No formal action was taken; this item was for information only.

B. Finance and Administration

All Finance and Administration reports were presented by Dr. Melissa Hicks, Acting Chief Financial Officer, with additional remarks by President Koffi Akakpo.

i. Budget-to-Actual Financial Report

Dr. Hicks presented the budget-to-actual report for the fiscal year ending June 30, 2025, with data through July 21, 2025. Key points included:

• ●Education & General (E&G): Budgeted operating deficit of approximately $1.2 million.
• ●Auxiliary Enterprises: Budgeted surplus of approximately $288,000.
• ●Net Result: Overall budgeted deficit of approximately $950,000.
• ●Approximately $32,000 in tuition was collected between July 21 and August 6.
• ●Kentucky State University ended the year with a cash deficit of approximately $4.7 million, with total cash of $30.6 million and reserved cash obligations totaling $32.3 million.

Board members requested:

• ●A side-by-side comparison of:
• ○FY 2024–2025 actuals, and
• ○The approved budget for FY 2025–2026,

including monthly actuals vs. budget and prior-year actuals to better assess trends in scholarships, operating expenses, and cash flow.

Discussion focused on:

• ●The need for stronger cash management, including more vigilant oversight of expenditures and earlier identification of large unbudgeted items.
• ●Clarification that some apparent “savings” in instructional and academic support lines were attributable to vacant positions rather than structural efficiencies.
• ●Significant “surprise” expenditures in the prior year, including:
• ○A facilities vendor providing preventative maintenance services with invoices totaling approximately $1.8 million annually, and
• ○A temporary staffing contract invoicing approximately $1 million that had not been built into the original budget.

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