KENTUCKY STATE UNIVERSITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023

NOTE 2 CASH, CASH EQUIVALENTS, AND INVESTMENTS (CONTINUED)

Certificates of Participation (Continued)

The trust indenture establishes that specific accounts be maintained to properly account for the financial activities related to the build, lease, and operation of the new dormitory through the issuance of the Certificates. The accounts are described as follows:

  • Administrative expense fund: Designated for the purpose of paying the costs of issuance of the certificates.
  • Certificate payment fund: Designated for the purpose of paying principal of and interest on the certificates when due.
  • Capitalized interest fund: Designated for the purpose of paying interest due and payable on the certificates during the construction period.
  • Construction fund: Designated for the purpose of paying the costs of the development, acquisition, construction, installation, and equipping of the project.
  • Management, operations, maintenance, and capital reserve fund: Designated for the purpose of paying the costs of maintaining the project, including amounts due and payable under the management agreement.

The balances of these restricted cash accounts at June 30, 2023, are as follows:

Cash and Cash Equivalents
Administrative Expense Fund$ 34,991
Certificate Payment Fund2,832
Capitalized Interest Fund1,056,362
Construction Fund45,637
Management, Operations, Maintenance, and Capital Reserve Fund4,996,492
Total$ 6,136,314

Investments

The University categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The University has the following investments with recurring fair value measurements as of June 30, 2023:

Investment TypeTotalLevel 1Level 2Level 3
Exchange Traded Funds$ 14,231,285$ 14,231,285$ -$ -
Corporate Bonds3,711,918-3,711,918-
Government Bonds2,295,247-2,295,247-
Total$ 20,238,450$ 14,231,285$ 6,007,165$ -

(33)