating. GASB Statement No. 35 requires state appropriations, gifts, investment income and endowment income to be classified as non-operating revenues. Accordingly, the University reports an operating loss prior to the addition of non-operating revenues. The utilization of long-lived capital assets is reflected in the financial statements as depreciation, which amortizes the cost of an asset over its expected useful life. Tuition revenue is reduced by gift scholarships and institutional aid, and is reported net of scholarship allowances in the financial statements. A summarized comparison of the University's revenues, expenses and changes in net position for the years ended June 30, 2014 and June 30, 2013 is as follows. ===== PAGE 117 ===== ## KENTUCKY STATE UNIVERSITY ## Management's Discussion and Analysis, continued ## June 30, 2014 ## Condensed Statement of Revenues, Expenses and Changes in Net Position
20142013
OPERATING REVENUES
Student tuition and fees, net$ 16,472,026$ 16,595,920
Grants and contracts8,224,8229,172,968
Federal appropriations6,722,3326,873,169
Auxiliary enterprises6,195,4246,065,393
Other operating revenue1,096,0451,131,620
Total operating revenues38,710,64939,839,070
OPERATING EXPENSES
Educational and general67,691,05664,595,994
Auxiliary enterprises5,990,5226,610,652
Total operating expenses73,681,57871,206,646
OPERATING LOSS(34,970,929)(31,367,576)
NONOPERATING REVENUES
(EXPENSES)
State appropriations23,537,40023,537,402
Federal grants and contracts5,928,0365,922,954
Investment income (loss)1,700,2701,150,833
Interest on capital asset – related debt(317,534)(276,050)
Other71,352583,269
Endowment gifts12,6767,276
Total non-operating revenues30,932,20030,925,684
Total in net position(4,038,729)(441,892)
Net position, beginning of year114,056,265114,498,157
Net position, end of year$ 110,017,536$ 114,056,265
===== PAGE 118 ===== ## KENTUCKY STATE UNIVERSITY Management's Discussion and Analysis, continued June 30, 2014 ## Figure1
Image
Operating Revenue by Category for FY14 thru FY12 3-Year Trend (in thousands)
Image
===== PAGE 119 ===== # KENTUCKY STATE UNIVERSITY Management's Discussion and Analysis, continued June 30, 2014
FY 2014 Operating Revenues as a percentage of total Operating Revenue
Image
## Operating Revenue Total operating revenues were $38.7 million for the year ended June 30, 2014, a decrease of $1.1 million compared to FY13. The primary components of operating revenue were federal, state and local grants and contracts of $8.2 million (21.2%) student tuition and fees, net, of $16.5 million (42.6%), federal appropriations of $6.7 million (17.4%) and auxiliary services and other revenues of $7.3 million (18.8%). FY14 Student tuition and fees revenue decreased $124 thousand compared to FY13. FY14 Grants and contracts revenue decreased $948 thousand compared to FY13 due to decreased awards and spending. FY14 Federal appropriations decreased $151 thousand compared to FY13. FY14 Auxiliary services and other revenue decreased $95 thousand compared to FY13. Refer to Figure 1 for the three year trend of the operating revenues as a percent to total operating revenues and revenue by category. ===== PAGE 120 ===== # KENTUCKY STATE UNIVERSITY Management’s Discussion and Analysis, continued June 30, 2014 ## Operating Expenses Operating expenses totaled $73.7 million, an increase of $2.5 million over last year. Of this amount, $42.6 million (57.8%) was expended directly for the primary mission of the University – instruction (17.3%), research (7.5%), student services (9.9%), student aid (12.5%), and public service (10.6%). Instruction is the main component of Primary Mission expenses amounting to $12.8 million in fiscal year 2014 or 17.3%. Refer to Figure 2 for the operating expenses categorized into the Primary Mission of the University. (Percentages below do not include depreciation or operations/maintenance allocations.)
Figure 2
Image
===== PAGE 121 ===== # KENTUCKY STATE UNIVERSITY ## Management's Discussion and Analysis, continued June 30, 2014 In addition to the Primary Mission expenses of the University, there are expenses from depreciation and operations & maintenance that are allocated to the various functional classifications (See note 12 – Schedule of Expenses by Program). See below for the operating expenses categorized into the Functional Expenses of the University. (Percentages below include depreciation and operations/maintenance allocations.)
Fiscal Year 2014 Functional Expenses as a % of Total Operating Expenses
Image
The University continued to invest in student aid and support services to provide students with opportunities to be successful in fiscal 2014. For the year ended June 30, 2014, student aid related to tuition and fees totaled $8.3 million, with student aid expenses of $9.2 million and scholarship allowances of $4.9 million. The University had an overall increase in institutional support of $4.2 million, which was mainly due to the increase in bad debt expensed during the fiscal year. The large expenditures in the primary areas of instruction, research and student services, in conjunction with minimal increases to fixed cost areas, confirms the University resource allocations are clearly aligned with the University's strategic priorities to support academic and student excellence. The net loss from operations for the year amounted to $35.0 million. Non-operating revenues, net of expenses, amounted to $30.9 million, resulting in a decrease in income before other revenues, expenses, gains or loss of $4.0 million for the year. Non-operating revenues include state appropriations of $23.5 million, non-operating federal grants and contracts of $5.9 million, gifts of $13 thousand and investment income of $1.7 million, and other non-operating income net of revenue of $71 thousand. ## Statement of Cash Flows The Statement of Cash Flows presents information related to the University's cash inflows and outflows summarized by operating activities, noncapital financing activities, capital financing activities and investing activities. The primary purpose of the Statement of Cash Flows is to provide information about the cash receipts and cash payments made by the University during the year, to allow financial statement readers to assess the University's ability to generate future net cash flows, its ability to meet obligations as they become due and its possible need for external financing. ===== PAGE 122 ===== ## KENTUCKY STATE UNIVERSITY ## Management's Discussion and Analysis, continued ## June 30, 2014
Condensed Statement of Cash Flows
20142013
Cash (used) provided by:
Operating activities$(27,961,664)$(27,644,376)
Non-capital financing activities29,557,82930,090,766
Capital and related financing activities(3,026,755)(4,000,212)
Investment activities(101,431)(1,180,915)
Net increase (decrease) in cash(1,532,021)(2,734,737)
Cash and cash equivalents, beginning year21,107,98423,842,721
Cash and cash equivalents, end of year$19,575,963$21,107,984
## Cash and Investments Major sources of cash received from operating activities are student tuition and fees of $18.4 million and grants and contracts of $15.5 million. Major uses of cash for operating activities were payments to employees for salaries and benefits of $37.4 million and to vendors and contractors of $23.5 million. Noncapital financing activities included state appropriations from the Commonwealth of Kentucky of $23.5 million. Capital and related financing activities include purchases and payments of $3.0 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. Net cash of $101 thousand was spent for conducting investing activities, including purchase and sales of investments, and interest and dividends earned on investments. Investment activity was primarily related to management of the University's endowments. ===== PAGE 123 ===== # KENTUCKY STATE UNIVERSITY Management’s Discussion and Analysis, continued June 30, 2014 ## State Appropriations State appropriations represent approximately 33.8% of all operating and non-operating revenues. The level of state support is a key factor influencing the University's overall financial condition. State appropriation is unrestricted to revenue and is included as non-operating revenue. State appropriation is used to support payroll and benefits for University employees. The following details the net Commonwealth appropriations received by the University for fiscal years ending June 30, 2014, 2013 and 2012.
201420132012
Commonwealth appropriations$ 23,537,400$ 23,537,402$ 24,660,001
Federal appropriations6,722,3326,873,1693,796,394
Total appropriations$ 30,259,732$ 30,410,571$ 28,456,395
## Capital Appropriations for the Commonwealth The University faces financial challenges to maintain and upgrade its capital assets including its infrastructure, buildings and grounds. A combination of revenue sources funds the University's investment in capital improvements, including appropriations provided by the Commonwealth of Kentucky. In fiscal year 2014, the Commonwealth provided no capital appropriations to the University. State capital appropriations plus federal sources play an important role in the University's efforts to address deferred maintenance projects. ## Grant and Contract Revenue The following table details the University's grant and contract revenue for fiscal years ended June 30, 2014, 2013 and 2012.
201420132012
Federal grants and contracts, operating$ 5,935,012$ 7,588,912$ 10,720,989
Federal grants and contracts, non-operating5,928,0365,922,9547,373,490
State grants and contracts2,289,8101,584,0561,547,004
Total grants and contracts$ 14,152,858$ 15,095,922$ 19,641,483
===== PAGE 124 ===== # KENTUCKY STATE UNIVERSITY Management’s Discussion and Analysis, continued June 30, 2014 ## Capital Plan During fiscal year 2014, Kentucky State University started construction on the Dr. Cheaney Legacy Plaza. Design of several construction projects started: Old Federal Bldg. Restoration / Renovation Phase II (Aquaculture KY River Interpretive Center); Renovate Atwood Agriculture Research Bldg.; and Privatized Housing. The University completed a roof replacement project for Alumni Stadium Office and Locker Bldg. In addition HVAC improvements were made to the Ceramics Classroom in Shauntee Hall; hallways and stairwells were painted and floor tile replaced in Shauntee Hall. The execution of the University's capital plan is contingent upon sufficient funding from the Commonwealth. The Kentucky General Assembly during the 2014 regular session approved state bond funding for one project out of the University submitted Six Year Capital Plan. State Bond Funds of $10,400,000 was approved for "Repair Boilers and Aging Distribution Lines". This project will replace boilers and repair a portion of the existing steam plant system. New construction projects proposed and only authorized for expenditure of KSU Restricted Funds include: $9 million to expand or build a new Betty White Nursing Building, which will provide 19,800 square feet of new classroom space to accommodate enrollment into the nursing program; $46.4 million to construct a centralized boiler plant to replace the existing seventy year old plant; $31.5 million to construct a Business & Technology Center to house the business school and the computer science program; $96 million to build a Performing Arts Center to replace antiquated Bradford Hall. Maintenance projects include but are not limited to: Roof Repair & Maintenance Pool; $3.4 million and a $1.5 million Capital Renewal & Maintenance Pool. Information Technology projects include but are not limited to: Integrated Digital Campus $11.4 million; Expand Emergency Notification System $4.5 million; Upgrade Information Technology Infrastructure $6.2 million. Major capital-related needs and issues facing the university with its aging facilities was documented in the 2007 VFA Facility Condition Assessment and Space Study. The process used for determining the 2014-2020 priorities was enhanced by utilization of the 2008 Campus Master Plan Update and the information gathered as part of that effort as well as the VFA findings. These two initiatives are the framework of the 2014-2020 Capital Plan. The Capital Planning and Construction Division, the Facilities Services Division, and the Information Technology Division collaborated to establish initial priorities for the plan. Priorities were further refined when Cabinet-level administrators and the President reviewed the project list linked to specific University initiatives. ===== PAGE 125 ===== # KENTUCKY STATE UNIVERSITY Management's Discussion and Analysis, continued June 30, 2014 ## Designated and Non-designated Spending In the tables below, expenses have been categorized into designated or non-designated spending categories. The designated spending category includes funds expended by function from contracts and grants, land grant, auxiliary and depreciation. These funds must be expended for the purposes for which the funds were received or budgeted. This category also includes funds for student aid. All other spending is categorized as non-designated spending. Total spending for all functions in the non-designated category increased by approximately $3.5 million in 2014, primarily due to the increase in recognizing bad debt expense in the institutional support category. ===== PAGE 126 ===== ## KENTUCKY STATE UNIVERSITY ## Management's Discussion and Analysis, continued
June 30, 2014
2014
Designated SpendingNon-designated SpendingCombined Spending
Instruction$ 303,043$ 12,462,869$ 12,765,912
Research4,687,170821,1915,508,361
Public service4,575,9103,204,9247,780,834
Academic support1,378,2641,060,5132,438,777
Student services1,266,0236,012,9947,279,017
Institutional support978,91612,903,72313,882,639
Operation and plant maintenance-4,680,2954,680,295
Student aid9,222,531-9,222,531
Auxiliary5,663,271-5,663,271
Depreciation4,459,941-4,459,941
Total$ 32,535,069$ 41,146,509$ 73,681,578
2013
Designated SpendingNon-designated SpendingCombined Spending
Instruction$ 460,694$ 13,240,545$ 13,701,239
Research4,931,690851,9015,783,591
Public service4,511,828907,7005,419,528
Academic support1,338,8192,029,0743,367,893
Student services1,404,9886,307,1757,712,163
Institutional support983,1328,689,6649,672,796
Operation and plant maintenance-5,602,0005,602,000
Student aid9,162,677-9,162,677
Auxiliary6,273,691-6,273,691
Depreciation4,511,068-4,511,068
Total$ 33,578,587$ 37,628,059$ 71,206,646
The graph in Figure 3 shows a three year trend of designated, non-designated, and combined spending. Non-designated spending is higher than designated spending in FY14. However, designated spending decreased $1.0 million in both 2013 and 2014. Non-designated spending decreased $4.2 million in 2013 and increased $3.5 million in 2014. Overall, the combined spending followed the same trend as designated spending with a decrease of $5.2 million in 2013 and increase of $2.5 million in 2014. ===== PAGE 127 ===== ## KENTUCKY STATE UNIVERSITY Management's Discussion and Analysis, continued June 30, 2014
Figure 3
Image
===== PAGE 128 ===== # Management's Discussion and Analysis, continued ## June 30, 2014 Capital Asset and Debt Administration Capital Assets Capital assets, net of accumulated depreciation, totaled $80.7 million at June 30, 2013, a decrease of $2.5 million. Capital assets as of June 30, 2014 and significant changes in capital assets during the year are as follows (in millions):
June 30, 2014Net Additions (Reductions) FY 13-14June 30, 2013Net Additions (Reductions) FY 12-13June 30, 2012
Land and land improvements$ 6.3$ -$ 6.3$ 0.6$ 5.7
Buildings, fixed equipment and infrastructure154.7-154.71.6153.1
Equipment, vehicles and capitalized software32.30.931.41.529.9
Library materials and art10.4-10.40.69.8
Construction in progress1.01.0-(1.1)1.1
Accumulated depreciation(124.0)(4.4)(119.6)(4.5)(115.1)
Total$ 80.7$ (2.5)$ 83.2$ (1.3)$ 84.5
At June 30, 2014, the University has capital construction projects in progress totaling $970,250 in scope. Long Term Debt At June 30, 2014, bonds and lease payable amounted to $7.3 million, as summarized below:
201420132012
Lease Obligations$ 3,796,904$ 4,139,613$ 4,565,078
Note payable to City of Frankfort250,000300,000-
General Receipts Bonds3,405,0003,790,0004,165,000
Bond discount and issue costs(49,798)(53,629)(57,460)
Total$ 7,402,106$ 8,175,984$ 8,672,618
===== PAGE 129 ===== # KENTUCKY STATE UNIVERSITY Management’s Discussion and Analysis, continued June 30, 2014 ## Economic Factors Impacting Future Periods University management continues its strategic mission to uniquely position Kentucky State University as Kentucky's small public liberal arts institution of excellence for the citizens of the Commonwealth and for advancing higher education in Kentucky by inspiring innovation, growing leaders and advancing Kentucky. Executive management continues to work with the Council on Postsecondary Education to address the needs of the Commonwealth and believes it is positioning the University to become a strong, financially viable and efficient institution of higher learning. Future economic factors impacting Kentucky State University include the following known facts: Tuition and costs of attendance—Kentucky State University continues to weigh its costs of attendance with the funding provided by the General Assembly to successfully deliver its programs and remain one of the most affordable public institutions in the Commonwealth. Funding levels and methodologies used for institutions of higher education in the Commonwealth are developed and approved by the Council on Postsecondary Education. - Enrollment growth and student retention—Kentucky State University recruits a diverse student body of traditional, nontraditional and transfer students seeking baccalaureate and advanced degrees. Enrollment stabilization is a priority of University management and specifically, an increased strategy for recruiting in-state students. Program expansion—the University is well positioned to meet the needs of Kentuckians through its programs and educational activities. The University offers the following programs: Bachelors in Mass Communications and Journalism, a Masters of Arts in Special Education, and a Masters in Business Administration, a Masters in Public Administration, a Masters in Computer Science, a Masters in Environmental Studies, a Masters of Science in Interdisciplinary Behavioral Studies and soon, a Doctorate in Nursing Practice. Regional Stewardship—Kentucky State University continues to meet the economic and community needs of its area of geographic responsibility through collaborative initiatives with businesses, community-based organizations, schools and other educational agencies, citizens and local and state officials. - Land Grant – Kentucky State University continues to fulfill its mission as a land grant institution providing innovative research opportunities on its research vessel, the Kentucky River Thorobred and community based extension through the Rosenwald Center for Families and Children - State Funding Model – On January 16, 2013, Moody’s Investor Service downgraded its outlook for the entire US higher education sector to negative. The state is being forced to innovate and come up with strategies for getting better results with less money. One of the strategies is the idea of tying state education allocations to performance metrics instead of enrollment. The overall financial position of the University was stable during fiscal year 2014. Revenue streams were stressed. As the University adapts to present economic environments, new opportunities for funding will be explored to complement state support. Executive management's goal is to deliver exceptional programs and services to students and constituents while maintaining financial stability. Management believes Kentucky State University is able to sustain its financial position and solidify its being a regional university of excellence. ===== PAGE 130 ===== ## KENTUCKY STATE UNIVERSITY ## Statements of Net Position ## June 30, 2014 and 2013
20142013
ASSETS
Current assets
Cash and cash equivalents$19,575,963$21,107,984
Accounts, grants and loans receivable, net8,535,44210,875,339
Inventory and other current assets157,844538,521
Total current assets28,269,24932,521,844
Noncurrent assets
Accounts, grants and loans receivable, net241,030443,881
Investments15,303,09813,501,397
Capital assets, net80,661,02083,185,618
Total noncurrent assets96,205,14897,130,896
Total assets124,474,397129,652,740
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities3,402,2423,291,014
Accrued compensated absences1,557,3501,633,551
Unearned revenue1,299,3281,280,078
Deposits169,221160,856
Other current liabilities91,70063,283
Long-term debt, current portion753,065875,082
Total current liabilities7,272,9067,303,864
Noncurrent liabilities
Long-term debt, noncurrent portion6,649,0417,300,902
Federal grants refundable534,914991,709
Total noncurrent liabilities7,183,9558,292,611
Total liabilities14,456,86115,596,475
NET POSITION
Invested in capital assets, net of related debt73,258,91475,009,634
Restricted
Nonexpendable8,657,5068,657,506
Expendable5,849,6905,905,037
Unrestricted22,251,42624,484,088
Total net position$110,017,536$114,056,265
See accompanying notes. ===== PAGE 131 ===== ## KENTUCKY STATE UNIVERSITY FOUNDATION, INC ## Statements of Financial Position
June 30, 2014 and 2013
Assets20142013
Current assets:
Cash and cash equivalents$ 1,889,815$ 1,966,708
Investments, at fair value9,175,0027,924,717
Property and equipment:
Equipment140,400140,400
Buildings and improvements65,52665,526
205,926205,926
Accumulated depreciation(158,301)(142,279)
Property and equipment, net47,62563,647
Other assets35,25131,203
Total assets$ 11,147,693$ 9,986,275
Liabilities and Net Assets
Current liabilities:
Accounts payable$ 15,566$ 9,489
Accrued liabilities3,697-
Total liabilities19,2639,489
Net assets:
Unrestricted:377,256315,740
Temporarily restricted:7,285,8176,433,260
Permanently restricted3,465,3573,227,786
Total net assets11,128,4309,976,786
Total liabilities and net assets$ 11,147,693$ 9,986,275
===== PAGE 132 ===== ## KENTUCKY STATE UNIVERSITY ## Statements of Revenues, Expenses and Changes in Net Position ## Years ended June 30, 2014 and 2013
20142013
REVENUES
Operating revenues
Student tuition and fees (net of scholarship allowances of $4,895,742 and $4,276,036)$ 16,472,026$ 16,595,920
Federal grants and contracts5,935,0127,588,912
Federal appropriations6,722,3326,873,169
State and local grants and contracts2,289,8101,584,056
Auxiliary enterprises:
Residence halls3,161,6642,836,181
Dining2,877,7872,775,383
Bookstore75,000152,500
Other auxiliaries80,973301,329
Other operating revenues1,096,0451,131,620
Total operating revenues38,710,64939,839,070
EXPENSES
Operating expenses
Educational and general
Instruction12,765,91213,701,239
Research5,508,3615,783,591
Public service7,780,8345,419,529
Academic support2,438,7773,367,893
Student services7,279,0177,712,162
Institutional support13,882,6399,672,796
Operation and maintenance of plant4,680,2955,602,000
Student aid9,222,5319,162,677
Depreciation4,132,6904,174,107
Auxiliary enterprises
Residence halls2,321,8132,626,565
Dining2,655,0192,608,016
Other auxiliaries686,4391,039,110
Depreciation327,251336,961
Total operating expenses73,681,57871,206,646
Operating loss(34,970,929)(31,367,576)
===== PAGE 133 ===== ## KENTUCKY STATE UNIVERSITY ## Statements of Revenues, Expenses and Changes in Net Position, continued ## Years ended June 30, 2014 and 2013
20142013
NONOPERATING REVENUES (EXPENSES)
State appropriations$ 23,537,400$ 23,537,402
Federal grants and contracts5,928,0365,922,954
Investment income (net of investment expense)1,700,2701,150,833
Interest on capital asset-related debt(317,534)(276,050)
Other non-operating revenues71,352583,269
Endowment gifts12,6767,276
Net non-operating revenues30,932,20030,925,684
Decrease in net position(4,038,729)(441,892)
Net position, beginning of year114,056,265114,498,157
Net position, end of year$ 110,017,536$ 114,056,265
===== PAGE 134 ===== ## KENTUCKY STATE UNIVERSITY FOUNDATION, INC ## Statement of Activities ## Year ended June 30, 2014
UnrestrictedTemporarily RestrictedPermanently RestrictedTotal
Revenues, gains and other support:
Contributions$ 30,000$ 877,796$ 237,571$ 1,145,367
Investment income:
Interest and dividends5,328222,225-227,553
Realized and unrealized gains20,155849,814-869,969
Total investment income25,4831,072,039-1,097,522
Releases from restrictions1,097,278(1,097,278)--
Total revenues, gains and other support1,152,761852,557237,5712,242,889
Expenses:
Scholarships538,908--538,908
Operating expenses138,360--138,360
Personal services83,895--83,895
University support203,637--203,637
Student support68,527--68,527
Travel and promotion57,918--57,918
Total expenses1,091,245--1,091,245
Change in net assets61,516852,557237,5711,151,644
Net assets, beginning of year315,7406,433,2603,227,7869,976,786
Net assets, end of year$ 377,256$ 7,285,817$ 3,465,357$ 11,128,430
===== PAGE 135 ===== ## KENTUCKY STATE UNIVERSITY FOUNDATION, INC ## Statement of Activities ## Year ended June 30, 2013
UnrestrictedTemporarily RestrictedPermanently RestrictedTotal
Revenues, gains and other support:
Contributions$ 20,557$ 1,415,205$ 82,224$ 1,517,986
Investment income:
Interest and dividends5,061222,698-227,759
Realized and unrealized gains17,826736,259-754,085
Total investment income22,887958,957-981,844
Releases from restrictions755,245(755,245)--
Total revenues, gains and other support798,6891,618,91782,2242,499,830
Expenses
Scholarships79,436--79,436
Operating expenses156,001--156,001
Personal services137,128--137,128
University support255,508--255,508
Student support86,493--86,493
Travel and promotion59,160--59,160
Total expenses773,726--773,726
Change in net assets24,9631,618,91782,2241,726,104
Net assets, beginning of year290,7771,264,1326,695,7738,250,682
Reclassification-3,550,211(3,550,211)-
Net assets, end of year$ 315,740$ 6,433,260$ 3,227,786$ 9,976,786
===== PAGE 136 ===== ## KENTUCKY STATE UNIVERSITY ## Statements of Cash Flows Years ended June 30, 2014 and 2013
Cash flows from operating activities20142013
Tuition and fees$18,362,048$15,559,397
Grants and contracts15,461,02217,525,213
Payments to suppliers(23,480,750)(20,782,828)
Payments to employees(37,413,975)(39,359,104)
Student financial aid(8,542,435)(8,254,844)
Collection of loans issued to students202,850301,045
Auxiliary enterprises:
Residence halls and dining6,039,4515,611,564
Bookstore75,000152,500
Other auxiliaries80,973301,329
Other receipts1,254,1521,301,352
Net cash from operating activities(27,961,664)(27,644,376)
Cash flows from non-capital financing activities
State appropriations23,537,40023,537,402
Federal grants and contracts5,928,0365,922,954
Endowment gifts12,6767,276
Student organization agency receipts78,409109,910
Student organization agency disbursements(70,044)(70,045)
Other receipts71,352583,269
Net cash from non-capital financing activities29,557,82930,090,766
Cash flows from capital financing activities
Purchases of capital assets(1,834,139)(3,227,528)
Principal paid on capital debt(875,082)(496,634)
Interest paid on capital debt(317,534)(276,050)
Net cash from capital financing activities(3,026,755)(4,000,212)
Cash flows from investing activities
Investment income1,766,3281,235,741
Investment expenses(66,058)(84,908)
Proceeds from sale of investments12,830,4925,932,168
Purchases of investments(14,632,193)(8,263,916)
Net cash from investing activities(101,431)(1,180,915)
Net decrease in cash and cash equivalents(1,532,021)(2,734,737)
Cash and cash equivalents at beginning of year21,107,98423,842,721
Cash and cash equivalents at end of year$19,575,963$21,107,984
See accompanying notes. ===== PAGE 137 ===== ## KENTUCKY STATE UNIVERSITY ## Statements of Cash Flows, continued ## Years ended June 30, 2014 and 2013
Reconciliation of net operating loss to net cash from operating activities20142013
Operating loss$(34,970,929)$(31,367,576)
Adjustments to reconcile operating loss to net cash from operating activities:
Depreciation expense4,459,9414,511,068
Bad debt expense4,038,7281,637,173
Changes in assets and liabilities:
Receivables, net(1,495,980)(39,795)
Inventory and other current assets380,677(307,373)
Accounts payable and accrued liabilities111,228(990,898)
Accrued compensation and other liabilities(76,201)(96,819)
Other liabilities(428,378)(58,900)
Unearned revenue19,250(931,256)
Net cash from operating activities$(27,961,664)$(27,644,376)
Supplemental disclosure of noncash investing and financing activities:
Purchase of police vehicles with capital lease$101,204$-
