xt78cz322n3m https://exploreuk.uky.edu/dips/xt78cz322n3m/data/mets.xml Lexington, Kentucky University of Kentucky 19520425 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 1952-04-apr25. text Minutes of the University of Kentucky Board of Trustees, 1952-04-apr25. 1952 2011 true xt78cz322n3m section xt78cz322n3m 


Irregularities




 










     Minutes of the Meeting of the Board of Trustees of the Uni-
versity of Kentucky, April 25, 1952.


     Pursuant to adjournment of the regular meeting of the Board
of Trustees on April 1, the members of the Board met in the Presi-
dent's Office at 10:00 a.m., with the following members present:
Governor Lawrence W. Wetherby, Chairman; Guy A. Huguelet, Vice
Chairman; Mrs. Paul G. Blazer, J. C. Everett, Paul M. Basham, George
M. Cheek, J. Woodford Howard, Herndon J. Evans, Wendell P. Butler,
H. D. Palmore, and Carl Dempewolfe.    Absent:  Harper Gatton, R. P.
Hobson, Dr. W. M. Coffee, and Ben S. Adams.    President H. L. Don-
ovan and Secretary Frank D. Peterson met with the Board.

     A telegram was received from Mr. Gatton on the morning of the
meeting expressing regret that he was unable to attend because
of the illness of Mrs. Gatton.

     Mr. Hobson called to report that he would be unable to attend
because of the continuation of a case in the Federal Court which
required his presence.



     A. Approval of Minutes.

     The minutes of the Board of Trustees of December 18, 1951;
and the minutes of the Executive Committee of January 18 and
February 16, 1952, were approved as published.



     B. Report of the Comptroller.

     The Comptroller m~ade financial report consisting of balance
sheet and operating statement of the various funds and accounts
for the nine-months period ended March 31, 1952.    He read the
following summarized statement, and then presented the following
financial report.




 







UNIVERSITY           OF KENTUCkY


            LEXINGTON
                             April 17, 1952



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

My dear Doctor Donovan:

     I submit herewith a balance sheet of University funds as of March
31, 1952, together with statements covering University fund transac-
tions and budget operations for the period of nine months beginning Ju-
ly 1, 1951, and ending March 3', 1952.

     The income received during the period for general and plant funds
amounted to $ 7,053,110.17.   This amount was 100.75% of the budget
estimate of $7,000,054.64.   The current general expenditures and en-
cumbrances total $ 5,241,587.28, which amount was 72.27% of the depart-
mental appropriations of $ 7,203,915.33.   Plant fund expenditures
and encumbrances amounted to $ 318,270.91 or 61.30% of the budget es-
timate of $519,169.98.



    The unappropriated surplus for general and plant
of the following:



funds consists



Division of
  Colleges

$ 482,715.81
    17,693.28

$ 500,409.09



  Agri. Exp.
  Station

$ 222,600.91


$ 227,524.80



Agri. Ext.



$   2,616.36

  $  22616.36~~~~~A



Restricted fund balances on March 31, 1952, were as follows:



Division of
Colleges



Restricted



  Agri. Exp.
  Station

$ -103,625.09



Agri. Ext.



$ 144,380.97



Other fund balances on March 31, 1952, were as follows:



Fund



Principal



Loan Fund
Endowment Fund
Agency
    Total



$    62,797.61
    200,228.18



Bal. as to
    Income

$   24,459.85
     2,727.26
     74,018.98



$   263,025.79



Total



$   87,257*46
   202,955.44
   74$ 13,31988
36423E8



     Respectfully submitted,
(Signed) Frank D. Peterson
          Comptroller



Fund



General
Plant

   Total



Fund



$ 101,2o6.og




 







University of Kentucky
   BALANCE SHEET
As of March 31, 1952


     A S S E T S



Agricultural
Experiment
Station



Agricultural
Extension
Division



Current Funds:
General:
Cash in bank      $
Petty Cash Advs.
State Allotments:
  Current Year
  Prior Year
  Revolving Funds
  Receivables
  Inventories
  Deferred Chgs.
  Unreal. Income

