3



       H. Budget Revisions 1969-70 (PR 5)

       The budget revisions recommended in PR 5 being routine in nature, on
motion by Mr. Clay, seconded by Mr. Milner, and passed without dissent, the
budget revisions in PR 5 were authorized and approved. (See PR 5 at the end of
the Minutes. )


       I. Interim Financial Report (FCR 1)

       The Board members having had an opportunity to examine the financial
report for the period ending December 31, 1969 indicated they had no questions
and on motion duly made, seconded, and carried, the report was accepted as
presented and ordered filed. (See FCR I at the end of the Minutes.


       J. Management Letter From External Auditors for 1968-69
Accepted (FCR 2)

       Mr. Ruschell indicated that the Office of Business Affairs accepted
administratively the Management Letter submitted by Peat, Marwick, Mitchell.
and Company and the recommendations made were in the process of being
implemented. The Finance Committee members present indicated they had
examined the Management Letter and recommended its acceptance by the Board.

       On motion by Mr. Pence, seconded by Mr. Cooper, and carried, the
Management Letter dated September 2, 1969 from the firm of Peat, Marwick,
Mitchell and Company, Certified Public Accountants, for the fiscal year ended
June 30, 1969 was accepted and the Acting Vice President of Business Affairs
was instructed to implement as rapidly as possible the recommendations contained
in the letter. (See FCR 2 at the end of the Minutes. )



       K. Easement to Kentucky Utilities Company Approved (FCR 3)

       Mr. Darsie explained that the background statement in FCR 3 gave full
details on the proposed easement to the Kentucky Utilities Company and recom-
mended approval.

       On motion by Mr. Cooper, seconded by Mr. Alverson, and passed, the
Acting Vice President of Business Affairs and Treasurer was authorized to
execute, on behalf of the Board, and in consideration of the payment of a purchase
price based on fair market value, a transmission line easement to Kentucky
Utilities Company over University of Kentucky property on the Viley Road in
Fayette County. (See FCR 3 at the end of the Minutes. )