xt7qz60bwd43 https://exploreuk.uky.edu/dips/xt7qz60bwd43/data/mets.xml Lexington, Kentucky University of Kentucky 20020929 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, 2002-09-oct29. text Minutes of the University of Kentucky Board of Trustees, 2002-09-oct29. 2002 2011 true xt7qz60bwd43 section xt7qz60bwd43

AGENDA

Meeting of the Board of Trustees
University of Kentucky
1:00 P.M.
October 29, 2002
18th Floor Patterson Office Tower

Minutes

President's Report and Action Items

PR 2 Personnel Actions
PR 3 Naming of University Building
PR 4 Director of Food Services Emeritus Be Conferred upon Carol Raitz
PR 5 Appointment of Provost
PR 6 Appointment of Vice President for Research
PR 7 Appointment of General Counsel

Academic Affairs Committee Report

AACR 1 Change of Organizational Structure of the Kentucky Tobacco Research
Development Center
AACR 2 Bachelor of Science in Biosystems and Agricultural Engineering
AACR 3 Creation of a College of Design
AACR 4 Master of Science: Professional Master of Biomedical Engineering

Finance Committee Report

FCR 1 Acceptance of Interim Financial Report for the University of Kentucky for
Three Months Ended September 30, 2002
FCR 2 Capital Construction Report
FCR 3 Patent Assignment Report
FCR 4 Dr. and Mrs. Peter Buck Gift
FCR 5 Estate of Jack H. Kimball
FCR 6 Richard A. Barbella Gift
FCR 7 Sandra A. Frazer and Thomas R. Frazer II Gift
FCR 8 Approval of 2001-2002 Endowment Match Program Annual Report

Minutes of the Meeting of the Board of Trustees of the University of Kentucky,
Tuesday, October 29, 2002.

The Board of Trustees of the University of Kentucky met at 1:00 p.m. (Lexington
time) on Tuesday, October 29, 2002 in the Board Room on the 18th Floor of Patterson Office
Tower.

A. Meeting Opened

Mr. Steven Reed, Chairperson, called the meeting to order at 1:05 p.m., and Mr. Tim
Robinson gave the invocation.

B. Roll Call

The following members of the Board of Trustees answered the call of the roll: Mr.
Paul W. Chellgren, Ms. Marianne Smith Edge, Professor Michael Kennedy, Dr. Robert P.
Meriwether, Mr. Billy Joe Miles, Dr. Elissa Plattner, Dr. Claire Pomeroy, Mr. Steven S. Reed
(Chairperson), Mr. Tim Robinson, Mr. C. Frank Shoop, Ms. Marian Moore Sims, Ms. Alice
Stevens Sparks, Dr. W. Grady Stumbo, Ms. Myra Leigh Tobin, Ms. JoEtta Y. Wickliffe, Mr.
Billy B. Wilcoxson, Mr. Russ Williams, Ms. Elaine A. Wilson, and Ms. Barbara S. Young.
Absent from the meeting was Ms. Pamela R. May. The University administration was
represented by President Lee T. Todd, Jr., Acting Provost Michael Nietzel, Acting Senior
Vice President Jack C. Blanton, Senior Vice President and Chancellor of the Medical Center
James W. Holsinger, Jr., Acting Vice President for Research James Boling, and Acting
General Counsel, Mr. Paul Van Booven.

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
1:08 p.m.

C. Consent Agenda

Mr. Reed asked for a motion for approval of the following consent items on the
agenda.
Approval of Minutes - September 17, 2002
PR 2 - Personnel Actions

Ms. Smith Edge moved approval. Her motion, seconded by Ms. Young, carried
without dissent. (See PR 2 at the end of the Minutes.)

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

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

1. The University of Kentucky won a $22.3 million grant for math and
science education. Paul Eakin and Wimberly Royster were two of the

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people who pushed the proposal through. Ron Atwood, Steve
Henderson, and Carl Lee are other key faculty members involved. The
real crux of this investment by the National Science Foundation in 52
counties in Kentucky is that UK can have an impact on the
math/science score gaps that exist in that Appalachian region. This
grant will help attack one of the problems that UK has highlighted in
Kentucky.