  Total General L

  Restricted:
  Cash in Bank      $
  Petty Cash Advs.
  Investments

  Total Restrict.$
  Total Current

Plant Funds:
Unexpended:
Csh in Bank       $
Revolv.Funds
Receivables
Unreal. Income    _

   Total Unexp.    $
 Investment in Plant
 Construction
   Authorized      $
 Fixed Assets       _
 Tot.Invested      4
 Total-Plant



Other Funds:
Cash in Bank      $
Notes Receiv.
Investments
Total Other FndsE_
Total Assets -



385,799.29
   2,002.59

 488,474.43
   3,603.52
1,148,517.30

504,181.02
111,768.20
  86, 622. 99*



2,557,723.36


1,066,307.69
  11,887.10
  688, 251, .49

1,766,446.28
4,324,169.64



197,601o93

18,3899.67

215,991.6o5



3,580,431.72
3,580,431.72
J,79b, 423.32
Loan


   2,795,11
   8,962.35
   75 500,00
   .87,27'T



$ 192,o85.94


  179,552.67
      541.02
  307,975.30

  41,693.00



$ 290,693.24 $ 868,57r8.47
                   2,002.59



65,743.39
  765.78



733,770.49
   4,910.32
1,456,492.60

545,874.02
  111,768.20



    15,339.44          161.65*    71,445.20*

$ 737,187.37     $  357,040.76 $ 3,651,951.49


$  88,225.09   $  144,380.97 $ 1,298,913.75
       400.00                      12,287.10
    15,000.00  _703,251.49

$  103,625.09   $  144,380.97 $ 2,014,452.34
   840,812.46      501,421.73   5,666,403.83



$               $             $
    87,282.38                     284 884.31

                                  i8,39.67

$  87,282 X38              _$     303, 273.@98


$               $              $
2,907,416.73  _     _         31,487,848e45
t2,907,416.373 $              $31487 848.45


  Endowment         Agency


$    3,373.48   $   59,018.98 $    65,187.57
                                    8,962.35
  199,581.96       15 000 00     290?081.96
  j202,955.44~B$ 37              2   315.1



*Negative figure.



Division
   of
Colleges



Total




 





2



University of Kentucky
   BALANCE SHEET
As of March 31, 1952


L I A B I L I T I E S



Agricultural
Experiment
  Station



Agricultural
Extension
Division



Current Funds:
General:
Petty Cash Liabil.$
Res.for Encumb.:
Current Year
Prior Year
Res.for Invent.
Other Liabilities
Unapprop. Surplus
Approp. Bals.



2,002e59  $



  154,488.67
  40,716.30
  50o,181.02
  111,768.20
  482,715.81
1,261,850.77



$



90,989.21
   832.37
41,693.00



222,600.91
381,071.88



  2,616.36
354,424,40



$     2,002.59

    245,477.88
    41,548.67
    545,8741.02
    111,768.20
    707,933.08
  1,997,347.05



Total General $ 2,557,723.36



Restricted:
Outstand.Cks.     $
Restr. Bals.         1
    Total Restr.   ' 1
    Total Cur.

Plant Funds:
Unexpended:
Res .for Encumbrances:
Current Year     $
Prior Year
Surplus Funds
Approp.Bals.

   Total Unexp.    $



   6, 600.74
,759,845.54
,766,446.28
j,3 24, 1 9. D4





  17,693.28
  198,298.32



215,991.60



Investment in Plant:
Bonds Payable     $ 2,766,500.00
Net Invested       25,813,931.72

   Total Invest.  $28,58o431.72
   Total Plant            L23i32

                       Loan



Other Funds:
Bal. as to Prin. $
Bal. as to Income
  Total Other FndsT
  Total Liabil.



