KENTUCKY STATE UNIVERSITY BOARD OF REGENTS AGENDA ITEM BACKGROUND

B4

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

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

Subject: Preliminary Unaudited Financial Statements- June 30, 2012

Reason for Consideration: Informational Item Enclosures: Yes

Background:

Interim Financial Statements are included as of June 30, 2012. A brief summary explanation of certain current assets and plant items follows:

1. Cash and cash equivalents total $27.6 million. This amount includes $18.3 million that is restricted for Land Grant and Action Agenda programs and $4.1 million that is restricted for plant purposes. The remainder is current operating cash that will be disbursed for current operations during the year.
2. Accounts receivable totaling $11.4 million includes the receivables from students, grants and loans. This amount includes $6 million in student accounts receivables, and $5.4 million that is grants and other accounts receivables.
3. Current liabilities of $9.2 million consist of accounts payable and accrued payroll liabilities. Accrued compensated absences total $2.1 million and Deferred Revenue totals $2.3 million.
4. As of June 2012, net assets reflect a $2.5 million decrease primarily due to federal grants and contract revenues.

The Statement of Cash Flows reflects a net decrease of $2 million at June 2012. Operations consumed $33.8 million of cash through June 2012.