Regent Henry presented the Finance and Audit Committee Report. Regent Henry stated that there was no quorum during the meeting. Regent Henry stated that Vice President for Business Affairs Gregory Rush presented an update on Business Affairs to the Committee.

Regent Henry gave an update on debt collection stating that 1,408 accounts have been placed with three collection agencies and the Kentucky Department of Revenue The total amount being sought on those accounts is approximately $7.7 million. The number of accounts remaining to be placed in collections, particularly with the Kentucky Department of Revenue, is 1,668. Collection efforts on these accounts is expected in the next few months. The total amount being sought on these accounts is approximately $4 million.

Regent Henry also stated that Mr. Rush presented an overview of the University's surplus declaration process. This process will be used to identify assets that have reached the end of their useful life and require disposal.

Regent Henry also reported that, in response to a previous request by the Board, the University conducted a physical inventory of items with an estimated value of $50,000 or more. All such items were located and verified by physical inspection.

In response to a separate Board request, the University determined that a shortage from the 2015 inventory was due to items with a combined value of $6 million that were either missing, fully depreciated or unusable. As a result, an adjusting entry of $6 million will be reflected in the 2014-15 audited financial statements of the University.

Regent Henry stated that the external audit is scheduled to be completed by November 15, 2015.

Regent Henry also gave an update on the general financial developments of the University. The University's Net Asset position has declined by $1.8 million, mostly due to lower enrollment rates than those projected.

Regent Henry also discussed the treatment of pension allocations under GASB standards. Although there will be no substantive change to the University's asset position, increased pension allocations must now be reported on the balance sheet.

Regent Henry brought before the Board an action item to change meal plan rates as follows: