L. Acceptance of Interim Financial Report for the University of Kentucky for the Three Months Ended September 30, 2008 (FCR 4)
Mr. Branscum said that FCR 4 is for the acceptance of the Interim Financial Report for the university for the three months ended September 30, 2008. Treasurer Marc Mathews presented the Interim Financial Report to the committee.
Through September 30, the university has realized 31 percent of the revenue estimate and expended 24 percent of the approved budget. The balance sheet is strong with assets of $3.2 billion and liabilities of $969 million with fund balances of $2.1 billion representing a nearly 65 percent equity position in the total assets.
Revenues of $606.3 million and appropriated fund balances of $81.2 million have exceeded expenditures to date of $529.7 million by $157.7 million, creating a strong cash position and balance sheet as of September 30, 2008.
At the end of the first three months of the 2008-09 Fiscal Year, financial operations are consistent with the budget plan, and the university's financial condition is excellent.
On behalf of the Finance Committee, Mr. Branscum recommended the acceptance of FCR 4. Dr. Brockman seconded the motion, and it carried without dissent. (See FCR 4 at the end of the Minutes.)
M. 2008-09 Budget Revisions (FCR 5)
Mr. Branscum said that Vice President for Planning, Budget, and Policy Analysis Angie Martin presented the budget revisions to the committee. The revisions will increase the university's budget by $22.3 million, or 1 percent, to $2.23 billion. The primary adjustment is to increase budgeted fund balances by $22.1 million. The increase is a result of unspent funds in various reserve accounts related primarily to faculty and staff benefits such as health benefits, post retirement benefits, and workers compensation. On behalf of the Finance Committee, Mr. Branscum recommended approval of FCR 5. Mr. Williams seconded the motion, and it carried without dissent. (See FCR 5 at the end of the Minutes.)
N. Renovate-Expand the Center for Applied Energy Research (FCR 6)
Mr. Branscum said that Vice President for Facilities Management Bob Wiseman presented FCR 6 which requests approval to increase the scope of the renovation and expansion of the Center for Applied Energy Research capital project from $2 million to $3.71 million.
The Board of Trustees approved initiation of this project at the March 4, 2008 meeting. The United States Department of Energy has awarded a $1.37 million grant, and the Governor's Office of Energy Policy has awarded an additional $342,516 grant for a facility to house a refinery which will convert coal and shale oil to liquid that can be used to run internal combustion engines. These grants will fund an engineering and design study and construction of