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KENTUCKY STATE UNIVERSITY BOARD OF REGENTS April 27, 2012 FINANCE AND BUSINESS MEETING INDEX

B1 Minutes of January 27, 2012 meeting

B2 Executive Summary Report

B3 Budget vs. Actual – February 2012

B4 Interim Financial Statements—February 2012 Statement of Net Assets Statement of Revenues, Expenses and Changes in Net Assets Statement of Cash Flows

B5 2012-2013 Tuition/Fee Rates 2012-2013 Schedule of Course Fees & Optional Participation Fees Fiscal 2013 Financial Plan

B6 Human Resources

KENTUCKY STATE UNIVERSITY Regular Meeting of the Finance and Business Committee Board of Regents 10 am, April 27, 2012 Board Room, Academic Service Building Frankfort, Kentucky

Regent ___, Presiding

AGENDA

1. Call to Order
2. Chairperson
3. II.Roll Call
4. Mrs. Lillian Graham
5. III.Opening Remarks Chairperson
6. IV.Approval of January 27, 2012 Minutes Chairperson
7. V.Executive Summary Report
8. Mrs. Alice Johnson
9. VI.Action Items
10. Approval of 2012-2013 Tuition/Fee Rates
11. Approval of 2012-2013 Schedule of Course Fees & Optional Participation Fees

VII. Informational Items

• Fiscal 2013 Financial Plan
• Budget vs. Actual February 2012
• Interim Financial Statement February 2012
• Human Resources

XI. Adjourn Chairperson

KENTUCKY STATE UNIVERSITY BOARD OF REGENTS AGENDA ITEM BACKGROUND

B1

To: Board of Regents Finance and Business Committee Date: April 27, 2012

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

Subject: Finance and Business Committee Meeting Minutes January 27, 2012

Reason for Consideration: Action Item Enclosures: Yes

Background:

The minutes of the January 27, 2012, meeting must be approved.

Recommendation:

Approval of the minutes of the meeting on January 27, 2012

MINUTES

Kentucky State University Finance and Business and Audit Committee Joint Meeting Board of Regents Finance and Business Committee – Audit Committee 9:15 a.m., January 27, 2012 Marriott Griffin Gate Lexington, Kentucky

1. Call to Order

Regent Guamieri called the meeting to order at 9:20 a.m. on January 27, 2012.

II. Roll Call

Regent Guarnieri asked for the roll call, which was recorded as follows:

Regent David Guamieri, present

Regent Chuck Whitehead, present

Regent Ron Banks, present

Regent Mindy Barfield, absent

Regent Karen Bearden, present

Regent Syamala Reddy, absent

Regent Phyllis Williams, present

Mrs. Johnson, present

A quorum was declared.

III. Approval of Minutes

Action: Motion to approve the minutes from the May 11, 2011, July 22, 2011, and October 28, 2011 Finance and Business Committee meeting was made by Regent Whitehead. The minutes stand as approved as presented.

Motion to approve the minutes from the May 11, 2011, July 22, 2011, and October 28, 2011 Finance and Business Committee meeting was made by Regent Whitehead. The minutes stand as approved as presented.

Regent Whitehead, Chair, continued the meeting and recognized Mrs. Johnson to carry the discussion forward.

IV. Vice President's Report

Executive Summary Narrative

Vice President Johnson gave an overview of the Executive Summary Narrative.

FY2011 Audit

Copies of the FY2011 Audit were distributed to Board and Cabinet members present. Vice President Johnson gave a summary of the FY2011 Audit and stated that the university received an unqualified opinion. Vice President Johnson stated to the Board that unlike prior years, FY2011 had the smallest increase in accounts receivables due to efforts put forth to get students to finance their bills.

Vice President Johnson introduced Crissy Fiscus and Lance Mann, with Dean Dorton Allen Ford, PLLC the university's external auditors. Ms. Fiscus gave an overview of the university's FY2011 audit and also explained the auditor's responsibilities.

V. Adjournment

Regent Whitehead called for a closed session of the Finance and Business and Audit Committee's January 27, 2012 meeting at 10:10 a.m. With no further business, the meeting was adjourned.

Submitted by: Approved by:

Alice B. Johnson Vice President for Finance and Business Kentucky State University

Chair

Finance and Business Committee Board of Regents Kentucky State University

___ Approved with no corrections

____ Approved with corrections

B2

KENTUCKY STATE UNIVERSITY BOARD OF REGENTS AGENDA ITEM BACKGROUND

To: Board of Regents Finance and Business Committee Date: April 27, 2012

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

Subject: Executive Summary

Reason for Consideration: Informational Item Enclosures: Yes

Background:

Recommendation:

Kentucky State University Finance and Business Committee Meeting April 27, 2012

Finance and Business (F&B) is pleased to present the following summary report for consideration at the quarterly Finance and Business Committee meeting of the Board of Regents.

