NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

• GASB Statement No. 78, Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans. The objective of this Statement is to address a practice issue regarding the scope and applicability of GASB Statement No. 68, Accounting and Financial Reporting for Pensions. The adoption of this standard had no effect on the University's net position or changes therein.
• GASB Statement No. 80, Blending Requirements for Certain Component Units – An Amendment of GASB Statement No. 14. The objective of this Statement is to improve financial reporting by clarifying the financial statement presentation requirements for certain component units. This Statement amends the blending requirements established in paragraph 53 of Statement No. 14, The Financial Reporting Entity, as amended. The adoption of this standard had no effect on the University's net position or changes therein.
• GASB Statement No. 82, Pension Issues—an amendment of GASB Statements No. 67, No. 68, and No. 73. The objective of this Statement is to address issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. 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, 2017, the University had petty cash funds totaling zero, and deposits as reflected by bank balances as follows:

2017

Insured, commercial banks $ 250,000

Uninsured, commercial banks; collateral held by pledging institution's agent in the University's name 2,449,820

Maintained by Commonwealth of Kentucky, collateral held by the Commonwealth in the Commonwealth's name 16,563,843

$ 19,263,663

The difference in the cash carrying amount per the statement of net position and the above balances represented items in transit. At June 30, 2017, the University had no cash and cash equivalents that are restricted for capital expenditures.

(Continued)

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