62,797.61
24 459.85
b7,25-7.-DW



$ 737,187.37 $ 357,4o'.O.76


   103 625.09    144 380.97
 ;103,b25-09 ';144,3E 0.97
 i b40sbl2.46 ';501,42 1073




 $  79,757.74 $

     4,923.89
     2,600D75

$  87,282.38 $



2,907,416.73  

$2,907,416-73$


Endowment       Agency


$  200,228.18 $
     2,727.26     74,018.98
$ 202 955. 4      7   *4,8.98



$ 3,651,951.49

$     6,600.74
  2,007 851.60
1 2,014 45a,34
5, ibbb6,403 . 3




$   79,757.74

     22,617.17
     200,899.07

$      9 303273.98



$ 2,766,650000
28,721,348.145

$31,487,848A45




$   263,025.79
    101 206.09

        758. 14



Division
  of
Colleges



Total




 







        University of Kentucky
    STATENEN'T OF UNREALTZED INCOME
For the Current Fiscal Period which began
July 1, 1951, and Ended March 31, 1952

             General Fund



Budget
Estimate



Realized
to Date



Unrealized
Balance



Division of Colleges:
Educational and General:
  State Appropriations
  Fed.Grants (thru the State)
  Student Fees
  Endowment Income
  Sales & Services & Rentals

       Subtotal

Auxiliary Enterprises:
Residence Halls
Miscellaneous

       Subtotal

       Total-Colleges

Less-Income allocated to
       plant

       Net-colleges

Agr. Experiment Station:
State Appropriations
Federal Grants (direct)
Sales and Services
    Total-Experiment Sta-
        tion


Agr.Extension Division:
State Appropriations
Federal Grants (direct)
   Total-Agr.Extension

   Total-General Income

Plant Fund:
General Income Allocated
Stores Overhead
   Total-Plant

   Combined Total



$ 2,714,400.00
   127,617.87
   893,670.00
     9,644.50
     19,700.13



$ 2,719,935.42
   101,428.07
 1,012,525.39
     9,644.50
     16,064.73



$ 3,765,032.50 3%859,598.l1
                   102.519%

$  327,874.oo $   321,606.55
    116,930.50     115,255.33

$  444,804.50 $   436,861.88



$ 4,209,837.00


$ 222,718.00

$ 3,987,119.00


$  402,600.00
   308,852.21
   4_90141.00



$ 12201,593.21


$  406,600.00
  1,152,98i.93
$ 1,559,581.93

$ 6,748,294.14


$   222,718.00

$   2571000056

7,00E05.64a



*Realized in excess of estimate.



   90S.219o
   4,296,459.99
   102.05%

$222,718.00

  4,073,741.99
  102-170


$  398,804.93
   306,574.43
   48o,874.41

 1 186,253,77
     9b.72%

$ 411,190.75
1,148,552.83
$ 1,559,743.58
     100.01%
$ 6,819,739.34
     101.05%
$  222,718.00
    10,652.83
 $ 233,370.83
    92.  9,o
$ 7,053,110,17
   100575-



$    5 ,535.42*
    26,189.80
    118,855.39*

    3,635. 40

$   94, 565.61*


     6,267.45
     1,675.17

  $ 7,942.62

$   86,622.99*



   86,622.99*



     3,795.07
     2, 277 .78
     9,266.59

I_   15,339.44


     4,590.75*
  4 429*10
       161.65*

$   71,445.20*


     18,289.67
L 18X38967



$ __ 5,9553*




 





4



         University of Kentucky
STATEMENT OF DEPARTMENTAL APPROPRIATIONS
For the Current Fiscal Period which began
July 1, 1951, and Ended March 31, 1952

             General Fund



                      Depart.
                      Approp.

Division of Colleges:
Adm.& Gen.Expense:
Gen.Adm.OfTc'ice  $  200,906.40
  Student Welfare      65,056.05
  General Expense      85,535.06



Subtotal



$ 351,497,51



Instruction & Research:
College o -
Arts & Sciences  $1,286,269.22
Engineering        349,540.78
Commerce           160,292,50
Agr. & Home Ec.     213,265.31
Law                  54,057.75
Education          291,399.61
Pharmacy            76,269.00
Graduate School       8,506.90
Univ.Research        24,o000.00
Library              222,047.07
Univ.Extension      110,995.42
Other Activities     23,734.00



Subtotal



$2, 820,377.56



Expendi-
tures



$ 142, 335.31 $
   49,708.82
   75,889.21



Encum-
brances



1,868.00
   257.26
14,137.40



$ 267,933.34   $  16,262.66
            d.855



$ 919,911.99
  223,361.31
  114,874.21
  153,050.56
  43,756.91
  206,965.90
  52,925.72
    6,952.24
    7,196.31
  162,870.34
  79,793.89
  10,366.03



