xt7nzs2k725z https://exploreuk.uky.edu/dips/xt7nzs2k725z/data/mets.xml Lexington, Kentucky University of Kentucky 19990726 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, 1999-07-oct26. text Minutes of the University of Kentucky Board of Trustees, 1999-07-oct26. 1999 2011 true xt7nzs2k725z section xt7nzs2k725z 


                             Meeting of the Board of Trustees
                                 University of Kentucky
                                         1:00 P.M.
                                     October 26, 1999


Roll Call

Nomination of Assistant Secretary

Approval of Minutes

President's Report and Action Items

PR 1    President's Report to the Trustees
        A. Lexington Community College Report

PR 2    Personnel Actions

PR 3    Central Administration
        A.  Proposed Amendments to the Governing Regulations

PR 4    Community College System (No items to report)

PR 5    Lexington Campus
        A. Name Change in Program and Degree Title
        B.  Consolidated MS Program in Nutrition
        C.  James W. Stuckert Career Center

PR 6    Medical Center
        A. The Center for Minimally Invasive Surgery

Finance Committee

1.    Acceptance of Interim Financial Report for the University of Kentucky for the Three Months
             Ended September 30, 1999
 2.    Acceptance of the 1999 Annual Report and the Financial Statements of the University of
             Kentucky and Affiliated Corporations and Other Related Organizations for the Year
             Ended June 30, 1999
 3.    Report of Lease
 4.    Approval of Lease
 5.    Patent Assignment Report
 6.     Settlement of Boundary Dispute Robinson Forest Beaver Dam Tract


       Minutes of the Meeting of the Board of Trustees of the University of Kentucky, Tuesday,
October 26, 1999.

       The Board of Trustees of the University of Kentucky met at 1:00 p.m. (Lexington time)
on Tuesday, October 26, 1999 in the Board Room on the 18th floor of Patterson Office Tower.

      A.    Meeting Opened

      Mr. Billy Joe Miles, Chairperson, called the meeting to order at 1:00 p.m., and the
invocation was pronounced by Dr. Grady Stumbo.

      B.    Roll Call

      The following members of the Board of Trustees answered the call of the roll: Mr. Ted
Bates, Governor Edward T. Breathitt, Mr. Paul W. Chellgren, Mr. James Glenn III, Mr. John
"Jack" Guthrie, Dr. Loys L. Mather, Dr. Robert P. Meriwether, Mr. Billy Joe Miles (Chairman),
Mr. Steven S. Reed, Dr. Daniel R. Reedy, Mr. C. Frank Shoop, Ms. Marian Sims, Ms. Alice
Sparks, Dr. W. Grady Stumbo, Ms. JoEtta Y. Wickliffe, Mr. Billy B. Wilcoxson, Mr. Russell
Williams and Ms. Elaine Wilson. Absent from the meeting were Mr. Merwin Grayson and Dr.
Elissa Plattner. The University administration was represented by President Charles T.
Wethington, Jr.; Chancellors James W. Holsinger, and Elisabeth Zinser; Vice Presidents
Fitzgerald Bramwell, Joseph T. Burch, Ben W. Carr, Edward A. Carter, George DeBin and
Eugene Williams; Dr. Juanita Fleming, Special Assistant for Academic Affairs; Mr. C. M.
Newton, Director of Athletics, and Mr. Richard E. Plymale, General Counsel.

      Members of the various news media were also in attendance. A quorum being present,
the Chairperson declared the meeting officially open for the conduct of business at 1:03 p.m.

      C. Nomination of Assistant Secretary

      Mr. Miles said the nomination of the assistant secretary was overlooked at the last
meeting. General Counsel Dick Plymale has filled that role in the past; however, there needs to
be a nomination for Mr. Plymale to be elected assistant secretary. Ms. Wickliffe moved that Mr.
Plymale be elected assistant secretary. Mr. Williams seconded the motion, and it passed.

      D.    Approval of Minutes

      Mr. Miles said that the Minutes of the Board meeting on September 21, 1999 had been
sent out for the Board to read at their leisure. He asked for any change, correction or addition to
the Minutes. Mr. Guthrie moved that the Minutes be approved. Mr. Reed seconded the motion,
and it carried.