• Fiscal Year 2012 Interim Results. For fiscal 2012, the interim results are presented below:
• Budget vs. Actual as of February 2012 is presented for information along with comments about the variances.
• Unaudited Financial Statements (Statement of Net Assets, Statement of Revenues, Expenses and Changes in Net Assets and Statement of Cash Flows) in the GASB format are presented for February 2012.
• Included in the financial statements section (as an attachment) is a historical view of the change in unrestricted net assets.
• 2012- 2013 Tuition/Fee Rates. A 5% increase is proposed according to recommendations from the Council on Postsecondary Education.

Fiscal 2013 Financial Plan. The Proposed 2013 Financial Plan includes a 6.4% reduction in state appropriations and a 5% tuition/fee increase. Room and board fees for 2012-2013 were approved by the Board of Regents at the January 27, 2012 meeting.

Health, dental and life insurance rates have been established for plan year 2012-2013. Plan modifications, as recommended by the Employee Benefits Advisory Committee, include increased deductibles, improved coverage/benefits, and co-pays.

KENTUCKY STATE UNIVERSITY BOARD OF REGENTS AGENDA ITEM BACKGROUND

B3

To: Board of Regents Finance and Business Committee Date: April 27, 2012

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

Subject: Budget vs. Actual February 2012

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 February 2012.

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 February 2012, $19.7 million of appropriations have been received.
• Student Tuition and Fees have been posted for Fall 2011 and Spring 2012 enrollment. Auxiliary revenues represent housing and board for resident students enrolled for Fall 2011 and Spring 2012. Student tuition and fees revenue amounts may decrease for the Spring 2012 semester due to student withdrawals after they have enrolled.
• Other revenue includes athletic income, indirect cost recovery, facility rentals, interest income, state funding for Regional Stewardship and fund balance revenue offset. As of February 2012, $345,582 has been received for Regional Stewardship. A budgeted fund balance spend in 2012 will be posted at fiscal year end up to $2,686,800.

Expense

• Salaries and benefits expenses are at 59.36% of budget. This variance is considered normal.
• Supplies, Travel, Communications and Services were expended at a level appropriate for the percent of fiscal year expired. These expenses are incurred more heavily during the academic year. Services include utilities and other services used for fall semester preparation. This variance is considered normal.
• Interdepartmental Costs may reflect reductions in expenses which are due to timing in recording journal entries. Fixed Costs include maintenance agreements that require payment in full at the beginning of the service agreement; therefore, these expenses are not incurred evenly over the fiscal year. This variance is considered normal.
• Student Aid should be recorded consistent with Tuition and Fees. Student Aid is typically recorded as students complete the registration process and accepts aid awards. This variance is considered normal.
• Transfers include debt service obligations and internal reallocations. Transfers are typically recorded at the beginning of the fiscal year. This variance is considered normal.

Recommendation:

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Budget vs. Actual Month Ending February 29, 2012

KENTUCKY STATE UNIVERSITY BOARD OF REGENTS AGENDA ITEM BACKGROUND

B4

To: Board of Regents Finance and Business Committee Date: April 27, 2012

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

Subject: Interim Financial Statements – February 2012

Reason for Consideration: Informational Item Enclosures: Yes

Background:

Interim Financial Statements are included as of February 29, 2012. A brief summary explanation of certain current assets and plant items follows:

1. Cash and cash equivalents total $37.3 million. This amount includes $18.6 million that is restricted for Land Grant and Action Agenda programs and $4.5 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 $13.3 million includes the receivables from students, grants and loans. This amount includes $3.1 million in student accounts receivables, and $10.2 million that is grants and other accounts receivables.
3. Current liabilities of $6.8 million consist of accounts payable and accrued payroll liabilities. Accrued compensated absences total $2.1 million and Deferred Revenue totals $1.8 million.
4. As of February 2012, net assets reflect an $11.8 million increase primarily due to federal grants and contract revenues.

The Statement of Cash Flows reflects a net increase of $7.7 million at February 2012. Operations consumed $19.9 million of cash through February 2012.

Additional information is included on the change in unrestricted net assets from 2004 through the February 2012 interim unaudited financials.

Kentucky State University Statement of Net Assets February 29, 2012 (Unaudited)

Kentucky State University Addendum to Statement of Net Assets Components of Fund Balances - Disaggregated (Unaudited)

Kentucky State University Statement of Revenues, Expenses and Changes in Net Assets (By Function) Period Ending February 29, 2012 (Unaudited)

Kentucky State University Statement of Revenues, Expenses and Changes in Net Assets (By Function) Period Ending February 29, 2012 (Unaudited)

Kentucky State University Statement of Cash Flows Period Ending February 29, 2012 (Unaudited)

Kentucky State University Statement of Cash Flows Period Ending February 29, 2012 (Unaudited)

KENTUCKY STATE UNIVERSITY BOARD OF REGENTS AGENDA ITEM BACKGROUND

B5

To: Board of Regents Finance and Business Committee Date: April 27, 2012

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

Subject: 2012-2013 Tuition/Fee Rates 2012-2013 Schedule of Course Fees & Optional Participation Fees

Reason for Consideration: Action Items Enclosures: Yes

Background:

A 5% increase is proposed according to recommendations from the Council on Postsecondary Education and reflected in the attached schedule along with proposed course and optional participation fees.

