UNIVERSITY             OF KENTUCKY


                        LEXINGTON




                                   April 2, 1957







Dr. Frank G. Dickey, President
University of Kentucky
Lexington, Kentucky

Dear Doctor Dickey:

        I submit herewith the balance sheet and its relating fi-
nancial statements of operations of the University of Kentucky
for the eight-months period ended February 28, 1957.

        The income realized for general fund purposes totaled
$9,577,677. 87 for the period, which is 84. 03% of the budget
estimate of $11, 397, 539. 64. The expenditures and encumbrances
outstanding for the same period amounted to $7, 115, 364. 35, or
63.40% of the departmental appropriations.

        On November 21, 1956, a temporary investment of
$500, 000 was made in U. S. Treasury Notes from available
restricted fund monies.  These notes matured on March 15,
19 57, realizing an additional income of $4,447. 5 1. Then or
March 14, 1957, the University again invested temporarily
$500, 000 of inactive restricted fund monies in U. S. Treasury
Notes at the interest rate of 3-1/4%, maturing June 24, 1957,
and yielding approximately $4, 000.


                                  Respectfully submitted,



                                  Frank D. Peterson
                                  Vice President
                                  Business Administration