- 4-



would conduct an in-depth study upon which recommendations for
improvements would be based. He then moved that the Board of Trustees
accept the University of Kentucky Financial Reports and the Report
on Internal Accounting Controls for the Year Ended June 30, 1978.
His motion was seconded by Mr. Griffin and passed without dissent.

     Before going to the next item on the agenda, Mr. Clay recommended
that the Trustees might find it both interesting and helpful to
read the 1977-78 Financial Report.

     N. Acceptance of Audits for the University of Kentucky
         Affiliated Corporations (FCR 3)

     Mr. Clay put in the form of a motion the recommendation in FCR 3
that the Board accept the audited financial statements for the
University affiliated corporations for the fiscal year ended June
30, 1978. His motion was seconded by Mr. Black and passed without
dissent. (See FCR 3 at the end of the Minutes.)

     0. Meeting Adjourned

     It having been determined that there was no further business
to come before the meeting, on motion duly made, seconded and
carried, the meeting adjourned at 2:35 p.m.

                               Respectfully submitted,



                               Betty Carol Clark, Secretary
                               Board of Trustees

























(PR's 2, 3, 4, 5, 6, 7, and 8; and FCR's 1, 2, and 3 which follow
are official parts of the Minutes of the Meeting.)