KENTUCKY STATE UNIVERSITY BOARD OF REGENTS AGENDA ITEM BACKGROUND

B4

To: Board of Regents Finance and Business Committee Date: October 26, 2012

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

Subject: Unaudited Comparative Financial Statements-August 31, 2012 and 2011

Reason for Consideration: Informational Item Enclosures: Yes

Background:

The comparative Interim Financial Statements are included as of August 31, 2012 and August 31, 2011. A brief summary explanation of certain current assets and plant items follows:

  1. Cash and cash equivalents total $27.1 million and $32.0 million for August 2012 and 2011 respectively. This amount for August 31, 2012 includes $19.4 million that is restricted for Land Grant and Action Agenda programs and $3.6 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 $14.9 million and $20.9 million for August 2012 and 2011, respectively, includes the receivables from students, grants and loans. As of August 31, 2012, this amount includes $11.9 million in student accounts receivables, and $3.0 million that is grants and other accounts receivables. There is a variance of $5.8 million from 2012 to 2011, which represents receipt of $3.4 million in aid applied to student's accounts in 2012 which was applied in subsequent months during 2011.
  3. Current liabilities for August 31, 2012 and August 31, 2011 amounts to $3.9 million and $7.6 million consisting of accounts payable and accrued payroll liabilities. Accrued compensated absences total $1.7 million and Deferred Revenue totals $367 thousand as of August 31, 2012. There is a variance of $2.1 million in deferred revenue due to applying earned tuition from the summer semester August of 2012, clean-up that occurred at fiscal year-end, and posting of earned revenue.
  4. As of August 2012, net assets reflect a $9.4 million increase.
  5. Tuition and fee revenue comparison for August 2012 and 2011 represents a $3.2 million variance resulting from tuition assessment in 2012 of $6.8 million and 2011 of $9.8 million.
  6. The comparison of expenditures for August 2012 and 2011 consist of Instruction variance of $500k due to additional adjunct salaries; public service expense of