$1,982,025.41



30,499.29
9,649.29
   830.11
   576.26
   808.15
 6,143.77
 2,912.67
   151.55
 2,797.10
 5,010.89
 2,692.54
 60o69.oo



68,140 .62



Approp.
Balances



$



56,703.09
15,089.97
4,491.55*



$   67,301.51



$ 335,857.94
   116,530.18
   44,588.18
   59,638.49
     9,492.69
     78,289.94
     20,430.61
     1,403.11
     14,006.59
     54,165.84
     28,508.99
     7.298.97



$ 770,211.53



Operation and Maint.
  0 Phys-.-P7ant-et
of  Ph T T T i tetc.
Gen.Approp.        $
Special Approps.
Work in Progress
General Storesetc.



685, 609.71
60,000.00
25,000,00
27,250.00



$ 439,217.28
     1,718.53
   50,489.96
   27,.012.12*



33,076.29
4,453.00



$ 213,316.14
    53,828.47
    25,489.96*
    54, 262 . 12 -



Subtotal



$ 797,859.71



Auxiliary Enterprises:
Residence Halls   $285,882.00
Miscellaneous         79,247.45



Subtotal



$ 365,129.45



     Total-Colleges $4, 334 86423

*Negative number.



$ 464 413.65   $
           6:2 .9117o


$ 184,876.75 $
   19,275.64



37,529.29



31,695.05
   861.05



$ 204,152.398      32 556.10


$2,918,524.79 $_ 154,488.67
          70. b897



$ 295,916.77


$   69,310.20
    59, 11076
$ 128.420.96



$1,261,850e77




 








          University of Kentucky
STATENENT OF 1DEPARTMENTAL APPROPRIATIONS
For the Current Fiscal Period which began
July 1, 1951, and Ended March 31) 1952


               General Fund



Depart.
Approp.



Expendi-
tures



Encum-
brances



Agr. E    Station:
Administration     $
Agronomy
Animal Husbandry
Animal Pathology
Creamery License
Dairy
Dairy Cattle Improve.
Ent. & Botany
Farm Economics
Feed & Fertilizer
Home Economics
Horticulture
Library
Markets & Rural Fin,
Poultry
Publica.& Library
Pub.Service Labs.
Regional Research
Robinson Substation
Rural Sociology
Seed Stocks
W. Ky. Substation
W. Ky. Improve.
Social Security
Farm Maintenance
Black Shank



141,775.00
193,332.00
93,110.00
59,250.00
  9,291.00
  50,335.00
  15,000.00
79,330.00
61,685.00
190,000.00
18,100.00
44,930.00
9,340.00
79,331.00
35,388.oo
23,155.17
32, 250.00
8,325.00
22,400.00
32,242.00
7,000.00
41,900.00
23,000.00

19,000.00
20,000.00



$



73,563 38
131,007.58
78,515.21
40,250.19
  6,759.97
  34,739.58
  11,592.73
  51,249.86
41,703.78
107,763.19
12,296.54
29,260.88
  6,102.15
59,543.41
25,250.02
  6,495.04
21,436,83
5,569.00
15,035.67
21,297.38
5,333.33
26,924.12
18,877.66
6,837.23
     3.35



$



2,745.45
3,351.73
3,077.87
   27.00

2,534.84

  400.67



$



41,385.63
1,304.80
2,105.91
   531.65

 1,675.97
 2,287.20
   135.23

 1,206.50


 4,923.18
 2,969.72

   325.86
20,000.00



65,466.17
58,972.69
11,516.92
18,972.81
2,531.03
13,060.58
3,407.27
27,679.47
19,981.22
40,851.18
4,498.66
13,563.21
2,706.20
19,787.59
8,462.01
14,372.93
10,677.94
2,756.00
6,157.83
10,944.62
1,666.67
10,052,70
1,152.62
6,837.23*
18,670.79-



Total-Agr. Exp.
       Station



$ 837,408.o8



70.89%



90,989.21



$ 381,071.88



*Negative number.



Approp.
Balances



$1,3092469.17




 






6



         University of Kentucky
STATEMENT OF DEPARTlE-NTAL APPROPRIATIONS
For the Current Fiscal Period which began
July 1, 1951, and Ended March 31, 1952


              General Fund



Depart.
Approp.



