FCR 5


Office of the President
April 1, 2003


Members, Board of Trustees:

            ESTABLISHMENT OF CHARLES W. HAMMOND MEMORIAL
                           QUASI - ENDOWMENT FUND


Recommendation: that the Board of Trustees approve the establishment of the Charles W.
Hammond Memorial Quasi-Endowment to provide general support of the programs in the
Department of Chemistry.

Background: In October 1992, the University of Kentucky received $216,665 from a gift of
securities by Charles W. Hammond, a former Chemistry graduate student at the University. Mr.
Hammond requested his gift be used for the benefit of the Department of Chemistry.

The gift of $216,665 was placed in a restricted account and has been invested annually in the
University's short-term investment program. Interest earned and portions of the original gift
have been used to support the Department of Chemistry's student programs. The restricted
account has a current balance of $256,619.

Dr. Boyd E. Haley, Chairman of the Department of Chemistry, has requested that $250,000 of
the Hammond restricted account be transferred to the Endowment to achieve a long-term
perspective for investment purposes, which will allow the University to better fulfill its
stewardship responsibility.

The principal will be invested in the Endowment pooled investments and will generate annual
spending distributions of approximately $12,000 for support of the Department of Chemistry.



Action taken:  El Approved



Li Disapproved     Li Other