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awarded credit in technical coursework upon admission to colleges in
University of Kentucky Community College System. Again, this is part of the
effort to increase and improve the programs and work with Kentucky Tech
which the University has done for several years. The motion, made by Mr.
Chellgren and seconded by Mr. Welenken, passed. (See PR 4D at the end of the
Minutes.)

      President Wethington noted that there were no items to report from the
Lexington Campus (PR 5) and the Medical Center (PR 6).

      N.    Acceptance of Interim Financial Report for the University of
Kentucky for the Eight Months Ended February 28, 1997 (FCR 1)

      Mr. Hardymon, Chairperson of the Finance Committee, reported that the
Finance Committee met and reviewed 10 items to bring to the Board for
consideration. He said that FCR 1 is the monthly report of the financial
condition for the eight months that ended February 28, 1997. As of February 28,
the University had realized income of $840,461,000 representing 73% of the
1996-97 estimate of $1,143,495,000. Expenditures and commitments total
$753,994,000 or 66% of the approved budget of $1,143,495,000. He noted this
report is on target and is consistent with prior years. He moved approval of
FCR 1. Mr. Shoop seconded the motion, and it carried. (See FCR 1 at the end of
the Minutes.)

      0.    Capitalization Policy Non-Expendable Moveable Equipment
(FCR 2)

      Mr. Hardymon said that FCR 2 is a policy change in accounting and
comes to the Board as a result of the federal government raising the
capitalization level for dollar amounts for equipment acquired with federal
funds. The federal government has approved raising the capitalization level
from $500 to $1,000 for equipment acquired with federal funds effective July 1,
1997. This is the only change in the capitalization policy that was approved by
the Board of Trustees in June, 1993. He provided an explanation of Category I,
II, III and Fully Depreciated Equipment, and moved approval of the policy
change for the capitalization of non-expendable movable equipment effective
July 1, 1997. Mr. Welenken seconded the motion, and it passed. (See FCR 2 at
the end of the Minutes.)

      P.    Governor Paul Patton's Comments

      Governor Breathitt expressed appreciation to Governor Patton for taking
the time to appear before the Board and explain his plan for higher education.
He said that the Board was for Governor's Patton plan in principle, with the
exception of one provision and that was to permit the University of Kentucky