Expendi-
tures



Encum-
brances



Approp.
Balances



Agr. Extension Div.:
Admin-tr-a75r n   $
Agr. Engineering
Agronomy
Animal Husbandry
Clothing
County Agents
Dairy
Farm & Home Conven.
Farm Management
Forestry
Foods
Home Dem. Agents
Home Management
Horticulture
Junior Clubs
Markets
Poultry
Publications
Public Information
Rural Sociology
Adm. Reserve
Social Security
Miscellaneous



Total-Agr. Ex-
tension Div.



Combined Total



621,192.00
28,988.oo
35,687.50
22,708. oo
12,264.00
703,011.52
21,268.00
  1,500.00
  14,904.00
  10,436.oo
  11,632.00
431,175.98
29,840.000
18,3344.00
78, 204. 00
13,453.00
21,21444.00
13,888.00
19,296.00
5,620.00
3,725,93



1,559,581.93



$7,203,915.33



$



40,936.57
18,5842.82
26,789.79
16,801 95
  8,842.249
553, 451.09
14,949.78
  1,226.48
  10,991.36
  7,636.69
  8,368.18
353,o87.36
21,160,02
13,593.58
58,297,64
9,928.18
13 996,68
6,057G80
14,417,30
4,512,62



$



1,522,15



$1,205,157.53
          77,277

$4,961,090,40  $   4547788.
          72.277%



$   21,255.43
    10,403.18
    8,897.71
    5,906.05
    3,416.51
    149,560.43
    6,318.22
       273 e52
     3,912.64
     2,799,31
     3,263.82
   78,o88. 62
     8,679.98
     4,750.42
     19906. 36
     3,5242.82
     7,2447.32
     7,830.20
     41,878.70
     1, 107.38
     3,725.93
     1,522.15*



$ 354,2424.40



$1,997,347.05



*Negative number.




 






7



         University of Kentucky
  STATEMENT OF OTHER FUND TRANSACTIONS
For the Current Fiscal Period which began
July 1, 1951, and Ended March 31, 1952



Balance
7/1/51



Receipts



Disburse-
ments



Balance
3/31/52



Restricted Funds:
Div. of Colleges
Agr.Exp.Station
Agr. Ext. Division

     Subtotal

Loan Fund:
P rncipal
Income

    Subtotal

Endowment Funds:
Principlal
Income

    Subtotal

Agency Funds:
Balances


Combined Totals



$1,471,738.78
   54,158.96
   150,152.84



$1,761,238.53
   133,549.18
   78,697.96



$1,676,050.58  $1,973,485.67


$  62,797.61  $
    22,385.19      2,115.22

    _85,182.80 $   2.2115.22


$ 199,928.18  $      300.00
    2,645.67        571.34

$202,573.85   $      871.34


$  69,939.86 $ 346,595-31


$1,963,807.23   1



$1,473,131.77
   84,o83.05
   84,469.83



$1,759,845.54
  103,625.09
  144,380.97



$l ,641,684.65 $2,007,851.60


$             $   62,797.61
       40.56     24,'459.85

$      40.56  $   87,257.46


$             $ 200,228.18
      489.75      2,727.26

$ t.    489275  $ 202,955.44


$ 342,516.19  $  74,018.98


$1,6412,2'14.96  _229q64-50




 






8



                      University of Kentucky
          STATEMENT OF COMBiNED RECEIPTS AND EXPENDITURES
            For the Current Fiscal Period which began
              July 1, 1951, and Ended March 31, 1952




Receipts and Transfers:



General Income
Plant Income
Restricted Receipts
Loan Fund Receipts
Endowment Fund Receipts
Agency Fund Receipts



Total Receipts



$6,819,739.34
   233,370.83
 1,973,485.67
     2,115.22
       871.34


$9,376,177.71



Expenditures and Transfers (Including Encumbrances):



General Fund Expenditures
Plant Fund Expenditures
Restricted Fund Expenditures
Loan Fund Expenditures
Endowment Fund Expenditures
Agency Fund Expenditures



Total Expenditures



$1,641,684.65
   318,270.91
1,997,347.05
        40.56
        489.75
   342, 516.19

$4X, 300134k9.11




 




9



         University of Kentucky
    STATEMENT OF PLANT APPROPRIATIONS
For the Current Fiscal Period which began
July 1, 1951, and Ended March 31, 1952


               Plant Funds



Dept.
Approp.