===== PAGE 138 ===== # KENTUCKY STATE UNIVERSITY Notes to the Financial Statements ### 1. Organization and Summary of Significant Accounting Policies ## Reporting Entity Kentucky State University (the University) is a component unit of the Commonwealth of Kentucky and is included in the general-purpose financial statements of the Commonwealth. The Kentucky State University Foundation, Inc. (the Foundation) is a legally separate, tax-exempt organization supporting the University. The Foundation acts primarily as a fund-raising organization to supplement the resources that are available to the University in support of its programs. The Foundation's Board of Directors is self-perpetuating and consists of graduates and friends of the University. Although the University does not control the timing or amount of receipts from the Foundation, the majority of resources or income thereon that the Foundation holds and invests is restricted by the donors to the activities of the University. Because these restricted resources held by the Foundation can only be used by, or for the benefit of, the University, the Foundation is considered a component unit of the University and is discretely presented in the University's financial statements. ## Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board (GASB), including Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments, and Statement No. 35, Basic Financial Statements and Management's Discussion and Analysis of Public College and Universities, issued in June and November, 1999, respectively. The University reports as a Business Type Activity (BTA), as defined by GASB Statement No. 35. BTA's are those activities that are financed in whole or in part by fees charged to external parties for goods and services. The University, as a BTA, has adopted GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. Therefore, the University follows GASB pronouncements and all Financial Accounting Standards Board pronouncements except those that conflict with or contradict GASB pronouncements. ## Basis of Accounting The financial statements have been prepared on the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when an obligation has been incurred. GASB Statement No. 35 establishes standards for external financial reporting for public colleges and universities and requires that resources be classified for accounting and reporting purposes into the following net asset categories: • Invested in capital assets, net of related debt: Capital assets, net of accumulated depreciation and outstanding principal balances of debt attributable to the acquisition, construction or improvement of those assets. ===== PAGE 139 ===== # KENTUCKY STATE UNIVERSITY Notes to the Financial Statements, continued ### 1. Organization and Summary of Significant Accounting Policies, continued ## Basis of Accounting, continued ## Restricted: Nonexpendable – Net position subject to externally imposed stipulations that they be maintained permanently by the University. Such position include the University's permanent endowment funds. Expendable– Net position whose use by the University is subject to externally imposed stipulations that can be fulfilled by actions of the University pursuant to those stipulations or that expire by the passage of time. Unrestricted: Net position whose use by the University is not subject to externally imposed stipulations. Unrestricted net position may be designated for specific purposes by action of management or the Board of Trustees or may otherwise be limited by contractual agreements with outside parties. The financial statement presentation required by GASB Statement No. 35 is intended to provide a comprehensive, entity-wide perspective of the University's assets, liabilities, net position, revenues, expenses, changes in net position and cash flows. ## Cash Equivalents For the Statement of Cash Flows, the University considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. ## Accounts, Grants, and Loans Receivable, net Accounts receivables consist of tuition and fee charges, loans to students and amounts due from federal and state governments, non-governmental sources, in connection with reimbursements of allowable expenses made pursuant to grants and contracts. Accounts receivables are recorded net of allowance for doubtful accounts. ## Allowance for Doubtful Accounts The allowance for doubtful accounts is established through a provision for doubtful accounts charged to expense. The allowance represents an amount, which, in management's judgment, will be adequate to absorb probable losses on existing accounts that may become uncollectible. ## Inventories Inventories are stated at the lower of cost (first-in, first-out method) or market and consist of physical plant items. Inventories consist of physical plant, postage and printing supplies. ===== PAGE 140 ===== # KENTUCKY STATE UNIVERSITY Notes to the Financial Statements, continued ### 1. Organization and Summary of Significant Accounting Policies, continued ## Endowment Funds Kentucky State University recognizes its fiduciary duty not only to invest the University's endowment holdings in formal compliance with the Uniform Prudent Management of Institutional Funds Act (UPMIFA) but also to manage those funds in continued recognition of the basic long-term nature of the University. The University interprets this to mean, in addition to the adopted spending guidelines and restrictions described below, that the assets of the University shall be actively managed, that is, investment decisions regarding the particular securities to be purchased or sold shall be the result of the conscious exercise of discretion. The University recognizes that, commensurate with its overall objective of maximizing long-range return while maintaining a high standard of portfolio quality and consistency of return, it is necessary that proper diversification of assets be maintained both among and within the classes of securities held. Within this context of active management and the necessity of adherence to proper diversification, the University relies upon appropriate professional advice. The University recognizes that long-term objectives are most important, but it is also necessary that shorter-term benchmarks be used to assess the periodic performance of the investment program. The University anticipates annual spending of five percent (5%) of the average market value for the past three years, the amount of which shall be determined in January of each year. The University believes that it is prudent to diversify endowment investments so as to minimize the risks of large losses and has established asset allocation ranges based upon the University's participation demographics, anticipated cash flow requirements and the expected returns of the capital markets. ## Investments Investments are valued at fair value based on quoted market prices. Short-term investments are investments that are not cash equivalents but mature within the next fiscal year and are classified as current assets. ## Capital Assets Capital assets are stated at cost at date of acquisition or, in the case of gifts, at fair value at date of gift. Equipment with a unit cost of $2,000 or more and having an estimated useful life of greater than one year is capitalized. Renovations to buildings and infrastructure and land improvements that significantly increase the value or extend the useful life of the structure are capitalized. Routine repairs and maintenance are charged to operating expense in the year in which the expense is incurred. Depreciation of capital assets is computed on a straight-line basis over the estimated useful lives of the respective assets. The University capitalizes, but does not depreciate, works of art and historical ===== PAGE 141 ===== # KENTUCKY STATE UNIVERSITY ## Notes to the Financial Statements, continued ### 1. Organization and Summary of Significant Accounting Policies, continued ## Capital Assets, continued treasures that are held for exhibition, education, research and public service. Estimated lives used for depreciation purposes are as follows:
ClassificationEstimated Life
Improvements20 years
Buildings40 years
Transportation equipment5-15 years
Equipment5-20 years
Enterprise Resource Software7 years
Library holdings10 years
## Compensated Absences The liability and expense incurred for employee vacation and sick pay are recorded as accrued compensated absences in the statements of net position and as a component of compensation and benefit expense in the statements of revenues, expenses and changes in net position. ## Unearned Revenue Unearned revenue includes amounts received for tuition and fees prior to the end of the fiscal year but related to the subsequent reporting period. Unearned revenues also include amounts received from grant and contract sponsors and state deferred maintenance funds that have not yet been earned. ## Income Taxes The University is an agency and instrumentality of the Commonwealth of Kentucky, pursuant to Kentucky Revised Statutes sections 164.290 through 164.475. Accordingly, the University is generally exempt from federal income taxes as an organization described in Section 115 of the Internal Revenue Code of 1986, as amended. The Foundation has received a determination from the Internal Revenue Service granting exemption from federal income taxation pursuant to the provisions of the Internal Revenue Code section 501(c)(3). ## Restricted Asset Spending Policy The University's policy is that restrictions on assets cannot be fulfilled by the expenditure of unrestricted funds for similar purposes. The determination on whether restricted or unrestricted funds are expended for a particular purpose is made on a case-by-case basis. Restricted funds remain restricted until spent for the intended purpose. ===== PAGE 142 ===== # KENTUCKY STATE UNIVERSITY Notes to the Financial Statements, continued ### 1. Organization and Summary of Significant Accounting Policies, continued ## Operating Activities The University defines operating activities, as reported on the statement of revenues, expenses and changes in net position, as those that generally result from exchange transactions, such as payments received for providing goods and services and payments made for services and goods received. Nearly all of the University's expenses are from exchange transactions. Certain significant revenues relied upon for operations, such as state and certain federal appropriations, gifts and investment income, are recorded as non-operating revenues, in accordance with GASB Statement No. 35. ## Scholarship Discounts and Allowances Financial aid to students is reported in the financial statements under the alternative method as prescribed by the National Association of College and University Business Officers (NACUBO). Certain aid, such as loans and funds provided to students awarded by third parties, is accounted for as third party payments (credited to the student's account as if the student made the payment). All other aid is reflected in the financial statements as operating expenses, or scholarship allowances, which reduce revenues. The amount reported as operating expenses represents the portion of aid that was provided to the student in the form of cash. Scholarship allowances represent the portion of aid provided to the student in the form of reduced tuition. Under the alternative method, these amounts are computed by allocating the cash payments to students, excluding payments for services, on the ratio of total aid to the aid not considered to be third party aid. ## Federal Grants and Contracts Per GASB Statement No. 24, pass-through grants should be reported as revenues and expenses in the financial statements if that entity has any administrative or direct financial involvement in the program. An entity has administrative involvement if it determines eligible secondary recipients or projects, even if using grantor-established criteria. Therefore, Pell Grants are considered non-exchange transactions and are recorded as non-operating revenues in the accompanying financial statements. ## Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ===== PAGE 143 ===== # KENTUCKY STATE UNIVERSITY Notes to the Financial Statements, continued ### 1. Organization and Summary of Significant Accounting Policies, continued ## Component Unit Disclosure The accompanying financial statements of the Foundation have been prepared in accordance with accounting principles generally accepted in the United States of America as prescribed by the FASB. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. During the year ended June 30, 2014 and 2013, the Foundation made distributions of approximately $203,600 and $255,500 respectively, on behalf of the University for both restricted and unrestricted purposes. Complete financial statements for the Foundation can be obtained from the Kentucky State University Foundation, Inc. at P.O. Box 4210, Frankfort, KY 40604. ## Recent Pronouncements In November 2013, the GASB approved Statement No. 71, Pension transition for contributions made subsequent to the measurement date – an amendment of GASB Statement No. 68. The objective of this Statement is to address an issue regarding application of the transition provisions of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a state or local government employer or nonemployer contributing entity to a defined benefit pension plan after the measurement date of the government's beginning net pension liability. This Statement amends paragraph 137 of Statement 68 to require that, at transition, a government recognize a beginning deferred outflow of resources for its pension contributions, if any, made subsequent to the measurement date of the beginning net pension liability. Statement 68, as amended, continues to require that beginning balances for other deferred outflows of resources and deferred inflows of resources related to pensions be reported at transition only if it is practical to determine all such amounts. The provisions of this Statement are required to be applied simultaneously with the provisions of Statement 68. In June 2012, the GASB approved Statement No. 68, Accounting and Financial Reporting for Pensions. This Statement replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers and Statement No. 50, Pension Disclosures, as they relate to governments that provide pensions through pension plans administers as trusts or similar arrangements that meet certain criteria. Statement 68 requires governments providing defined benefit pensions to recognize their long-term obligation for pension benefits as a liability for the first time, and to more comprehensively and comparably measure the annual costs of pension benefits. Cost-sharing governmental employers will also be required to report a net pension liability, pension expense and pension-related assets and liabilities based on their proportionate share of the collective amounts for all governments in the plan. All governments participating in the defined benefit pension plan would also have the following in their note disclosures: • Descriptions of the plan and benefits provided - Significant assumptions employed in the measurement of the net pension liability ===== PAGE 144 ===== # KENTUCKY STATE UNIVERSITY ## Notes to the Financial Statements, continued ### 1. Organization and Summary of Significant Accounting Policies, continued Recent Pronouncements, continued • Descriptions of benefit changes and changes in assumptions Assumptions related to the discount rate and impact on the total pension liability of a 1 percentage point increase and decrease in the discount rate • Net pension assets and liabilities The provisions of this Statement are effective for fiscal years beginning after June 15, 2014. The University is currently evaluating the effects of this statement on its financial statements. In March 2012, the GASB issued Statement No. 65, Items Previously Reported as Assets and Liabilities. This statement establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. This statement also provides other financial reporting guidance related to the impact of the financial statement elements deferred outflows of resources and deferred inflows of resources, such as changes in the determination of the major fund calculations and limiting the use of the term deferred in financial statement presentations. The requirements of this statement were implemented as of June 30, 2014. This statement did not significantly affect the University's financial statements. ### 2. Cash, Cash Equivalents, and Investments The statement of net position classification "cash and cash equivalents" includes all readily available sources of cash such as petty cash, demand deposits, certificates of deposit and temporary investments in marketable securities with original maturities less than three months. At June 30, 2014 and 2013, the University had petty cash funds totaling zero, and deposits as reflected by bank balances as follows:
Insured, commercial banks20142013
250,000250,000
Uninsured, commercial banks; collateral held by pledging institution's agent in the University's name-5,018,080
Maintained by Commonwealth of Kentucky, collateral held by the Commonwealth in the Commonwealth's name19,298,59115,926,887
$ 19,548,591$ 21,194,967
===== PAGE 145 ===== # KENTUCKY STATE UNIVERSITY # Notes to the Financial Statements, continued ### 2. Cash, Cash Equivalents, and Investments, continued The difference in the cash carrying amount per the statement of net position and the above bank balances represented items in transit. At June 30, 2014 and 2013, the University had no cash and cash equivalents that are restricted for capital expenditures. As of June 30, 2014, the University had the following investments and maturities:
Investment Maturities (in years)
Investment TypeFair Value<11-56-1011-20
Bonds$ 1,558,440$125,000$ 722,900$ 548,200$ 162,340
Bond Mutual Funds4,696,098-4,696,098
Money Market Funds833,793833,793---
Real Estate Funds707,441-707,441--
7,795,772$ 958,793$ 6,126,439$ 548,200$ 162,340
Equities and Equity
Mutual Funds7,507,326
$ 15,303,098
As of June 30, 2013, the University had the following investments and maturities:
Investment Maturities (in years)
Investment TypeFair Value<11-56-1011-20
Bonds$ 2,471,417$ 160,000$1,122,984$ 533,278$ 655,155
Bond Mutual Funds2,868,982-2,868,982--
Money Market Funds801,131801,131---
Real Estate Funds611,011-611,011--
$ 6,752,541$ 961,131$4,602,977$ 533,278$ 655,155
Equities and Equity
Mutual Funds6,748,856
$13,501,397
The University has an investment management agreement with Fifth Third Bank (Fifth Third). Fifth Third serves individual and institutional clients. ## Credit Risk The University's average credit quality rating according to Moody's is Aa3. ===== PAGE 146 ===== # KENTUCKY STATE UNIVERSITY # Notes to the Financial Statements, continued ### 2. Cash, Cash Equivalents, and Investments, continued ## Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The University does not have a formal policy to specifically limit investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. ## Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The University does not have a formal policy for concentration of credit risk. ## Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the University will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The University does not have a formal policy for custodial credit risk. ### 3. Accounts, Grants and Loan Receivable Accounts, grants and loans receivable consist of the following as of June 30, 2014 and 2013.
20142013
Student tuition and fees$ 11,493,659$ 7,760,848
Student loans1,865,8072,068,658
Grants and contracts4,821,1165,334,984
Other261,467419,575
18,442,04915,584,065
Less: allowance for doubtful accounts(9,665,577)(4,264,845)
8,776,47211,319,220
Non-current portion241,030443,881
Current portion$ 8,535,442$ 10,875,339
===== PAGE 147 ===== ## KENTUCKY STATE UNIVERSITY ## Notes to the Financial Statements, continued ### 4. Capital Assets, Net Capital assets as of June 30, 2014, are summarized as follows:
Beginning BalanceAdditionsReductionsEnding Balance
Cost
Land and improvements$ 6,275,031$ -$ -$ 6,275,031
Buildings154,740,029--154,740,029
Equipment25,240,976772,319-26,013,295
Computer software1,458,62218,371-1,476,993
Library holdings10,366,4856,501-10,372,986
Transportation equipment4,675,169172,805-4,847,974
Construction in progress4,903965,347-970,250
202,761,2151,935,343-204,696,558
Accumulated depreciation
Buildings89,551,5112,496,710-92,048,221
Equipment16,450,1031,600,844-18,050,947
Library holdings9,490,629257,631-9,748,260
Transportation equipment4,083,354104,756-4,188,110
119,575,5974,459,941-124,035,538
Capital assets, net$ 83,185,618$ (2,524,598)______ < /td > < td style = 'text-align: center; word-wrap: break-word;' > 80,661,020
Capital assets as of June 30, 2013, are summarized as follows:
Beginning BalanceAdditionsReductionsEnding Balance
Cost
Land and improvements$ 5,648,990$ 626,041$ -$ 6,275,031
Buildings153,206,0361,533,993-154,740,029
Equipment24,267,330973,646-25,240,976
Computer software1,433,62225,000-1,458,622
Library holdings9,780,929585,556-10,366,485
Transportation equipment4,153,384521,785-4,675,169
Construction in progress1,043,396724,8801,763,3734,903
199,533,6874,990,9011,763,373202,761,215
Accumulated depreciation
Buildings87,131,0712,420,440-89,551,511
Equipment14,796,2471,653,856-16,450,103
Library holdings9,217,036273,593-9,490,629
Transportation equipment3,920,175163,179-4,083,354
115,064,5294,511,068-119,575,597
Capital assets, net$ 84,469,158$ 479,833$ 1,763,373$ 83,185,618
===== PAGE 148 ===== ## KENTUCKY STATE UNIVERSITY ## Notes to the Financial Statements, continued ### 5. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities as of June 30, 2014 and 2013, are as follows:
20142013
Payable to vendors and contractors$ 563,431$ 63,548
Accrued sick leave liability346,431500,000
Accrued salaries and other liabilities2,492,3802,727,466
$ 3,402,242$ 3,291,014
### 6. Unearned Revenue Unearned revenue consists of the following as of June 30, 2014 and 2013:
20142013
Unearned summer school tuition and fees$ 261,467$ 390,665
Unearned grants and contracts$ 1,037,861$ 889,413
$ 1,299,328$ 1,280,078
### 7. Long-Term Liabilities Long-term liabilities as of June 30, 2014, are summarized as follows:
Beginning BalanceAdditionsReductionsEnding BalanceCurrent PortionNoncurrent portion
General receipts bonds$ 3,790,000$ -$ 385,000$ 3,405,000$ 210,000$ 3,195,000
Note payable - City of Frankfort300,000-50,000250,00050,000200,000
Capital lease - police vehicles-101,204-101,20433,73567,469
Capital lease obligations-energy savings4,139,613-443,9133,695,700463,1613,232,539
Bond discount(53,629)-(3,831)(49,798)(3,831)(45,967)
Total bonds payable and capital lease obligations8,175,984101,204875,0827,402,106753,0656,649,041
Federal grants refundable991,709-456,795534,914-534,914
Total long-term liabilities$ 9,167,693$ 101,204$ 1,331,877$ 7,937,020$ 753,065$ 7,183,955
===== PAGE 149 ===== ## KENTUCKY STATE UNIVERSITY ## Notes to the Financial Statements, continued ### 7. Long-Term Liabilities, continued Long-term liabilities as of June 30, 2013, are summarized as follows:
Beginning BalanceAdditionsReductionsEnding BalanceCurrent PortionNoncurrent portion
General receipts bonds$ 4,165,000-$ 375,000$ 3,790,000$ 385,000$ 3,405,000
Note payable - City of Frankfort-500,000200,000300,00050,000250,000
Capital lease obligations-energy savings4,565,078-425,4654,139,613443,9133,695,700
Bond discount(57,460)-(3,831)(53,629)(3,831)(49,798)
Total bonds payable and capital lease obligations8,672,618500,000996,6348,175,984875,0827,300,902
Federal grants refundable991,709--991,709-991,709
Total long-term liabilities$ 9,664,327$ 500,000$ 996,634$ 9,167,693$ 875,082$ 8,292,611
The outstanding General Receipts Bonds Series A Bonds have interest rates from 3.625% - 3.875%. The bonds mature through 2027. The reserve requirements for these issues have been fully funded as of June 30, 2014. All bonds are collateralized by University property and the pledge of certain revenues, tuition and fees. The net book value of assets acquired through the capital leases included in the above schedule totaled $4,013,670 and $4,362,446 as of June 30, 2014 and 2013, respectively. In August 2009, the University signed a 10 year promissory note with the City of Frankfort, for the purchase of real property. The note and all current and prior payments were recognized and recorded as of June 30, 2013. ===== PAGE 150 ===== # KENTUCKY STATE UNIVERSITY # Notes to the Financial Statements, continued ### 7. Long-Term Liabilities, continued The following is a schedule of future minimum payments required for the promissory note at June 30, 2014:
Year ending June 30,
2015$ 50,000
2016
2017
2018
2019
Total$ 250,000
The principal and interest repayment requirements relating to the outstanding bonds payable at June 30, 2014, are as follows:
PrincipalInterestTotal
Year ending June 30,
2015$ 210,000$ 129,701$ 339,701
2016215,000122,089337,089
2017225,000114,241339,241
2018230,000105,916335,916
2019240,00097,291337,291
2020 - 20241,350,000341,6511,691,651
2025 - 2027935,00073,4311,008,431
Total$ 3,405,000$ 984,320$ 4,389,320
During 2005, the University entered into a capital lease for an energy management project. The lease obligation has an interest rate of 4.29% and requires annual payments of principal and interest through 2021. The lease obligation will be paid with guaranteed energy savings. During 2014, the University entered into a capital lease for the purchase of four police vehicles. The lease is payable in 4 annual installments, of which the first was paid in 2014. ===== PAGE 151 ===== # KENTUCKY STATE UNIVERSITY # Notes to the Financial Statements, continued ### 7. Long-Term Liabilities, continued The following is a schedule of future minimum payments required for the capital lease obligations at June 30, 2014:
Year ending June 30,$650,527
2015650,527
2016650,526
2017616,792
2018616,792
20191,233,585
Thereafter4,418,749
Total minimum lease payments621,845
Less: amounts representing interest$ 3,796,904
Present value of minimum lease payment$ 3,796,904
### 8. Operating Lease The University leases computer equipment under operating leases, which expired and was renewed on August 1, 2014. Lease payments to the lessors under these leases totaled $122,016 and $125,232 for the years ended June 30, 2014 and 2013, respectively. Minimum future lease payments are as follows:
2015106,104
201669,794
175,898
### 9. Employee Benefits ## Kentucky Teachers Retirement System All faculty and exempt employees required to hold a degree and occupying full-time positions, defined as seven-tenths (7/10) of normal full-time service on a daily or weekly basis, are required by state law to participate either in the Kentucky Teachers Retirement System (KTRS) or the Optional Retirement Plan (ORP). KTRS, a cost sharing, multiple-employer, public employee retirement system, provides retirement ===== PAGE 152 ===== # KENTUCKY STATE UNIVERSITY Notes to the Financial Statements, continued ### 9. Employee Benefits, continued ## Kentucky Teachers Retirement System, continued benefits based on an employee's final average salary and number of years of service. Benefits are subject to certain reductions if the employee retires before reaching age sixty, unless the employee has twenty-seven or more years of participation in the plan. The plan also provides for disability retirement, death and survivor benefits and medical insurance. The Kentucky Teachers Retirement System issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to Kentucky Teachers Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601-3868 or by calling (502) 848-8500. Funding for the plan is provided from eligible employees who contribute 7.16% of their salary through payroll deductions and the Commonwealth of Kentucky, which also indirectly contributes 14.84% of current eligible employees' salaries to the KTRS through appropriations to the University. Contribution requirements of the plan members and the University are established by Kentucky Revised Statute and the KTRS Board of Trustees. The University's contributions to KTRS for the years ended June 30, 2014, 2013 and 2012 were $2,483,138, $2,037,331, and $2,155,711, respectively, and equaled the required contribution for that year. ## Kentucky Employees Retirement System Substantially all other full-time University employees are required by law to participate in the Kentucky Employees Retirement System (KERS), a cost sharing multiple-employer, public employee retirement system. KERS provides retirement benefits based on an employee's final average salary and number of years of service. Benefits are subject to certain reductions if the employee retires before reaching age sixty-five, or less than twenty-seven years of service. The plan also provides for disability retirement, death and survivor benefits and medical insurance. The Kentucky Employees Retirement System issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to Kentucky Employees Retirement System, 1260 Louisville Road, Perimeter Park West, Frankfort, Kentucky 40601 or by calling (502) 564-4646. Funding for the plan is provided from eligible employees who contribute 5.00% of their salary through payroll deductions and the Commonwealth of Kentucky, which also indirectly contributes 26.79% of current eligible employees' salaries to the KERS through appropriations to the University. Employees hired on or after July 1, 2008 contribute 6.00% of their salary through payroll deductions and the Commonwealth of Kentucky, which also indirectly contributes 26.79% to the KERS through appropriations to the University. The University contribution rates are determined by the Kentucky Revised Statute and the Board of Trustees of the Kentucky Retirement System each biennium. The University's contributions to KERS for the years ended June 30, 2014, 2013 and 2012 were $1,432,369, $1,218,234, and $1,041,753, respectively, and equaled the required contribution for that year. ===== PAGE 153 ===== # KENTUCKY STATE UNIVERSITY Notes to the Financial Statements, continued ### 9. Employee Benefits, continued Health care and life insurance benefits are provided for eligible retired employees through the above pension plans. Expenditures for all employee benefits are included as expenditures within the appropriate functional areas. ## Optional Retirement Plan All faculty and exempt employees who are eligible to participate in the KTRS retirement plan may elect to participate in the Optional Retirement Plan (ORP) instead of KTRS. In doing so, the employee may choose both Teachers Insurance and Annuity Association of America, (TIAA-CREF) or The Variable Annuity Life Insurance Company (VALIC). Both offer a defined contribution, 403b plan. TIAA-CREF is one of the largest and most respected financial service providers in the world (unaudited). TIAA-CREF Individual & Institutional Services, Inc. distributes CREF and TIAA Real Estate Account variable annuities. Teachers Personal Investors Services, Inc. distributes Personal Annuity variable annuities, TIAA-CREF Mutual Funds, TIAA-CREF Institutional Mutual Funds, and TIAA-CREF Tuition Financing, Inc. products. TIAA-CREF Trust Company, FSB, provides trust services. Located in New York, NY, Teachers Insurance and Annuity Association of America (TIAA) and TIAA-CREF Life Insurance Company issue insurance and annuities. Financial statements are available on the website, www.tiaacref.com. VALIC is the marketing name for the family of companies comprising VALIC Financial Advisors, Inc.; VALIC Retirement Services Company; VALIC Trust Company; and The Variable Annuity Life Insurance Company (VALIC); which are all members of American International Group, Inc. (AIG). Complete information about VALIC's variable annuities, including financial statements, fees, charges, expenses and contract limitations, can be obtained by visiting the website www.aigvalic.com or by calling 1-800-428-2542. Funding for the ORP is provided from eligible employees who contribute 6.16% of their salary through payroll deductions and the Commonwealth of Kentucky, which also indirectly contributes 8.74% of current eligible employees' salaries to the ORP through appropriations to the University. The University's contributions to ORP for the years ended June 30, 2014, 2013 and 2012 were $554,207, $485,224, and $434,586, respectively, and equaled the required contribution for the year. Effective July 1, 2010, KRS 61.546 states that the value of any accumulated sick leave that is added to the member's service credit in the KERS and KTRS on or after July 1, 2010 shall be paid to the retirement system by the last participating employer, based upon a formula adopted by the KERS and KTRS Boards. The KERS/KTRS sick leave liability as of June 30, 2014 and 2013 was $346,431 and $500,000. ===== PAGE 154 ===== # KENTUCKY STATE UNIVERSITY Notes to the Financial Statements, continued ### 10. Commitments and Contingencies The University is a party to various law suits and other claims in the ordinary course of business. University officials are of the opinion, based upon the advice of legal counsel, that the ultimate resolution of these matters will not have a material effect on the financial statements of the University. The University receives financial assistance from federal and state agencies in the form of grants and awards. The expenditure of funds received from these programs generally requires compliance with terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audit could become a liability of the applicable fund. In the opinion of management, such potential disallowed claims, if any, would not have a material adverse effect on the overall financial position of the University at June 30, 2014. ### 11. Risk Management The University is exposed to various risks of loss from torts; theft of, damage to, destruction of assets; business interruption; employee injuries and illnesses; natural disasters; and employee health and accident benefits. Commercial insurance coverage is purchased for claims arising from these risks. Settled claims have not exceeded this commercial coverage in any of the three preceding years. As a sovereign entity of the Commonwealth of Kentucky, the Kentucky Board of Claims handles tort claims on behalf of the University. ### 12. Schedule of Expenses by Program In the Statement of Revenues, Expenses and Changes in Net Position, operating expenses are presented by functional expense purpose. Depreciation is allocated below based on functional classification as required by IPEDS for Fiscal Year 2014. Functional expense purpose is classified by natural classification: ===== PAGE 155 ===== ## KENTUCKY STATE UNIVERSITY ## Notes to the Financial Statements, continued 12. Schedule of Expenses by Program, continued
2014
