KENTUCKY STATE UNIVERSITY BOARD OF REGENTS AGENDA ITEM BACKGROUND

To: Board of Regents Finance and Business Committee Date: January 28, 2011

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

Subject: Budget vs. Actual December 2010

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 December 2010.

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 December 2010, $13.7 million of appropriations have been received.
• Student Tuition and Fees has been posted for Fall 2010 and Spring 2011 enrollment. Auxiliary revenues represent housing and board for resident students enrolled for Fall 2010 and Spring 2011. Approximately, $8 million is related to Spring 2011 enrollment. Student tuition and fees, housing and board revenue may decrease for the Spring 2011 semester due to student withdrawals and/or students moving from residence halls after they have enrolled.
• Other revenue includes athletic income, indirect cost recovery, facility rentals, interest income.