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10 > Image 10 of Minutes of the University of Kentucky Board of Trustees, 2010-06-08

Part of Minutes of the University of Kentucky Board of Trustees

-10- Y. Acceptance of Interim Financial Report for the University of Kentucky for the Nine Months Ended March 31 2010 (FCR 7) Mr. Branscum said that FCR 7 recommends that the financial statements which include the University and affiliated entities with comparative totals for the nine months ended March 31, 2010 be accepted. A summary ofthe financial statements was provided separately. The balance sheet remains sound with assets of $3.6 billion, liabilities of $1.1 billion, and fund balances of $2.3 billion. Since March 2009, fund balances have increased $350 million, or 18 percent, primarily due to an increase of $223 million or 38 percent in endowment funds. Plant funds have increased $73 million. During the first nine months ended March 31, 2010, the University has realized 77 percent of the revenue estimate and expended 68 percent of the approved $2.4 billion budget. Financial operations are consistent with the budget plan, and the universitys financial condition remains excellent. On behalf of the Finance Committee, Mr. Branscum recommended acceptance of FCR 7. His motion, seconded by Mr. Shoop, carried without dissent. (See FCR 7 at the end ofthe Minutes.) Z. Patient Care Facility Project (FCR 8) Mr. Branscum said FCR 8 requests approval to initiate the first phase of construction of the operating room suite and related support space in the new Patient Care Facility and approval to increase the total scope ofthe Patient Care Facility proj ect from $532.3 million to $570 million. The Operating Room project was initially deferred due to the addition of the two patient care floors. The Operating Room project is now recommended to be initiated to provide capacity for planned growth and to provide a new consolidated family waiting area for surgical services. The scope ofthe Operating Room project is not expected to exceed $35 million. The $37.7 million increase in the total scope ofthe Patient Care Facility project is requested in the event of any unforeseen complications. The Operating Room project will be funded by an intemal loan of up to $35 million to UK HealthCare which is expected to be repaid within 10 years. Any additional funds, if needed, will be provided by UK HealthCares fund balances. Pursuant to the Universitys Debt Policy, the Debt Management Committee has reviewed and supports the proposed loan. Any increase in the $570 million scope will be presented to the Board for approval prior to implementation. On behalf of the Finance Committee, Mr. Branscum recommended approval of FCR 8. Mr. Stuckert seconded the motion, and it carried without dissent. (See FCR 8 at the end of the Minutes.)