Compensation & BenefitsSupplies & ServicesScholarships & FellowshipsDepreciationOperations & MaintenanceTotal
Instruction$ 11,762,119$ 1,003,793$ -$ 648,258$ 1,022,374$14,436,544
Research3,557,4711,940,45210,438754,727477,3476,740,435
Public service4,516,2533,020,059244,522350,219619,7168,750,769
Academic support1,616,845822,031(98)311,103209,5852,959,466
Student services5,159,0562,111,5948,367452,728589,2828,321,027
Institutional support6,952,0416,930,598-932,0531,262,89216,077,584
Operation & maintenance of plant1,908,2622,772,033-662,023(5,342,318)-
Auxiliary enterprises1,203,7894,459,481-327,251456,5736,447,094
Student financial aid661,939278,4848,282,10821,579704,5499,948,659
Total operating expense$ 37,337,775$23,338,525$ 8,545,337$ 4,459,941$ -$73,681,578
===== PAGE 156 ===== # KENTUCKY STATE UNIVERSITY ## Notes to the Financial Statements, continued ### 12. Schedule of Expenses by Program, continued
2013
Compensation & BenefitsSupplies & ServicesScholarships & FellowshipsDepreciationOperations & MaintenanceTotal
Instruction$ 12,400,132$ 1,261,665$ 39,442$ 648,012$ 1,345,441$ 15,694,692
Research3,698,5862,085,005-797,270617,0477,197,908
Public service4,002,8271,416,702-287,160535,0816,241,770
Academic support2,001,1541,366,739-279,201341,9663,989,060
Student services5,368,1882,314,88529,089477,347767,8808,957,389
Institutional support6,832,2342,915,953(75,391)984,8301,197,04811,854,674
Operation & maintenance of plant2,029,7433,572,257-683,049(6,285,049)-
Auxiliary enterprises1,192,3135,081,378-336,961619,8417,230,493
Student financial aid556,159344,8148,261,70417,238860,74510,040,660
Total operating expense$ 38,081,336$ 20,359,398$ 8,254,844$ 4,511,068$ -$ 71,206,646
### 13. Kentucky State University Foundation, Inc ### a. Organization: Kentucky State University Foundation, Inc. (the Foundation) is a Kentucky not-for-profit corporation formed to receive, invest and expend funds to promote and implement educational and developmental activities at Kentucky State University (the University). The Foundation is managed by a Board of Trustees independent from that of the University. The Foundation is supported primarily through contributions from alumni. ===== PAGE 157 ===== # KENTUCKY STATE UNIVERSITY # Notes to the Financial Statements, continued #### 13. Kentucky State University Foundation, Inc. continued ### b. Summary of Significant Accounting Policies: The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) which require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of the significant accounting policies consistently followed by the Foundation in the preparation of its financial statements. ## Basis of Presentation Net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the Foundation are classified and reported as follows: Unrestricted net assets - Net assets that are not subject to donor-imposed stipulations. Temporarily restricted net assets - Net assets subject to donor-imposed stipulations that will be met by actions of the Foundation, pursuant to those stipulations or that expire by the passage of time. Assets released from restrictions during 2014 and 2013 primarily relate to scholarships and University and student support. Permanently restricted net assets - Net assets subject to donor-imposed stipulations that neither expire by passage of time nor can be fulfilled or removed by actions of the Foundation pursuant to those stipulations. Permanently restricted net assets consist of assets from which the income can be used toward University scholarships and Foundation operations. ## Cash and Cash Equivalents The Foundation considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. The Foundation has a concentration of credit risk in that it periodically maintains bank accounts which, at times, may exceed the coverage provided by the Federal Deposit Insurance Corporation (FDIC). The Foundation has not experienced any losses on such amounts. The Foundation believes it is not exposed to any significant credit risk on cash. ## Investments Investments are stated at fair value based on closing market quotations for such securities or similar securities. ## Property and Equipment Property and equipment is recorded at cost if purchased or fair market value at date of contribution if contributed. If the donors stipulate how long the assets must be used, the contributions of property and equipment are recorded as restricted support. In the absence of such stipulations, these contributions are recorded as unrestricted support. Depreciation is computed on a straight-line basis over the estimated ===== PAGE 158 ===== # KENTUCKY STATE UNIVERSITY # Notes to the Financial Statements, continued #### 13. Kentucky State University Foundation, Inc. continued ### b. Summary of Significant Accounting Policies, continued: ## Property and Equipment, continued useful lives of the respective assets. Depreciation expense was $16,022 and 17,718 for the years ended June 30, 2014 and 2013, respectively. ## Revenue Recognition Contributions are generally recognized when received. However, pledges are recognized when the donor makes a promise to give to the Foundation that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. ## Income Taxes Kentucky State University Foundation, Inc., a not-for-profit organization operating under Section 501(c)(3) of the Internal Revenue Code, is generally exempt from federal, state and local income taxes. The Foundation's management does not believe the Foundation has any unrelated business income. Accordingly, no provision for income taxes is recorded in the financial statements. Management has evaluated the Foundation's tax positions and concluded that the Foundation had taken no material uncertain tax positions that require recognition or disclosure in the financial statements. With few exceptions, the Foundation is no longer subject to income tax examinations by the U.S. federal, state or local tax authorities for years before 2010. ## Subsequent Events The Foundation's management has evaluated subsequent events for accounting and disclosure requirements through October 2, 2014, the date the financial statements were available to be issued. There were no events occurring during the evaluation period that require recognition or disclosure in the financial statements. ## Reclassification The presentation of certain items in 2013 were reclassified to conform with the 2014 presentation, this reclassification had no impact on net assets or change in net assets. During 2013, the Foundation determined that certain amounts were improperly classified between the net asset categories. Certain amounts have been reclassified to more accurately reflect the net asset balances of the Foundation based on donor intent. This reclassification had no effect on total change in net assets or total net assets. ===== PAGE 159 ===== # KENTUCKY STATE UNIVERSITY ## Notes to the Financial Statements, continued #### 13. Kentucky State University Foundation, Inc. continued ### c. Investments Investments as of June 30, 2014 and 2013 are summarized as follows:
20142013
Equity securities$ 6,534,855$ 5,720,145
Debt securities1,820,0651,202,729
Real estate investment trust140,400140,400
U.S government securities679,682861,443
Total investments$ 9,175,002$ 7,924,717
### d. Fair Value Measurements The Foundation classifies its investments based on a hierarchy consisting of: Level 1 (valued using quoted prices from active markets for identical assets), Level 2 (not traded on an active market but for which observable market inputs are readily available), and Level 3 (valued based on significant unobservable inputs). The investment's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used as of June 30, 2014 and 2013. Common stocks, debt securities, U.S. government securities, equity exchange traded funds, and marketable limited partnerships: Valued at the closing price reported on the active market on which the individual securities are traded. Some level 2 inputs are used for pricing of municipal and corporate bonds; therefore, they are all classified as level 2. Mutual funds and real estate investment trust: Valued at the net asset value (NAV) of shares held by the Foundation at year end. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Foundation believes its valuation methods are appropriate and consistent with those of other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. ===== PAGE 160 ===== ## KENTUCKY STATE UNIVERSITY ## Notes to the Financial Statements, continued ## ued ### d. Fair Value Measurements, continued Fair value measurements as of June 30, 2014 are as follows:
Level 1Level 2Level 3Total
Common stocks3,984,702--3,984,702
Mutual funds:
Bond funds344,807--344,807
Daily accrual funds271,160--271,160
Small cap equity funds135,624--135,624
Mid cap equity funds6,331--6,331
Large cap equity funds14,568--14,568
International equity funds1,246,540--1,246,540
Balanced equity funds180,105--180,105
Debt securities:
Municipal bonds-264,543-264,543
Corporate bonds-1,555,522-1,555,522
U.S government securities679,682--679,682
Real estate investment trust-140,400-140,400
Equity exchange traded funds213,334--213,334
Marketable limited partnerships137,684--137,684
Total7,214,5371,960,465-9,175,002
===== PAGE 161 ===== # KENTUCKY STATE UNIVERSITY # Notes to the Financial Statements, continued #### 13. Kentucky State University Foundation, Inc. continued ### d. Fair Value Measurements, continued Fair value measurements as of June 30, 2013 are as follows:
Level 1Level 2Level 3Total
Common stocks3,720,273--3,720,273
Mutual funds:
Bond funds279,862--279,862
Daily accrual funds259,993--259,993
Small cap equity funds117,643--117,643
Mid cap equity funds126,293--126,293
International equity funds803,320--803,320
Balanced equity funds144,846--144,846
Debt securities:
Municipal bonds-232,207-232,207
Corporate bonds-970,522-970,522
U.S government securities861,443--861,443
Real estate investment trust-140,400-140,400
Equity exchange traded funds137,742--137,742
Marketable limited partnerships130,173--130,173
Total6,581,5881,343,129-7,924,717
### e. Temporarily Restricted Net Assets For the years ended June 30, 2014 and 2013, net assets were released from donor restrictions by incurring expenses satisfying the purpose of the restrictions specified by donors as follows:
20142013
Scholarships521,62945,378
Endowment spending allocation191,899215,070
University support188,717224,330
Student support66,02786,493
Operating and other expenses61,89955,465
Travel and other expenses55,82057,788
Personal services11,28770,721
Total release from restrictions1,097,278755,245
===== PAGE 162 ===== # KENTUCKY STATE UNIVERSITY Notes to the Financial Statements, continued #### 13. Kentucky State University Foundation, Inc. continued ### f. Retirement Plan The Foundation has a defined contribution profit sharing plan which covers all employees who meet certain requirements. Foundation contributions are discretionary. No contributions were made for the years ended June 30, 2014 and 2013. ### g. Endowment Composition On July 15, 2010, The Commonwealth of Kentucky adopted the Uniform Prudent Management of Institutional Funds Act (UPMIFA). The Foundation follows UPMIFA and its own governing documents. The Foundation has interpreted UPMIFA as requiring the preservation of the corpus of the donor-restricted endowment funds absent explicit donor stipulations to the contrary, and other amounts as deemed necessary by the board. As a result of this interpretation, the Foundation classifies as permanently restricted net assets (1) the original value of gifts donated to the permanent endowment, (2) the original value of subsequent gifts to the permanent endowment, and (3) accumulations to permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The Foundation has determined that the balance of its endowments includes funds that require that the income and net appreciation be restricted to certain uses for the benefit of participants. Upon review, the Foundation has determined that appropriate expenditures have been made to meet all donor restrictions regarding balances recorded in the endowment fund. Spending Policy: The Foundation employs a conservative endowment spending policy which is evaluated annually. The amount of earnings distributed annually is based on an analysis of many factors including, the amount of earnings available to be distributed, as well as, the long and short term financial needs of the Foundation. The Foundation manages its long-term investments in accordance with the total return concept and the goal of maximizing long-term return within acceptable levels of risk. The Foundation's spending policy is designed to provide a stable level of financial support and to preserve the real value of its endowment. From time to time, the fair value of assets associated with individual donor restricted endowment funds may fall below the level the donor requires the Foundation to retain as a fund of perpetual duration. There were no such deficiencies as of June 30, 2014 and 2013. ===== PAGE 163 ===== ## KENTUCKY STATE UNIVERSITY ## Notes to the Financial Statements, continued #### 13. Kentucky State University Foundation, Inc. continued ### g. Endowment Composition, continued Endowment net asset composition by type of fund as of June 30, 2014 is as follows:
UnrestrictedTemporarily RestrictedPermanently RestrictedTotal Net Endowment Assets
Donor-restricted endowment funds$ -$ 4,891,754$ 3,465,357$ 8,357,111
Endowment net asset composition by type of fund as of June 30, 2013 was as follows:
UnrestrictedTemporarily RestrictedPermanently RestrictedTotal Net Endowment Assets
Donor-restricted endowment funds$ -$ 4,164,902$ 3,227,786$ 7,392,688
Changes in endowment net assets as of June 30, 2014 are as follows: Endowment net assets, beginning of year Contributions Interest and dividends Realized and unrealized gains Amounts appropriated for expenditure Endowment net assets, end of year -4,891,754 $3,465,357 $8,357,111
UnrestrictedTemporarily RestrictedPermanently RestrictedTotal Net Endowment Assets
$-$4,164,902$3,227,786$7,392,688
--237,571237,571
-190,208-190,208
-728,543-728,543
--(191,899)--(191,899)
===== PAGE 164 ===== ## KENTUCKY STATE UNIVERSITY ## Notes to the Financial Statements, continued #### 13. Kentucky State University Foundation, Inc. continued ### g. Endowment Composition, continued Changes in endowment net assets as of June 30, 2013 were as follows:
UnrestrictedTemporarily RestrictedPermanently RestrictedTotal Net Endowment Assets
Endowment net assets, beginning of year$ -$ -$ 6,695,773$ 6,695,773
Contributions--82,22482,224
Interest and dividends-192,093-192,093
Realized and unrealized gains-637,668-637,668
Amounts appropriated for expenditure-(215,070)-(215,070)
Reclassifications-3,550,211(3,550,211)-
Endowment net assets, end of year$ -$ 4,164,902$ 3,227,786$ 7,392,688
===== PAGE 165 ===== Supplementary Information ===== PAGE 166 ===== ## KENTUCKY STATE UNIVERSITY ## Schedule of Expenditures of Federal Awards
Year ended June 30, 2014
Federal Grantor/Pass-Through Grantor/Program TitleCFDA NumberPass Through NumberFederal Expenditures
U.S. Department of Education:
Direct Programs:
Student Financial Aid Cluster:
Federal Supplemental Educational Opportunity Grants Program84.007$299,723
Federal Work-Study Program84.033415,122
Federal Perkins Loan Program84.0381,755,496
Federal Pell Grant Program84.0635,929,634
Federal Direct Student Loans Program84.26814,727,059
Teacher Education Assistance for College and Higher Education Grant84.3795,618
Total Student Financial Aid Cluster23,132,652
TRIO Cluster:
Student Support Service84.042A182,888
Upward Bound84.047A221,722
Total Trio Cluster404,610
Title III Strengthening All Black Colleges and University Program84.031B2,345,679
HBCU - Grad84.382G259,742
Passed through Council for Opportunity in Education:
College Access Prog Svc Agreement Year 184.396N/A1,728
College Access Prog Svc Agreement Year 2 & 384.396N/A96,380
College Access Prog Svc Agreement Year 484.396N/A157,107
255,215
Total U.S. Department of Education26,397,898
U.S. Department of Agriculture:
Direct Programs:
1890 National Scholars Program00.00078,273
Ag Discovery Summer Enrichment Program10.02516,946
McIntire-Stennis Coop Forestry10.20284,783
1890 Institution Capacity Building Grant10.216963,033
Farming for Cash: Apprenticeship Program10.31199,406
Food Safety in Changing Economy10.4437,596
Farm Production Marketing Farm Energy10.443128,369
2501 Vegetables10.44344,426
Farm Risk Management10.45984,756
Cooperative Extension Program10.5002,816,335
Expanded Food and Nutrition Education Program10.500175,120
RREA10.5002,819
Promoting Small Socially Disadvantaged Producers In USDA Program10.7711,623
KSU Outreach Demonstration10.90221,536
Small Limited Resource Farmer10.92417,378
Mobile Media Center 2011-201210.9247,708
4,550,107
===== PAGE 167 ===== ## KENTUCKY STATE UNIVERSITY ## Schedule of Expenditures of Federal Awards
Year ended June 30, 2014
Federal Grantor/Pass-Through Grantor/Program TitleCFDA NumberPass Through NumberFederal Expenditures
Passed through University of Arkansas:
Design-Build Extension10.216229-23-1111056662,079
Risk Management Outreach for Small Poultry Producers10.50021662-0833,697
95,776
Passed through University of Kentucky:
Seafood Marketing Grant10.156PON2 035 1200001045-18,153
Kentucky Agrability10.5003048107082-10-4265,639
13,792
Passed through University of Georgia:
Managed Bees II10.310RC293-365/46920487,059
SARE PDP10.215RE675-116/48923065,163
SARE PDP10.500RE675-167/49405663,628
SARE State Plan10.500RE675-161/478645660
15,910
Passed through Kcard:
Kcard Socially Disadvantaged Produce Grant (SSPDG)10.771N/A24,677
Passed through Mississippi State University:
SRAC - Catfish10.200N/A70
Passed through Virginia State:
Establishing 1890's LG Univ Water10.216N/A6,378
Established 1890's LG Univ Water10.310M014-212-11-DJ7,027
13,405
Passed through Texax A&M University
Southern Regional Water Resource Project10.60607-S120003428
Passed through UKFR
Profitable Sustainable Poultry Prod10.3103048109449-13-00331
Total U.S. Department of Agriculture4,714,196
U.S. Department of Health and Human Services:
Direct Programs:
Substance Abuse/HIV Prevention93.243109,066
Youth Center for Excellence93.910174,755
Nursing Workforce93.1782,264
286,085
Passed through Eastern Kentucky University:
EKU Diversity93.658452652-14-1063,836
EKU Training Resource Center93.658452502-13-101346
EKU Training Resource Center93.658452652-14-10782,406
Public Child Welfare Certification - FY1393.658452505-13-100(4)
Public Child Welfare Certification - FY1493.658452655-14-1056,254
92,838
Total U.S. Department of Health and Human Services378,923
===== PAGE 168 ===== ## KENTUCKY STATE UNIVERSITY ## Schedule of Expenditures of Federal Awards
Year ended June 30, 2014
Federal Grantor/Pass-Through Grantor/Program TitleCFDA NumberPass Through NumberFederal Expenditures
Research and Development Cluster:
U.S. Department of Agriculture
Direct Programs:
Community Research Service Program10.2053,386,841
National Science Foundation:
Direct Programs:
NSF IPA Program00.000106,164
Passed through University of Kentucky:
Nutrigenomics & Histologic47.0813048108525-14-0886,554
NASA EPSCOR43.0083049025269-14-0322,599
LSAMP KY-WV Mid Level Alliance47.0763048111054-14-12523
Epsorc 2011-201247.0813048108525-12-41120,870
30,046
Passed through EdLab Group:
Edlap Group Foundation47.076N/A884
Passed through Case Western University:
Center for Layered Polymeric System47.049DMR-042391434,930
Total Research and Development Cluster3,558,865
National Aeronautics and Space Administration:
Direct Programs:
NASA Studies Project43.00122,981
Total National Aeronautics and Space Administration22,981
U.S. Department of Transportation:
Direct Programs:
Eisenhower Fellowships20.21517,500
Passed through Commonwealth of Kentucky:
NSTI FHWA FY201420.20045,853
Total U.S. Department of Transportation63,353
U.S. Department of Commerce:
Direct Programs:
NOAA Climate Stewards Education Project11.0081,000
Total U.S. Department of Commerce:1,000
U.S. Department of Homeland Security:
Direct Programs:
Fema Prediaster Mitigation97.04760,752
Total U.S. Department of Homeland Security60,752
===== PAGE 169 ===== ## KENTUCKY STATE UNIVERSITY ## Schedule of Expenditures of Federal Awards
Year ended June 30, 2014
Federal Grantor/Pass-Through Grantor/Program TitleCFDA NumberPass Through NumberFederal Expenditures
U.S. Department of Justice:
Direct Programs:
NIJ FY10 Fundamental Research16.56056,447
Passed through 4-H Council:
4H National Mentoring Program 2013-1516.726N/A13,373
4H National Mentoring Program16.726N/A24,024
37,397
Total U.S. Department of Justice93,844
U.S. Department of Defense:
Passed through Eastern Kentucky University:
Cellulosic Derived Biodesal Program00.000453024-12-189 AND 19028,204
Passed through University of Kentucky:
Environmental Training & Survey12.401PO2 095 1300000578-143,747
Total U.S. Department of Defense71,951
Total Expenditures of Federal Awards$ 35,363,763
===== PAGE 170 ===== # KENTUCKY STATE UNIVERSITY Notes to the Schedule of Expenditures of Federal Awards Year ended June 30, 2014 ### 1. Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of Kentucky State University (the University) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments and Non-profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Catalog of Federal Domestic Assistance (CFDA) numbers were presented for those programs for which such numbers were available. ### 2. Federal Student Loan Programs Loans made by the University to eligible students under the Federal Perkins Loan Program and federal student loans issued by the Federal Direct Loan Program during the year ended June 30, 2014 are summarized as follows:
Federal Perkins Loan Program:
Loans disbursed$-
Federal Direct Loan Program:
Federal Unsubsidized Stafford Loans$7,736,282
Federal Subsidized Stafford Loans5,298,203
Federal Plus Loans1,692,574
As of June 30, 2014, the University had loans outstanding, in the amount of $1,755,495 with an allowance for doubtful accounts of $1,624,777 under the Federal Perkins Loan Program. During the year ended June 30, 2014 the University did not issue any loans under the Federal Perkins Loan Program. ### 3. Subrecipients Of the federal expenditures presented in the schedule of expenditures of federal awards, Kentucky State University provided federal awards to subrecipients as follows:
CFDA NumberProgram NameAmount Provided to Sub recipients
16.560NIJ FY10 Fundamental Research$19,742
10.2161890 Institution Capacity Building Grant - Mobile Kitchen76
===== PAGE 171 ===== # Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Report of Independent Auditors Members of the Board of Regents Kentucky State University Frankfort, Kentucky We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Kentucky State University (the University) as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise Kentucky State University's basic financial statement as listed on the table of contents, and have issued our report thereon dated December 19, 2014. ## Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the University's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the University's internal control. Accordingly, we do not express an opinion on the effectiveness of the University's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify certain deficiencies in internal control, described in the accompanying Schedule of Findings and Responses that we consider to be significant deficiencies, findings 2014-001 and 2014-002. ===== PAGE 172 ===== ## Compliance and Other Matters As part of obtaining reasonable assurance about whether the University's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. ## The University's Response to Findings The University's responses to the findings identified in our audit are described in the accompanying Schedule of Findings and Responses. The University's responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them. ## Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Dean Dorton Allen Ford, PLC December 19, 2014 Lexington, Kentucky ===== PAGE 173 ===== # Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by OMB Circular A-133 # Report of Independent Auditors Members of the Board of Regents Kentucky State University Frankfort, Kentucky ## Report on Compliance for Each Major Federal Program We have audited Kentucky State University (the University) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the University's major federal program for the year ended June 30, 2014. The University's major federal programs are identified in the summary of auditors' results section of the accompanying Schedule of Findings and Questioned Costs. ## Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. ## Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the University's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the University's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the University's compliance. ## Opinion on Each Major Federal Program In our opinion, the University complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2014. ===== PAGE 174 ===== ## Other Matters The results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with OMB Circular A-133 and which is described in the accompanying Schedule of Findings and Questioned Costs as item 2014-003. Our opinion on each major federal program is not modified with respect to these matters. The University's response to the noncompliance findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The University's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. We did not audit the University's compliance with requirements governing the maintaining contact with and billing borrowers and processing deferment and cancellation request and payments for the Perkins Loan Program. Those requirements govern functions that are performed by Educational Computer Systems, Inc. (ECS). Since we did not apply auditing procedures to satisfy ourselves as to compliance with those requirements, the scope of our work was not sufficient to enable us to express, and we do not express, an opinion on compliance with those requirements. ECS's compliance with the requirements governing the functions that it performs for the University was examined by other accountants who report has been furnished to us. The report of the other accountants' indicates that compliance with those requirements was examined in accordance with the Department of Education's Audit Guide, Compliance Audits (Attestation Engagements) of Federal Student Financial Assistance Programs at Participating Institutions and Institution Servicers. Based on our review of the service organization accountant's report, we have determined that all of the compliance requirements included in the Compliance Supplement that are applicable to the major program in which the University participates are addressed in either our report or the report of the service organizations accountants. Further, based on our review of the service organization accountant's report, we have determined that it does not contain any findings of noncompliance that would have a direct and material effect on the University's major program. ## Report on Internal Control Over Compliance Management of the University is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the University's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the University's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. ===== PAGE 175 ===== Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The University's response to the internal control over compliance findings identified in our audit is described in the accompanying schedule of findings and questioned costs. The University's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Dean Dorton Allen Ford, PLC December 19, 2014 Lexington, Kentucky ===== PAGE 176 ===== # KENTUCKY STATE UNIVERSITY Schedule of Findings and Questioned Costs # Year ended June 30, 2014 ### Section I - Summary of Auditors' Results (under Section .505(d)(1) of OMB Circular A-133): Financial Statements: a. The type of report issued on the financial statements: Unmodified Opinion b. Internal control over financial reporting: Material weaknesses in internal control over financial reporting: No Significant deficiencies identified that are not considered to be material weaknesses: Yes c. Noncompliance which is material to the financial statements: No ## Federal Award: d. Internal control over financial reporting: d. Internal control over financial reporting: Material weaknesses in internal control over major programs: No Significant deficiencies identified that are not considered to be material weaknesses: None noted e. The type of report issued on compliance for major programs: Unmodified opinion f. Any audit findings which are required to be reported under Section .510(a) of OMB Circular A-133: Yes g. Major programs: Student Financial Aid - Cluster Federal Supplemental Educational Opportunity Grants Program, CFDA 84.007 Federal Work-Study Program, CFDA 84.033 Federal Perkins Loan Program, CFDA 84.038 Federal Pell Grant Program, CFDA 84.063 Federal Direct Student Loans Program, CFDA 84.268 Teacher Education Assistance for College and Higher Education Grant, CFDA 84.379 1890 National Scholars Program, CFDA 00.000 