Expendi-
tures



Encumn-
brances



Free
Balance



Division of Colleges:

P.W.A. First Bond
   Issue             $

P.W.A. Second Bond
   Issue

Dorm.Rev.Bond Issue

Audit-Fieldhouse Issue

Lib. & Service Bldg.
   Bond Issue

Stadium Rev.Bond Issue

Dorm.Issue-456 Rose
   Street

Journalism Bond Isste

Dicker House Annuity

Fieldhouse

Norwood Hall Fire
   Loss Bal.



36,477.19


16,781.73

23,524.00

102,648.50

46,538.27


23, 274. 00


4,108.42

16,723.00

    230.68

30,250.27



3,267.15 $



16,713.46

3,902.50

61,037.50

38,947.50



23,100.00


4,096.25

13,915.00



$   33,210.04



    68.27

19,621.50

41,611.00

7,590.77



   174.00


   12.17

 2,808.00

   230.68

30,250.27



15,911.25



15,911.25



Purchase of Land & Bldg.

Service Bldg.Constr.    11,000.00

Fine Arts Bldg.          2,159.47

Journalism              59,094.99

Add.to Col. of Educa.

New Science Bldg.        3,300.00

Dorm.Constr.-476 Rose St.4,513.14

Libr.& Serv.Bldg.
   Clearance            24,265.35
Sprinkler System         4,443.32



$ 226,945.26  



7,302.81



51,548.09



3,697.19

2,159.47

7,546.90



3,115.00



3,300.00

1,398.14



24,265.35
4.443.32



$ __198,298.32



Subtotal



$ 425.243.58




 





10



        University of Kentucky
   STATlM1VENT OF PLANT APPROPRIATIONS
For the Current Fiscal Period which began
July 1, 1951, and Ended March 31, 1952


              Plant Funds



                      Dept.
                      Approp.

Agr. Experiment Station:

Animal Path. Bldg.  $   1,880.75



Repairs & New
  Equipment

West. Ky. Tobacco Barn

West. Ky. Water System



Expendi-
tures



$



Encum-
brances



204.39 $ 1,154.77



Free
Balance



$   521.59



194.48



194.48



200.00



200.00



Agr.Eng. Bldg.



Sheep Barns



Brooder House



2,500.00

17,856.00



162.66



4,801.77



2,500.00

12, 891,57



Miscellaneous



Subtotal



Combined Total



  3,704.83*  597.06

$ 93,926.40 o,  1i



$519,169.98



10,000.00



$238,513.17 $ 79,757.74
        T1T_.3U%



14,301.89*

$ .2,600.75

$200,899.07



*Expenditures and encumbrances in excess of appropriation or negative figure.



75,000.00



10,603.80



63,801.20



595.00




 










     The report was examined by members of the Board of Trustees,
and upon motion duly made, seconded and carried, was authorized re-
ceived and made a part of the minutes.


     C. Annual Report of the Comptroller.

     The Comptroller submitted a printed brochure covering the
annual report of the Comptroller for the year ended June 30, 1951.
He called the attention of the members of the Board to the Audit
Certificate of the Auditor of Public Accounts, Comments of the
Comptroller, and other information contained in the report, and
stated that all financial transactions of the University were re-
corded and submitted in statements contained in the brochure.

     The Comptroller called special attention to the Balance Sheet,
Schedule of Inventory of Land Owned by the University, Schedule
of Bonded Indebtedness, Statements and Payments Thereon, Summary
of Fixed Assets Inventory, and statement of Investment of Restrict-
ed, Trust, Agency, Endowment and Loan Funds.

     On motion duly made, seconded and carried, the report was
received.


     D. Budget for 1952-53-

     President Donovan submitted the budget for 1952-53, and made
available to each member of the Board of Trustees a complete de-
tailed copy of the proposed budget.   He stated that each member
was at liberty to keep the copy of the proposed budget if he
desired to do so, and made the following statement.