2. First Lady Judy Patton and President Todd unveiled a Violence
Against Women Center that has been active in Frankfort but is now on
the University of Kentucky campus. This is a significant opportunity
for UK to have input in that area.

3. The University received good coverage on the new Health Literacy
Program. This is an effort where UK will attempt to help its
employees understand their health issues better than anybody else in
the world and keep UK's costs down. The problem UK has is that
insurance costs are going to continue to increase at 18-20% and that
takes a large amount out of the budget. This new program should help
control the costs.

4. UK has broken into the top fifty public universities in U.S. News and
World Report magazine.

5. The Gatton College wins $1.17 million grant to establish a Kentucky
Center for Poverty Research. This really attacks another major issue
in the State of Kentucky. There are only a few of those in the nation,
and we are very proud of that.

6. The College of Medicine faculty, staff and alumni recently gathered
for a ceremony to rename the College of Medicine building after Dr.
William R. Willard, the first dean of the College. Some of his family
members were there, and it gave UK an opportunity to honor him. Dr.
Willard was basically the founding father of the Medical Center.

7. Delta Dental has established a Center to improve oral health of
Kentuckians and other issues. They contributed $1.5 million divided
between UK and the University of Louisville. Each university will
have a Bucks for Brains professor in that area. Jeff Ebersole is the
Director of UK's Center and, in addition, he has received a NIH grant.

8. Jack Guthrie, former Trustee, received a UK School of Journalism and
Telecommunications recognition for lifetime achievement at a meeting
held last week on campus.

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9. UK had a major event recognizing the birth of African-American icon,
Langston Hughes.

10. UK and city opens the Dorotha Smith Oatts Visitor Center at the
arboretum. There was a ribbon cutting and ceremony that was
appreciated by many people.

11. The Kentucky Kernel staff is a finalist for the top national college
newspaper award. To be in the top listing is significant.

President Todd referred back to PR 2 on the consent agenda and pointed out the
names of three very special individuals, the Alumni Professorships. He reported that
President Oswald originated the Alumni Professorships, and the first professorship was
awarded at the April 4, 1967 Board meeting. The Alumni Professorships were established to
strengthen the academic program and also to benefit recruitment and retention of faculty. It
is considered a special honor and recognition to a faculty member for significant
contributions in a field of study and/or outstanding service to the University. The annual
stipend for these professorships will be $15,000 a year for five years.

President Todd asked Professor Allan Butterfield from Chemistry, Professor Everett
McCorvey from the College of Fine Arts and the outstanding opera and music program, and
Professor Dayong Gao from Mechanical Engineering to stand and be recognized, following
which they received a round of applause. He said that these are the type of recognitions that
the professors should be extremely proud of receiving, and he was proud of them and glad
that they are at the University of Kentucky. He thanked them for everything that they do.

E. Update on University's Self-Study SACS Report

President Todd gave the Board an update on the University's Self-Study SACS
Report. He thanked Board member Alice Sparks for the many hours she spent on the
committee. UK's response to the report of the Reaffirmation Committee of the Commission
on Colleges for SACS was sent to them on October 1, 2002. Copies of the response were
also mailed to the Board last week.

In reviewing the documents, the Board will find that the institution has dealt with all
of the SACS recommendations. The Commission on Colleges Committee on Criteria and
Reports will review UK's response and make a recommendation of reaffirmation of
accreditation to the COC Executive Council at their December 10, 2002 meeting in San
Antonio. At that time, UK will get the final results for that process and then get ready for the
next one which will occur ten years from now.

F. Naming of University Building (PR 3)

President Todd said that PR 3 is a recommendation that the Board of Trustees
approve the renaming of Anderson Hall to the F. Paul Anderson Tower. This request is made
because the new mechanical engineering building is named for Ralph G. Anderson. This

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action is to try to eliminate any confusion between the two buildings. He recommended that
the Board approve the renaming of Anderson Hall. Ms. Sims moved the approval of PR 3.
Her motion, seconded by Ms. Sparks, unanimously carried. (See PR 3 at the end of the
Minutes.)