Cellulosic Derived Biodiesel Program, CFDA 00.000 1890 Institution Capacity Building Grants, CFDA 10.216 Cooperative Extension Program, CFDA 10.500 h. Dollar threshold used to distinguish between Type A and Type B programs: $366,933 i. Auditee qualified as a low-risk auditee: Yes ===== PAGE 177 ===== # KENTUCKY STATE UNIVERSITY # Schedule of Findings and Questioned Costs, continued Year ended June 30, 2014 Section II - Financial Statement Findings (under Section .505(d)(2) of OMB Circular A-133): Findings Relating to the Financial Statements Reported in Accordance with Government Auditing Standards: 2014-001 and 2014-002 Finding 2014-001: ## Condition: The student accounts receivable subsidiary ledger and the allowance for uncollectible student accounts receivable are not reconciled and adjusted periodically throughout the year. The student accounts receivable aging should be analyzed and reconciled to the general ledger at least quarterly. The aging should be analyzed in accordance with University policy to ensure that the allowance for uncollectible student accounts receivable is accurately reflected in accordance with University policy. This reconciliation and associated allowance calculation should be submitted to University management for review and approval. ## Effect: The University posted an adjusting journal entry to reconcile student accounts receivable subsidiary to the general ledger and to increase the allowance for doubtful accounts subsequent to year end. Increased management effort in this area could result in a reduction in the number and amount of delinquent and potentially worthless receivables. The positive results from this process may include significantly improved cash flow and profitability and should minimize the need for a year-end adjustment of this account. ## Recommendation: We recommend the University reconcile the student accounts receivable subsidiary ledger to the general ledger at least quarterly and assess the collectability of all student accounts receivable on a quarterly basis. The following formal collection procedures should be established: - The continuous review of accounts receivable for old and slow-paying accounts. - A formal periodic review of the account receivable aged trial balance. - The implementation of formalized procedures for contacting delinquent accounts for payment, such as sending letters to slow-paying students. The increased use of collection agencies and the department of revenue to aid in collecting delinquent accounts. ===== PAGE 178 ===== # KENTUCKY STATE UNIVERSITY Schedule of Findings and Questioned Costs, continued Year ended June 30, 2014 Finding 2014-001, continued: Management's Response: Management concurs. Accounts receivable will be reviewed for old and slow-paying accounts at least quarterly. The aged trial balance will also be reviewed at least quarterly. Management is developing new processes for contacting slow-paying or delinquent registered students. Beginning Fall 2014, the University has implemented more stringent policies for new and returning students, with regard to their responsibility to pay their outstanding bill. Students that fail to pay their outstanding balances will be sent to collection agencies at minimum, the end of each term, to assist with the collection of outstanding balances. ## Finding 2014-002: Condition: During the audit it was noted that the University has not performed a physical count of capital assets in several years. Effect: The University cannot substantiate that the capital assets ledger is accurate. ## Recommendation: We recommend that the University implement a process such that a physical count of capital assets is performed at least every two years and reconciled to the general ledger. ## Management Response: Management concurs. A plan to conduct a physical count of inventory will be established and then performed by the end of fiscal year 2015. ===== PAGE 179 ===== # KENTUCKY STATE UNIVERSITY Schedule of Findings and Questioned Costs, continued Year ended June 30, 2014 Section III - Federal Award Findings and Questioned Costs (under Section .505(d)(3) of OMB Circular A-133): Finding 2014-003 Finding 2014-003: ##### Federal Program: U.S. Department of Education Federal Direct Student Loans Program, CFDA 84.268 ## Condition: During our testing of the Direct Loan program we noted that the University did not notify the guaranty agency of student status changes (students unofficially withdrawing or graduating) in a timely manner. ## Criteria: Per 34 CFR 685.309, unless the school expects to complete its next enrollment report within 60 days, the school must notify the lender or the guaranty agency within 30 days, if it discovers that a student who received a loan either did not enroll or ceased to be enrolled on at least a half-time basis. The school is responsible for timely reporting whether they report directly or via a third party servicer. ## Cause: The College did not have a control in place to ensure that timely reporting of all status changes is occurring or that the proper status is being reported. ## Effect: By not reporting student status changes to the guaranty agency in a timely manner, the student's repayment period may not begin at the appropriate time as required by the regulations. ## Management Response: The University concurs with the auditors' finding. All schools participating (or approved to participate) in Federal Student Aid (FSA) programs must have a control in place to ensure timely reporting of student enrollment data to the National Student Loan Data System (NSLDS). Plan of action: To comply with federal regulation 34 CFR 685.309, Kentucky State University will take the following actions to resolve the finding: 1. Assign a single point of accountability for the enrollment report [Task complete. The Office of the University Registrar's Systems Analyst has been assigned to this task.] 2. No later than January 15, 2015, the University Registrar will develop a policy and procedure regarding the reporting of unofficial withdrawals to the National Student Clearinghouse. ===== PAGE 180 ===== # KENTUCKY STATE UNIVERSITY Schedule of Findings and Questioned Costs, continued Year ended June 30, 2014 # Year ended June 30, 2014 ## Finding 2014-003, continued: ## Management Response, continued: 3. Beginning January 31, 2015 the Office of the University Registrar will conduct a thorough review of each enrollment report to ensure the following: (1) faculty have submitted last dates of attendance in WIRED; (2) unofficial withdrawals have been reported; and (3) Never Attended (NA) grades have been removed. [This will be a continuous process] Persons responsible: The following Office of the University Registrar staff have been assigned to ensure the aforementioned plan of action is completed and monitored: 1. University Registrar 2. Systems Analyst 3. Student Support Specialist II ===== PAGE 181 ===== # KENTUCKY STATE UNIVERSITY Prior Year Schedule of Findings and Questioned Costs Year ended June 30, 2014 Finding 2013-001: Condition: During the year ended June 30, 2013 the University did not have adequate controls over financial reporting to allow for timely, accurate financial reporting. All general ledger accounts were not reconciled to subsidiary ledgers or other supporting detail at least on a quarterly basis. ## Effect: During the audit several adjusting journal entries which impacted the years ended June 30, 2013, 2012, and prior years, were recorded to accurately reflect the financial position of the University as of June 30, 2013. These journal entries primarily related to the reconciliation of student accounts receivable, grants receivable and the accrual of the sick leave liability. The sick leave liability was required by KRS 61.456 beginning with the year ended June 30, 2011. Net Position for years prior to the year ended June 30, 2012 was decreased by $2,368,336 as a result of these entries and Change in Net Position for the year ended June 30, 2012 was decreased by $809,127 as a result of these entries. ## Recommendation: We recommend the University implement internal control procedures which require general ledger accounts to be reconciled at least quarterly. Not having accurate transactions posted in a timely manner can affect the financial statement information that is available for making informed business decisions and supervision of operations. This weakness in accounting infrastructure increases the risk of errors in the financial records and is less likely to detect irregularities, including fraud, on a timely basis. The quarterly reconciliation process allows for the preparation of accurate quarterly financial statements. The reconciliations of significant accounts should be reviewed as part of the quarterly financial statement package in preparation for presentation of the financial statements to the Board of Regents. Management should then satisfy itself as to the nature of any unusual reconciling items before authorizing adjustments to correct the balances. These adjustments should be thoroughly documented and promptly made so that it will not be necessary to carry them forward to the next reconciliation. ## Current year status: This finding was resolved in the current year. ## Finding 2013-002: ## Condition: Prompt, accurate reconciliations of the student, grant, and other accounts receivable subsidiary ledgers to the general ledger account balances should be prepared at least on a quarterly basis. Included in this reconciliation should be a review of the aging of the receivables and a calculation of the allowance that is based on University policy. This reconciliation and associated allowance calculation should be submitted for management's review and approval. ===== PAGE 182 ===== # KENTUCKY STATE UNIVERSITY Prior Year Schedule of Findings and Questioned Costs, continued Year ended June 30, 2014 Finding 2013-002, continued: ## Effect: The University posted an adjusting journal entry to reconcile student and grant accounts receivable to the general ledger account balances and to increase the allowance for doubtful accounts subsequent to year end. Increased management effort in this area can result in a reduction in the number and amount of delinquent and potentially worthless receivables. The positive results from this process may include significantly improved cash flow and profitability and should minimize the need for a year-end adjustment of this account. ## Recommendation: We recommend the University complete reconciliations of the student, grant, and other accounts receivable subsidiary ledgers to the general ledger account balances at least on a quarterly basis and assess the collectability of all receivables, especially student receivables on a quarterly basis. The following formal collection procedures should be established: The continuous review of accounts receivable for old and slow-paying accounts. - A formal periodic review of the account receivable aged trial balance. The implementation of formalized procedures for contacting delinquent accounts for payment, such as sending letters to slow-paying customers. - The increased use of collection agencies and the department of revenue to aid in collecting delinquent accounts. Current year status: See finding 2014-001. Section III - Federal Award Findings and Questioned Costs (under Section .505(d)(3) of OMB Circular A-133): Finding 2013-003: Federal Program: U.S. Department of Education Federal Pell Grant Program, CFDA 84.063 Federal Direct Student Loans Program, CFDA 84.268 ## Condition: During the audit, we noted one student who withdrew from all classes at the beginning of the semester but the financial aid office was not notified and funds were not returned in a timely manner. Also during our testing of Return of Title IV Funds, we noted the University did not return unearned Title IV Funds within 45 days for three out of the forty students tested. ===== PAGE 183 ===== # KENTUCKY STATE UNIVERSITY Prior Year Schedule of Findings and Questioned Costs, continued Year ended June 30, 2014 Year ended June 30, 2014 Finding 2013-003, continued: ## Criteria: Per the provisions of CFR 34 §668.173 an institution must return unearned Title IV Funds timely, which is no later than 45 days after the date the University becomes aware of the student's withdrawal. ## Cause: There was one oversight by the Registrar's office in notifying the Financial Aid office that a student withdrawing from all classes and lack of management oversight and internal controls in place to ensure that unearned Title IV Funds are returned in a timely manner. The internal controls related to communication between the Financial Aid office and the Registrar's offices are not adequate to ensure that all student withdrawals are communicated timely. ## Effect: The provisions of CFR 34 §668.173 were not followed, therefore unearned Title IV Funds were not returned in a timely manner. ## Recommendation: We recommend that the University review its current procedures related to the timely return of unearned Title IV Funds and make the necessary changes to ensure that these calculations are being completed in a timely manner. ## Current year status: This finding was resolved in the current year. Finding 2013-004: Federal Program: U.S. Department of Education Federal Pell Grant Program, CFDA 84.063 Condition: During the audit, we noted one student who was selected for verification had an education tax credit of $4,500 improperly excluded from their parent's calculation of adjusted gross income. ## Criteria: Per the provisions of CFR 34 §668.59 for the Federal Pell Grant Program, if an applicant's FAFSA information changes as a result of verification, an institution must recalculate the application's Federal Pell Grant on the basis of the EFC on the corrected valid ISIR and disburse any additional funds under that award. ===== PAGE 184 ===== # KENTUCKY STATE UNIVERSITY Prior Year Schedule of Findings and Questioned Costs, continued Year ended June 30, 2014 ## Finding 2013-004, continued: ## Cause: The cause of the finding is due to a lack of management oversight and internal controls in place to ensure that files verified are completed accurately. ## Effect: A student did not receive the full amount of Pell they were eligible for at the beginning of the school year. ## Recommendation: We recommend the University review its current procedures related to the verification process and make the necessary changes to ensure that each student file verified is accurate. ## Current year status: This finding was resolved in the current year. Finding 2013-005: ##### Federal Program: U.S. Department of Education Federal Pell Grant Program, CFDA 84.063 ## Condition: During the testing of Return of Title IV Funds, we noted one student for which the incorrect withdrawal date was used in the calculation. ## Criteria: Per the provisions of CFR 34 §668.22, the withdrawal date that should be used in the calculation of Return of Title IV Funds is the date, as determined by the institution, that the student otherwise provided official notification to the institution, in writing or orally, of his or her intent to withdraw. ## Cause: There is not a procedure in place to verify that the appropriate withdrawal date per the withdrawal form has been entered into the system. ## Effect: The provisions of CFR 34 §668.22 were not followed which caused a student's date of withdrawal to be incorrect when completing the Return of Title IV Funds calculation and an additional $67 needed to be returned by the University. ===== PAGE 185 ===== # KENTUCKY STATE UNIVERSITY Prior Year Schedule of Findings and Questioned Costs, continued Year ended June 30, 2014 Finding 2013-005, continued: Recommendation: We recommend the University review its current procedures in regards to reviewing the withdrawal date in order to ensure funds are being returned in the proper amount to the federal government. Current year status: This finding was resolved in the current year. Finding 2013-006: Federal Program: U.S. Department of Education Federal Supplemental Educational Opportunity Grants Program, CFDA 84.007 Federal Work-Study Program, CFDA 84.033 Federal Perkins Loan Program, CFDA 84.038 Federal Pell Grant Program, CFDA 84.063 Federal Direct Student Loans Program, CFDA 84.268 Academic Competitiveness Grant, CFDA 84.375 National Science and Mathematics Access to Retain Talent Grant, CFDA 84.376 Teacher Education Assistance for College and Higher Education Grant, CFDA 84.377 ## Condition: During our testing of 40 students that withdrew from the University and received some type of Title IV funds during the 2012-13 academic year, we noted that 20 calculations resulted in funds not returned in accordance with federal regulations due to the use of an inaccurate number of days in the spring term. The University's calculation did not include the full spring break which was eight consecutive days in length resulting in excess funds returned. ## Criteria: Per the provision of CFR 34 §668.22, the total number of calendar days in a payment period or period of enrollment includes all days within the period that the student was scheduled to complete, except that scheduled breaks of at least five consecutive days are excluded from the total number of calendar days in a payment period or period of enrollment. ## Cause: The University currently does not have adequate controls in place to ensure the Return of Title IV Funds calculations are being completed properly. ===== PAGE 186 ===== # KENTUCKY STATE UNIVERSITY Prior Year Schedule of Findings and Questioned Costs, continued Year ended June 30, 2014 Year ended June 30, 2014 Finding 2013-006, continued: ## Effect: The provisions of CFR 34 §668.22 were not followed which caused excess funds to be returned. The number of days related to spring break was calculated incorrectly on the spring Return of Title IV Funds calculations. By not having adequate controls over this area, incorrect Return of Title IV Funds calculation could also be produced in the future as well. ## Recommendation: We recommend the University review its current procedures for Return on Title IV calculations and implement a control that will ensure the proper number of break days is being used in the calculation of the Return of Title IV Funds. We also recommend that the University implement a control where they do a periodic check of a sample of Return of Title IV Funds calculations to ensure correct calculations are being complete. Current year status: ___ This finding was resolved in the current year. Finding 2013-007: Federal Program: All Federal Programs Condition: During our testing of equipment management, we noted the University does not reconcile physical inventory taken with equipment records at least once every two years. ## Criteria: Per the provision of CFR 2 §215.34, a physical inventory of equipment shall be taken and the results reconciled with the equipment records at least once every two years. Any differences between quantities determined by the physical inspection and those shown in the accounting records shall be investigated to determine the causes of the difference. The recipient shall, in connection with the inventory, verify the existence, current utilization, and continued need for the equipment. ## Cause: The University currently does not have adequate controls in place to ensure the inventory is taken and reconciled with the equipment records at least once every two years. ## Effect: The provisions of CFR 2 §215.34 were not followed. ===== PAGE 187 ===== # KENTUCKY STATE UNIVERSITY Prior Year Schedule of Findings and Questioned Costs, continued Year ended June 30, 2014 Finding 2013-007, continued: Recommendation: We recommend the University review its current procedures for their inventory process and implement a control that will ensure equipment records are reconciled to the physical inventory taken at least once every two years. Current year status: See finding 2014-002. Finding 2013-008: Federal Program: U.S. Department of Education HBCU – Grad, CFDA 84.382G Food Safety in Changing Economy, CFDA 10.443 Farm Production Marketing Farm Energy, CFDA 10.443 ## Condition: During our review of the time and effort reports, we noted nine reports not being approved in a timely manner, two not signed by the employee, and two not originally completed for all personnel charged to the grant. ## Criteria: Per the OMB Circular A-21 compensation for personal services is allowed when payroll is distributed using an acceptable method such as after the fact activity records. Under this system the distribution of salaries and wages by the institution will be supported by activity reports as prescribed below. Reports will reasonably reflect the activities for which employees are compensated by the institution. To confirm that the distribution of activity represents a reasonable estimate of the work performed by the employee during the period, the reports will be signed by the employee, principal investigator, or responsible official(s) using suitable means of verification that the work was performed. ## Cause: The incomplete time and effort reports is due to a lack of management oversight and lack of internal controls in place to ensure that all the time and effort reports are completed correctly and signed and dated by the appropriate personnel and submitted to the sponsoring agent in a timely manner. ===== PAGE 188 ===== # KENTUCKY STATE UNIVERSITY Prior Year Schedule of Findings and Questioned Costs, continued Year ended June 30, 2014 Finding 2013-008, continued: ## Effect: The University does not have appropriate time and effort records for the time charged to the grant to ensure the distribution of activity represents the reasonable estimate of work performed during the period. The University expended funds related to payroll without time and effort reports being completed correctly in a timely manner and without the appropriate timely levels of review. ## Recommendation: We recommend the University review their policies and procedures to ensure that all time and effort reports are completed correctly and signed and dated by the appropriate personnel and submitted to the sponsoring agent in a timely manner. ## Current year status: This finding was resolved in the current year. ===== PAGE 189 ===== ## KENTUCKY STATE UNIVERSITY ATHLETICS BUDGET REDUCTION PLAN 2014-15 & 2015-16 ===== PAGE 190 ===== ## Average Costs to travel teams:
TeamsTravel sizeBus/VanMeals (Per Diem)HotelTotal
Football90$3,600$6,400$5,400$15,400
Men's Basketball18$1,250$1,440$1800$4,490.00
Women's Basketball18$1,250$1,440$1,800$4,490.00
Volleyball18$300/$1,125$700$900$2,725
Cross Country16$150.00$576$725.00
Track & Field35$2,200$3,000$3,375.00$8,575.00
Baseball26$2,000$2,600$2,000$6,600
Softball24$1,800$2,200$2,000$6,000
Golf8$600.00$750$800$2,150
Travel Squad includes student athletes, coaches, trainers, etc. Cross Country & Track & Field are combined Men and Women (minimum of 28 athletes-Required 14 athletes/gender to compete) Golf also has Entry Fees Average $600.00 per match Track & Field Entry Fee average $250/gender/meet ===== PAGE 191 ===== ### Plan of Action to reduce budgets for FY15 & FY16 By $500,000.00 Current Budget:
FY15 Snapshot to Date:
Total # of Employees:25
Total Salary:$ 936,253.16
Total Benefits:$ 355,629.30
Total:$ 1,291,882.46
Total Operating Budget 100%:$ 711,185.72
Men's Scholarships:$ 817,165.00
Women's Scholarships:$ 413,074.00
Total Scholarships:$ 1,230,239.00
Total University Contribution to Athletics:$ 3,233,307.18
Total Salary FY15:$ 936,253.16
Total Operations:$ 711,185.72
Total:$ 1,647,438.88
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===== PAGE 192 =====
FY2015 Proposed Cuts:$167,000.00
Old AD Remaining Salary & Benefits/Car$83,000.00
Track & Field Cuts$16,000.00
3 Games-Baseball Reduction$1,500.00
3 Games-Softball Reduction$1,500.00
Staff Reduction-Admin. Ass. I$15,000.00
Staff Reduction-Asst. FB Coach$15,000.00
Total:$132,000.00
Difference:$35,000.00
Need to possibly use money from cuts to clear up negative balances from forced usage of Charter Buses. Charter Buses cost an additional $1,500-3,000 per bus. KSU Buses are currently under repair. ===== PAGE 193 ===== ### FY16 Budget Reduction Plan $333,000.00 Cost Factors Impacting Budget Decisions Must have 10 sponsored sports to be NCAA DII Eligible Must stay in Title IX Compliance (60:40 Women to Men Ratio) Least amount of student athletes affected ▶ Track & Field/Cross Country Counts are six sports Men's Cross Country, Men's Indoor, Men's Outdoor Women's Cross Country, Women's Indoor, Women's Outdoor Possible elimination of SIAC Russell Contract Possible elimination of SIAC Nike Contract Charter Bus Issues & Concerns Conference Championship location changes mid year Additional travel to Spring Hill ===== PAGE 194 =====
FY2016 Proposed Cuts:333,000.00
Sport Elimination:
Operating:
Golf10,854.38
Men's Cross Country6,993.38
Baseball:57,858.20
Total:75,705.96
Cut Overall Travel Budget :Total:10,000.00(1000/All Sports, 5,000 Base, 5,000 Soft, 5,000 VB)
New Staff Readjustment (Salary + Benefits):
Position Eliminated:Salary SavingsBenefit SavingsNotes:
Asst. Athletic Director45,900.0015,000.00
1-FT Football Asst. Coach13,584.0024,000.00
1 Admin. Asst.24,482.889,000.00
Volleyball Coach to Part time19,000.006,000.00
Golf Coach Stipend4,527.00925.72
Asst. Track & Field Coach:28,000.0012,000.00
Baseball:33,660.0012,500.00
Total:169,153.8879,425.72
Total Salary & Benefits:248,579.60
Required Cut:333,000.00
Option 1 Cuts:334,285.56
Difference:(1,285.56)
Potential Students Loss/Affected:
Men's Cross Country5
Baseball32
Golf11
Total:48
Potential Tuition Loss907,200.00*Based on Instate COA of 18,900
Net Gain After Tuition loss:572,914.44
===== PAGE 195 ===== # Strategic Action Plan to Recruit More Kentucky Student Athletes The Kentucky State University Athletics Department will become a more integral part of the University's recruitment of Kentucky resident students and Kentucky resident students at the following are the practices that have been established: 1. Recruit students who have left the state to attend JUCO/Community College Actions to Date ■ Football team is currently recruiting 25 student athletes that meet this criteria. Women's and Men's Basketball are recruiting three each. 2. Hosting football spring practices on high school campuses (max two per spring) Actions to Date ■ Have made contact with a High School in Louisville and in Lexington to host these practices this spring. 3. Hosting middle school and other youth contests/games on campus Actions to Date An invitation to attend KSU basketball games has been extended to the Frankfort/Franklin County and the Woodford County middle schools basketball teams. 4. Using alumni associations in Kentucky cities to assist in recruiting and coordinating fundraising and engagement events together. Actions to Date The department has talked to the alumni associations in Danville and Lexington about inviting students to the planned events. 5. Continued recruiting efforts in surrounding counties, heavy emphasis in Frankfort, Lexington, Louisville and the University's service area (Anderson, Mercer, Henry, Shelby, Scott and Woodford County). 6. All Coaches required to attend playoff and state championships. The purpose of the attendance is to have a KSU presence at the events and to evaluate potential recruits. ○ Action to Date ===== PAGE 196 ===== Two of the football coaches attended the state football championship. The Athletic Director attended the state golf championship. 7. All Coaches especially Football and Men's/Women's Basketball will speak at symposiums that are held at state championship events. The purpose is enhance KSU's relationships with high school coaches. Actions to Date The Baseball coach spoke at the 2014 Baseball State Championship event. He will do that at the 2015 Baseball State Championship if the opportunity is available. The basketball coach has been directed to contact Kentucky High School Athletic Association about opportunities to speak at coaches symposiums. 8. NCAA Compliance Seminar to help high schools in surrounding counties ensure that students are Full Qualifiers. High school guidance counselors, coaches, and athletic directors are invited. Actions to Date Two symposiums will be held during the Spring 2015 semester (February and April). 9. Pooling resources for coaches to recruit together while other teams travel. Coaches will drive other in-season sport vans to attend other parts of the state to recruit. Actions to Date Starting with Spring Semester sports. 10. Posters of current student athletes will be sent to their high schools Actions to Date The Sports Information Director is creating posters of action shots of in-state players. 11. Each sport hosts two high school teams at each home game (using unofficial visits) Actions to Date Members of two different high school teams attended each of KSU's football games during the Fall 2014 semester. High Schools represented the following: Bryan Station High School Dunbar High School • Central High School (Louisville) • Frankfort High School • Franklin County High School ===== PAGE 197 ===== Mercer County High School Lafayette High School Tates Creek High School 12. Required attendance to local high schools games of all coaches and staff. Actions to Date ■ Starts during the Spring 2015 semester. 13. Collaborate with admissions to attend state recruiting fairs Actions to Date Currently talking with Admissions to coordinate schedules. 14. Require coaches to recruit the general student body along with student athletes. Actions to Date ■ Coaches are now required to recruit quality non-athlete students to KSU along with the recruitment of student athletes. Two coaching recruitment trips in December followed this protocol. Those trips were to the following high schools: • Henry Clay High School Bryan Station High School Doss High School • Male High School - Wagner High School 15. Athletics will be more intrusive in the admissions process. Athletic administrators will have access to Banner information to assist students in the admissions process. Actions to Date Vice President of Student Affairs has approved access. Following is a breakdown of In-state and out of state student athletes by sport over the last five years. ===== PAGE 198 ===== ## Kentucky Student Athletes by Sport: 2011-12 to 2014-15
Golf
YearIn-stateOut of StateTotal
2011-12257
2012-13246
2013-14538
2014-15549
Baseball
YearIn-stateOut of StateTotal
2011-1252530
2012-1362026
2013-14121628
2014-15151835
Men's Basketball
YearIn-stateOut of StateTotal
2011-1211011
2012-1331215
2013-1431114
2014-1551318
Women's Basketball
YearIn-stateOut of StateTotal
2011-1211011
2012-1301212
2013-1411314
2014-1541115
Football
YearIn-stateOut of StateTotalSenior
2011-1235508613
2012-13476110812
2013-1436458123
2014-1525598419
===== PAGE 199 =====
Men's Cross Country
YearIn-stateOut of StateTotal
2011-12279
2012-13077
