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.