NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
- GASB Statement No. 85, Omnibus. The objective of this Statement is to address practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits [OPEB]). The adoption of this standard had no effect on the University's net position or changes therein.
- GASB Statement No. 86, Certain Debt Extinguishment Issues. The primary objective of this Statement is to improve consistency in accounting and financial reporting for in-substance defeasance of debt by providing guidance for transactions in which cash and other monetary assets acquired with only existing resources—resources other than the proceeds of refunding debt—are placed in an irrevocable trust for the sole purpose of extinguishing debt. The adoption of this standard had no effect on the University's net position or changes therein.
NOTE 2 - CASH, CASH EQUIVALENTS, AND INVESTMENTS
The statement of net position classification "cash and cash equivalents" includes all readily available sources of cash such as petty cash and demand deposits.
At June 30, 2018, the University had petty cash funds totaling zero, and deposits as reflected by bank balances as follows:
2018
Insured, commercial banks $ 250,000
Uninsured, commercial banks; collateral held by pledging institution's agent in the University's name
Uninsured and uncollateralized, commercial banks 170,958
Maintained by Commonwealth of Kentucky, collateral held by the Commonwealth in the Commonwealth's name 14,311,402
$ 15,103,571
The difference in the cash carrying amount per the statement of net position and the above balances represented items in transit. At June 30, 2018, the University had no cash and cash equivalents that are restricted for capital expenditures.
25.