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E.    President's Report to the Board of Trustees (PR 1)

President Wethington called attention to the following items in PR 1:

1 . The faculty and staff generated $132.2 million in research grants, contracts, and gifts
   from sources outside the University during fiscal year 1999. The 441 faculty
   members who have obtained extramural funding for five or more consecutive years
   were honored at a reception hosted by Vice President Fitzgerald Bramwell and his

2. One hundred seventy-three new UK Fellows were honored recently at the
   University's annual Fellows Society dinner.

3. The College of Fine Arts and Lexmark have designed and made prototypes of
   computer office furniture that might be seen in the year 2020. The furniture was
   unveiled in Boston and will be on exhibit in the gallery of the UK Art Museum on
   November 2-4.

4. Brian Ray, a senior business major from Denver, Colorado, was named the top
   speaker at the National Invitational Collegiate Debate Tournament held last month at
   Northern Iowa University. He won the top honor over 236 other college debaters
   from 40 institutions representing 16 states.

5. Miss America, Heather Renee French of Maysville, presented a $25,000 scholarship
   gift to UK during halftime of the homecoming football game.

6. The College of Medicine has received a five-year, $5 million grant from the National
   Institutes of Health to support a Parkinson's Disease Research Center of Excellence.
   Only eight centers were funded this year, bringing the total number funded
   nationwide to 11. Professor Greg Gerhardt, Anatomy and Neurobiology, leads the
   research team. He was recruited from Colorado and has brought the expertise staff
   and funding to enable the University to establish the Parkinson's Disease Research
   Center of Excellence.

7. The Kentucky Kernel was named a finalist for the National Pacemaker Award given
   by the Associated Collegiate Press. Finalists are considered the top 10 daily student
   papers in the country. The winner will be announced October 3Oth.

8. The internet helps persons with disabilities access higher education. A $784,000,
   three-year grant to the College of Education will be used to develop Web-based
   instruction to help school administrators, faculty, and staff provide students with
   disabilities better access to quality higher education.


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       President Wethington asked the members to read the other items in the report as time
allowed. He said with the Chairman's permission he would have the Lexington Community
College report at the end of his agenda, and he continued his report with the action items.

       F.    Personnel Actions (PR 2)

       President Wethington recommended that approval be given to the appointments, actions
and/or other staff changes which require Board action; and that the report relative to
appointments and/or changes already approved by the administration be accepted. Mr. Bates
moved approval. The motion, seconded by Mr. Shoop, carried. (See PR 2 at the end of the

       G.    Proposed Amendments to the Governing Regulations (PR 3A!

       President Wethington said that PR 3A is a recommendation for proposed amendments to
the Governing Regulations. These amendments can be characterized as clarification of certain
regulations of the University. He noted that the recommendations have come up through the
various faculty bodies inside the University.

      He explained that the Senate has been reviewing changes in the appointment, promotion,
and tenure regulations during the past year. Part of that effort has led to a proposal that certain
changes be made to better clarify the rules and regulations as expressed in PR 3A. He said, in
his opinion, the proposed changes are not fundamental changes but a clarification of the process
that currently exists at the University of Kentucky. The amendments need to stay on the table for
at least a month before being approved. Initial action to receive the proposed amendments will
be taken at this meeting, and the Board will have an opportunity for final action in December if
PR 3A is approved today. He said he was pleased to recommend PR 3A for approval.

      Mr. Bates asked if President Wethington was recommending PR 3A for approval now or
would the Board get to act on it later.

      President Wethington said that the recommendation is that the proposed amendments be
received at this time for preliminary consideration and at the next regular meeting of the Board
be included on the agenda for action. The Board's action today is to receive these proposed
changes and then act officially on them at the December meeting if the Board chooses.

      On motion made by Mr. Shoop, seconded by Ms. Wilson and carried, PR 3A was
approved. (See PR 3A at the end of the Minutes.)

      H.    Name Change in Program and Degree Title (PR 5A)

      President Wethington said that PR 5A is a recommendation that the Board approve the
change to refocus the current MS degree program in Nutrition and Food Science to a MS degree
program in Hospitality and Dietetics Administration. This consolidation and name change better
reflect what the program will be doing as we head into the twenty first century. He said he was
pleased to recommend approval of PR 5A. He noted the change would need to go from the


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Board to the Council on Postsecondary Education for final approval because it represents a
degree change at the University. Ms. Wilson moved approval. Mr. Chellgren seconded the
motion, and it passed. (See PR 5A at the end of the Minutes.)