2013-14279
2014-15459
Women's Cross Country
YearIn-stateOut of StateTotal
2011-12066
2012-13099
2013-14279
2014-15088
Men's Track & Field
YearIn-stateOut of StateTotal
2011-1221416
2012-1322325
2013-1451924
2014-1551924
Women's Track & Field
YearIn-stateOut of StateTotal
2011-1221517
2012-1331518
2013-1431518
2014-1531518
Volleyball
YearIn-stateOut of StateTotal
2011-1211112
2012-13279
2013-1431114
2014-1511213
Softball
YearIn-stateOut of StateTotal
2011-1221517
2012-1321618
2013-1402020
2014-1501717
===== PAGE 200 ===== Kentucky State University Board of Regents Meeting # Student Affairs Committee January 22, 2015 Regent Ekumene Lysonge, Chairperson Regent Travis Haskins Regent Elaine Farris Regent Breana L. Smith Regent David Guarnieri Dr. Vernell Bennett, Staff （1） ===== PAGE 201 ===== KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents Student Affairs Committee January 22, 2015 4:00 to 5:00 pm Board Room – Academic Services Building Frankfort, Kentucky ## MEETING INDEX
SectionPage
A1Agenda3
A2Approval of Minutes, October 24, 20144
A3Executive Summary5
___ ( 2 ) ===== PAGE 202 ===== KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents Student Affairs Committee January 22, 2015 4:00 to 5:00 pm Board Room – Academic Services Building Frankfort, Kentucky ## AGENDA I. Call to Order Regent Ekumene Lysonge, Chairperson II. Roll Call Dr. Vernell Bennett, Vice President for Student Affairs III. Opening Remarks Regent Lysonge IV. Approval of Minutes Regent Lysonge V. Executive Summary Report Dr. Bennett VI. Discussion Dr. Bennett VII. Adjournment Dr. Bennett ___ ( 3 ) ===== PAGE 203 ===== # KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents Student Affairs Committee January 22, 2015 4:00 to 5:00 pm Board Room – Academic Services Building Frankfort, Kentucky ## MINUTES Regent Ekumene Lysonge, Chairperson called the Student Affairs Committee meeting of the Kentucky State University Board of Regents to order at 11:00 a.m. on October 24, 2014. Regent Lysonge asked the secretary to call roll:
Travis HaskinsPresentElaine Farris
Breana L. SmithPresentDavid Guarnieri
Ekumene LysongePresent
Present Not Present A quorum was declared. Minutes approved. Mrs. Carmella Conner presented the Preliminary Enrollment Data for Fall 2014; the Preliminary Admission Data for Fall 2015 (as of October 2, 2014); and Preliminary Admissions Data for Spring 2015 (as of October 2, 2014). Submitted by: Approved by:
Dr. Vernell Bennett, Vice President for Student AffairsRegent Ekumene Lysonge, Chairperson Student Affairs Committee
Approved with no corrections
Approved with corrections \ 4; \ ___ ===== PAGE 204 ===== KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents Student Affairs Committee January 22, 2015 4:00 to 5:00 pm Board Room – Academic Services Building Frankfort, Kentucky ## Executive Summary The student services division sector of the University has returned to its former title of The Office of Student Affairs. Dr. Vernell Bennett assumed the position of Vice President for Student Affairs on December 8, 2014. Since that time, the division’s priorities have been: improved customer service; holistic programming, student, faculty and staff engagement; streamlining the Admissions process to make it more efficient; reformatting the Open House; integrating student input into the programming for Student Life; developing learning communities in the residential halls; cross-training within the various units; and, developing and implementing the in-state recruitment initiative – “The Thorobred Express.” The Thorobred Express is a mobile recruitment initiative that takes Kentucky State University’s campus across the state. Equally important as the need for in-state recruitment is the goal of showing the Commonwealth the quality of programs, faculty, and students at KSU. The Thorobred Express features a college fair and partnerships between faculty and high school and community college instructors. Each of KSU’s academic units will participate in the college fair. KSU faculty (in collaboration with the teachers) will provide classroom instruction and conduct master classes in the local schools. Prospective students will have an opportunity to apply and receive an admission decision on the same day (provided their test scores and high school transcripts are available). Students receive priority consideration for academic, vocal and instrumental performance scholarships. Auditions will be held at each stop. The inaugural stop of the Thorobred Express is scheduled for January 30, 2015 in Hopkinsville. The college fair will be held at the Bruce Convention Center from 10:00 a.m. – 4:00 p.m. An assembly will be held at 1:00 p.m. The hour-long assembly will feature students, faculty, staff, administrators and various student ensembles. The fair will conclude with giveaways and an accounting of the number of applications received at the stop and the amount of scholarship monies for which the applicants were qualified. Students from the Hopkinsville area who have been accepted at KSU will also be recognized at that time. Prior to the assembly, a press conference will be held where the presidents of KSU and Hopkinsville Community College will sign a joint Articulation Agreement between the two schools. The Mayor of Hopkinsville will proclaim Friday, January 30, 2015 as “Kentucky State University Day”. High schools and community colleges from Hopkinsville, Fort Campbell, Cadiz, Russellville, Paducah, Henderson, and Elkton, Kentucky, as well as Clarksville, Tennessee have been invited to the fair. ===== PAGE 205 ===== The Office of Student Affairs is collaborating with academic units across the campus for recruitment, retention, and holistic programming projects. The most recent collaboration is with the College of Agriculture, Food Science and Sustainable Systems (CAFSSS). Faculty from CAFSSS have formed teaching partnerships within schools in our service area. Staff from Admissions accompanies the CAFSSS on school visits. Student Affairs will be hosting the students for lunch and a campus tour in the spring. The Office of Student Affairs has undertaken two campaigns to improve customer service and student engagement. They are, “Student Life Support” and the “How’d I Do?” campaigns. The “Student Life Support” campaign encourages students to participate in planning Student Life programming. The “How’d I Do? Campaign” campaign encourages students to complete an online survey that rates customer service on campus. Increased student engagement and participation are the desired end result of involving students in the planning process for programming. The chosen student events will be featured on the weekly “Spirit Day”. Students are also encouraged to complete online surveys to share their customer service experiences across campus, both good and bad. The “How’d I Do” campaign awards one participant monthly for completing an online survey. Data from this survey will guide future service delivery as well as increase efficiency. The Spring Open House will be held on March 28, 2015. The format has been restructured and the following goals have been set: • Attendees will complete evaluation forms on-site or electronically • Seventy-five percent of attendees will rate their experience as “satisfied” or “very satisfied” Current high school students who are involved in KSU pre-college initiatives or dual credit learning will be featured • Attendees who have submitted Intent to Enroll forms will be recognized The University's goal is to have 300 prospective students attend the Spring open house. 50% of prospective students will submit an application for admission for the Fall semester. ## Other Student Affairs highlights: ## Student Accomplishments Junior, Elementary Education major, Miss Alexis Fonville was chosen to compete in the nationally televised, Black College Quiz show. The television show was taped in Atlanta, Georgia. Miss Fonville's episode is scheduled to air during the month of January. Dr. Vernell Bennett served as Miss Fonville's coach. Five students were chosen to participate in the Thurgood Marshall Leadership Institute in Washington, DC. ## The Office of Career Counseling & Placement - Co-Sponsored a Women's Leadership Summit with Lowe's. Thirty-five female students, 25 Lowe's managers, and 10 KSU staff attended. • Sponsored the Annual Career Fair. Forty-one vendors and two hundred students participated. - Offered workshops that focus on career planning, resume writing, interview techniques, proper dress and financial planning. Six hundred eleven students attended fourteen workshops. • Placed two hundred students in seasonal positions at Amazon and eBay. • Placed forty-five graduates during the reporting period. ===== PAGE 206 ===== A breakdown of those graduates is as follows: STATE GOVERNMENT
STATE GOVERNMENT
AGENCYNUMBER OF PLACEMENTS
KY Department of Disability Determination5
KY Department of Corrections4
KY Department of Revenue1
KY Teacher Retirement1
KY Department of Vocational Rehabilitation1
KY Department of Transportation1
KY Department of Unemployment Insurance1
Commonwealth of KY Information Technology1
KY Department of Personnel1
KY State Auditor's Office1
Department of Health & Family Services2
Department of Environmental Protection1
TOTAL20
FEDERAL GOVERNMENT
AGENCYNUMBER OF PLACEMENTS
U. S. Federal Highway Administration1
Whitney M. Young Job Corp Center2
TOTAL3
CITY/LOCAL GOVERNMENT
AGENCYNUMBER OF PLACEMENTS
Lexington KY Police Department1
Indianapolis Indiana Police Department1
Indiana University Health Center1
Frankfort Regional Jail1
TOTAL4
___ ( 7 ) ===== PAGE 207 ===== AGENCY NUMBER OF PLACEMENTS SAM'S Club, Clarksville, TN Lexmark, Lexington, KY 1 Hertz Rental Car, Nashville, TN 1 Toyota Manufacturing, Georgetown, KY 1 Xerox Corp., Lexington, KY 2 Grijols Healthcare, Houston, TX 1 Chase Bank, Houston, TX 1 WTVQ Channel 36 News, Lexington, KY 1 Delta Airlines, Atlanta, GA and Cincinnati, OH 2 Kroger Co., Cincinnati, OH 1 Sherwin Williams Paint, Frankfort, KY 1 Kroger Co., Frankfort, KY 1 Universal Protection Services, Cincinnati, OH 1 TOTAL 15 PRIVATE SECTOR AGENCY NUMBER OF PLACEMENTS Top Notch Transport Computer Svc., Frankfort, KY 1 Homestead Healthcare, Frankfort, KY 1 TOTAL 2 NON-PROFIT NUMBER OF PLACEMENTS AGENCY PLACEMENTS ACCESS Inc., Men's Homeless Shelter, Frankfort, KY 1 TOTAL 1 ___ ( 8 )
Image
## CORPORATE AGENCY ===== PAGE 208 ===== ## The Office of Student Life • Sponsored the unit's annual Angel Tree program. More than 100 children were adopted by students, student organizations, faculty, staff, administration, and members of the Frankfort community. • Launched the “Student Life Support” student programming initiative. This initiative encourages students to recommend programming that they’re interested in for the spring semester. • Sponsored clothing and toys for Christmas gifts for twelve children in the Frankfort community. Presented a convocation entitled, “College Skills” that featured the speaker, Jonathan Herman. Twenty students attended. ## Office of Financial Aid
Number of students enrolled and awarded during the Fall 2014 term1,584
Number of students enrolled but aid was incomplete32
Percentage of students receiving institutional, federal and state financial aid1,584/1,895=83.59%
Number of students placed in Federal Work Study143 Awarded115 Accepted109 Earning Funds
## One Stop Shop
Number of students completing Exit Counseling, Fall 201452
Number of payment plans set-up52
Number of Admissions' Common Black College applications processed95
Number of Admissions' prospect cards completed1,216
Number of pre-registration clearance holds cleared1,135
Health immunization records completed1,400
Number of students who entered the SOS Centre1,012
## Betty White Health Center
Fall 2014 EventsNumber of Participants
Health Fair220
HIV Screenings47
Student Clinic visits1,106
Direct Care services provided1,000
Immunizations administered336
Project 10: Obesity Program (November 11, 2014) KSU Cafeteria47
Project 10: Suicide Prevention Program (November 14, 2014 ) Kentucky and McCullin Hall100
Number of visits to the Mental Health Counselor59
〔9〕___ ===== PAGE 209 =====
Fall 2014 Housing Status at the End of the Semester
Residence HallTotal Bed Capacity# of Occupied Beds# of Vacant Beds# of Beds OfflineOccupancy Rate
FemalesMalesTotalFemalesMalesTotal
Chandler Hall1141040104606491.23%
Combs Hall1060104104022098.11%
Hunter Hall102276693729091.18%
Kentucky Hall136124012410010091.18%
McCullin Hall97543690347092.78%
The Halls3190000003190.00%
Young Hall1506480144426096.00%
Total102437328665930104032364.36%
Office of Admissions
Fall 2015AcceptedIncompleteRejectedTotal Applications
Freshman1,0981,9171843,199
Transfer1088098
Special Non-Degree0404
Total1,1061,9231853,301
736 of the Total Applications are Kentucky residents.
CategoryAcceptedIncompleteRejectedTotal
Freshman18041539634
Transfer1088098
Special Non-Degree0404
Total19050739736
Fall 2015 Total Campus ToursIn-State ToursOut-of-State Tours
10569 (893 guests)36 (232 guests)
Recruitment Events Attended by StaffIn-StateOut-of-State
18515926
1,707 applications were received and 448 scholarships were offered for Fall 2015.
===== PAGE 210 ===== The following breakdown represents the scholarships offered:
AwardTotal AwardedIn-State Recipients
Academic Grant21734
Thorobred14426
Excellence556
Presidential278
Service County55
Total44875
Strategies for accelerating the admission process and decreasing the number of incomplete applications: Training staff from other Student Affairs units and Athletics to enter application data and call prospective students. As a result, all of the students with incomplete applications were contacted via telephone prior to the holiday break. December 22nd - 279 prospective students with applications (Spring 2015) were contacted D'ember 23rd – 499 prospective student with applications (Fall 2015) were contacted. Cross-training within the Student Affairs to increase efficiency and manpower during peak periods - Collaborating with the Academic division to assist in contacting prospective students. Chairpersons and faculty have contacted thirty-seven students who were accepted for the Spring, 2015 term but had not yet submitted Intent to Enroll forms. The purchase of Customer Relations Management (CRM) software to automate several Admissions processes including: phone blasts, emails, and student reminder letters • Including transcript request authorization paperwork in the Admissions application packet • Encouraging in-state applicants to utilize Parchment for transcript submission ===== PAGE 211 ===== # Kentucky State University Board of Regents Meeting # External Relations and Development Committee January 22, 2015 Regent Charles Whitehead, Chairperson Regent Travis Haskins Regent LaVaughn Henry Regent Elgie McFayden Mr. Max Maxwell, Staff （1） ===== PAGE 212 ===== # KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents External Relations and Development Committee January 22, 2015 5:00 to 6:00 pm Board Room – Academic Services Building Frankfort, Kentucky ## MEETING INDEX Section D1 Action Item: External Relations and Development Committee Meeting Minutes (October 24, 2014) D2 Executive Summary Report D3 Executive Contributions Report D4 Alumni Relations Report D5 Communications Report D6 Endowment Management Report Page 4 ===== PAGE 213 ===== KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents External Relations and Development Committee January 22, 2015 5:00 to 6:00 pm Board Room – Academic Services Building Frankfort, Kentucky ## AGENDA I. Call to Order Regent Charles Whitehead, Chairperson II. Roll Call Mr. Max Maxwell, Interim Vice President for External Relations and Development III. Opening Remarks Regent Whitehead IV. Approval of Minutes Regent Whitehead V. Executive Summary Report Mr. Maxwell VI. Discussion Mr. Maxwell VII. Adjournment ___ ( 3 ) ===== PAGE 214 =====
Agenda Item Background
To:Board of Regents External Relations and DevelopmentDate: January 22, 2015
From:Mr. Max Maxwell, Interim Vice President for External Relations and Development
Subject:Committee Meeting Minutes (October 24, 2014)
Reason for Consideration:ApprovalEnclosures: Yes
## Background: The minutes of the External Relations and Development Committee meeting of October 24, 2014, require approval in order to become an official part of the committee's records. ## Recommendation: That the External Relations and Development Committee approve the minutes of the October 24, 2014, meeting.
Approval
Initiator:Mr. Max Maxwell, Interim Vice President for External Relations and Development
Board Action Date:January 22, 2015
Effective Date:January 22, 2015
Image
===== PAGE 215 ===== # KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents External Relations and Development Committee January 22, 2015 Board Room – Academic Services Building Frankfort, Kentucky ## MINUTES Regent Charles Whitehead, Chairperson, called the External Relations and Development Committee meeting of the Kentucky State University Board of Regents to order at 8:30 a.m. on October 24, 2014. Regent Whitehead asked the secretary to call roll: Travis Haskins LaVaughn Henry Present Not Present Charles Whitehead Elgie McFayden Present Present A quorum was declared. Mr. Max Maxwell was introduced as the Interim Vice President of External Relations and Development. Ms. Felicia Lewis, Assistant Vice President for Communications and Publications presented the communications report. Discussion: Regent Whitehead commented on the increase in positive media coverage over the last few months for KSU thanks to President Burse. He also stressed kudos for the use of ‘You Tube’ as a communication tool to market Kentucky State University. Regent Haskins inquired about the use of students as a part of our communication strategy. Mr. Maxwell indicated he had met with Mr. David Shabazz and discussed television, radio and print opportunities for student interns. Mr. Bill Wilson, Associate Vice President for Development and Major Gifts, presented the Contributions Report. Discussion: The Give 9 campaign was inspired by the Founder's Day message presented by Ms. JoAnn James. Her remarks encouraged individuals to give back to KSU which is responsible for their success today. Regent Whitehead inquired about the percentage of alumni who give. The University has valid addresses on 7,652 alumni. Two hundred ninety-three (293) of those are active contributors, which equals a 3.82% participation rate by KSU alumni. Regent Whitehead also inquired about the Cheaney Legacy Brick Project, asking when inexpensive bricks would be available for ===== PAGE 216 ===== purchase. Mr. Wilson responded the University is in the planning stage of extending the Cheaney Plaza toward Blazer Library, which will include the inexpensive bricks ($250 - $300). He also reported that, to date, there was approximately $10,000 in brick sales. Several bricks were in place for Homecoming at the ribbon-cutting ceremony. KSU's Capital Campaign is continuing with approximately $5.8 million recorded. The University will continue to work on corporations, foundations and individuals to secure the remaining monies needed to reach the capital campaign's goal. Mr. James Fereday, Fifth Third Bank Endowment Manager, presented KSU's investment report.
Mr. Max Maxwell, Interim Vice President for External Relations and DevelopmentRegent Charles Whitehead, Chairperson External Relations and Development Committee
Approved with no corrections
Approved with corrections
[ 6 ]
===== PAGE 217 =====
Agenda Item Background
To:Board of Regents External Relations and DevelopmentDate: January 22, 2015
From:Mr. Max Maxwell, Interim Vice President for External Relations and Development
Subject:Executive Summary Report
Reason for Consideration:Informational ItemEnclosures: Yes
## Background: N/A Recommendation: Informational
Informational Item
Initiator:Mr. Max Maxwell, Interim Vice President for External Relations and Development
Board Action Date:January 22, 2015
Effective Date:January 22, 2015
（7） ===== PAGE 218 ===== KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents External Relations and Development Committee January 22, 2015 5:00 to 6:00 pm Board Room – Academic Services Building Frankfort, Kentucky # EXECUTIVE SUMMARY REPORT During the period of July 1, 2014, through December 31, 2014, Kentucky State University received contributions in the amount of $204,858 from 420 contributors – alumni, employees, University friends, corporations, foundations and organizations. The total amount received to date for the Uniting Generations . . . Securing Futures – A Capital Campaign for Kentucky State University is $6,033,277. The Office of Alumni Relations introduced the Alumni Survival Kit (ASK). The effort is intended to increase engagement by KSU alumni. - Alumni Chapter Survival Kits will consist of various content according to chapter need, including admission information, the national and regional alumni constitutions, financial and tax exempt information, recognition items, etc. - Through the second quarter of fiscal year 2015, the majority of the media coverage of Kentucky State University in newspaper and television stories was positive, generating publicity and goodwill for the university. As a result, the favorable reporting will increase Kentucky State University's opportunity for recruitment, fundraising and branding. The increase in favorable reporting efforts are being capitalized primarily through the Give 9 initiative. A live link has been attached to all KSU employee email addresses that carry the Give 9 message of paying it forward. This Give 9 message is shared in all internal and external communications to increase donor contributions. The positive publicity is being utilized to assemble meetings in the Louisville and Lexington communities to garner further support for the University. KSU was covered in 408 newspaper articles in Kentucky. The advertising equivalency dollar amount (or cost saving) for newspaper coverage of KSU was $5,820,896. The University also was covered in 203 television news stories reaching a Nielsen audience of 4,749,200 for a total ad equivalency of $67,771 or total publicity value of $203,628. There were 64 messages posted on KSU's electronic message board, more than 566,000 hits on KSU's website and 52 press releases sent to the media. ===== PAGE 219 =====
Agenda Item Background
To:Board of Regents External Relations and DevelopmentDate: January 22, 2015
From:Mr. Max Maxwell, Interim Vice President for External Relations and Development
Subject:Executive Contributions Report
Reason for Consideration:Informational ItemEnclosures: Yes
## Background: N/A ## Recommendation: Informational
Informational Item
Initiator:Mr. Max Maxwell, Interim Vice President for External Relations and Development
Board Action Date:January 22, 2015
Effective Date:January 22, 2015
Image
[ 9 ] ===== PAGE 220 ===== # CONTRIBUTIONS REPORT FY2015 Second Quarter July 1, 2014 – December 31, 2014
Constituency TypeTotal Dollars Raised July 1, 2013 – December 31, 2013Total Dollars Raised July 1, 2014 – December 31, 2014Total Gifts July 1, 2013 – December 31, 2013Total Gifts July 1, 2014 – December 31, 2014
Total Alumni Contributions61,690.21105,853.69182293
Total Corporation Contributions8,792.508,600.0024
Employee Contributions to the Give 9 Campaign62,764.84N/A*22
Employee Contributions to the Annual Giving Campaign395.00N/A*9
Total Employee Contributions4,135.2963,159.84931
Total Foundation Contributions19,928.4610,056.0349
Total Organization Contributions6,200.009,148.32417
Total University Friends Contributions117,906.008,039.535766
TOTAL CONTRIBUTIONS218,652.46204,857.41258420
*Campaigns not operational during this period. Dr. Henry E. Cheaney Legacy Plaza Number of Bricks Purchased 30 Total Funds Raised $28,000 Give 9 Campaign Number of Gifts 76 Total Funds Raised $78,000 Students Assisted from Private Gift Donations Number of Awards 362 Total Funds Awarded $245,555.82 Average Award $678.33
CAPITAL CAMPAIGN GIVING
Constituency TypeTotal Dollars Raised\nJuly 1, 2010 – December 31, 2014Total Gifts\nJuly 1, 2010 – December 31, 2014
Alumni$780,382.921,634
Corporations$3,014,215.50512
Employees$227,078.45453
Foundations$1,004,774.69162
Organizations$748,487.00469
University Friends$258,338.12489
Total$6,033,276.683,719
===== PAGE 221 =====
Agenda Item Background
To:Board of Regents External Relations and DevelopmentDate: January 22, 2015
From:Mr. Max Maxwell, Interim Vice President for External Relations and Development
Subject:Alumni Relations Report
Reason for Consideration:Informational ItemEnclosures: Yes
## Background: N/A ## Recommendation: Informational
Informational Item
Initiator:Mr. Max Maxwell, Interim Vice President for External Relations and Development
Board Action Date:January 22, 2015
Effective Date:January 22, 2015
===== PAGE 222 ===== KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents External Relations and Development Committee January 22, 2015 5:00 to 6:00 pm Board Room – Academic Services Building Frankfort, Kentucky ## ALUMNI RELATIONS REPORT The Office of Alumni Relations introduced the Alumni Survival Kit “ASK”. The kit is designed to help create a uniform presence among alumni chapters, by providing them with essential recruitment tools. The kit will help facilitate a unified branding campaign. ## Alumni Chapter Survival Kits A collaboration between Kentucky State University, the Kentucky State University National Alumni Association and the Office of External Relations and Development through the Alumni Relations Office will create and distribute Alumni Chapter Survival Kits during the month of January. The kits will be given to all alumni chapters in varying degrees of need. The Alumni Chapter Survival Kits will consist of: • A hanging banner that identifies the alumni chapter - A tabletop cover that identifies the alumni chapter - A minimum of 100 of KSU admission information such as applications and prospect forms 25 KSU National Alumni Association membership, status and address change and service request forms There will be 10 copies of the KSU National Alumni Association Constitution, Regional Constitution and assistance in preparing and updating local chapter bylaws (then making 10 copies as a part of the survival kit). - A bag of 100 lapel pins for distribution to alumni in the chapter, prospective alumni and associates, community associates and sponsors at meetings and events. - A gift item like a KSU key chain, ink pen, cup and other possible items that welcome participants and are given for good cheer An item of recognition for chapter establishment/revitalization in the form of a plaque or certificate ===== PAGE 223 =====
Agenda Item Background
To:Board of Regents External Relations and DevelopmentDate: January 22, 2015
From:Mr. Max Maxwell, Interim Vice President for External Relations and Development
Subject:Communications Report
Reason for Consideration:Informational ItemEnclosures: Yes
## Background: N/A ## Recommendation: Informational
Informational Item
Initiator:Mr. Max Maxwell, Interim Vice President for External Relations and Development
Board Action Date:January 22, 2015
Effective Date:January 22, 2015
===== PAGE 224 ===== KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents External Relations and Development Committee January 23, 2015 Board Room – Academic Services Building Frankfort, Kentucky COMMUNICATIONS REPORT July 1, 2014 – December 31, 2014 ## Top Ten KSU Stories (October – December) ## 1 - Kentucky State University Names Raymond Burse as 14th President Raymond M. Burse was named on Friday, Oct. 24, 2014, as Kentucky State University's 14th president during the regular Board of Regents meeting. ## 2 - KSU Awards Degrees at 2014 Fall Commencement A total of 74 students were awarded degrees at Kentucky State University's fall commencement on Saturday, Dec. 13, in Bradford Hall Auditorium. The following degrees were awarded: one associate degree, 60 bachelor's degrees and 13 master's degrees. ## 3 - Kentucky State University's First Doctoral Program Begins Spring 2015 The first doctoral program at Kentucky State University will join the wave of the future in health care in January 2015. Designed to prepare registered nurses to become adult gerontology primary care nurse practitioners, the new online Doctor of Nursing Practice (BSN-DNP) degree program now accepts students who have earned a Bachelor of Science in Nursing from an accredited school of nursing and have an active registered nurse license. ## 4 - GIVE 9: Reclaiming KSU for Our Students On Oct. 17, 2014, our Founder's Day Convocation speaker JoAnn James, a 1986 KSU graduate, encouraged all alumni and friends to GIVE 9 “out of love and respect” for the president, meaning $9, $90, $900 – any amount that includes the number 9. ## 5 - KSU's Education Preparation Program Reaccredited by NCATE Kentucky State University's School of Education recently received reaccreditation from the Council for the Accreditation of Educator Preparation through 2020. ## 6 - KSU and Its Louisville Partners Hold Grand Opening of the Thorobred Nutrition Kitchen KSU held a grand opening celebration for its Thorobred Nutrition Kitchen on Thursday, Oct. 23, 2014. The 24-foot mobile commercial kitchen trailer takes fresh meals and nutrition education directly to Louisville neighborhoods in most need of access to fresh, healthy food. ===== PAGE 225 ===== ## 7 - KSU, EKU and MSU Partner to Establish Intelligence Community Center Officials from Kentucky State, Morehead State and Eastern Kentucky Universities announced on Dec. 3 a grant and partnership agreement for the Bluegrass State Intelligence Community Center of Academic Excellence. The Bluegrass State Intelligence Studies Consortium was formed to address the urgent need to increase the number of students from Kentucky and nearby states who are aware of and prepared for intelligence community careers. ## 8 - KSU Students Ready To Conquer the World after Pre-Law Conference Kentucky State University junior Olivia Burkett says she looked at KSU senior Richard Jackson as they traveled from the National Black Pre-Law Conference and Law Fair, held Oct. 24-25 in Houston, Texas, and said, “Is it just me or do you feel like you could conquer the world right now?” ##### 9 - Some Thorobreds Return for Homecoming Year After Year ... After Year Thorobreds gather in Frankfort, Ky., from near and far every year for Kentucky State University's Homecoming Weekend. In the crowd at the football game and at the parties, there are always some familiar faces who return year after year and have watched the celebration grow and change for decades. ## 10 - KSU and President Burse Featured Nationally On NBC Nightly News President Burse and the university also were featured on Louisville's WHAS11 news program and Lexington's Key Conversations radio program. President Burse's generosity to KSU's lowest paid employees continues to draw media attention.
