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interim financial report for the period ending October 31, 1971 was received
and ordered made a matter of record. (See FCR 1 at the end of the Minutes.)


      N. Audit Reports Accepted (FCR 2)

      Having had an opportunity to examine the financial statements submitted
by the firm of Peat, Marwick, Mitchell and Company covering the affiliated
corporations of the University and there being no questions, on motion by Mr.
Griffin, seconded, and passed, the financial statements of the University of
Kentucky Research Foundation, University of Kentucky Athletic Association, and
The Fund for Advancement of Education and Research in the University of
Kentucky Medical Center were accepted. (See FCR 2 at the end of the Minutes.)


      O. Acquisition of Property Through Condemnation Proceedings
Approved (FCR 3)

     After a brief explanation by, Mr. Forgy of the reasons why it was necessary
for the University to exercise its right of eminent domain in connection with
acquisition of real property owned by the Borden Company, on motion by Mr.
Alverson, seconded by Mrs. Blazer, and passed without dissent, the President
was authorized to proceed with the necessary steps to acquire the aforementioned
property at fair market value. (See FCR 3 at the end of the Minutes.)


     P. Sale of Property (FCR 4)

     Mr. Forgy explained that certain property owned by the University in
M\4uhlenberg County was no longer necessary for the purposes of the University.
Without discussion, on motion and second, the recommendation in FCR 4 relative
to the Muhlenberg County property was approved. (See FCR 4 at the end of the
Minutes.)


     Q. Adjustment of Room and Board Rates (FCR 5)

     Noting that the proposed increase of approximately 4. 3 percent in room and
board rates was necessitated by increased costs, Mr. Forgy recommended ap-
proval of FCR 5. On motion by Governor Chandler, seconded by Dr. Nicholas,
and passed without dissent, the recommended adjustment in room and board rates
was approved to become effective on the dates recommended in FCR 5. (See
FCR 5 at the end of the Minutes. )


     R. Proposed Amendment to Student Code

     Mr. Wendelsdorf withdrew his proposed amendment to the Student Code in
compliance to the Board's wish that it be referred to the Student Code Revision