       I.    Consolidated MS Program in Nutrition (PR 5B)

       President Wethington said that PR 5B is a companion recommendation. The
recommendation is that the Board approve the consolidation of the MS in Clinical Nutrition in
the College of Allied Health Professions and the MS in Nutrition and Food Science in the
College of Human Environmental Sciences into one combined masters degree in Nutritional
Sciences. This change pulls together a program which is in the Medical Center in Allied Health
and one which is in the Lexington Campus in Human Environmental Sciences. This is a good
move designed to increase efficiency and effectiveness. He said he was delighted to recommend
approval of PR 5B. Mr. Williams moved approval. His motion, seconded by Mr. Chellgren,
carried. (See PR 5B at the end of the Minutes.)

      J.    James W. Stuckert Career Center (PR 5C)

      President Wethington said that PR 5C is a recommendation that he is delighted to bring
to the Board. At the last Board meeting, the Board approved the acceptance of a pledge and gift
from Jim and Diane Stuckert. He said he indicated at that time that he planned to take to the
Committee on Naming University Buildings the proposal that the new University Career Center
currently being built on Rose Street next to the Alumni House be named the James W. Stuckert
Career Center. The Committee on Naming University Buildings would make the
recommendation to the Chancellor who would make the recommendation to him and the Board.
He said it gave him great pleasure to recommend that the new University Career Center to be
completed in the year 2000 be named the James W. Stuckert Career Center. Mr. Bates moved
approval. Mr. Guthrie seconded the motion, and it carried. (See PR 5C at the end of the

      Mr. Guthrie said that he knew that Jim and Diane Stuckert were in attendance at the
meeting. He said he would like for the Board to know of the leadership that Mr. Stuckert has
brought to the University. He was a past national alumni president and has been active in the
Jefferson County Alumni Club for years. It is a pleasure to see his success and that he has been
able to pass that on to the University. On behalf of the Board he thanked Mr. and Mrs. Stuckert
very much.

      Mr. Miles and President Wethington asked Mr. and Mrs. Stuckert to stand and be
recognized, following which they received a round of applause. President Wethington said that
everyone certainly appreciated all that they do for the University of Kentucky, not just recently
but for a long time. Mr. and Mrs. Stuckert are dedicated alumni and supporters of the
University. He said, "We know where your heart is, and it is with the University. We look
forward to participating with you in a dedication ceremony for the new James W. Stuckert
Career Center sometime in the first half of the year 2000." He thanked them for coming to the


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       K.    The Center for Minimally Invasive Surgery (PR 6A)

       President Wethington said the recommendation is that the Board approve the
establishment of the Center for Minimally Invasive Surgery in the Medical Center. The goals of
the Center are to improve clinical service through research, contribute to basic, clinical and
outcomes-based research and provide educational programs for residents and faculty seeking
continuing education. Everyone who might be faced with surgery ought to be interested in this
approach to surgery. If it works, it has numerous advantages. The Medical Center has some
excellent expertise and a sizable gift from US Surgical that is helping with the establishment and
funding of the Center. He said it was a pleasure for him to recommend the approval of PR 6A,
the Center for Minimally Invasive Surgery. Ms. Sparks moved approval. Dr. Stumbo seconded
the motion, and it passed. (See PR 6A at the end of the Minutes.)

       L.    Lexington Community College Report

       President Wethington asked Chancellor Zinser to introduce Dr. James Kerley, President
of Lexington Community College (LCC).

      Dr. Zinser thanked President Wethington for giving them the opportunity to present to the
Board a brief overview of the Lexington Community College. She said it was a great pleasure
for her to introduce Dr. James Kerley. The Board and the University made a wonderful decision
in bringing Dr. Kerley into the very exciting and unique community college.

      President Kerley came to the University in July of 1998. Prior to that he spent nine years
at Hopkinsville Community College as President and for a couple of years before that he was a
Chief Academic Officer and Dean of Academic Affairs at Madisonville. He has had a great deal
of experience in Kentucky. In addition to that, he spent some time as Chair of the Department of
Education at Union College in Barboursville.

      Chancellor Zinser said it is exciting to work with Dr. Kerley. He is full of enthusiasm
and ideas. He has engaged his faculty and staff in thinking very progressively about the vision of
Lexington Community College. He is very dedicated to the idea of having the Lexington
Community College become a top twenty community college in our nation in harmony with our
ambition as a public research university in the top twenty. We are creating a much closer
alliance between our research university and our community college in this venture.