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RAYMOND BURSE - KENTUCKY STATE PRESIDENT PRESIDENT'S DONATION BOOSTING MORALE AT KSU ## Other Second-Quarter Notables The Winter 2014-2015 issue of KSU's alumni publications Onward and Upward was mailed to alumni from December 23 through January 16. Some of the features include the appointment of President Burse as president, as well as academic, student and alumni news. The Division of External Relations and Development held mandatory media training sessions on campus regarding proper procedures for developing marketing materials within departments. The departments have been asked to send materials to the Division of External Relations and Development for review before printing. The division is also ===== PAGE 226 ===== working with the university's graphic designers to review all logos in use to ensure that they meet Kentucky State University's standards for print. - External Relations and Development has created a Media Request Form online that allows media representatives to request interviews with the president, faculty, and staff – anyone in the campus community.
(July 1 – December 31, 2014)
Newspaper Coverage in Kentucky
Number of Stories-408Ad Equivalency-5,820,896.22 < /td > < /tr > < /table > < div style = "text-align: center;" > < img src = "imgs/imginchartbox24072120321253.jpg" alt = "Image" width = "70%" / > < /div > < table border = 1 style = 'margin: auto; word-wrap: break-word;' > < tr > < td colspan = "5" > Television Coverage in Kentucky < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Number of Stories < /td > < td style = 'text-align: center; word-wrap: break-word;' > - < /td > < td style = 'text-align: center; word-wrap: break-word;' > 203 < /td > < td style = 'text-align: center; word-wrap: break-word;' > Run Time < /td > < td style = 'text-align: center; word-wrap: break-word;' > - 2 hours, 19 minutes < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Ad Equivalency < /td > < td style = 'text-align: center; word-wrap: break-word;' > - < /td > < td style = 'text-align: center; word-wrap: break-word;' >67,771Publicity Value- $203,628
Nielsen Audience-4,749,200
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Outdoor & Airport Displays
Billboards- Frankfort (4)
Airport Displays- Louisville International Airport Blue Grass Airport (Lexington)
Positive stories include those reports that highlight programs, events, activities and individuals in the KSU community. Negative stories include reports that are inherently negative, like a violation of the University's Zero Tolerance policy. Others may point to actions that may not be negative – for example, actions taken to dis-enroll students for non-payment – but may be framed by the media in a negative way. Neutral stories are those reports where KSU is not the focus, but is mentioned in the story.
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===== PAGE 227 ===== ## Publications (artwork and printed materials) Development/Alumni Printed Materials – Materials produced for four campaigns/events – 11 - Printed materials produced for university events – 162 Communication pieces President's Letter to Campus Community (including Campus Gem) -10 ○ Good News Newsletter – 3 ○ Hoofbeats – 1 ○ Onward & Upward – 1 Program/Departmental Newsletters & Brochures – 50 Marketing and advertisement pieces produced – 52 - Designs for general university operations -18 - Business cards produced – 66 ## ELECTRONIC COMMUNICATIONS ## Electronic message board postings – 64 messages ## Press Releases to Media – 52 ## Website – Number of Hits: 566,411 Top 10 Locations Engaged in Kentucky Region: Frankfort, Lexington, Louisville, Bowling Green, Shelbyville, Lawrenceburg, Georgetown, Richmond, Nicholasville and Glasgow. Top 10 Locations Engaged in the U.S.: Kentucky, Tennessee, Georgia, Illinois, Ohio, Indiana, Texas, Michigan, California and Florida. ## Homepage News Posts – 53 ## SOCIAL MEDIA KSU continues to see great participation and an increase in engagement through all our social media accounts. Engagement was high on Twitter and Facebook during Homecoming Weekend, October 16-18. That was also when KSU launched the GIVE9 campaign through social media, primarily on Facebook and Twitter, and also through the university's website, kysu.edu. More than 100 people liked the original GIVE 9 Facebook posts that weekend and many others shared it with friends and commented. According to Facebook, the post has reached more than 4,000 people. KSU continues to promote online giving through social media and link people directly to the website as often as possible. Videos were also posted through Facebook, Instagram and on KSU's YouTube channel, where the university has shared activities and events such as the Mr. and Miss KSU Coronation, the Founder's Day keynote address and fall commencement. We have also started using some exciting, new social media tools, including Snapchat and Quizzes in order to reach more people, including prospective students. Snaps are picture or ===== PAGE 228 ===== video messages taken and shared with friends on Snapchat in real-time. Snaps can be viewed for up to 10 seconds, depending on the amount of time the user chooses. Stories string Snaps together to create a narrative that lasts for 24 hours. To create a Story, users choose to add their Snaps to their Story. Quizzes are a great way to engage social media audiences. We created a quiz called “What Kind of Thorobred are You?” for Facebook just before Thanksgiving and have received positive feedback from the campus community. ## Facebook Following are the top-five posts that reached the most people (Facebook definition of Post Reach: The total number of people your Page post was served to): 1. Take a second RIGHT NOW to VOTE for Kentucky State's Mighty Marching Thorobreds in the 2015 Honda Battle of the Bands! Eight bands are chosen to perform at the Honda Battle of the Bands Invitational Showcase. VOTE NOW! No, really, right now! Note: Included a Link Reached 16,056, 10/15/14 2. KSU Concert Choir and Chamber Ensemble Note: Video from the Holiday Concert Reached 12,168, 12/2/14 3. The Whitney Young Lecture Series starts today, at 3 p.m. in Carver Hall, room 115. Dr. Tierra Freeman and Dr. Mara Merlino will present "Interdisciplinary Research in the Forensic Sciences: Psychology, Vision Science, and Forensic Document Examination." Join us! Note: This is the second post about the event Reached 9,264, 10/15/14 4. KSU was featured on NBC Nightly News tonight. Watch the report here. Note: Included a Link Reached 8,580, 10/14/14 Page Likes Comparison: Oct. 1, 2014 1,926 Dec. 31, 2014 2,274 ## Twitter Tweets earned 74.3K impressions over the 91-day period from Oct. 1, 2014 – Dec. 30, 2014. (Impressions: Number of times users saw the tweet on Twitter. Definition from Twitter.) Instagram - 32 Instagram posts YouTube - 7 YouTube videos ===== PAGE 229 =====
Agenda Item Background
To:Board of Regents External Relations and DevelopmentDate: January 22, 2015
From:Mr. Max Maxwell, Interim Vice President for External Relations and Development
Subject:Endowment Management Report
Reason for Consideration:Informational ItemEnclosures: Yes
Background: N/A ## Recommendation: Informational
Informational Item
Initiator:Mr. Max Maxwell, Interim Vice President for External Relations and Development
Board Action Date:January 22, 2015
Effective Date:January 22, 2015
===== PAGE 230 ===== Kentucky State University Endowment As of December 31, 2014 Fifth Third Bank - Investment Review ===== PAGE 231 ===== ## Investment Management & Charitable Services
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## FIFTH THIRD BANK
Your AdvocatesStrength & StabilityExperienced Professional Money Managers
• LouAnn Atlas\nKY Director, Charitable Client Services & Vice President\n• Guthrie Culbertson\nRegional Director of Institutional Portfolio Management & Senior Vice President\n• James Fereday\nSenior Portfolio Manager & Vice President\n• Clinton Long\nInstitutional Sales & Vice President\n• John Shasky\nLead Commercial Relationship Manager & Vice President\nThere are no guarantees that any investment strategy described in this publication will result in a profit. Investment results cannot be predicted or forecasted and will vary depending on market conditions.• Founded in 1858.\n• 111 billion in assets.n•274 billion in assets under care.\n• 7th strongest bank in the world.\nBloomberg Markets magazine, May 10, 2011• More than $26 billion in assets under management.\n• Over 100 years of fiduciary and investment experience.\n• A team of more than 100 analysts, strategists and portfolio managers.\n• Clients in all 50 states.\n• Relationships with corporations, public entities, non-profits and individuals.
===== PAGE 232 ===== ## Asset Allocation & Policy
As of 12-31-14
Asset ClassMarket ValueStrategic TargetCurrent PositionPolicy Ranges
Equity$7,573,69645%50%35-55%
Fixed Income$3,798,36435%25%25-45%
Real Estate$842,2995%6%0-10%
Alternatives$2,213,76310%15%0-20%
Cash$725,3785%5%0-25%
Total$15,153,500100%100%
===== PAGE 233 ===== ## Overall Performance
As of 12-31-14QTRFiscal YTDYTD 2014Annualized
1 Yr3 Yrs5 Yrs10 yrs
Equity3.031.456.876.8716.7313.067.51
MSCI World Index1.01-1.174.934.9315.4710.206.03
Fixed-1.19-2.241.161.161.914.143.67
Barclays Aggregate1.791.965.975.972.664.454.71
Barclays Int. Gov/Credit0.890.863.133.132.033.544.10
Real Estate14.279.9126.9326.9315.7514.54na
S&P 500 US REIT14.0110.0928.7628.7615.0215.696.85
Alternatives0.100.433.323.32nanana
CPI-0.79-0.921.331.521.802.182.20
HFRX Absolute Return-0.99-1.020.790.791.740.25-0.28
ML 91 Day0.000.010.030.030.070.091.54
Total Account Net1.750.454.674.679.898.695.69
Total Account Gross1.870.685.155.1510.409.206.16
Blended Benchmark*1.740.696.136.139.067.645.70
*45% MSCI World Index, 35% Barlcays Aggregate, 10% CPI, 5% S&P 500 US REIT, 5% BoAML 91 ===== PAGE 234 ===== ## Historical Performance – Calendar Year
20022003200420052006200720082009
Market Value$ 1,681,609$ 4,334,149$ 5,830,780$ 7,327,733$ 9,266,316$ 10,401,183$ 7,899,661$ 9,134,237
Total Accountna14.72%6.42%5.41%10.93%9.63%-16.80%16.15%
Equitiesna26.17%9.46%8.23%14.96%12.27%-30.09%25.29%
Fixed Incomena2.44%1.84%1.55%4.22%6.01%-0.37%4.73%
Composite Indexna18.42%7.93%3.87%10.78%6.11%-19.25%17.03%
20102011201220132014
Market Value$ 10,048,851$ 10,414,782$ 11,579,457$ 14,476,075$ 15,153,499
Total Account10.84%4.11%11.70%14.23%5.15%
Equities13.64%2.23%16.92%27.47%6.87%
Fixed Income6.76%8.41%6.16%-1.46%1.16%
Composite Index11.18%4.46%9.99%11.11%6.13%
New Composite Index 45% MSCI World, 35% BC Aggregate, 10% CPI, 5% US REIT's, 5% ML 91 Day Tres. (updated January, 2012) Old Composite Index: 58% S&P 500, 37% Barclays Gov/Credit, 5% ML 91 Day Treasury ===== PAGE 235 ===== ## Endowment Comparison – Fiscal Year
FY 2008 ReturnsFY 2009 ReturnsFY 2010 ReturnsFY 2011 ReturnsFY 2012 ReturnsFY 2013 Returns
KSU Endowment-2.21%-10.00%10.48%20.27%4.96%10.31%
Benchmark-4.75%-13.21%11.95%19.17%1.13%8.72%
NACUBO Ave. Return*-4.10%-16.80%11.60%17.60%0.30%11.70%
S&P 500-13.10%-26.20%14.40%30.69%5.45%20.60%
Russell 3000-12.70%-26.60%15.70%32.37%3.80%21.70%
MSCI World ex-US-6.60%-31.60%7.50%30.92%-14.10%17.10%
Barclays Aggregate7.10%6.10%9.50%3.90%7.50%-0.70%
CPI-U5.00%1.40%1.00%2.00%2.90%1.70%
NACUBO Ave. Spending*4.10%3.90%3.50%3.70%3.70%4.10%
EquityFixedCashAlternatives
KSU Endowment (06-30-09)57%37%6%0%
2009 NACUBO Study*51%27%9%13%
KSU Endowment (06-30-10)60%33%7%0%
2010 NACUBO Study*53%27%8%12%
KSU Endowment (06-30-11)63%31%6%0%
2011 NACUBO Study*55%25%10%10%
KSU Endowment (06-30-12)64%27%5%4%
2012 NACUBO Study*53%29%7%11%
Equity includes 3% REITS
KSU Endowment (06-30-13)56%31%5%9%
2013 NACUBO Study*57%26%6%11%
Equity includes 5% REITS
*NACUBO study referenced is for Endowments of 25 Million or Less Data collected from the National Association of College & University Business Officers (NACUBO) website. ===== PAGE 236 ===== ## Manager Performance
Manager Performance as of 9/30/2014(Manager Level Benchmarks)*Annualized Returns
Class/CategoryManagerType3 MonthYTD1 Year3 Year*5 Year*10 Year*
Equity
Large Cap DomesticDana Large Cap EquitySMA-0.319.2220.8023.8416.719.51
S&P 500 TR USDB1.138.3419.7322.9915.708.11
Small & Mid Cap DomesticThe London Co. Small CapSMA-3.11-1.1310.0223.7117.9914.38
Russell 2000 TR USDB-7.36-4.413.9321.2614.298.19
Developed InternationalHarding Loevner Intl Eq ADRSMA-3.630.855.5713.439.119.54
MSCI ACWI Ex USA Growth NR USDB-4.89-0.354.2911.816.787.15
Artisan International InvestorFund-4.73-1.445.8519.229.528.53
American Funds Europacific Growth F2Fund-4.24-0.766.8814.347.038.44
MSCI ACWI Ex USA NR USDB-5.270.004.7711.796.037.06
Emerging MarketsOppenheimer Developing Markets YFund-3.522.296.0611.939.0514.55
MSCI EM NR USDB-3.492.434.307.194.4210.68
Real Estate Investments
Real Estate -IndirectUniplan REIT PortfolioSMA-2.5813.3811.4514.6715.2911.00
S&P United States REIT TR USDB-3.1613.9213.1516.6415.938.35
Alternative Strategies
Core Diversifier5/3 Alternatives SMASMA0.403.085.354.811.851.22
HFRX Global Hedged Fund IndexB-0.441.323.683.661.851.22
===== PAGE 237 ===== ## Manager Performance
Manager Performance as of 9/30/2014\nClass/Category(Manager Level Benchmarks)\nManagerType3 MonthYTD*Annualized Returns
1 Year3 Year*5 Year*10 Year*
Fixed Income
Domestic Fixed IncomeSegall BryantSMA0.012.542.592.183.744.84
Dodge & Cox IncomeFund0.004.565.764.815.355.31
Sentinel Total Return Bond IFund-0.134.526.266.963.414.02
Barclays US Gov/Corp Intermediate TR USDB-0.032.172.131.993.414.02
International Fixed IncomeTempleton International Bond AdvFund-1.821.883.355.505.824.17
Oppenheimer International Bond YFund-2.121.332.143.043.116.65
Barclays Gbl Agg Ex USD TR USDB-5.38-0.09-0.810.141.684.17
TCW Emerging Markets Income IFund-2.234.856.679.069.479.46
JPM EMBI Global Diversified TR USDB-0.598.029.677.958.038.32
High-YieldT. Rowe Price High-YieldFund-1.953.567.4011.5910.217.79
Barclays US HY Interm TR USDB-1.953.016.6410.8010.188.01
Cash and Equivalents
Cash and EquivalentsFederated Prime Cash Obligs InstlFund0.010.020.030.100.131.79
BofAML US Treasury Bills 0-3 Mon TR USDB0.010.020.030.050.071.51
Notes: ___ Data source: Morningstar and Fifth Third calculations Results are gross of advisory fees and net of mutual fund expenses Type-SMA=Separately Managed Account, Fund=Mutual Fund/ETF/ETN/LP, B=Benchmark Value assigned for unavailable item: Sentinel Total Return Bond I 5 Year* = 3.41 Source: Benchmark Value assigned for unavailable item: Sentinel Total Return Bond I 10 Year* = 4.02 Source: Benchmark Value assigned for unavailable item: Templeton International Bond Adv 10 Year* = 4.17 Source: Benchmark Value assigned for unavailable item: 5/3 Alternatives SMA 5 Year* = 1.85 Source: Benchmark Value assigned for unavailable item: 5/3 Alternatives SMA 10 Year* = 1.22 Source: Benchmark ===== PAGE 238 ===== # Technology Status ## Enterprise Resource Planning (ERP) Update The Ellucian proposal and contract for Banner consulting services, process improvement assessments and system hosting has not been signed due to failure to come to an agreement with the contract terms. Since KSU can no longer wait to make necessary improvements to its business infrastructure and processes, discussions have been held with other vendors for higher education enterprise systems. As a result of the discussions, a high level demonstration was requested of Oracle for their higher education solutions. Oracle representatives came to KSU and demonstrated to a team of 20 individuals representing the areas of student, faculty, finance, human resources, payroll and information technology. To further demonstrate the functionality of the Oracle student solution, a site visit to Kentucky Community and Technical College System was held. Current activity: The KSU team is continuing its discussion and review of the Oracle higher education solutions. ## Additional Technology Initiatives ## Evaluation and Optimization: ## Information Technology Assessments To get an understanding of the strengths and weaknesses of KSU's current network and telephone systems and to get a baseline for future implementations, assessments of the telephone and network (wired and wireless) system will be conducted and completed by June 30, 2015. Once the assessments have been completed, recommendations will be made to ensure that KSU has an efficient, redundant infrastructure that is reliable, secure and meets the needs of Kentucky State University. ## Current activity: I am working to develop a plan for how the assessments will take place. The options are to use internal resources, use a combination of internal and external resources or work with a vendor(s). ## Process Improvements Information Technology is in the early stages of reviewing and prioritizing its processes. Information Technology has identified over 60 processes that need review and mapping. ===== PAGE 239 ===== # Technology Status ## Student Focus: ## Installation of collaborative workspace in the Library A collaborative learning workspace was installed in the Blazer Library in December 2014. This workspace emphasizes group learning and collaboration. Students can collaborate on projects and other assignments for a class. The device has two large monitors and allows for multiple laptop connections. Groups can view and discuss their work in progress. Additionally, there are 7 laptops now available for students to check out in the library. ## Labs Updated with New iMacs The Applied Information Technology Mac Lab in Hathaway Hall was updated with 18 new iMacs and the Art Lab in Shauntee Hall was updated with 12 new iMacs. The other 25 student labs are being inventoried and assessed.
FacilityLab LocationOverseer
AquacultureAquacultureCharles Weibel
Athletic Academic CenterAthletics LabLydia Harsley
AWA BuildingAWA LabDr. Sandy Trammel
Betty WhiteNursing LabWanda Slucher
Blazer LibraryAWA Computer LabDavid Karsner
Blazer LibraryCommon AreaSheila Stuckey
Bradford HallMusic G8Dr. Roosevelt Shelton
Bradford HallBusiness Lab G2Dr. Abdul Turay
Bradford HallBusiness Lab G3Dr. Abdul Turay
Carl M. Hill Student CenterStudent Center Lower LevelGerri Spencer
Carl M. Hill Student CenterFriends LabRay Jordan
Carver HallMath & Science Lab Rm 116Joe Abrokwa
Carver HallMath & Science Lab Rm 118Joe Abrokwa
Carver HallMath & Science Lab Rm 224Joe Abrokwa
Co-Op ExtensionGIS LabKen Bates
ExumTesting Lab
ExumExum LabWilliam Graham
Hathaway HallEnglish Lab Rm 428Dr. Todd Davis
Hathaway HallApplied Information Technology Lab Rm 328Dr. Fred Scheffler
Hathaway HallComputer Science Lab Rm 322David Crowe
Hathaway HallSecurity LabDavid Crowe
Hathaway HallGaming LabDavid Crowe
Hathaway HallBehavioral and Social Science LabDr. Tierra Freeman
Hathaway HallComputer Science Lab Rm 300David Crowe
Hathaway HallForeign Language Lab Rm 400Dr. Todd Davis
===== PAGE 240 ===== # Technology Status ## Governance: ## Reactivation of Technology Committee The Information Technology Committee will be reactivated by March 31, 2015. The committee will include student, faculty and staff representation. The primary responsibilities of the committee will be: - Provide recommendations for, update and oversee the implementation of the Technology Strategic Plan once it has been completed. Promote awareness of the Technology Strategic Plan. Review, advise and recommend policies, procedures and standards relating to technology. - Provide a structure and process for identifying and evaluating emerging technologies for possible benefit to the university. An external committee of technology experts will also be created to advise the Technology Committee. The goal is to have this committee in place by May 29, 2015. Please note that this date is subject to revision based on potential implementation of new enterprise resource planning system. ===== PAGE 241 =====
Agenda Item Background
To:Board of Regents Information TechnologyDate: January 23, 2015
From:Ms. Wendy Dixie
Subject:Oracle ERP Contract
Reason for Consideration:ApprovalEnclosures: Yes
## Background: The University has been exploring other options for higher education enterprise resource planning systems (ERP). See attached. ## Recommendation: The University recommends that Oracle America, Inc. and Addvantum be awarded the contracts for ERP services at Kentucky State University.
Approval
Initiator:Ms. Wendy Dixie
Board Action Date:January 23, 2015
Effective Date:January 23, 2015
===== PAGE 242 ===== Oracle is recommending a complete Financial, Human Resources, Student, and Procurement solution for Kentucky State University. The Oracle higher education solution consist of: ## Oracle ERP Cloud including: ## ○ Finance ■ Accounts Payable ■ Accounts Receivable Assets Cash Management ■ Contracts Management Expenses Financial Reporting General Ledger Grants Administration ■ Projects ## Oracle Procurement ■ Procurement Reporting ## Oracle HCM ■ Purchasing Self Service Procurement Global Human Resources Payroll ■ HCM Reporting Recruiting and On Boarding Time and Labor ## Oracle Campus Solutions including: PeopleSoft Enterprise Student Administration Alumni Management and Fundraising Degree Planning and Audit Financial Aid Recruiting and Admissions Student Accounts Student Administration Student Enrollment PeopleSoft Enterprise Campus Solutions Self Service Student Administration Integration Pack Integration with Blackboard • Services from Oracle's Gold Partner Addvantum including: ○ Hosting of Campus Solutions ○ Implementation services ○ Training and consulting services ===== PAGE 243 ===== ## KSU FM License Process Low Power FM (LPFM) stations, created in January 2000 are those stations for noncommercial educational broadcasting only that operate with 1 to 100 watts of power and cover a radius up to approximately 5.6 km (3.5 miles) LPFM stations are available to noncommercial educational entities and public safety and transportation organizations only. Programming must be a minimum of eight (8) hours per day. ## Timeline: November 11, 2013—KSU filed an application for a construction permit for Low Power FM (LPFM) radio station after the Federal Communications Commission (FCC) opened its filing window period. December 16, 2013—FCC issued a list of applicants with competing application. KSU had one competitor. Both applicants were subsequently granted approval to construct radio stations, as the competitor sought a channel frequency change. December 4, 2014—FCC granted KSU a construction permit to begin developing its radio station on campus. The antenna will be located atop of Hathaway Hall. Radio frequency 100.9 FM/Channel 265. June 4, 2016—KSU must complete the construction phase and apply for the operational license. ## Next Steps: 1. KSU will seek consultation with an entity to assist with the development of the station. 2. KSU will develop a list of equipment that will be necessary to begin operating the radio tower and control room. Necessary equipment will be purchased and installed. 3. The equipment will be purchased. ===== PAGE 244 ===== ===== PAGE 245 =====
Agenda Item Background
To:Board of RegentsDate:January 23, 2015
From:President Raymond M. Burse
Subject:Position/Title Elevation
Reason for Consideration:ApprovalEnclosures: Yes
Background: The Facilities and Maintenance Operations is headed by a director reporting to the President. Because of the importance of these areas and the skills required, the director position should be elevated to the Vice President level to be equivalent to other areas in the University. Recommendation: The position of Director of Facilities and Maintenance Operations be changed to Vice President for Facilities and Maintenance Operations.
