Chair Hatchett inquired why the prepaid expenses category was empty and asked if it is typical to not see a number there. Chair Hatchett asked Dr. Shields to characterize the completeness of the financial information at this point in time. Dr. Shields replied that from his understanding, the information for the current year was just about 100% complete, and from what he has been told, the only outstanding action was for the University to put in final journal entries. Regent Dukes asked for clarification as to what the final journal entries were.

As Dr. Shields continued the presentation, Chair Hatchett asked how the decrease in deferred outflows/pension and the increase in deferred outflows/other postemployment benefits might be explained. Chair Hatchett further inquired as to total assets and deferred outflows and what the relationship is (in the non-current assets category) between gross and accumulated equipment.

As Dr. Shields discussed liabilities, Regent Moyer asked what the monthly payroll was at KSU and how the accrued payroll number shown in the presentation compares to the monthly payroll amount.

Chair Hatchett asked if the $5 million line of credit was through Fifth Third Bank. He further queried why the accrued employee benefits entry was left blank and if there were accounts that needed to populate that category.

Regent Dukes asked for clarification as to long-term accrued payroll and payroll taxes, specifically asking for the definition of “long-term,” and why these entries are the exact same amount year over year. Chair Hatchett echoed Regent Dukes’ question.

Chair Hatchett asked if the long-term debt could have been caused by bonded indebtedness.

Regent Moyer inquired whether KSU’s pension plan is a defined benefit plan or a defined contribution plan, stating that he assumed that it is a defined benefit plan. As a follow up, Regent Moyer asked if the defined benefit plan was somehow rolled into the State pension plan. Ms. Raglin, Director of Human Resources, replied that Teacher’s Retirement is KSU’s defined benefit plan and is rolled into the State plan. Regent Moyer asked why KSU has a separate liability for shortfalls in its defined benefit plan if it is rolled into the State plan. Dr. Shields replied that KSU is liable for any portion of the benefit plan that KSU owes, according to regulation. Regent Moyer asked for the balance of KSU’s pension assets. Dr. Shields stated that the net pension liability as of FY 2021 is $70,310,517. Regent Moyer asked if that amount is the shortfall between what is owed and what is funded. Dr. Shields replied in the affirmative.

Chair Hatchett stated that on a related note, he was aware that the General Assembly had been working to change the nature of retirement plans in state government as a whole. He then asked if new hires at KSU should be subjected to those changes or if they will continue to be enrolled in a defined benefit plan instead of a defined contribution plan going forward. Ms. Raglin responded that it would depend on the new employee's position. Chair Hatchett asked how that would typically fall out, and wondered what new employees seem to be choosing. Regent Moyer requested an update or overview as to how KSU's retirement works for a future meeting. Ms. Raglin agreed to gather that information.

Moving to the Income Statement tab, Dr. Shields continued his presentation. Chair Hatchett asked Dr. Shields to define the “Other Revenues” subcategory. Regent Moyer asked, regarding the “Student Tuition and Fees, Net of Allowance” category, if that was a net of allowance for doubtful accounts. Dr. Shields confirmed that the number had nothing to do with doubtful accounts. Chair Hatchett requested Dr. Shields to speak to the significant change in the bookstore numbers. Chair Hatchett asked if there were any other questions regarding operating revenues.