      Dr. Kerley is a full member of the Deans' Council of the Lexington Campus. He was
actively involved with his deans and other senior officers in a retreat where we were visioning
how the University and the Community College can be more mutually supportive to one another
in the course of our aspirations and development. There is a great deal to be said about the
unique top twenty public research university and community college moving into the future in a
very unique way that will help put both institutions on the map. Dr. Kerley is the right person to
be helping us do that.


- 6-

       Dr. Kerley thanked Chancellor Zinser for her introduction and said he appreciated the
opportunity of working with Chancellor Zinser. All the deans and vice chancellors have been
truly supportive as far as Lexington Community College is concerned. He recognized Mark
Denomme, his technical expert that has helped him with some of the graphics, and Suzanne
Denomme, the Development Officer at Lexington Community College.

       Dr. Kerley presented an overview of the college's past, present and future directions. He
discussed the historical perspective of LCC which began in 1965 with its first graduating class in
1967. He talked about the campus facilities and the three buildings (Oswald, Moloney,
Academic/Technical) on the Cooper Drive campus, plus the LCC East operation which is
primarily geared for continuing education, workforce training and economic development. He
mentioned the rich history of LCC and the close association with the University of Kentucky.

       Dr. Kerley said a key component of LCC's success is the quality faculty, caring staff, and
staying true to the mission of the College, open access, diversity, quality and serving the 13-
county region. He emphasized the openness in giving opportunity to students of all ages and
abilities. Transfer, technical and the continuing education components of the mission are at the
core of its offerings. Since 1985, LCC has had an enrollment grow from 2,500 students to
almost 7,000 students with only three buildings. LCC has a 21% increase in African American
students, 10% increase in Hispanic students and students coming from 113 counties in Kentucky,
39 states and 32 countries.

       LCC's future is limitless and without walls. It is the goal of LCC to be a national model
working with a great research university like UK. LCC aspires to be a top twenty community
college in the country. There are 19 benchmark colleges that give a measuring stick for
faculty/staff salaries, structure and continued improvement.

      LCC's primary goals and the strengthening of resources were discussed. For example,
the emphasis on competitive salaries for faculty and staff is critical. LCC is seeking new grants,
scholarships for students with an emphasis on retention; strengthening institutional effectiveness,
planning and assessment; as well as the commitment to excellence through access, equity and

       Dr. Kerley discussed the collaborative efforts with UK colleges and the medical center,
such as with College of Engineering, Social Work and Education. A fourth goal is in the area of
leadership and LCC becoming a premiere educational institution in addressing the issues and the
challenges of the 21 st century. He said LCC will accomplish the leadership role by adding more
resources, measuring LCC against the best colleges in the nation, improving technology and
opportunities for professional faculty and staff development.

       The organizational structure and reporting mechanism for LCC is through the UK Board
of Trustees, UK President, Lexington Campus Chancellor and then to the President of LCC. Dr.
Kerley emphasized that LCC is a separately accredited institution with a certain degree of
autonomy to make decisions as any other stand alone campus, but with strong ties through UK.



       Partnerships were discussed with LCC and industries like Toyota, UPS, Lexmark, Square
D and local school systems, and cooperative ventures with KCTCS and the local Central
Kentucky Technical College.

       Dr. Kerley discussed the challenge and strong need for a campus expansion and that a
new building is a priority for LCC and UK. He stressed that to continue to provide
opportunities, added space is imperative and that hopefully a new facility can be secured in the
next legislative session.

       He discussed the opportunities to make LCC and UK seamless in some of its
programming and ease transfer through 2+2 programs. For example, LCC and UK's College of
Human Environmental Sciences are currently discussing a 2+2 program in Early Childhood
Education. LCC is working side by side with UK entities like Coldstream Research Park. The
opportunities are unlimited.

       There was an extended discussion of space needs: CPE reports that LCC has a 54%
deficit of space, which includes classrooms, labs, student space and opportunities to expand
existing and new programs. He said that they visualize a new early childhood program, child
care, smart classrooms, and placing the student support area in a new facility. The projected
enrollment at LCC within the next few years is 10,000 students. Space is critical and help is
needed. Community colleges like LCC are a highly democratizing force in society and giving
millions of people a sense of pride and an opportunity to realize their dreams.

      In closing, Dr. Kerley said he is very proud and passionate about LCC and the connection
with the University of Kentucky. He expressed appreciation to Chancellor Zinser and President
Wethington for the opportunity to present the report, for their support for LCC and for the
Board's support for LCC.

