KENTUCKY STATE UNIVERSITY

June 30, 2015

Unrestricted net position decreased $93.2 million, which the University reserves for spending in programs and other capital-related contingencies. This significant decrease was primarily due to the cumulative effect of the change in accounting principle related to the recognition of the net pension liabilities. Without the effect of this change in accounting principle, unrestricted net position would have increased $100 thousand.

  • The University classifies amounts earned on endowments as expendable or non-expendable in accordance with the endowment's donor stipulations. Nonexpendable restricted net assets represent amounts, which must be maintained in perpetuity. Expendable restricted net assets include endowment earnings that are spendable, consistent with the University's spending policy.
  • Operating revenues were $34.8 million and operating expenditures were $68.5 million, resulting in a loss from operations of $33.7 million. Net non-operating revenues were $28.4 million, including $23.4 million in state appropriations, which, when combined with the loss from operations and capital appropriations, resulted in an overall decrease in net position of $5.2 million.

Using the Financial Statements

The University's Financial Statements consist of three financial statements: a Statement of Net Position (Balance Sheet); a Statement of Revenues, Expenses and Changes in Net Position (Income Statement); and a Statement of Cash Flows, along with the accompanying Notes to the Financial Statements. These financial statements are prepared in accordance with Governmental Accounting Standards Board (GASB) Statement No. 35, Basic Financial Statements – and Management's Discussion and Analysis – for Public Colleges and Universities.

Kentucky State University is a component unit of the Commonwealth of Kentucky.

Statement of Net Position

The Statement of Net Position presents the financial position of the University at the end of the fiscal year and includes all assets, deferred outflows, liabilities and deferred inflows. Net position, the difference between total assets and deferred outflows and total liabilities and deferred inflows, is an important indicator of the current financial condition, while the change in net position is an indicator of whether the overall financial position has improved or worsened during the year.