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       Q.    Acceptance of the Financial Statements of the University of
Kentucky and Affiliated Corporations and Other Related Organizations for
the Year Ended June 30, 1986 (FCR 5)

       With the concurrence of the Finance Committee , Mr. Clay recommended:

       that the Board of Trustees accept the audited financial statements
       of the University of Kentucky including the Management Letter and a
       Report on Compliance with House Bill 622, and separate financial
       statements for the Housing and Dining System, the Tobacco and Health
       Research Institute, and the University Hospital, for the year ended
       June 30, 1986; and

       that the Board of Trustees accept the audited financial statements
       of the affiliated corporations and other related organizations of
       the University of Kentucky including The Fund for Advancement of
       Education and Research in the University of Kentucky Medical Center,
       University of Kentucky Research Foundation, University of Kentucky
       Athletic Association, University of Kentucky Business Partnership
       Foundation, Inc., University of Kentucky Mining Engineering
       Foundation, Inc., University of Kentucky Equine Research Foundation,
       Inc., University of Kentucky Humanities Foundation, Health Care
       Collection Service, Inc., University of Kentucky Alumni Association,
       and the University of Kentucky Hospital Auxiliary for the year ended
       June 30, 1986.

       Mr. Clay complimented the internal auditors and Mr. Henry Clay Owen
for an outstanding job in carrying out their responsibilities, and Mr.
McCowan expressed his endorsement of Mr. Clay's comments. The motion,
which was made by Mr. Clay and seconded by Mr. Rose, was voted on and
carried. (See FCR 5 at the end of the Minutes.)

       R.    Adoption of Resolution Concerning University of Kentucky
Community Colleges Educational Buildings Refunding Revenue Bonds, Series D
(Second Series), Dated October 1, 1986   (FCR 6)

       Mr. Clay called attention to the fact that at the meeting of the
Board of Trustees held on June 25, 1986 the Board of Trustees approved the
form of a Resolution authorizing the issuance of Community Colleges
Educational Buildings Refunding Revenue Bonds, Series D (Second Series), of
the University of Kentucky, dated August 1, 1986 and adopted a Resolution
authorizing the President of the University to fix the date and hour of the
sale of University of Kentucky Community Colleges Educational Buildings
Refunding Revenue Bonds, Series D (Second Series), dated August 1, 1986, to
arrange for the publication of the Notice of Sale of Bonds with respect
thereto, to fix the date and hour for the receipt of bids, the date and
hour of a meeting of either the full Board or the Executive Committee of
the Board to be held at a later hour on the same day for the purpose of
accepting the successful bid or rejecting all bids, to change the tentative
estimated amount of such Refunding Bonds to be initially offered for sale,
the tentatively estimated amounts of maturities of such Bonds for each of
the years 1987 through 2008, and/or the date of such Bonds and all other
dates pertaining to the Bonds, to the extent that any such changes shall be