KENTUCKY STATE UNIVERSITY NOTES TO FINANCIAL STATEMENTS June 30, 2020

NOTE 4 – CAPITAL ASSETS, NET

Capital assets as of June 30, 2020, are summarized as follows:

Beginning BalanceAdditionsReductions/ TransfersEnding Balance
Cost
Land and improvements$ 6,275,031$ -$ -$ 6,275,031
Buildings155,846,86911,831-155,858,700
Equipment25,714,538600,092-26,314,630
Computer software1,658,071182,050-1,840,121
Library holdings10,648,07115,547-10,663,618
Transportation equipment4,379,06118,435-4,397,496
Construction in progress10,681,98621,253,223134,66131,800,549
215,203,62722,081,178134,661237,150,145
Accumulated depreciation
Buildings104,065,0022,188,521-106,253,524
Equipment21,395,8301,317,303-22,713,133
Library holdings10,417,45055,493-10,472,943
Transportation equipment4,103,948147,115-4,251,063
139,982,2303,708,432-143,690,663
Capital assets, net$ 75,221,397$ 18,372,746$ 134,661$ 93,459,482

Construction in progress consists primarily of projects to repair and replace boilers and distribution lines and energy savings projected funded by capital lease agreement with the Commonwealth of Kentucky disclosed in Note 7. The project is projected to be completed in fiscal year 2021. Estimated cost to complete the project is approximately $3.1 million.

NOTE 5 – UNEARNED REVENUE

Unearned revenue consists of the following as of June 30, 2020:

Unearned summer school tuition and fees $ 94,697

Unearned grants and contracts 914,766

$ 1,009,463

NOTE 6 – LINE OF CREDIT

During fiscal year 2020, the University entered into a line of credit agreement with Fifth Third Bank for a maximum borrowing amount of $5,000,000, maturing on June 30, 2020. At June 30, 2020, borrowings on the line of credit totaled $2,893,716. The line bears interest at the Adjusted LIBOR rate and the interest rate at June 30, 2020 was 1.8%. The agreement was renewed as of July 1, 2020 for $5,000,000, maturing on June 30, 2021.

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