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KENTUCKY STATE UNIVERSITY BOARD OF REGENTS SPECIAL CALLED MEETING *** Meeting Was Conducted by Teleconference*** Monday, June 27, 2022 at 10:00 a.m. Board of Regents Room 2nd Floor Julian M. Carroll Academic Services Building Frankfort, Kentucky 40601 (Primary Physical Location)

MINUTES *****

I. Call to Order

Chair Patton called the meeting to order at 10:00 a.m.

II. Roll Call

Elise Borne, Board Liaison, called the roll:

*Regent Robinson was not present for voting on matters before Closed Session.

Eleven Regents were in attendance. Quorum was established.

III. Approval of Agenda

MOTION by Regent Fields:

Move the Board to adopt the agenda of the June 27, 2022 Special Called Meeting of the Kentucky State University Board of Regents.

Seconded by Regent Fletcher and passed without dissent.

IV. Action Items

A. Approval of Church Mutual Commercial Auto Insurance Renewal

MOTION by Regent Fields:

Move the Board to approve the Church Mutual Commercial Auto Insurance Renewal.

Seconded by Regent Adams and passed without dissent.

B. Approval of KEMI Worker's Compensation Insurance Renewal

MOTION by Regent Adams:

Move the Board to approve the KEMI Worker’s Compensation Insurance Renewal. Seconded by Regent Dukes and passed without dissent.

C. Approval of United Educators General Liability and Umbrella/Excess Liability Insurance Renewal

MOTION by Regent Moyer:

Move the Board to approve the United Educators General Liability and Umbrella/Excess Liability Insurance Renewal.

Seconded by Regent Moseley and passed without dissent.

D. Approval of RSUI Directors and Officers, Employment Practice, and Educators Legal Liability Insurance

MOTION by Regent Fields:

Move the Board to approve the RSUI Directors and Officers, Employment Practice, and Educators Legal Liability Insurance.

Seconded by Regent Adams and passed without dissent

E. Approval of FY 2022-2023 Operating E&G (unrestricted) Budget

Dr. Gerald Shields, Vice President of Finance and Administration/CFO, gave a robust presentation on the Fiscal Year 22-23 operating E&G budget proposal.

CFO Shields stated that the unit alignments were based on current year operations and were subject to change. He further stated that he reviewed the cash position each week with Acting President Stamps.

CFO Shields reported that to show true cash availability, he removed student accounts receivable as that was simply funds on paper, not funds on hand. He also stated that there would be an increase in auxiliary services after the summer sessions.

CFO Shields emphasized that drastic staff shortages in Finance and Administration have severely impacted this area. Finance and Administration was meeting with the auditor on a continual basis but the staff gaps made the audit process challenging.

Regent Hatchett inquired about the placement of the $23 million loan in the budget. CFO Shields stated the loan was not included in this report but would be included on the balance sheet provided at the next meeting. Regent Hatchett stated that auditors in the USDE discovered duplicate CARES funds distributions to HBCU's and asked if KSU received duplicate funds. CFO Shields stated that no duplicate funds were received by KSU as far as he knew but that he would double check to make sure that nothing changed.

Regent Adams requested a breakdown of the Board of Regents budget line and Regent Moyer inquired about the budget and staff for Career Services. CFO Shields stated that he would get information on both items and follow up with the Board.

Regent Fletcher expressed concern about the units that went over their allotted budget and asked CFO Shields if there was an approval process for units that exceeded their budgets. CFO Shields stated that he had not been able to work on this yet but was looking at realigning this process.

Regent Walston asked if the salary information presented in the budget included positions not vetted by the Board. CFO Shields stated that it did.

Regent Adams inquired if the tuition in the budget included the projected two percent increase and CFO Shields affirmed that it was included. Regent Adams also asked about asset preservation and where the source of revenue for the dorms was included. CFO Shields stated that dorm revenue was located in auxiliary services.