      Mr. Miles asked what it would take and what could the Board do to help the community
college get to the top twenty status.

      Dr. Kerley said the college needs more resources. They need a new facility and more
lease space. They have some national programs already; however, they need to continue to raise
the programs to a higher level. They need to continue the UK connection with the 2+2 programs
between the University of Kentucky and LCC. He indicated they were already on track doing
some of those things.

       Dr. Kerley said that he had asked Mr. Miles' question to Dr. Pierce, the head of the
American Association of Community Colleges and chief spokesperson for the community
colleges. Dr. Pierce said LCC needs quality programs, quality faculty, and competitive salaries.
It needed to continue getting the vision out by letting people know about the college and to
continue to work on resources.

       Mr. Guthrie asked if the open access of the campus was true in most community colleges
or only in the top twenty.


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       Dr. Kerley replied, "Yes, that is a hallmark. If you take that open door out, in my
opinion, it is not a community college." He said if you give the students opportunity and
motivation, they can do great things in their lives.

       Ms. Wickliffe thanked Dr. Kerley for putting the Board on the Lexington Community
College mailing list and keeping them abreast of what is happening at the College.

       Professor Mather said that he noticed in Dr. Kerley's presentation that LCC has
operations in a number of locations even outside of Fayette County. He asked Dr. Kerley if LCC
got additional space would they put it in the heart of campus or in another location.

       Dr. Kerley replied, "There are different options on that. I think it could be on the
campus, and I could give a lot of reasons for that, or it could possibly be somewhere else. I think
we want to be open on that right now. There are two or three options in the plans that were done
several years ago. They have laid out an option at the Cooper Drive Campus as well as other
options so we would entertain different options for that I'm sure."

      Ms. Sims expressed her celebration for what the Lexington Community College does for
the students.

      A question was asked about LCC East and Dr. Kerley responded that at some point LCC
East would probably need to be moved in to a more desirable location and be able to expand it
more to meet the needs of business and industry.

      President Wethington reminded the Board of certain initiatives that were proposed by the
University of Kentucky that address the needs of Lexington Community College. In the Higher
Education Reform Act the budget language indicated that the University of Kentucky was to
continue making a budget request for Lexington Community College and keep it separated so
that it could be identified. The building needs that Dr. Kerley has addressed is in that request
which was made again to the Council on Postsecondary Education, the Governor and the General
Assembly. In the analysis of the base budgets of the institutions in the state, Lexington
Community College has been identified as one of those institutions which needs some serious
adjustment upward in its base budget. You will find a recommendation from the Council on
Postsecondary Education, or at least I hope so, that will help provide or at least recommend that
there be some additional financial resources come to Lexington Community College in the next
General Assembly session. If so, that will address one of Dr. Kerley's needs. He has mentioned
two or three items i.e. faculty salaries, and some other issues that are crucial, I think, to the
development of that institution. President Wethington said he appreciated the good work that
they are doing at LCC and thanked Dr. Kerley for the good report.

       M.    Search Committee for President

       President Wethington said that he had a recommendation from the University Senate
within the last two weeks that there be a change made in the composition of the Search
Committee for the President of the University of Kentucky, and he was asked to bring the
recommendation to this Board meeting. When the recommendation came to him, it was a



recommendation that would remove the community college faculty member from the Search
Committee and replace that member by a staff member. He said he felt the need to seek the
input from that entity which was being impacted by this change i.e. the community college
faculty. He said he wrote to the Senate of the Community College System because those
individuals are still University of Kentucky employees and to the Chancellor of the Community
College System asking for their input prior to making some recommendation to the Board.

       He said that the Board may anticipate the recommendation coming from him on this
matter in December rather than at this meeting because he thinks everyone needs to hear from
those who are most impacted. The issue in question of any change in the composition of the
Search Committee would require a change in the Governing Regulations. He said he wanted to
be able to hear from those interested parties before bringing anything official to the Board. In
case the University Senate has questions, he said he had communicated to them in writing telling
them what he was doing. He reiterated that he would seek input and then bring something to the
Board at the December meeting which would lay on the table and then come back to the Board
for final consideration in January. He said he was reminded of this by a communication that
Jimmy Glenn had distributed on that same issue.

      Mr. Miles said, "So, we would have it on the December agenda."

