Mr. Powell reported that some focus areas of the Management and Improvement Plan will be more complete than others by the time the plan is put in place, as certain components such as financial controls are an immediate need. Conversations and meetings have occurred regarding all of the focus areas.

Regent Farris requested updates on progress of the focus areas. Dr. Thompson stated that he can provide a project plan with milestones and deliverables.

Mr. Rush shared that the University is in a better financial position and has not had to take any draws on the Revenue Anticipation Note. He stated that he had hoped that he wouldn't have to dip into the January allotment but it has become necessary because of timing. There are still some lingering issues but bills are being paid on time and the average balance is down. The $23 million requested from the legislature will just get the University back to zero.

Regent Walston asked what will happen with students who haven't paid their balance and Mr. Rush stated that they want them to pay as early as possible but they will still have time to clear their balances. Regent Reynolds asked how serious the students' notices are and Mr. Rush stated that they are serious but financial counseling will be offered. Regent Robinson stated that he is working with CFO Rush and President Stamps to assist students with financial difficulties to apply for grants.

Regent Harnice said that he hoped that CPE will assist KSU in projecting the pension liability in the five year budget plan. Mr. Rush replied that KSU currently pays a fixed amount which is subject to change based on the pension situation and it will have to be worked into the budget each year.

Regent Farris asked if Mr. Rush would be bringing a budget structure broken down by units. Mr. Rush stated that he is working on the budget structure and it will be brought to the Board at a Special Called Meeting on February 3rd.

Mr. Rush stated that accommodating students is still a challenge and anticipates using three floors of the Capital Plaza Hotel in the Spring. Keeping students in one hotel is more efficient and helps operations run smoother. One wing of the Best Western is being reserved for COVID isolation and quarantine which will be funded by CARES money.

Mr. Rush reported that KSU’s pool in Exum Gym has closed due to a failed boiler and faulty infrastructure. The repairs are estimated to cost $150,000 to $200,000. The Asset Preservation Fund could potentially be used for repairs if the $23 million request is approved by the General Assembly. The project will be have to be taken to CPE and, if approved, the pool realistically won’t be open until next fall.

Regent Walston inquired about turning Hillcrest back to the former status as the President's house. Mr. Rush responded that the Board would have to make that decision. Regent Farris stated that the Board approved the change from the

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