program is shared between Western Kentucky University and the University of
Louisville.

      President Todd said that this is a fairly monumental accomplishment. He thanked
the Dean of Engineering, the Provost, and Davy Jones who stepped in and helped out
with some things that needed to get done. Jeff Dembo, Chair of the Senate, also helped.
The Senate Council moved speedily toward getting some resolution of this so that it
could be moved forward. There are actually going to be students graduating from
Western this year with this joint degree.

      He reported that he made a commitment to this program when he was on the
Council on Postsecondary Education before he ever thought he would be the President of
the University of Kentucky. He recognized G. T. Lineberry in the audience and
expressed appreciation to him for his work on the program and his work in Paducah as
well.

      President Todd said that he committed to this joint degree program some time ago
because he firmly believes that if Kentucky's economy is going to be vibrant and move
forward, engineering needs to be offered throughout the state. This is an overall win for
the State of Kentucky. He said that he was glad that this is behind, and he looks forward
to very good results.

      Mr. Reed asked about the number of projected graduates, and Provost Nietzel said
he anticipates 10 graduates this spring. Mr. Reed stated that it should certainly have an
influence on that region.

      President Todd agreed with Mr. Reed and said that the employers have wanted
this program and have worked with UK as well. He said, in his opinion, it is the right
thing to do.

      Mr. Reed called on Mr. Hardymon for the Finance Committee report.

      I.    Audit Subcommittee Report

      Mr. Hardymon, Chair of the Audit Subcommittee for the Finance Committee,
reported that the Audit Subcommittee had held an informational meeting. He said that
Ms. Wickliffe and Ms. Sparks are also members of that Subcommittee. This meeting was
somewhat leading into the September meeting at which time the Subcommittee will be
looking at the audit and financial statements and hearing from the outside auditors. Both
the internal audit and the outside audit were represented.

      Mr. Hardymon introduced Joseph Reed, Director of Internal Audit, and said that
he was very pleased to have Mr. Reed on the staff. Earlier in the day Mr. Reed had given
the Subcommittee an overview of Internal Audit and its function, and had talked about
some of the things that are going on now. When the Subcommittee gets ready to look at