KENTUCKY STATE UNIVERSITY BOARD OF REGENTS AGENDA ITEM BACKGROUND

B3

To: Board of Regents Finance and Business Committee Date: July 27, 2012

From: Alice B. Johnson Vice President for Finance and Business Affairs

Subject: Budget vs. Actual June 2012

Reason for Consideration: Informational Item Enclosures: Yes

Background: Revenues and expenses are presented for the Educational and General Fund (E&G), Auxiliary Fund, Land Grant and Action Agenda Funds. Budget vs. Actual does not include restricted grants and contracts.

The summary of operations presented below is to assist in understanding the results reflected in the budget vs. actual report as of June 2012.

The state appropriates funds for Land Grant as required by the U.S. Department of Agriculture. Land Grant, Action Agenda and Auxiliary Funds are not available to the University for discretionary spending.

Revenue

• State appropriations are received in installments of 30% (July), 25% (October), 25% (January) and 20% (April) of each year. At June 2012, $24.66 million of appropriations have been received. In FY11, $486,800 represents FY12 appropriations advanced in FY11 as required by the state. Institutions were required to spend FY12 tuition and fee revenue to offset the advance in FY11.
• Student Tuition and Fees has been posted for Fall 2011 and Spring 2012 enrollment. Auxiliary revenues represent housing and board for resident students enrolled for Fall 2011 and Spring 2012. Student tuition and fees revenue amounts may decrease for the Spring 2012 semester due to student withdrawals after they have enrolled and year-end adjustments.
• Other revenue includes athletic income, indirect cost recovery, facility rentals, interest income, state funding for Regional Stewardship and a budgeted fund balance offset. As of June 2012, $431,978 has been received for Regional Stewardship. Budget variance primarily reflects the effect of the budgeted fund balance spend in FY12.