UNIVERSITY           OF KENTUCKY


                                    LEXINGTON
Office of Comptroller
                                           March 29, 1951



      Dr. H. L. Donovan, President
      University of Kentucky
      Lexington, Kentucky


      My dear Doctor Donovan:

            I submit herewith the financial report covering the University
      fund transactions for seven months ended February 28, 1951.

           The current general income received from all sources during the
      period covered amounted to $5,729,069.17 or 79.6% of the budget esti-
      mate of $7,181,674.51.  The current general fund expenditures and en-
      cumbrances totaled $4,567,601.31. This sum equals 62.2% of the de-
      partmental appropriations of $7,338,722.86. The difference between
      current general fund expenditures and encumbrances and current general
      fund income received represents.a carried forward balance as of July
      1950.  Plant fund expenditures and encumbrances amount to $644,445.17
      during the period or 62.6% bf the $1,028,802.59 budget estimate.

           It is difficult to presefft the financial report of the University
      of Kentucky as a combined statement. It is necessary in an education-
      al institution to do "fund accounting". Current, restricted, plant,
      loan, endowment and agency funds are recorded separately and accounted
      for as separate funds, hence the various sections of the report pre-
      sented. The balance sheet for the Division of Colleges, Agricultural
      Experiment Station and Agricultural Extension records current, re-
      stricted and plant funds, and investment in plant. There is nothing
      unusual about the balance sheet and for detailed information, you are
      referred to the statement of assets and liabilities. The total ap-
      praised value of the plant, excluding the value of the Journalism
      Building, is:

                     Buildings             $20,356,295.09
                     Land                    1,073,218.83
                     Equipment               6,780,403.69

                         Total             $28,209,91'7.60

      There are outstanding serially maturing bonds amounting to $2,815,000
      including $225,000 bonds of the Journalism Building which is in process
      of construction. The net investment in buildings, land, equipment,
      and other fixed assets, after adjustment for outstanding bonds is
      $25,619,917.60. University properties are insured thrqugh the State