          "It is in order that I express the appreciation of all
     of those connected with the University in any capacity to
     Governor Wetherby and the General Assembly for their consid-
     eration in granting the University an increase of $646,738.50
     in its appropriation for this next year (1952-53). If this
     increase in income had not been provided, it would have
     been disastrous for this institution.   We desire that these
     state officials be made aware of our gratitude in providing
     these additional funds to offset losses in federal funds
     due to the decline in the enrollment of G.I.1s.

          "The Trustees, I believe will be interested in how
    the budget is prepared for their consideration.   I shall
    therefore enumerate the steps that are involved.

         "1. The Comptroller prepares an estimate of the income
    of the University from all sources for the next year and
    furnishes this information to the President.

         "2. The President holds many conferences with the
    Vice President, Comptroller and Deans of the several col-
    leges,establishing their needs and informing them of the




 






14



approximate allotments to each college and auxiliary agency.

      "3. The President then allots X dollars to each college
and the several auxiliary agencies.   Then the Deans are re-
quested to appropriate to each department that sum of money
which will be required to discharge its responsibilities.

     "4. The Deans hold conferences with heads of the depart-
ments of their colleges and they prepare the departmental
budgets for the same,

     "5. After each dean has prepared the budget for his
college he meets with the President, the Vice President and
the Comptroller where his budget is re-examined and evaluated
in terms of the total budget of the University.

     "6. When these college budgets have been prepared and
approved by the President, they are turned over to the
Comptroller.   The Comptroller and his staff then prepare the
document which is before you.

     "Many hundreds of hours of conscientious work go into the
preparation of a budget for the University.

     "This budget calls for the expenditure of approximately
the same amount of money as we are expending during the current
year.   This has been made possible only because (1) the
Governor recommended $646 738.50 more from state funds than
we received last year; (25 student fees have been increased,
effective September 1, which will amount to a considerable
sum of money; and (3) by the practice of every economy pos-
sible during the current year, and by reason of the fact that
we had approximately three hundred more veterans during the
current year than we had anticipated, we will have a balance
of $466,931.69 for the division of colleges at the end of
this year.   The total of these sums will offset the million
dollars we have anticipated losing as a result of the decline
in the enrollment of veterans.

     "The present budget does not anticipate the University
expanding any of its departments or adding new departments
that are so often requested by citizens of the state, or
expanding the services of its departments already establish-
ed. During the eleven years I have been president, this
institution has established only one new college, which was
in reality already in existence and should more appropriately
be said to have been annexed to the University.    This was
the College of Pharmacy located in Louisville, which has
paid much of its own cost since becoming a college of this
institution.   Two new departments, one in geography and
the other in radio arts, were established.    These constitute
the only expansion of the University during the past decade.
Most universities, both private and public, have during




 






15



this period established a number of new colleges and many
departments.  I believe the Trustees should be aware that
there has been a very limited program of expansion in the
institution over which they preside.  Such funds as we
have received have gone into the building of stronger de-
partments that have been in existence for many, many years.

     "In the preparation of this budget, I instructed the
deans and the heads of the departments to reduce as far as
it was possible the number of employees in their colleges
and departments.   I am aware that they made a conscientious
effort to do this.  When a vacancy occurred wherever it was
possible we closed ranks and did not employ a new staff
member.   By taking advantage of retirements, and resignations
of personnel to-accept other positions  we have been able to
reduce the staff of the University by 44 full-time positions
and 55 part-time positions.   In addition, several leaves of
absence have been arranged for, and between 10 and 15 people
have been reduced from twelve monthst assignments to ten
months' assignments.

     "I informed the deans at the time they were making up
the budget that whatever savings they could make by reducing
staff could be expended in salary increases, which are very
much needed if we are to hold many of our best men and women
on the faculty.   You will find, upon an examination of this
budget, that a number of small increases have been made purely
on a merit basis.   No cross-the-board increase was possible
with the amount of money we had available.   Many employees
who did not get increases may have merited some increase but
there was simply not enough money available to provide an
increase for everyone.

     "The greatest asset of any university is its faculty.
No facility can compare in value with a scholarly and inspir-
ing teacher.   The University takes great pride in its campus
on which are situated many lovely buildings. It has a great
library and many excellent laboratories, but none of these
compare in value with its professors and other staff members.

