Date:
MINUTES *****
Regent Elgie McFayden, in the absence of Regent LaVaughn Henry, Chairperson, called the meeting of the Business Affairs Committee of the Kentucky State University Board of Regents to order at 10:35 a.m. on October 20, 2016. Regent McFayden asked the secretary to call the roll:
Not Present Elaine Farris Present Paul Harnice Present Syamala Reddy
LaVaughn Henry Derrick Gilmore Elgie McFayden
Present Present Not Present
A quorum was declared.
Action: Motion to approve the minutes from the April 21, 2016 Business Affairs Committee meeting and the July 21, 2016 Business Affairs Committee meeting was made by Regent Farris and seconded by Regent Bearden. The minutes stand approved as submitted.
Regent McFayden recognized Mr. Rush to carry the discussion forward.
Vice President Rush stated that at the July meeting he estimated that net assets had declined by approximately $400,000. With the impact of pension adjustments and other accrual entries the amount of the decline is now estimated at $2.4M. He stated that in the past several years we have operated on a cash basis and when the auditors come in and process the accrual entries we often see unexpected financial results. Vice President Rush introduced Michelle Sutton, Director of Accounting, who is going through all entries in detail to make sure that this does not occur again next year. Vice President Rush stated that we are still finalizing entries for fixed assets and cash. He stated the auditors should have the Management Discussion Report ready in a couple of weeks. Regent Farris inquired as to how this would affect the bottom line. Vice President Rush stated we started the year with unrestricted net assets of $22M, and should be about right at $20M with the financial statements when the audit is complete. He stated that because the audit is not complete, the first quarter financial statements could not be presented. Regent Farris inquired as to the cause of the lateness. Vice President Rush stated there were several issues, entries not done as they should have been, staffing changes, bank statements not reconciled and system issues with Banner.
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