KENTUCKY STATE UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 2021
| Without Donor Restrictions | With Donor Restrictions | Total Net Endowment Assets |
|---|
| Endowment net assets, beginning of year | $ 1,884,774 | $ 5,693,462 | $ 7,578,236 |
|---|
| Contributions | - | 1,106,454 | 1,106,454 |
|---|
| Interest and dividends | 85,598 | 88,932 | 174,530 |
|---|
| Realized and unrealized gains | 1,004,086 | 1,133,921 | 2,138,007 |
|---|
| Other, net of investment expense | - | (124,676) | (124,676) |
|---|
| Amounts appropriated for expenditure | (501,778) | (12,631) | (514,409) |
|---|
| Reclassifications | - | 21,875 | 21,875 |
|---|
| Total operating expenses | $ 2,472,680 | $ 7,907,337 | $ 10,380,017 |
|---|
The Foundation has a defined contribution profit sharing plan which covers all employees who meet certain requirements. Foundation contributions are discretionary. No contributions were made for the year ended June 30, 2021.
On August 3, 2021, the University issued Certificates of Participation, Series 2021 totaling $49,190,000 to finance the construction of new student housing and dining facilities. With final maturity in November 2056, these certificates bear interest at rates ranging from 4.00% to 5.00% per annum.
On April 8, 2022, the Governor of the Commonwealth of Kentucky signed House Bill 250, appropriating $23,000,000 to the Council on Post-Secondary Education (the Council) to address financial instability at the University due to cash shortfalls and a projected financial structural imbalance. The additional appropriations are structured as a loan to the University and the Council will be responsible for making recommendations on repayment of the loan during the 2026 regular session of the Kentucky State Legislature. The repayment of the loan beginning in fiscal year 2027 will be determined at that time. The amount of interest accrued by the loan has not yet been determined.
68.