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nine reports for consideration. The Minutes, FCR 1, and FCR 2 were consent items. FCR 1 and 2 included gifts and pledges totaling $3.8 million. The gifts and pledges included $1 million from the W. Paul and Lucille Caudill Little Foundation to create and endow the Lucille Caudill Little Performing Arts in Healthcare Program. These funds will be matched with $2 million from other sources. The gifts and pledges also included a gift of $2.8 million from the Felix E. Martin Trust to create and endow the Felix E. Martin Scholarships for students from Muhlenberg and Hopkins counties to attend the Gatton College of Business and Economics.
H. Merging of the Janet Galloway Carter Professorship in Physical Medicine and Rehabilitation with the Janet Galloway Carter Chair in Rehabilitation Medicine (FCR 3)
Mr. Branscum said that FCR 3 recommends approval to merge the Janet Galloway Carter Endowed Professorship in Physical Medicine and Rehabilitation with the Janet Galloway Carter Chair in Rehabilitation Medicine to create the Janet Galloway Carter Chair in Physical Medicine and Rehabilitation in the College of Medicine. The merger of the endowments will provide full funding for the endowment and will maintain the intent of the donors. On behalf of the Finance Committee, he recommended approval of FCR 3. Mr. Dawson seconded the motion, and it carried without dissent. (See FCR 3 at the end of the Minutes.)
I. Acceptance of Audit Report and the Report on Internal Control for the University of Kentucky for 2007-08 (FCR 4)
Mr. Branscum said that Treasurer Marc Mathews presented the audit report and the report on internal controls for the university for fiscal year 2007-08. He distributed a highlight sheet of the financials, and the committee had a good discussion about them.
BKD, the university's external auditors, have completed their audit and have issued their Independent Auditor's Report. The report expresses an unqualified or clean opinion on the university's financial statements. BKD also issued its Report on Internal Controls, which, as part of their audit, noted no material weaknesses in the university's system of internal controls.
The university ended the year in excellent financial condition. As of June 30, 2008, the university had assets of $3.33 billion, liabilities of $1.03 billion, and fund balances of $2.3 billion. Net assets increased $18.9 million. On behalf of the Finance Committee, Mr. Branscum moved acceptance of FCR 4. Ms. Curris seconded the motion, and it carried without dissent. (See FCR 4 at the end of the Minutes.)
J.       Expand Coldstream Research Campus - Redundant Feeds (FCR 5)
Mr. Branscum said that FCR 5 requests approval to initiate the Expand Coldstream Research Campus - Redundant Feeds capital project. This project will install redundant electrical and fiber optic supply on the Coldstream Campus. Kentucky Technology, Inc. (KTI) will be the agent for the project which is estimated to cost $6.5 million. The project will be financed with a $5.5 million grant from the Kentucky Economic Development Finance Authority to KTI and $1 million from unrestricted university fund balances that will be transferred to KTI to complete the project. On behalf of the Finance Committee, he recommended approval of