      President Wethington replied that the December meeting would be his intention unless he
gets directed otherwise.

      Mr. Miles called attention to the memorandum that Mr. Glenn had passed out expressing
the students' desire.

      Mr. Shoop asked if that was the same issue that the President was talking about and were
the students recommending that, too.

      President Wethington said that Mr. Glenn's letter was a recommendation that does relate
to the recommendation from the University Senate. It may be a different recommendation, but it
is related to the same topic.

      Mr. Glenn said it was a rough draft that he and some of the members of the Student
Government had drafted. He said that he talked to a couple of Board members and a couple of
other people inside the University and he wanted to get some feedback from the Board members
to go to the administration. It is not the final proposal

      Mr. Shoop said, "So, in effect this is a rough draft that we remove the community college
representative from the Search Committee and add a full-time staff member."

      President Wethington said that is the recommendation from the University Senate, but he
had not read Mr. Glenn's recommendation.

      Mr. Chellgren said that Mr. Glenn's draft had another point as well that a graduate or
professional student be added to the Search Committee.


10 -

       Mr. Glenn responded that was true. His draft has a staff member and another student on
the committee.

      Mr. Miles said that there would need to be a lot of thought go into this matter. He and the
officers met with three students last week and asked the students to present that to the Board.
The questions are: Do we replace the community college representative, and if so, who with?
He indicated that it could be a long meeting and asked the Board for any recommendation.

      President Wethington explained the process to the Board. He said the process in the
Board regulations indicates that any recommendation that comes to the Board must come to the
President. The President then submits the recommendation to the Board along with his
recommendation. He proposed that the regulations be followed and that the recommendations
come to the Board with his recommendation attached. He said he wanted to let the Board know
that it would be December before he did any of that rather than now.

      Mr. Miles asked if it would require two-thirds of a majority of the vote.

      President Wethington said it is a simple majority of the Board.

      Mr. Miles asked if the structure of the Search Committee could be changed at a meeting.

      President Wethington explained that it would take two meetings. This is like the other
proposal that is on the agenda today. It would come before the Board to be reviewed and
accepted at one meeting and then voted on for final approval at the following meeting.

      Mr. Miles asked if everyone understood the process.

      Mr. Shoop said, "So, the recommendation will come from President Wethington in

      President Wethington said he must transmit the recommendations which are made to him
to the Board and then comment on or submit another recommendation. He stated that his
recommendation must accompany any change in the Governing Regulations. December is the
time the Board ought to start that discussion. There needs to be time for input from others before
that is submitted to the Board, and it might be a lengthy meeting.

      N. Acceptance of Interim Financial Report for the University of Kentucky for the
Three Months Ended September 30. 1999 (FCR 1)

      Mr. Chellgren, Chairperson of the Finance Committee, reported that the Committee met
and had six items on the agenda. He noted that many members of the Board were in attendance.
The first item on the agenda was the Acceptance of the Interim Financial Report for the Three
Months Ended September 30, 1999. He reported that the expenditure summary by program is
25% through the year. The revenue of the University is 28% of the budgeted amount and the
expenditure is 27% of the budgeted amount. There are no material changes in the interim


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financial statements. The University continues to be in sound financial condition, and the
Finance Committee will continue to review and approve these reports as the fiscal year advances.
He moved the acceptance of the interim financial report for the three months ended September
30, 1999. Mr. Guthrie seconded the motion, and it passed. (See FCR 1 at the end of the

       0.    Acceptance of the 1999 Annual Report and the Financial Statements of the
University of Kentucky and Affiliated Corporations and Other Related Organizations for the
Year Ended June 30. 1999 (FCR 2)

       Mr. Chellgren said that the principal subject of the Finance Committee was quite an
extensive discussion of the 1999 Annual Report and the financial statements of the University of
Kentucky and the various affiliated corporations and other related organizations for the fiscal
year that ended June 30, 1999. There was an extensive discussion from Jim Carpenter, the
partner at Deloitte and Touche. Jim is the engagement partner for the University of Kentucky
engagement audit.

       Mr. Chellgren said that it was very important to note that Deloitte and Touche were
giving the University of Kentucky a clean opinion with no exceptions or qualifications for all of
the affiliated organizations plus the summary report for the University. Jim also relayed and
described the three letters such as the management letter, the internal control letter, and the letter
certifying the university's compliance with Kentucky House Bill No. 662. This is one of the
requirements of the finan