Approval
Initiator:President Raymond M. Burse
Board Action Date:January 23, 2015
Effective Date:January 23, 2015
===== PAGE 246 =====
Agenda Item Background
To:Board of RegentsDate:January 23, 2015
From:President Raymond M. Burse
Subject:Appointment of Vice President for Student Affairs
Reason for Consideration:ApprovalEnclosures: Yes
Background: Dr. Vernell Bennett is recommended to be appointed Vice President for Student Affairs. (Resume attached). ## Recommendation:
Approval
Initiator:President Raymond M. Burse
Board Action Date:January 23, 2015
Effective Date:January 23, 2015
===== PAGE 247 ===== # CURRICULUM VITAE Dr. Vernell A. Bennett 213 Ransom Trace Georgetown, KY. 40324 vernell.bennett@kysu.edu 502-330-3566 Education Ed.D. The University of Kentucky Instruction and Administration M.A. Eastern Michigan University B.M. Fisk University Work Experience 09/12 – Present Assistant Vice President for Diversity and Inclusion/ Senior Advisor to Academic Affairs and Presidential Liaison Kentucky State University (KSU) Responsibilities include but aren’t limited to: Serving as a special assistant to the Provost, developing and coordinating Academic Affairs’ portion of KSU’s Strategic Plan and monitoring implementation, overseeing Academic Affairs’ website overhaul, coordinating fall and spring Commencement, Honors Convocation, and Faculty and Staff Institute, serving on the Academic Appeals Committee, serving as Chairperson for the Distinguished Professor appointment and election process, serving as a liaison to the President’s Office for duties as assigned, and drafting the quarterly Board report. The majority of my job responsibilities called for me to interact with faculty or administration. Chief Diversity Officer roles include: Insuring institutional compliance of the Council on Postsecondary Education’s (CPE) diversity and inclusion policies, write annual reports, develop diversity and inclusion initiatives, monitor faculty, staff and student diversity, serve on the CPE’s Committee on Equal Opportunity, coordinate and serve as the Chairperson of the Campus Environment Team, write the institution’s annual CPE-mandated Diversity Plan Self-Study and Campus Environment Report, meet quarterly with the offices of Human Resources, Admissions, and the Deans to address and develop strategies for increasing student, staff and faculty diversity, and establishing outreach with high schools in the region for recruitment of diverse populations. The areas of Dual Enrollment and Adult Education are also my direct reports. The percentage of dual enrolled high school students who have enrolled after graduation as full time students at KSU has increased under my leadership. 07/1/14 – 8/15/14 Interim Chairperson, Division of Fine Arts Kentucky State University ===== PAGE 248 ===== Presides at all meetings of the unit faculty and, in such capacity, take a leadership role in the development of policies on such matters as academic requirements, courses of study, class schedules, research programs, and service functions. Takes administrative responsibility for implementing the unit's total program within the limits established by the regulations of the University Faculty Senate, and the rules of the College of Arts and Sciences 1. Makes recommendations for the appointments, promotions, reappointments, terminal appointments, decisions not to reappoint, post-retirement appointments, and the granting of tenure using procedures and criteria established by the University, the College, and the Division faculty. 2. Is responsible for the periodic evaluation of performance of all members of the Division faculty by procedures and criteria established by the University, the College and by the Division Faculty. 3. Develops and revises, in collaboration with the faculty and within the constraints of existing university policy, standard operational procedures for daily and other regularly occurring activities in the Division. 9/13 - 12/13 Interim Associate Vice President for Undergraduate Education Kentucky State University Responsibilities included: Managing First and Second Year Experience, developmental education, summer bridge programs, and academic appeals and faculty disciplinary issues. I also served as a liaison in communicating and collaborating with administrators, faculty, students and other constituents of the University, participated in budget development for the University, and worked collaboratively with deans, chairs faculty and the Office of Student Success and Enrollment Management to provide effective support for undergraduate students. 7/06- 9/12 ## Assistant Vice President for Student Affairs Kentucky State University The areas of Student Life, the Health Center, Career Planning and Placement, the Police Department, Admissions, Testing, the Office of the Registrar, Financial Aid, Enrollment Management, and the Student Government Association (SGA) report to the Office of Student Affairs at KSU. Although I provided supervision to all areas, the offices of Student Life, Career Planning and Placement, the Betty White Health Center and SGA were my direct reports. I was also the chief judicial authority and Coordinator for the All- University Court. I handled all judicial matters including mediation, sanctioning, counseling, and treatment referrals. I also established a partnership and protocol with the KSU Police Department and the academic community dealing with how student judicial matters are handled in coordination with the Office of Student Affairs. My colleagues in the classroom relied on me to resolve classroom Code of Conduct violations. The Student Affairs budget was $14,262,602.00.
3/09 – 5/11Youth Counselor and AdvocateKentucky United Methodist Homes for Children and Youth
6/99 – 12/04C.A.F.E. (Creative Arts for Ethnicity) Youth Program
===== PAGE 249 =====
Director
8/97 – PresentOperation Half-Note Incorporated Founder and Director
8/96 – PresentInstructor, Assistant Professor, Associate Professor (tenured) Kentucky State University
9/92 – 9/96Belleville High School Instructor
## Awards/Honors National Dean's List Departmental Honors, Fisk University, Eastern Michigan University, Graduate Assistantship University of Kentucky Commonwealth Incentive Award Who's Who Among College and University Professors Kentucky State University College of Arts and Sciences Outstanding Service Award, Alpha Phi Alpha Fraternity, Inc. Woman of the Year KCTCS – 1st Annual African American Recognition Breakfast – Honoree Bluegrass Alliance for Women - Legacy Award Nominee Governor's Award in the Arts, Individual Award for Arts Education in Kentucky Kentucky Colonel KSU Girls Rock – Faculty/ Staff Honoree Commitment to Black Excellence - Honoree Commitment to Black Excellence - Honoree ## Leadership Training Scott Hawkins Leadership Institute (The Links, Incorporated) 2009-2011 Leadership Kentucky 2009 cohort Executive Leadership Summit, 2012 ## Board Memberships Frankfort Arts Foundation E.S.C.A.P.E. Route (Enforcement of Strategies to Combat Abuse and Promote Empowerment) ## Grants Awarded Kentucky Arts Council – Community Arts Grant Title III Strengthening Grant KSU Foundation - Community Arts Grant ## Research Activities CESKA, (Center for Excellence in the Study of Kentucky African Americans) funded project: Black Notes in the Blue Grass. A paper exploring the contributions of the Kentucky-born African American Musicians. Dissertation: Female African American Presidents in Higher Education: Is There A Particular Journey ===== PAGE 250 ===== Toward their Presidencies? ## Professional Presentations or Publications Operation Half-Note Incorporated: An Intervention Program for Creating the Musically Literate Child Presented at the Hawaii International Conference on Education. ## Professional Memberships The Council on Student Affairs The National Association of Student Affairs Professionals Alpha Kappa Alpha Sorority Incorporated The Links, Incorporated National Association of Diversity Officers in Higher Education ## Executive Offices/Leadership Positions Kentucky State University Faculty Senate, Executive Officer (Secretary, Vice President, President) Kentucky State University Academic Policies Committee – Chairperson Kentucky State University Department of Fine Arts Scheduling Committee – Chairperson Kentucky State University Faculty Senate Nominating Committee – Chairperson Kentucky State University Department of Fine Arts Speech, Communications and Theatre Search Committee – Chairperson Coalition of Faculty Senate Leadership (COFSL) Kentucky State University Academic Appeals Committee – Chairperson Kentucky State University – Division of Fine Arts Reaccreditation Subcommittee- Chairperson Kentucky State University – Provost/Vice President for Academic Affairs Search Committee ## Chairperson Kentucky State University – Chairperson, Chief of Police Search Committee Kentucky State University – Southern Association of Colleges (SACS) Leadership Team Kentucky State University – Provost/Vice President of Academic Affairs Search Committee Kentucky State University – University Orator Kentucky State University – Chairperson, Honorary Degree Committee ## Committee Memberships Kentucky State University – Faculty Senate Executive Committee Kentucky State University – Academic Policies Committee Kentucky State University SACS Re-accreditation Committee Kentucky State University – Academic Appeals Committee Kentucky State University – Department of Fine Arts Music Curriculum Committee Kentucky State University – Chairperson, Speech, Communications and Theater Search Committee Committee Memberships continued Kentucky State University – Fine Arts Scheduling Committee Kentucky State University Athletic Affairs Committee Kentucky State University – Comptroller Search Committee Kentucky State University Faculty Senate Nominating Committee Kentucky State University Coronation Committee ===== PAGE 251 ===== Division of Fine Arts Curriculum Revision Committee Kentucky State University Program Review Committee Franklin County Board of Education Discipline Codes Committee Kentucky State University – Presidential Inaugural Committee Division of Fine Arts Curriculum National Association of Schools of Music (NASM) Sub-Committee ## Committee Kentucky State University – University Tenure and Promotion Committee Kentucky State University – Quality Enhancement Plan Committee Kentucky State University – Campus Environment Team Kentucky State University – Behavior Threat Assessment Team Kentucky State University – Athletic Appeals Committee Kentucky State University – Financial Aid Appeals Committee ## Advising First Year Recruitment and Retention Special Advisement Core The Division of Fine Arts Core Advising Team ## Teaching MUA 161, 162, 261, 262, 361, 362, 461, 462 - Major Applied. Private instruction in voice. One-hour lesson each week. MUA 121, 122, 221, 222, 321, 322, 421, 422 - Minor Applied. One half-hour private lesson each week in primary or secondary performance. MUS 130 – Introduction to Music. Open to non-Music majors. An introduction to the basic elements of music, its styles, and cultural history (including western art music, non-western music, jazz, and popular music). MUS 236 – Phonetics and Diction. A study of English, German, Italian, and French diction in vocal music with the utilization of the International Phonetic Alphabet. MUS 103 – Freshman Orientation in Music. This course is designed to facilitate the transition to University life and provide the necessary academic and social foundation for students to successfully complete their pre-professional experiences MUS 429 – Vocal Literature. An analytical and historical study of representative vocal works from the sixteenth century to the present time. Lyric Diction I – English and Italian. A study of the principles and application of English and Italian diction in singing through the use of the IPA, spoken language drill, and recitation of representative arias and song literature. Lyric Diction II – French and German. A study of the principles and application of French and German diction in singing through the use of the IPA, spoken language, drill and recitation of representative arias and song literature. ===== PAGE 252 =====
Agenda Item Background
To:Board of RegentsDate:January 23, 2015
From:President Raymond M. Burse
Subject:Post-Tenure Review Policy
Reason for Consideration:ApprovalEnclosures: Yes
Background: In August 2014, the Interim President requested the Faculty Senate to deliver to him by November 1, 2014, a revised post-tenure review policy and procedure as the then current policy was not working and ineffective. Prior to November 1, 2014, the Faculty Senate Executive Committee delivered to the Interim Vice President for Academic Affairs a document titled, "Post-Tenure Review Report". (attached) That report found the current system non-functional and included suggested actions to fix the problems. The original request was for a revised post-tenure review process. Recommendation: The President recommends to the Board, the Post-Tenure Review Policy and Process in the attachment for adoption and approval to be effective immediately.
Approval
Initiator:President Raymond M. Burse
Board Action Date:January 23, 2015
Effective Date:January 23, 2015
===== PAGE 253 ===== # KENTUCKY STATE UNIVERSITY Post Tenure Review Policy and Procedures ## January 24, 2014 The post tenure review is intended to maintain the standards of performance that faculty achieves when granted tenure. It promotes faculty development and achievement and identifies areas of performance that need improvement. The post tenure review assesses the level of teaching effectiveness, scholarship/performance, and service of faculty. With the exception of those tenured administrators who serve as administrators for at least 75% of their role responsibilities, all tenured faculty will be reviewed. Each tenured faculty member must be reviewed every four years after attaining tenure status, except in years where the faculty is being considered for promotion and undergoing that evaluation process. The annual review will not be conducted in years when a post tenure review occurs. Faculty members will be reviewed once every four years following the receipt of tenure. The post tenure review evaluation should be completed by the end of the academic term in which it is scheduled. The review is a cumulative summary of the performance reported in annual faculty reviews. As such, a narrative, current curriculum vitae and copies of the annual reviews for the past four years will constitute the faculty file for evaluation. An appendix of scholarly work may be included (i.e. recordings, programs, published work). The Vice President for Academic Affairs will notify faculty members scheduled for post-tenure review no later than November 15 directly preceding the spring academic term of review (except in the initial year of application and implementation of this policy). ## Review Committee The Committee shall be composed of no more than seven faculty members selected by the faculty in the spring term of each academic year. • All committee members must be tenured. - One member must come from the unit where the faculty is tenured No faculty member scheduled for post tenure review in a given academic year or whose spouse or partner is scheduled for post tenure review shall serve as a member of a Post Tenure Review Committee during that year ## The Post Tenure Review Process The faculty member shall submit a narrative, a current curriculum vitae, copies of his or her annual evaluations for the past 4 years, and examples of scholarly achievements. The narrative should describe the faculty member's teaching effectiveness (to include professional development), scholarship, and service. The faculty member may also identify barriers that prevented accomplishment in any area of evaluation. ===== PAGE 254 ===== ## Evaluation Criteria ## Teaching Effectiveness Official student evaluations of faculty member, complete copies of questionnaires and results of all student evaluations officially conducted by the University during the last four years preceding this review, as received by the faculty member, shall be included in the dossier for review. Summary forms as provided for in the Comprehensive Evaluation System should be included as well. Official peer evaluation results from all peer evaluations of teaching (from classroom visitations and/or other peer evaluation instruments) conducted by the University during the last four years preceding this review, as received by the faculty member, shall be included in the dossier for review. Samples of any noteworthy course materials developed by applicant during the last four years preceding this review may be included. ## Scholarly and Creative Activity The applicant may include the following as evidence of scholarly/creative activity: copies of abstracts, cover pages of articles, books, etc.; copies of programs or other announcements of performances/presentations; reviews of the applicant's publications, performances, and shows; photographs of visual arts; and other materials appropriate to the applicant's discipline. For individuals in the visual and performing arts, exhibits, performances, and shows constitute evidence of such activity. The applicant may submit self-developed instructional materials as evidence of scholarly/creative activity. ## Service Evidence of university and community service. ## Measurement Assessment of meeting the criteria shall be in accordance with the standards set forth in Attachment A to this policy. ## Stages/Levels of Review ## Post Tenure Review Committee's Review The Post Tenure Review Committee will prepare a report for inclusion in the post tenure review file. The report should summarize its findings and assessment (exceeds expectations, meets expectations, fails to meet expectations) regarding the faculty member's productivity in each area of evaluation. The committee will make suggestions for future development of those faculty who do not meet expectations. The faculty member will be given a copy of the report and may submit a written response for inclusion in the post tenure review file before it is forwarded to the chairperson, dean or director. ===== PAGE 255 ===== ## Review by Unit Administrator The post tenure review file will be forwarded to the chair, dean or director. If the chair, dean or director agrees with the report, he or she will indicate such in writing to the faculty member and place a copy in the post tenure review file. If the chair or director disagrees with the committee's evaluation, he or she will explain the reasons for disagreement in writing, with a copy to the faculty member and the committee. The faculty member may submit a written response for inclusion in the file. The post tenure review file is then forwarded to the Vice President for Academic Affairs for review. ## Review by the Vice President for Academic Affairs If the Vice President for Academic Affairs disagrees with the committee’s review of a faculty member, he or she may request that the committee and chair/dean/director provide additional information or reconsider the review. The Vice President for Academic Affairs may also ask the faculty member to provide additional information. The Vice President for Academic Affairs will explain the reason(s) for disagreement in writing with a copy to the faculty member and committee. The faculty member may submit a written response for inclusion in the file. The post tenure review file is then forwarded to the President for the final review. ## Review by the University President If the President disagrees with the any of the prior evaluations, he or she may request additional information or reconsider the review. The President may also ask the faculty member to provide additional information. The President will explain the reason(s) for disagreement in writing with a copy to the faculty member and the Vice President for Academic Affairs. The President’s review will be final, unless a recommendation for action is made to the Board of Regents. The results for each level of evaluation and copies of the post tenure review file will be placed in the faculty member’s personnel file. The chair, dean or director will discuss the review with the faculty member as is done during the annual review process. ## Unsatisfactory Post Tenure Review In cases where the faculty member is found to not meet expectations, they are placed on probationary status and a performance improvement plan (PIP) must be adopted and agreed upon in writing by the faculty and chair, dean or director provided the President does not make a contrary recommendation to the Board of Regents. The plan should include the recommendations of the Post Tenure Review Committee, chairperson, dean or director, Vice President for Academic Affairs and President. Subject to the foregoing, the faculty members who are placed on probationary status will have a second post tenure review during the next academic year. In the interim, the faculty member will have monthly status meetings with his or her chair, dean or director to assess progress toward accomplishing the PIP. This will occur until the second post tenure review re-evaluation is conducted. ===== PAGE 256 ===== It should be noted that faculty members who are in probationary status do not qualify for salary or merit increases. If a faculty member fails to meet the expectations of the PIP at the post tenure review re-evaluation, a recommendation for rescission of tenure/dismissal effective the end of the academic year is warranted. ## The Appeal Process If a disagreement between the committee and the chair/dean/director or Vice President for Academic Affairs cannot be resolved or if the faculty member chooses to appeal an evaluation of “fails to meet expectations” in any category, the faculty member may pursue an appeal. The appeal must be submitted within one (1) week of receiving the final review. The matter will then go before the Faculty Appeals Committee. Appeals of post tenure review rulings shall be in writing setting forth the basis for the review. Within three (3) working days of receipt of the appeal, the President shall submit the request to the University Faculty Appeals Committee which must render a decision within ten (10) working days. The faculty member initiating the appeal and the President shall be notified in writing of the finding and decision of the committee. If the recommendation of the University Faculty Appeals Committee supports the original ruling of an unsatisfactory review, the faculty member must accept this finding as final within the University. If the Committee recommends that the unsatisfactory evaluation be reconsidered, the recommendation of the Committee in writing, including the complete evaluation record, shall be forwarded to the Office of the President. The President shall review the recommendation of the Faculty Appeals Committee together with the review packet, call for any corrective action from the appropriate academic officers or faculty bodies, and submit a revised recommendation, together with a copy of the recommendation to the Appeals Committee, the Vice President for Academic Affairs and to be included in the faculty's personnel file unless a recommendation for action is made to the Board of Regents. ## Timeline: The post tenure review calendar shall be published by October 1 prior to the spring term in which the review will be conducted. In cases of re-evaluation, the date will be specified in the PIP. A faculty member who elects not to go through the post tenure review process shall be in a terminal year of appointment. ===== PAGE 257 =====
CollegeTeaching Meets ExpectationsTeaching Exceeds ExpectationsScholarship Meets ExpectationsScholarship Exceeds ExpectationsService Meets ExpectationsService Exceeds Expectations
CPSMeeting each scheduled class for the scheduled period of time, meeting required office hours, engaging in course planning and development, advising major and minor students, improving teaching skills through professional development, carrying a full load.Receiving an award for teaching, assuming an overload, developing new courses/lab, mentoring students, receiving a teaching-related grant, offering an uncompensated independent study, conducting voluntary supplemental instruction sessions outside of class or office hours, invited as an expert in the field to serve as a guest lecturer, rated "Excellent" or "Exceeding Expectations" for student, peer, and supervisor evaluations.Membership and participation in professional organizations, publishing a non-peer reviewed article, attending workshops/trainings/conferences, keeping abreast of field through publications and attending professional development related to teaching or research, obtaining the continuing education units as required by the Kentucky Board of Nursing.Receiving a grant in discipline, publishing a peer-reviewed article, publishing a scholarly book, serving as an editor of a scholarly journal, publishing an article in a scholarly newsletter, developing a new course, serving as a peer reviewer for a professional publication or governmental agency, relevant graduate study, presenting seminars, talks or posters at national conferences, serving as a national officer in a professional organization, receiving a commission, award, or prize of national significance, contributing to a professional organization beyond the expectations of a typical member, winning an award for research, presenting seminars, talks or posters at national conferences, maintaining advanced certification in field of expertise, exceeding mandatory continuing education requirements by at least 10 CEU's, maintaining nursing skills by working in a clinical setting, developing a new course, serving as a peer reviewer for a professional publication or governmental agency, presenting a poster or oral paper at national meeting, serving as a national officer in professional organization, receiving a commission, award, or prize of national significance, contributing to professional organization beyond the expectations of a typical member, winning an award for research, giving invited seminars, talks, posters or artistic presentations, developing and teaching PRAXIS workshops, serving as a certified KTIP supervisor.Attending and participating in faculty meetings at the unit, division, and University level, attending Commencements and Convocations, serving on at least two committees on the unit, division or University level, participating in recruitment activities.Serving as a Faculty Senate officer, serving as chair/secretary of a University and/or college committee, serving as an advisor to a student organization, serving as an officer in a community, state, or national organization, assuming departmental responsibilities unrelated to the assigned load, organizing a conference.
===== PAGE 258 =====
CollegeTeaching Meets ExpectationsTeaching Exceeds ExpectationsScholarship Meets ExpectationsScholarship Exceeds ExpectationsService Meets ExpectationsService Exceeds Expectations
CBCS
Meeting each scheduled class for the scheduled period of time, meeting required office hours, engaging in course planning and development, advising major and minor students, improving teaching skills through professional development, carrying a full load.Receiving an award for teaching, assuming an overload, developing new courses/lab, mentoring students, receiving a teaching-related grant, offering an uncompensated independent study, conducting voluntary supplemental instruction sessions outside of class or office hours, invited as an expert in the field to serve as a guest lecturer, rated "Excellent" or "Exceeding Expectations" for student, peer, and supervisor evaluations.Membership and participation in professional organizations, publishing a non-peer reviewed article, attending workshops/trainings/conferences, keeping abreast of field through publications and attending professional development related to teaching or research.Receiving a grant in discipline, publishing a peer-reviewed article, publishing a scholarly book, serving as an editor of a scholarly journal, publishing an article in a scholarly newsletter, developing a new course, relevant graduate study, serving as a peer reviewer for a professional publication or governmental agency, presenting a poster or oral paper at national meeting, serving as a national officer in professional organization, receiving a commission, award, or prize of national significance, an officer in professional organization, contributing to professional organization beyond the expectations of a typical member, winning an award for research, presenting seminars, talks or posters at national conferences.Attending and participating in faculty meetings at the unit, division, and University level, attending Commencements and Convocations, serving on at least two committees on the unit, division or University level, participating in recruitment activities.Serving as a Faculty Senate officer, serving as chair/secretary of a University and/or college committee, serving as an advisor to a student organization, serving as an officer in a community, state, or national organization, assuming departmental responsibilities unrelated to the assigned load, organizing a conference.
===== PAGE 259 =====
CollegeTeaching Meets ExpectationsTeaching Exceeds ExpectationsScholarship Meets ExpectationsScholarship Exceeds ExpectationsService Meets ExpectationsService Exceeds Expectations
CAFSSSMeeting each scheduled class for the scheduled period of time, meeting required office hours, engaging in course planning and development, advising major and minor students, improving teaching skills through professional development, carrying a full load or an appropriate split appointment between research and extension activities.Receiving an award for teaching, assuming an overload, developing new courses/lab, mentoring students, receiving a teaching-related grant, offering an uncompensated independent study, conducting voluntary supplemental instruction sessions outside of class or office hours, invited as an expert in the field to serve as a guest lecturer, rated "Excellent" or "Exceeding Expectations" for student, peer, and supervisor evaluations.Membership and participation in professional organizations, publishing a non-peer reviewed article, attending workshops/trainings/conferences, keeping abreast of field through publications and attending professional development related to teaching or research.Receiving a grant in discipline, publishing a peer-reviewed article, publishing a scholarly book, serving as an editor of a scholarly journal, publishing an article in a scholarly newsletter, developing a new course, relevant graduate study, serving as a peer reviewer for a professional publication or governmental agency, presenting a poster or oral paper at national meeting, serving as a national officer in professional organization, receiving a commission, award, or prize of national significance, an officer in professional organization, contributing to professional organization beyond the expectations of a typical member, winning an award for research.Attending and participating in faculty meetings at the unit, division, and University level, attending Commencements and Convocations, serving on at least two committees on the unit, division or University level, participating in recruitment activities.Serving as a Faculty Senate officer, serving as chair/secretary of a University and/or college committee, serving as an advisor to a student organization, serving as an officer in a community, state, or national organization, assuming departmental responsibilities unrelated to the assigned load, organizing a conference.
===== PAGE 260 =====
CollegeTeaching Meets ExpectationsTeaching Exceeds ExpectationsScholarship Meets ExpectationsScholarship Exceeds ExpectationsService Meets ExpectationsService Exceeds Expectations
CASMeeting each scheduled class for the scheduled period of time, meeting required office hours, engaging in course planning and development, advising major and minor students, improving teaching skills through professional development, carrying a full load.Receiving an award for teaching, assuming an overload, developing new courses/lab, mentoring students, receiving a teaching-related grant, offering an uncompensated independent study, conducting voluntary supplemental instruction sessions outside of class or office hours, invited as an expert in the field to serve as a guest lecturer, rated "Excellent" or "Exceeding Expectations" for student, peer, and supervisor evaluations.Membership and participation in professional organizations, publishing a non-peer reviewed article, attendance at workshops/trainings/conferences, keeping abreast of field through publications and attending professional development related to teaching or research, serve as an adjudicator for a local event, presentation of one full recital or exhibit per academic year for Fine Arts faculty.Receiving a grant in discipline, publishing a peer-reviewed article, publishing a scholarly book, serving as an editor of a scholarly journal, publishing an article in a scholarly newsletter, developing a new course, relevant graduate study, serving as a peer reviewer for a professional publication or governmental agency, presenting a poster or oral paper at national meeting, serving as a national officer in professional organization, receiving a commission, award, or prize of national significance, an officer in professional organization, contributing to professional organization beyond the expectations of a typical member, winning an award for research, performance or exhibit in a major cultural area outside of Kentucky, guest scholar or conducting engagement at another university, presentation of a clinic or workshop outside of Kentucky, serve as an adjudicator for a regional or national event, solo performance, exhibit or gallery showing of national significance, guest conducting engagement with a nationally recognized professional ensemble, composition performed by a major orchestra, chamber music ensemble, or soloist of national significance, performance, guest conducting, exhibiting engagement with an established orchestra, chamber ensemble, or gallery outside of Kentucky.Attending and participating in faculty meetings at the unit, division, and University level, attending Commencements and Convocations, serving on at least two committees on the unit, division or University level, participating in recruitment activities.Serving as a Faculty Senate officer, serving as chair/secretary of a University and/or college committee, serving as an advisor to a student organization, serving as an officer in a community, state, or national organization, assuming departmental responsibilities unrelated to the assigned load, organizing a conference.
