Kentucky State University
Finance and Business Committee Meeting
January 23, 2009
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.
2% General Fund Appropriation Reduction - FY2009. During FY09, the University's 2008-2009 General Fund Appropriation may be reduced 2% or 4% depending on the availability of additional state revenue. Therefore, appropriations to KSU could be reduced by 2% or $520,300 (or $1,040,600 for a 4% reduction).
CPE Tuition & Mandatory Fees Policy Update. Discussion of the tuition setting process for 2009-2010 continued through December. Campus discussions have been scheduled with CPE staff. As more information becomes available, updates will be made at the January meeting.
Finance Department Updates. A summary of activity is presented as information for each departmental unit in the Finance Division.
Fiscal Year 2009 Interim Results as of November 2008. Reports for Budget vs Actual and Condensed Financial Statements are included:
Budget vs Actual as of November 2008 is presented for information along with comments about the variances.
Unaudited Financial Statements as of November 2008 are included for the statement of net assets, the statement of revenue, expenses and changes in net assets and the statement of cash flows.
Total cash and cash equivalents total $16.9 million at November 2008. The Statement of Cash Flows reflects net cash flows from operating activities of ($10.4) million; net cash from non-capital financing activities (which include state appropriations) contributed $16.9 million in cash; net cash flows from capital financing activities of ($1.5) million and net cash from investing activities of ($409,032). These activities resulted in a net increase in cash of $4.5 million.
Total operating revenue at November 2008 total $16.8 million and operating expenses total $24.3 million creating an operating income loss of $7.5 million. State appropriations are recognized as non-operating revenues and have been received in the amount of $14.8 million.
After recording adjustments and accruals (e.g., bad debt expense and accrued liabilities) and including capital appropriations, the final change in net assets at November 2008 is an increase of $7.9 million.
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