The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
The accompanying financial statements of the Foundation have been prepared in accordance with accounting principles generally accepted in the United States of America as prescribed by the FASB. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features.
During the year ended June 30, 2015 and 2014, the Foundation made distributions of approximately $206,300 and $203,600 respectively, on behalf of the University for both restricted and unrestricted purposes. Complete financial statements for the Foundation can be obtained from the Kentucky State University Foundation, Inc. at P.O. Box 4210, Frankfort, KY 40604.
In fiscal year 2015, the University adopted GASB Statement 68 Accounting and Financial Reporting for Pensions. The primary objective of GASB's Statement 68 is to improve accounting and financial reporting by state and local governments for pensions. The financial statements include the accrued actuarial pension liability for the Kentucky Employees Retirement System (KERS) and Kentucky Teachers' Retirement System (KTRS) and the additional components associated with recording the pension liability. The effect of this change was an increase to operating expenses of $5.34 million. Management has determined that restatement of all prior periods presented is not practical; therefore the financial statements for fiscal year 2014 have not been restated. The cumulative effect of the change, totaling $93.4 million, is shown as a one-time decrease to net position in the 2015 Statement of Revenues, Expenses and Changes in Net Position.