KENTUCKY STATE UNIVERSITY BOARD OF REGENTS AGENDA ITEM BACKGROUND

B3

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

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

Subject: Budget vs. Actual September 2011

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 Funds. The Budget vs. Actual report 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 September 2011.

The state appropriates funds for Land Grant as required by the U.S. Department of Agriculture. Land Grant 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 September 2011, $7.5 million of appropriations have been received.
• Student Tuition and Fees has been posted for Fall 2011 enrollment. Auxiliary revenues represent housing and board for resident students enrolled for Fall 2011. Student tuition and fees, housing and board revenue amounts may decrease for the Fall 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, and interest income.

Expense

Salaries and benefits expenses are at 17.7% of budget. This variance is considered normal.