===== PAGE 261 ===== ## Post-Tenure Review Report The Professional Concerns Committee and Faculty Senate agree that the Post-Tenure Review system is not functioning as it was intended and is in need of revision. The very fact that no faculty member has been subject to the system since its inception shows that it is currently non-functional. However, after careful investigation, we have found that the failure is due to a number of factors that will call for an approach involving multiple Senate action items to fix. Here are the deficiencies that we believe exist and will need to be addressed in the upcoming academic year: 1. Lack of clear, uniform, quantifiable divisional benchmarks. Many divisions of the University have designed discipline-specific benchmarks and have tried in various ways over the years to get them published in the Faculty Handbook, all of which have been rejected by the administration. The result has been relatively chaotic for the tenure and promotion process, and this has filtered down to post-tenure review, as there is no clear, quantifiable method for any faculty member to be classified as failing to meet expectations in teaching (or any other category); it often comes down to simply the chair's judgment as he/she conducts the annual review. Complicating the issue is that some divisions have very clear benchmarks while others have no such benchmarks. Recommendation: require all divisions to formulate clear, quantifiable benchmarks for determining adequacy in the areas of teaching, scholarship and service, and have these benchmarks vetted through Senate to ensure that clear equivalencies exist for all disciplines. Have these benchmarks published in a supplement to the Faculty Handbook that is accessible to all. 2. Ineffective triggering method. Currently, the only way to trigger post-tenure review is through the annual review. However, the annual review is not designed to address the sort of serious deficiencies in a faculty member's performance that should initiate post-tenure review. Recommendation: establish a series of clear performance “warning signs” that would immediately trigger post-tenure review. The Professional Concerns Committee should devise a set of circumstances that would warrant the immediate intervention mandated under the post-tenure review system, such as failure to regularly meet and conduct class, unprofessional behavior toward students, refusal to perform regular evaluations of student performance, and repeated credible student complaints about faculty behavior. Should the chair determine that such circumstances exist, he/she will review the allegations with the faculty member and consult with the dean and provost to agree that the circumstances warrant post-tenure review. 3. Hesitancy on the part of chairs to designate faculty as not meeting expectations. Several chairs have admitted that they find it difficult to arrive at the sort of harsh but honest evaluation of faculty that would initiate post-tenure review. The problem is exacerbated by several circumstances, including lack of regular annual review of chairs by faculty and chairs who are appointed rather than elected to their positions. Recommendation: require chairs to collaborate with deans and/or the provost on problematic faculty under their supervision and, if necessary, recuse themselves from reviewing faculty whom they might hesitate to judge harshly. Mandate that annual evaluation of chairs by the faculty they supervise takes place every year without fail, and that these evaluations allow faculty to rate and comment upon the chair's effectiveness in maintaining standards within the division. Make these ratings of paramount importance in deciding upon a chair's reappointment. Alternately, make chair positions elected rather than appointed positions, as is standard practice in hundreds of institutions. The latter would ensure a ===== PAGE 262 ===== removal mechanism for a chair who is judged by faculty as failing to maintain or enforce appropriate standards. 4. Lack of regular post-tenure peer evaluation. As is the case with annual review of chairs, the regular five-year cycle of having tenured faculty undergo peer review is simply not taking place with any consistency. Recommendation: Have the Provost enforce the five-year peer review cycle and make it a more rigorous process akin to applying for tenure and promotion. This process would follow the published tenure and promotions calendar. The process would involve not only classroom observation but an examination of the faculty member's relevant materials by both the Unit Tenure and Promotions Committee and the division chair. Should both agree on the candidate's deficiency, the post-tenure process would begin, with any disagreement being decided by the University Tenure and Promotion Committee. 5. Post-tenure review applies only to teaching effectiveness. Without any performance incentive like merit pay, which has not been given in years, there is simply nothing to stop any faculty member from refusing to serve on committees or engage in professional development. Recommendation: As part of the above peer evaluation process, service and scholarship will also be considered by the Unit Tenure and Promotions Committee and division chair. When clear and persistent deficiencies in these categories are noted, the faculty member will have quantifiable benchmarks set for remediation of these deficiencies. Failure to meet such benchmarks will be considered grounds for disciplinary action up to and including dismissal for dereliction of duty. ===== PAGE 263 =====
Agenda Item Background
To:Board of RegentsDate:January 23, 2015
From:President Raymond M. Burse
Subject:Financial Exigency Policy
Reason for Consideration:ApprovalEnclosures: Yes
Background: In August 2014, the Interim President requested the Faculty Senate to review and evaluate the University’s Financial Exigency Policy, because as drafted, it was and is unwieldy. He further informed the Senate that given the conflicting timelines and the elongated process as drafted, the policy would not help the University in a financial crisis. He asked for a revised policy by November 1, 2014. The Faculty Senate response to the Interim Vice President for Academic Affairs (attached) was that the Senate did “…not recommend making any changes to the financial exigency policy at this time…”. Recommendation: The President recommends to the Board the attached Financial Exigency Policy for adoption and approval to be effective immediately.
Approval
Initiator:President Raymond M. Burse
Board Action Date:January 23, 2015
Effective Date:January 23, 2015
===== PAGE 264 ===== # FINANCIAL EXIGENCY #### 2.8.7 Financial Exigency The following policy, approved by the Board of Regents, governs financial exigency at the University. ##### 2.8.7.1 Definition Financial exigency which justifies the termination of tenured faculty or staff is an imminent financial condition which seriously jeopardizes the quality of the University's academic program and the ability of the University to fulfill its obligations to the public. Projections of enrollment, or instructional subsidies, and of other sources of revenue must indicate that the shortage of funds will be both severe and persistent. The Board of Regents must find that institutional operations within such budgetary constraints requires a reduction in personnel such that tenured faculty or staff must be terminated or laid off, or probationary faculty must be terminated or laid off prior to the end of their respective appointments. Such a reduction in faculty or staff positions shall be deemed required only if, in the Board's judgment, it will have an effect substantially less detrimental to the institution's ability to fulfill its mission than with other forms of budgetary curtailments available to the institution. ##### 2.8.7.2 Program Reduction or Elimination The Board will review the faculty ratios in each degree program as well as the cost per student for each academic course. If it is determined that budgetary conditions, governmental mandate or economic currents have resulted in reduced student enrollment within certain colleges, schools, units or programs then the Board may eliminate or curtail such college, school, unit or program. ##### 2.8.7.3 Faculty and Staff Committee Any time a financial exigency is declared; the President shall designate or create a standing committee approved by the Board to consult with the President. The committee shall consist of faculty and staff members who represent the various academic and administrative units of the University. The faculty members shall be chosen from a list of faculty members provided to the President by the Faculty Senate and the staff members shall be provided to the President by the Rotating Advisory Committee or such other committee as is designated as the official representative of all University staff members. The committee shall act as the representative of the faculty's and staff's interest in both their personal and professional concerns for the University's programs. ##### 2.8.7.4 Preliminary Determination and Statement If the Board declares that a state of financial exigency exists or is imminent or a program ===== PAGE 265 ===== change has occurred or should seriously be considered, and termination of one or more faculty or staff may be a required as a consequence of either circumstance, it shall prepare a statement that identifies the state of financial exigency or other program change. The statement shall outline the options for response which might involve termination of employment. This statement shall be transmitted to the Faculty and Staff Committee with a request for its action in accordance with this policy. This statement shall also be published and made available to all faculty and staff. Pending committee action, the Board shall undertake, through the President's Office, to obtain advice and recommendations with respect to the matters addressed in the statement. ###### 2.8.7.5. Duties of the Faculty and Staff Committee In the event that a financial exigency is declared, the President shall consult with and seek advice from the faculty and staff committee at least twenty (20) days before the Board takes any final action which might result in layoffs or termination. The President and the committee shall consider identifiable alternative methods of budget reductions; determine which colleges, schools, units or programs, faculty or staff positions should be eliminated; and prepare a report, with supportive documents, for submission to the Board. Such a report shall include both majority recommendations and minority reports. It shall be the responsibility of the committee to recommend criteria that may be used by the President and the Board for academic program evaluations and priorities. A decision to curtail or discontinue an academic or administrative unit shall be made in the best interests of the students and the University's mission. ##### 2.8.7.6 Individual Designations Once the Board has declared a state of financial exigency and has identified the particular departments or administrative units in which a reduction in staff is necessary, it shall be the primary responsibility of the President to recommend to the Board which individuals are to be terminated or laid off. Such a recommendation shall normally follow seniority, unless an exception is made to preserve the diversity of specializations with a department or unit, to preserve academic accreditation or when strict application of seniority would otherwise threaten a viable academic or administrative program or department or unit. ##### 2.8.7.7 Seniority The following sequence shall be followed in determining seniority: tenured faculty or staff of superior academic rank would have preference for retention over tenured faculty of lesser rank. A faculty or staff member who has obtained tenure prior to another faculty or staff member of the same rank would have preference over the latter faculty or staff member. If tenure and rank considerations are the same for two faculty members, the faculty member with the longer period of employment would have retention preference. Only in a case where program needs dictate other considerations will a non-tenured faculty or staff member be retained over a tenured person. Such a situation will only be warranted upon a showing that diversity of specialty is necessary to preserve academic accreditation or when application of seniority threatens a viable academic ===== PAGE 266 ===== program. ##### 2.8.7.8 University Obligations In making specific recommendations for termination of individual tenured faculty or staff positions, the President shall take into account the following: If funded vacancies exist, reasonable effort will be made to offer the tenured faculty or staff member another existing position within the institution for which the tenured person is qualified by experience and education. ##### 2.8.7.9 Lay-Off Status A faculty or staff member whose position has been eliminated or reduced in accordance with the provisions of this policy shall, at the end of the appropriate notice period, be placed on lay-off status, unless the lay-off notice has been rescinded prior to that time. A person on lay-off status shall remain on such status until: a. For a probationary faculty, the probationary appointment would have expired under its own terms; b. For tenured faculty or staff, the earliest of one of the following occurs: Reappointment to the position or failure to accept such reappointment would terminate the faculty or staff member's employment; c. Resignation; or d. Failure by the affected faculty or staff member to notify the President not later than December 15 of each year while on lay-off status as to his or her location, employment status, and desire to remain on lay-off status. Failure to prove such notice of desire to remain on lay-off status shall terminate such person's employment. A person on lay-off status has all of the reemployment rights and also has the following minimal rights: participation in departmental, unit, and institutional activities permitted by departmental and/or unit guidelines; continued use of campus facilities; continued participation in fringe benefit programs which are not dependent on payroll or require University financial contributions. ##### 2.8.7.10 Notification The President shall send to each tenured faculty or staff member recommended for termination a written notice of the Board's initial decision to make such termination. The notice shall include a statement of the basis for the decision, a description of the manner in which the decision to terminate was made, that the tenured faculty or staff member will be provided an opportunity to have the particular decision reconsider by the President with advice from the Faculty and Staff Committee, and the rights of the said faculty or ===== PAGE 267 ===== staff member. ##### 2.8.7.11 Reconsideration A tenured faculty or staff member may secure reconsideration of the decision by filing a written request with the President within thirty (30) days after receipt of notice. The Faculty and Staff Committee shall consider the information furnished to the tenured faculty or staff member and provide him or her with an opportunity to furnish it with written information or statement tending to prove the accuracy and correctness of the facts stated in the request. A genuine effort will be made to resolve the entire matter by informal methods of preliminary inquiry, consultation, discussion, and confidential mediation. No formal evidentiary hearing of an adversarial nature will be conducted on such a complaint. If the difficulty is not resolved in fifteen (15) days, the Committee shall submit to the President a written report containing its advice and recommendation with a supporting statement of its specific reasons. After consideration of the report, the President shall make a recommendation to the Board. ##### 2.8.7.12 Final Matters A faculty or staff member having been laid off because of financial exigency shall upon recall have restored to his or her credit sick leave which had been accrued and unused at the time of separation as well as being restored to his or her status prior to such lay-off. Eligibility for all other University benefits will be consistent with personnel policies and benefits in effect at the time of recall. ===== PAGE 268 ===== # FACULTY HANDBOOK—FINANCIAL EXIGENCY #### 2.8.7 Financial Exigency The following policy, approved by the Board of Regents, governs financial exigency at the University. ##### 2.8.7.1 Definition Financial exigency which justifies the termination of tenured faculty or staff is an imminent financial condition which seriously jeopardizes the quality of the University's academic program and the ability of the University to fulfill its obligations to the public. Projections of enrollment, or instructional subsidies, and of other sources of revenue must indicate that the shortage of funds will be both severe and persistent. The Board of regents Regents must find that institutional operations within such budgetary constraints requires a reduction in personnel such that tenured faculty or staff must be terminated or laid off, or probationary faculty must be terminated or laid off prior to the end of their respective appointments. Such a reduction in faculty or staff positions shall be deemed required only if, in the Board's judgment, it will have an effect substantially less detrimental to the institution's ability to fulfill its mission than with other forms of budgetary curtailments available to the institution. ##### 2.8.7.2 Program Reduction or Elimination The Board will review the faculty ratios in each college and unitdegree program as well as the cost per student for each academic course. If it is determined that budgetary conditions, governmental mandate or economic currents have resulted in reduced student enrollment within certain colleges, schools- or, units, or programs then the Board may eliminate or curtail such college, school, or unit or program. ##### 2.8.7.3 Faculty and Staff Committee Any time a financial exigency is declared; the President shall designate or create a standing committee approved by the Board to consult with the President. The committee shall consist of faculty and staff members who represent the various academic and administrative units of the University. The faculty members shall be chosen from a list of faculty members provided to the President by the Faculty Senate and the staff members shall be provided to the President by the Rotating Advisory Committee or such other committee as is designated as the official representative of all University staff members. The committee shall act as the representative of the faculty's and staff's interest in both their personal and professional concerns for the University's programs. ##### 2.8.7.4 Preliminary Determination and Statement ===== PAGE 269 ===== If the Board declares that a state of financial exigency exists or is imminent or a program change has occurred or should seriously be considered, and termination of one or more faculty or staff may be a required as a consequence of either circumstance, it shall prepare a statement that identifies with reasonable particularity the state of financial exigency or other program change. The statement shall outline in terms as specific as the circumstances permit the options for response which might involve termination of employment. This statement shall be transmitted to the facultyFaculty and staff committeeStaff Committee with a request for its action in accordance with this policy. This statement shall also be published and made available to all faculty and staff. Pending committee action, the Board shall undertake, through the President's Office, to obtain advice and recommendations with respect to the matters addressed in the statement. ###### 2.8.7.5. Duties of the Faculty and Staff Committee In the event that a declaration of financial exigency is contemplated declared, the President shall consult with and seek advice from the faculty and staff committee at least (30twenty (20) days before the Board takes any final action which might result in layoffs or termination. The President and the committee shall consider identifiable alternative methods of budget reductions; determine which colleges, schools, units or programs, faculty or staff positions should be eliminated; and prepare a report, with supportive documents, for submission to the Board. Such a report shall include both majority recommendations and minority reports. It shall be the responsibility of the committee to recommend criteria tethat may be used by the President and the Board for academic program evaluations and priorities. A decision to curtail or discontinue an academic or administrative unit shall be made in the best interests of the students and the University's mission. ##### 2.8.7.6 Individual Designations Once the Board has declared a state of financial exigency and has identified the particular departments or administrative units in which a reduction in staff is necessary, it shall be the primary responsibility of the President to recommend to the Board which individuals are to be terminated or laid off. Such a recommendation shall normally follow seniority, unless an exception is made to preserve the diversity of specializations with a department or unit, to preserve academic accreditation or when strict application of seniority would otherwise threaten a viable academic or administrative program or department or unit. ##### 2.8.7.7 Seniority The following sequence shall be followed in determining seniority: tenured faculty or staff of superior academic rank would have preference for retention over tenured faculty of lesser rank. A faculty or staff member who has obtained tenure prior to another faculty or staff member of the same rank would have preference over the latter faculty or staff member. If tenure and rank considerations are the same for two faculty members, the faculty member with the longer period of employment would have retention. ===== PAGE 270 ===== preference. Only in a clear and convincing case that where program needs dictate other considerations will a non-tenured faculty or staff member be retained over a tenured person. Such a situation will only be warranted upon a clear showing that diversity of specialty is necessary to preserve academic accreditation or when application of seniority threatens a viable academic program. ##### 2.8.7.8 University Obligations In making specific recommendations for termination of individual tenured faculty or staff positions, the President shall take into account the following: If funded vacancies exist, reasonable effort will be made to offer the tenured faculty or staff member another existing position within the institution for which the tenured person is qualified by experience and education. In the event of termination such person will not be replaced for a period of two years by another person of comparable qualifications at the same or higher salary without first offering reinstatement to the person so terminated and allowing thirty (30) days for acceptance of the offer. The position shall also not be offered at a reduced level of compensation without having offered the opportunity to continue at the reduced compensation to the tenured person concerned and allowing thirty (30) days for acceptance of the offer. ##### 2.8.7.9 Lay-Off Status A faculty or staff member whose position has been eliminated or reduced in accordance with the provisions of this policy shall, at the end of the appropriate notice period, be placed on lay-off status, unless the lay-off notice has been rescinded prior to that time. A person on lay-off status shall remain on such status until: a. For a probationary faculty, the probationary appointment would have expired under its own terms; b. For tenured faculty or staff, the earliest of one of the following occurs: Reappointment to the position or failure to accept such reappointment would terminate the faculty or staff member's employment; c. Resignation; or d. Failure by the affected faculty or staff member to notify the President not later than December 15 of each year while on lay-off status as to his or her location, employment status, and desire to remain on lay-off status. Failure to prove such notice of desire to remain on lay-off status shall terminate such person's employment.
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A person on lay-off status has all of the reemployment rights and also has the following minimal rights: participation in departmental, unit, and institutional activities permitted by departmental and/or unit guidelines; continued use of campus facilities; continued participation in fringe benefit programs which are not dependent on payroll or Formatte Formatte ===== PAGE 271 ===== require University financial contributions. ##### 2.8.7.10 Notification The President shall send to each tenured faculty or staff member recommended for termination a written notice of the Board's initial decision to make such termination. The notice shall include a statement of the basis for the decision, a description of the manner in which the decision to terminate was made, that the tenured faculty or staff member will be provided an opportunity to have the particular decision reconsider by the President with advice from the Faculty and Staff Committee, and the rights of the said faculty or staff member. The statement shall also include a disclosure of information and data upon which the decision was made. ##### 2.8.7.11 Reconsideration A tenured faculty or staff member may secure reconsideration of the decision by filing a written request with the President within thirty (30) days after receipt of notice. The Faculty and Staff member Committee shall consider the information furnished to the tenured faculty or staff member and provide him or her with an opportunity to furnish it with written information or statement tending to prove the accuracy and correctness of the facts stated in the request. A genuine effort will be made to resolve the entire matter by informal methods of preliminary inquiry, consultation, discussion, and confidential mediation. No formal evidentiary hearing of an adversarial nature will be conducted on such a complaint. If the difficulty is not resolved in three weeks fifteen (15) days, the Committee shall submit to the President a written report containing its advice and recommendation with a supporting statement of its specific reasons. After consideration of the report, the President shall make a recommendation to the Board. ##### 2.8.7.12 Final Matters A faculty or staff member having been laid off because of financial exigency shall upon recall have restored to his or her credit sick leave which had been accrued and unused at the time of separation as well as being restored to his or her status prior to such lay-off. Eligibility for all other University benefits will be consistent with personnel policies and benefits in effect at the time of recall. ===== PAGE 272 ===== After careful consideration and research of standing policies at the other four-year state supported Universities in the Kentucky Higher Education system, the Faculty Senate finds that the Kentucky State University Faculty Handbook policies regarding faculty termination, in the case of both financial exigency and termination of programs, are in line with our sister institutions as well as the recommendations of the AAUP. Therefore, the Faculty Senate does not recommend making any changes to the financial exigency policy at this time in order to keep KSU's policies comparable to those of other institutions and to adhere to established best practices. The faculty believe that best policy is discussed and written in times of stability to ensure preservation of academy integrity, stability and instructional quality, rather than in times of crisis. Given the length of the process, as under review currently by such institutions as Eastern Kentucky University, the Faculty Senate believes that any such policy changes should go through such a formal process and timeline, with adequate time to ensure full stakeholder involvement and with adherence to AAUP standards. (See attached documents) However, the Faculty Senate stands ready to work with President Burse to address the financial deficit and identify cost savings wherever possible. We are encouraged by the steps taken to date and in that spirit offer the following recommendations and observations. ## Reductions that do not directly impact Instruction: Streamline administrative staff and related office/operational expenses to more responsibly reflect the size of Kentucky State University. A broad look at other ‘small liberal arts colleges/universities’, in line with our student population, shows what appears to be a leaner administrative staff. Of note is a tendency to a model that includes a Dean of Faculty (or some similar title), as opposed to Dean’s for each individual College. This could strengthen the role of Chairperson for each Unit, faculty members who are closer to the Instructional foundation of the university. (See Attached PDFs of organizational charts of schools: Wheaton College, St. Johns, Eckerd, Kenyon, Grinnell, Denison, Wheaton, Hanover, Knox) - Combine necessary administrative and staff functions under fewer job descriptions. This would save not only salaries and accompanying benefit expenses but office expenses as well. • Realign/reorganize academic units to reduce expenditures. - Reduce athletics expenditures by looking for classes that coaches are qualified to teach and by surveying faculty members to determine who may be qualified to coach some of the sports, as is the case in many small liberal arts colleges/universities. This would support a more direct connection between academics and sports. Also, consider an alternative athletic conference that would be less expensive for travel, such as Great Lakes Valley Conference. - Consider selling current assets. ===== PAGE 273 ===== - Cross-reference more classes for more efficient use of faculty expertise and experience. ## Instruction Related Reductions: While the Faculty Senate at Kentucky State University will support the administration and work in any way possible to help identify cost savings measures, we support the criteria that all possible reduction options outside of Instruction be considered and implemented before salary reductions and termination of positions are considered. While Instruction comprises the ‘single’ largest budgetary item, Instruction is the primary mission of the University and yet comprises only approximately 21% of the total operating budget. This is a considerably smaller percentage spent on Instruction than what is spent at the other four year state supported universities in Kentucky (approximately average of all 36%), as well as at our ‘Benchmark’ universities at the time Dare We Compare I and II were conducted between 2002 and 2005. Expenses have increased for students each year as tuition rates increased, yet faculty have not received consistent cost of living raises and operational budgets for academic units have not increased in support of Instruction. Salary reductions will significantly compromise our ability to compete and recruit faculty over the next few years. This is the foundation for improvements in academics and student recruitment. - Consideration should be given to furloughs over pay cuts. This is a non-permanent option to realize immediate cost savings. Buildings would be closed and, if monitored, a cost savings in energy can be realized. Consideration could be given to the option for flexible dates of such furloughs per programs and individuals, when possible and when such would have less impact on delivery of services. The option of faculty salary ‘gifting’ could be implemented in this case as well, with faculty opting to gift in lieu of salary reduction for those day. - Consideration should be given to reducing summer offerings and the number of buildings used for summer programs. ## If measures beyond our control are taken, and faculty salary reductions are implemented, we suggest: Such reductions be temporary as a one-time emergency measure tied to the requirement criteria specified for Financial Exigency. - Consideration be given to those faculty members who have not completed their third year of a higher salary due to promotion and plan to retire. A salary reduction would impact their retirement payouts permanently. - Consideration be given to new faculty who were recruited and hired at relatively low salaries. This could jeopardize the University's ability to recruit and keep quality faculty. ===== PAGE 274 ===== - Consideration be given to allow faculty to make a ‘gift’ to the University in lieu of an actual salary reduction for tax purposes. This would diminish the financial impact to faculty. (Of note is the higher amount of reduction realized from ‘non Instructional’ staff (which we assume includes administration) than Faculty. This supports the rationale that KSU spends an unhealthy percentage of our budget on Instruction.) 5% Staff = $531,995 Faculty= $488,381 10% Staff=$1,063,990 Faculty=$976,762 Reconsideration of a Retirement Transition Proposal (re-submission of Action Item P04-10: Retirement Transition Proposal from 2005) • Offering retirement age faculty the option of 1/2 employment (without benefits). ## Attachments: 1. Excerpts from Kentucky's state funded 4 year universities' Faculty Handbooks regarding Financial Exigency, Employment Termination. 2. Summative comparison of sister institution's timelines for termination of employment as compared to KSU's 3. AAUP recommended policy 4. Organizational Charts of Small Liberal Arts Colleges/Universities ===== PAGE 275 =====
Agenda Item Background
To:Board of RegentsDate: January 23, 2015
From:Regent Karen Bearden
Subject:Ratification of President Burse's Contract (as amended)
Reason for Consideration:ApprovalEnclosures: Yes
Background: Recommendation:
Approval
Initiator:Regent Karen Bearden
Board Action Date:January 23, 2015
Effective Date:January 23, 2015
===== PAGE 276 ===== # Kentucky State University # AMENDMENT No. 1 to EMPLOYMENT AGREEMENT ***** Pursuant to actions approved by the Kentucky State University Board of Regents on October 24, 2014 and November 7, 2014, Kentucky State University ("KSU") in its corporate capacity and Raymond M. Burse ("Mr. Burse") mutually agree to amend the Employment Agreement made and entered into by the parties on June 30, 2014. The Employment Agreement between KSU and Mr. Burse shall be amended effective October 24, 2014 as follows: 1. Title Change: Any reference in the Employment Agreement to "Interim President" shall be replaced with "President." ### 2. Article II: Term of Employment: Article II, Section 2.1 of the Employment Agreement shall be amended as follows: “2.1 KSU agrees to employ Employee as President for the term beginning July 1, 2014 and ending June 30, 2018 (the “Term”). The term of employment shall also be subject to prior termination in accordance with the provisions set forth in Article VI of this Agreement.” Article II, Section 2.2 of the Employment Agreement shall be amended as follows: “2.2 This Agreement shall expire at 11:59 p.m., Eastern Time, on June 30, 2018 (the “Expiration Date”), unless extended in accordance with the provisions of this Article of the Aareement or terminated earlier in accordance with the provisions of Article VI of this Agreement.” 3. All other provisions of the Agreement dated June 30, 2014 shall remain the same. Executed by the parties on this the 18th day of November 2014.
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Raymond M. Burse, President
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Karen W. Bearden, Chairman Kentucky State University Board of Regents