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N.        Approval of Lease (FCR 21)
Ms. Wickliffe said that FCR 21 is a lease between the College of Medicine and Blazer Parkway Venture, LLC. The space is located at 3470 Blazer Parkway in Lexington, and the lease will run through June 30, 2010. On behalf of the Finance Committee, she moved the adoption of FCR 21. Ms. Tobin seconded her motion, and it carried without dissent. (See FCR 21 at the end of the Minutes.)
O.        Acceptance of Audit Report and the Report on Compliance and on Internal Control for the University of Kentucky for 2004-05 (FCR 22)
Ms. Wickliffe said that FCR 22 is the Acceptance of Audit Report and the Report on Compliance and on Internal Control for the University of Kentucky for 2004-05. The Finance Committee was given a detailed and thorough report by Mr. Marc Mathews, Controller, on FCR 22. She commented about the report from President Todd at the very beginning. She called attention to the independent auditors report and read the following statement from their report: "In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of the University of Kentucky and affiliated corporations as of June 30, 2005 and 2004, and their changes in net assets and their cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America." Ms. Wickliffe said that this statement specifies that it is a clean, unqualified audit and one that the university wants each time. She encouraged the Board to read the notes that better clarify what the figures represent.
Mr. Wickliffe reported that the university ended the year in excellent financial condition. As of June 30, 2005 the university has assets of $2.45 billion, liabilities of $582 million, and fund balances of $1,863 billion. She noted that new assets increased $125 million or 6 percent during the year. She moved the adoption of FCR 22, and Ms. Haney seconded her motion.
Mr. Hardymon said that the financials are something that some spend a little more time enjoying than others. As a Board, they should look at a couple of items: net assets improvement of $125 million shows UK is a very strong organization, and to run the university, you have to have a fund balance. To see it improving is very positive. These two items show the strength of the organization. It is more or less called balance sheet management instead of maybe just regular revenue and expenses.
Mr. Hardymon expressed appreciation to Mr. Butler, Mr. Owen, and Dr. Smith for their good work. A good set of financials allows the Board to be comfortable. He said that he had a motion and second and called for a vote. FCR 22 was approved without dissent. (See FCR 22 at the end of the Minutes.)