     "Good teachers and research scholars are in great demand
today.   The federal government is constantly bidding for
some of our best people.   Industry is seeking our engineers,
chemists, physicists, economists and scholars in many other
fields.   Other universities are always ready to pick off
our ablest faculty members.   It is therefore very important
that the University of Kentucky keep its salary scale as
high as it can in order not to have the best people on our
staff taken away from us.

     "Our faculty is for the most part a young faculty. Its
members have been educated in the best universities of the
world.   They are attractive people, energetic and ambitious
to make a contribution,   If our University can hold these




 






16



     young men and women during this period, the next decade will
     be the greatest period the University has ever known.   We
     have the men and women on our faculty today that can do the
     Job.  We must not let them be taken away from us.   Ken-
     tucky needs them more than any other state.   Therefore, I
     entreat the Trustees and all other citizens of our state
     who are interested in building up a great university to
     help us keep the personnel we have and add to it persons of
     the same quality as the years pass.

          "I should like to go over the budget with you that you
     may be thoroughly familiar with how the funds appropriated
     for the use and benefit of the University are expended.   It
     is our desire that every dollar of the taxpayers' money bring
     in return a dollar's worth of service."

     President Donovan stated that the Comptroller had summarized the
budget document, and the Comptroller read the following statement:


                             COMMENTS

Purpose of the Budget:

     The Annual Internal Budget is an intelligent, carefully planned
financial program designed to bring about the distribution of avail-
able income which best serves the needs of the University of Ken-
tucky.   This budget document provides an instrument for financial
control for the fiscal year: from July 1, 1952 to June 30, 1953.

Estimated Income:

     The detailed estimate of income for the General and Plant Funds
anticipates a total of $ 7,389,696.13 for the fiscal year 1952-53.
For comparison purposes revised estimated income for the current
year amounted to $ 7 1641,06.14.   The total net increase in estimat-
ed income of $ 225,569.99 is made up from the following increases
and decreases in estimated income.

     Source                           Increase         Decrease

     State Appropriations            $ 646,738.50

     Federal Grants                     11,907.36

     Sales, Services & Rentals                        $ 1,050.00

     Student Fees                                      466,503.00

     Auxiliary Enterprises              35,187.63



: . - -



Miscellaneous



690.50




 






17



      The major changes in estimated income are:

      1. The decrease in estimated income from student fees is due
 to a reduction in the overall enrollment at the University.   We
 estimate an enrollment for the fiscal year 1952-53 of 4,500 stu-
 dents.   This is only a decrease of about 400 from the current
 enrollment,

      The estimated decrease in income from student fees would have
 been greater but for an increase in incidental and registration
 fee of $ 5.00 per semester per enrollee, effective September 1952.

      The University for the past five years has-received from the
 Federal Government for veterans enrolled in the University under the
 Government Educational Program, tuition amounting to more than
 $1*000,000.00 per year.   This budget anticipates that the enroll-
 ment of veterans will not exceed 400, hence a material loss in
 student fees and tuition for the ensuing fiscal year.

      2. The increase in auxiliary enterprises' income will be primari-
ly received from an increase of $20.00 per semester for room and
board in the Woments Residence Halls.    The charge for room rent
in the men's dormitory has been increased slightly.

Estimated Expenditures:

     The detailed estimate of the departmental appropriations for
the General and Plant Funds will amount to $ 7,676,157.43, for the
fiscal year 1952-53,   It will be noted that practically no in-
creases have been made in the budget's appropriations for the
various functions of the Division of Colleges.    The total appro-
priations for the Agricultural Experiment Station show a decrease
of $ 128,991.40 for the ensuing fiscal year,    whereas, the appro-
priations for the Agricultural Extension Division show an in-
crease of $ 1841,522.53.  The recommended departmental appropria-
tions we believe equitably allocate the available income to provide
for essential functions of the University.    The departmental
appropriations for the current year amount to $ 7,681,256.74, which
approximates the total appropriations for the current year.

Unappropriated Surplus:

     It is difficult to estimate surpluses.    We believe, however,
that there will be an unappropriated surplus as of June 30, 1952
of about $ 466,ooo0oo to the cr