Fiscal 2012 audit activities began in May with planning and preliminary scheduling with Dean Dorton Allen & Ford. An update will be provided at the meeting.

For fiscal 2012, planned budget results were achieved meeting targeted spending goals. Please refer to item B3 for a description of preliminary, unaudited results.

KSU is projected to end fiscal year operations with a $2.4 spending surplus.

For fiscal 2012, unaudited financials are presented in item B4 indicating a reduction in net assets of $2.5 million. This reduction reflects unaudited changes in net assets after accruals have been recorded.

As stated previously, this planned reduction was anticipated and budgeted results were achieved. Future revenue increases coupled with cost reductions for fiscal 2013 are planned to replace to restore budgeted spending imbalances in the current biennium.

The following professional staff changes have occurred in the Division of Finance and Business

Resignation: Director of Budget Planning and Policy, Claudine Gee, April 27, 2012

Resignation: Director of Accounting, Douglas Allen, June 11, 2012

Hiring: Data Operations/Compliance Specialist, Delandual Conwell, June 1, 2012