MINUTES OF THE FINANCE COMMITTEE
University of Kentucky Board of Trustees January 22, 2008 11:30 AM
Committee Members Present
Stephen Branscum, Chairperson, Dermontti Dawson, Frank Shoop and Billy Joe Miles, Frank Shoop, JoEtta Wickliffe
Approval of Minutes
The minutes of the December 11, 2007, Finance Committee meeting were approved as presented.
Reports (Informational Purposes Only)
Frank A. Butler, Executive Vice President for Finance and Administration, reported on the recent meeting of the University Debt Committee. The committee reviewed the status of the debt capacity of the institution and the proposed lease/purchase acquisitions presented in FCR 4. The Committee reviews various financial ratios such as outstanding debt to equity. The University is in good financial position and has sufficient debt capacity for the foreseeable future.
Marc Mathews presented a preliminary draft of the University's consolidated financial statements for the six months ended December 31, 2007. A final interim financial statement will be brought before the Board for acceptance in March. Marc reported that financial operations are on target and through December 31, the University has realized 54 percent of the revenue estimate, and expended 45 percent of the approved budget. The University's consolidated balance sheet is strong, with assets of $3.3 billion and liabilities of $950 million. Fund balances of $2.2 billion represent a 67 percent equity position in the total assets. Year to date revenues and appropriated fund balances have exceeded expenditures to date by $176.2 million creating a strong cash position as of December 31.
FCR 1, Authorization for Disposal of Surplus Property
Frank A. Butler presented FCR 1, which requests that the Board authorize the disposal of surplus property consisting of the floor from the 1996 NCAA men's basketball national championship. The method of disposal will be from sealed bids to be received in February 2008. The sale will be made to the highest bid which could exceed $10,000. Frank Shoop approved the authorization. Dermontti Dawson seconded, and the motion for approval unanimously carried.
FCR 2, Approval of Ground Lease to Kentucky Farmhouse Association for 454 and 456 Rose Lane, Lexington, Kentucky
Frank A. Butler presented FCR 2 which recommends that the Board of Trustees authorize the Executive Vice President for Finance and Administration to negotiate and execute a ground lease
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