KENTUCKY STATE UNIVERSITY BOARD OF REGENTS AGENDA ITEM BACKGROUND

B4

To: Board of Regents Finance and Business Committee Date: May 11, 2011

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

Subject: Interim Financial Statements-March 2011

Reason for Consideration: Informational Item Enclosures: Yes

Background:

Interim Financial Statements are included as of March 2011. At March, nine months of operations have occurred. A brief summary explanation of certain current assets and plant items follows:

1. Cash and cash equivalents total $28.6 million. This amount includes $15.1 million that is restricted for Land Grant and Action Agenda programs and $3.7 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 $9.9 million includes the receivables from students, grants and loans. This amount includes $4.9 million in student accounts receivables, and $5.0 million that is grants and other accounts receivables.
3. Current liabilities consist of $3.0 million in accounts payable and accrued payroll liabilities. Accrued compensated absences total $1.3 million and Deferred Revenue totals $1.4 million.
4. As of March 2011, net assets reflect a $9.0 million increase primarily due to revenues for tuition and fees and federal grants and contracts.

The Statement of Cash Flows reflects a net increase of $5.6 million at March 2011. Operations consumed $22.4 million of cash through March 2011.

Finance and Business Affairs May 11, 2011