Regent Moyer asked how enrollment was tracked in the budget. CFO Shields stated that due to last minute enrollments, staff was still working on this and would provide these numbers to the Board.

Chair Patton inquired about the allocation of land grant salaries between land grant and academic affairs. CFO Shields responded that land grant funds are restricted and included on the income statement. Chair Patton also expressed his concern about staff shortages and requested a routine appraisal of the situation. CFO Shields stated that since the University was working with a very tight budget, they were being careful with new hires.

Regent Fletcher asked if there was a benchmark budget for comparable institutions so the Board could see how KSU's budget compared to other institutions. CFO Shields replied that he would research this matter and provide additional information.

Regent Moseley expressed concern about making career services a priority. CFO Shields responded that KSU had not received the quality applicants needed to fill the positions. Regent Moseley also asked if KSU would be hiring athletic trainers for the upcoming sports seasons. Attorney Lisa Lang, General Counsel, replied that an RFP for athletic trainers would be on the July 15th agenda.

Regent Adams inquired about the location of athletics in the budget. CFO Shields stated that athletics was in the student services line item. Regent Adams then asked for a breakdown of that line item and CFO Shields stated that he would provide it.

Regent Hatchett stated that the Board was taking the first and most important step by voting on the budget but that the Finance and Administration Committee would work with the incoming President to amend the budget.

MOTION by Regent Walston:

Move the Board to approve the Fiscal year 2022-2023 Operating E&G Budget.

Seconded by Regent Fields and passed without dissent

F. Approval of FY 2022-2023 Tuition & Fees and Rescind Thorobred Promise Tuition Program

MOTION by Regent Adams:

Move the Board to approve the FY 2022-2023 Tuition & Fees and Rescind Thorobred Promise Tuition Program.

Seconded by Regent Hatchett and passed without dissent

V. Closed Session

MOTION by Regent Walston:

Move the Board to go into Executive Session pursuant to KRS 61.810(1)(f) for the purpose of conducting finalist interviews for the position of Interim President. Seconded by Regent Dukes and passed without dissent.

VI. Public Action

Following closed session, Ms. Borne conducted a roll call vote for the purpose of selecting an Interim President.

Regent Michael Adams Dr. James Anderson

Regent Tammi Dukes Dr. Ronald Johnson

Regent Edward Fields Dr. Ronald Johnson

Regent Ernie Fletcher, MD Dr. Ronald Johnson

Regent Edward Hatchett, Esq. Dr. Ronald Johnson

Regent Jason Moseley Dr. James Anderson

Regent Charles Moyer, Ph.D. Dr. Ronald Johnson

Regent Gerald Patton, Ph.D. Dr. Ronald Johnson

Regent Robert Ramsey Dr. James Anderson

Regent Herman Walston, Ed.D. Dr. James Anderson

Regent Jason Robinson Dr. James Anderson

Dr. Ronald Johnson received six votes and Dr. James Anderson received five votes.

Chair Patton announced that the Board would take a brief recess to contact Dr. Johnson and offer him the position. Following the recess, Chair Patton announced that Dr. Johnson accepted the offer and a motion was made for his appointment.

MOTION by Regent Walston:

Move the Board to appoint Dr. Ronald Johnson the Interim President of Kentucky State University.

Seconded by Regent Dukes and passed without dissent.

VII. Closing Remarks

Chair Patton stated that biographical information about Dr. Ronald Johnson would be released to the campus community. He also expressed his gratitude to Dr. Clara Ross Stamps for serving as Acting President.

VIII. Adjournment

MOTION by Regent Dukes:

Move the Board to adjourn.

Seconded by Regent Fields and passed without dissent.

Elise Borne

Board Secretary

Kentucky State University

Board of Regents

___ Approved with no corrections

___ Approved with corrections

Owned Paitton

Dr. Gerald Patton

Board Chair Kentucky State University Board of Regents