Dr. Ray explained that the reaffirmation process is very different from the 2002 process
for which a large self-study committee conducted all the work and prepared great quantities of
paper documentation. The new process involves preparation of an electronic compliance
certification document accompanied by electronic evidence, all of which will be reviewed
remotely by an off-site SACS team in fall 2012. The QEP will be completed by January 2013
and will be reviewed and accepted (or rejected) by a SACS onsite review team in March or
April. Following acceptance ofthe QEP, the University will implement the QEP and report back
to SACS on its effectiveness after five years. Two years later, the whole reaffinnation process
will commence again. Dr. Ray encouraged Board members to contact her or Dr. Jen Skaggs,
director ofthe SACS Reaffirmation Project, if they have questions about the process.
President Todd commented on the differences between the two accreditation processes
that he had been a part of during his time as president. He felt that the current one should be
more beneficial to the University, with more lasting results. As to the QEP requirement, he
stated that probably UK’s War on Attrition project or the revamping ofthe Undergraduate
Studies Program would both have qualified for a QEP project, except for the fact that they are
already in the works.
I. Finance Committee Report
Mr. Stuckert, chair ofthe Finance Committee, reported that the Committee met that
moming. There was one consent item, a pledge from Mr. Warren Rosenthal of Lexington,
Kentucky for $500,000. Of the pledge, $200,000 is for the Schmidt Vocal Arts Center
Renovation fund and the remaining $300,000 is for support ofthe Opera program in the College
of Fine Arts School of Music. Mr. Stuckert commended Mr. Rosenthal for his loyalty and
generous support ofthe University for many years and many projects. On behalf of the
University, he thanked the donor.
J. Acceptance of Audit Report and the Report on Intemal Control for the University
of Kentucky for 2009-10 (FCR 2)
Mr. Stuckert stated that FCR 2 requests the Board to accept the university’s Audited
Financial Statements for the fiscal year ended June 30, 2010, and the Independent Auditor’s
Report on the university’s intemal controls. BKD, UK’s extemal auditor, has completed its audit
and issued its Independent Auditor’s Report. The report expresses an unqualified or clean
opinion on the university’s financial statements. BKD has also issued its Report on Intemal
Controls, which, as part of their audit, noted no material weaknesses in the university’s system of
intemal controls. The University ended the year in a strong financial condition. As of June 30,
2010, the University had assets of $3.54 billion, liabilities of $1.15 billion, and net assets (fund
balances) of $2.39 billion. Net assets increased $176.9 million.
On behalf of the Finance Committee, Mr. Stuckert recommended acceptance of FCR 2.
Mr. Shoop seconded his motion, and it carried without dissent. (See FCR 2 at the end ofthe