Room and board fees for 2012-2013 were approved by the Board of Regents at the January 27, 2012 meeting.

Recommendation:

Approval of the 2012-2013 Tuition/Fee Rates Approval of the 2012-2013 Schedule of Course Fees & Optional Participation Fees

KENTUCKY STATE UNIVERSITY RECOMMENDED FEE SCHEDULE EFFECTIVE FALL SEMESTER 2012

FY 2011-2012 FY 2012-2013

Full-Time Per Credit Hour Full-Time Per Credit Hour Percent Inc/Dec on PCH Basis

Fall & Spring Tuition Mandatory Total Fall & Spring Tuition Mandatory Total

Semester Rate Fee Rate Semester Rate Fee Rate

Undergraduate Ceiling @ 15sch Ceiling @ 15sch

Resident $3,266 $217 $25 $242 $3,429 $229 $25 $254

Non-Resident Destiny $6,531 $459 $25 $484 $6,858 $483 $25 $508

Non-Resident $7,837 $556 $25 $581 $8,230 $585 $25 $610

On-line $309 $324

Graduate @9sch @9sch

Resident $3,330 $344 $25 $369 $3,483 $362 $25 $387

Non-Resident $4,983 $529 $25 $554 $5,238 $557 $25 $582

On-line $386 $405

Notes:

All full-time undergraduate students will be assessed at the appropriate per credit hour rate for 12 credit hours. Hours enrolled beyond 12 credit hours will be assessed at 50% of the appropriate per credit hour rate.

2 All students enrolled in on-line courses (courses with at least 50% of the instruction delivered online) will be assessed an additional $35 per credit hour access fee

Kentucky State University FY 2013 Course and Optional Participation Fees

Kentucky State University FY 2013 Course and Optional Participation Fees

Kentucky State University FY 2013 Course and Optional Participation Fees

2011-12 Approved Fees 2012-13 Requested Changes 2012-13 Proposed Fees

Course & Lab Fees (per course)

Applied Information Technology

CIT 110, 120, 121, 136, 137, 220, 221, 222, 230, 251, 255, 300, 310, 350 20 - 20

351, 352, 355, 361, 362, 420, 430, 440, 450, 451, 452, 460 20 - 20

Aquaculture

AQU 411, 412, 413, 427, 460, 511, 512, 527, 560 30 - 30

Art

ART 130, 360 10 - 10

ART 101, 108, 110, 112, 113, 211, 305, 306, 310, 319, 330, 405, 419, 430, 431, 432, 30 - 30

ART 220, 240, 315, 317, 321, 340, 415, 417, 420, 433, 434, 435, 436, 437, 438, 439 50 - 50

ART 440, 441, 442, 443, 444

ART 307, 312, 322, 407, 412, 451, 452, 453, 454 75 - 75

Biology

BIO 101, 107, 108, 111, 204, 210, 212, 301, 302, 303, 304, 305, 307, 308, 309 30 - 30

BIO 315, 316, 317, 318, 408, 410, 411, 412, 413, 417, 427, 460 30 - 30

Chemistry

CHE 110, 120, 203, 220, 307, 308, 310, 312, 314, 350 35 - 35

Child Develop/Family Relations

CDF 315, 407, 408 30 - 30

Computer Science

COS 100, 101, 108, 109, 180, 200, 230, 232, 242, 250, 300, 301, 340, 350 15 - 15

COS 410, 420, 481, 482, 483, 484, 485, 502, 504, 511, 512, 513, 514 15 - 15

COS 515, 517, 518, 520, 533, 581, 582, 583, 584, 585, 586, 587, 588, 589 15 - 15

Music

MUS 112, 114, 212, 214 25 - 25

Half Hour Private Lesson/wk 50 - 50

One Hour Private Lesson/wk 75 - 75

Nursing

NUR 111, 112, 201, 202, 211, 212 200 - 200

Physical Sciences

PHS 201, 202, 211 20 - 20

Physics

PHY 111, 112, 207, 208, 211, 212, 320, 340, 361 20 - 20

KENTUCKY STATE UNIVERSITY BOARD OF REGENTS AGENDA ITEM BACKGROUND

B6

To: Board of Regents Finance and Business Committee Date: April 27, 2012

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

Subject: Human Resources Update

Reason for Consideration: Informational Item Enclosures: No

• Background: Human Resource Services has initiated and implemented several significant projects for the University as described below:
• The Employee Benefits Advisory Committee (EBAC), working with information provided by benefits consultant Neace Lukens, formalized recommendations for fiscal year 2013 employee benefits. The recommendations were presented to and approved by the Cabinet.
• The first two issues of a new, monthly Human Resources newsletter (H.R.S. Updates) were distributed.
• Employees received a statement of their total compensation for calendar year 2011. Total compensation reflects the employee's base pay as well as contributions the University makes for certain benefits on behalf of the employee. The total compensation statement will be issued annually.
• A contract was signed with an outside provider to prepare an affirmative action plan for the University.
• Employee bio-demographics were updated based upon a survey prepared by Institutional Research.

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