G. Director of Food Services Emeritus be Conferred Upon Carol Raitz (PR 4)

President Todd said it was his pleasure to recognize another emeritus staff member.
He recommended that Ms. Carol Raitz be named Director of Food Services Emeritus in
recognition of her long service and dedication to the University of Kentucky students for
more than 32 years. He noted that her husband, Karl Raitz, is one of UK's outstanding
faculty members, and they were both in attendance.

President Todd reported that Mrs. Raitz began her career as manager of the Commons
Dining Room. She was named Food Services Director in 1995 and served until the year
2002. She initiated the first academic partnership between Food Services and the College of
Agriculture and the College of Home Economics that is now the College of Human
Environmental Sciences. Under her direction, the Lemon Tree, a student managed dining
room, and the Block and Barrel Deli in Erikson Hall became successful partnerships.

Mrs. Raitz also worked with the architects of the William T. Young Library to design
Ovids that is no doubt a popular success with many UK students. Her menus for Food
Services received the American Medical Association award for healthy food choices. The
University of Kentucky was the only public university to receive that honor.

Mrs. Raitz was also active in the National Association of College and University
Food Services, serving as Vice President for Region III for 1997 and 1998 and as Region III
President from 1999 to 2002.

President Todd said it was his pleasure to ask Mrs. Raitz to step forward and be
recognized. He presented a certificate to her, and she received a round of applause.

On motion made by Ms. Smith Edge and seconded by Ms. Wilson, PR 4 was
unanimously carried. (See PR 4 at the end of the Minutes.)

H. Appointment of Provost (PR 5)

President Todd said that he wanted to bring forth a recommendation that the Board
approve the appointment of Dr. Mike Nietzel as Provost effective November 1, 2002. He
provided some background information and said that when he assumed office on July 1, 2001
he reorganized the University and created a position of Provost. He asked Dr. Nietzel to
serve as the first Acting Provost in that position. He appointed a committee in August 2002
to identify and recommend qualified candidates for the permanent position of Provost. The
committee included deans, a student that was selected by Tim Robinson, a faculty member
that was selected by Carolyn Bratt and the Women's Commission. He said that he also
consulted with the Commission on Diversity with regard to asking Everett McCorvey to

serve on the committee. He noted that there were two faculty members that were named by
the Senate Council.

President Todd reported that when he first formed an Advisory Committee Dr. Doug
Boyd was going to be the Chairperson; however, the Senate Council asked if he would put a
co-chair on the Committee that they could name. He agreed to that, and the Senate Council
named Loys Mather, whom many of the Board members know. In addition, they requested
that they be allowed to add another faculty member, Lee Edgerton, and he approved that
request.

President Todd reported that the Advisory Committee considered thirty-seven
candidates who were either nominated or applied for the position. The Advisory Committee
stated that the pool was broad and diverse in terms of race, ethnicity and gender. It also
represented a strong mix of professional backgrounds, including some current provosts, some
deans and some vice presidents of other universities. The Committee unanimously agreed to
submit seven names to him, four of which they stated stood out from the rest of the pool of
applicants.

In submitting the recommendations, the Advisory Committee asked him to consider
an appointment from these candidates but, in addition, they noted that it was their unanimous
belief that the University might best be served by my making a decision at this point in the
process. They gave him the option of making the decision now or continuing the process.
The opinion that the Advisory Committee gave him was a unanimous assessment. He
pointed out that had the Committee come to him as a split Committee and had the Committee
come to him and said that they wanted to invite four people to campus, he would have done
that. He said that the Committee came to him and gave him the opportunity to make a
selection at this time. He reminded the Board that there were thirteen members on the
Advisory Committee, and it was a unanimous opinion. The Committee put forth a group of
very strong candidates.

President Todd said that the Committee's discussion centered on the fact that given
Dr. Nietzel's experience and his proven leadership in the position, they thought none of the
other candidates could surpass these qualifications in the interview process. Had the process
been extended and had candidates been invited to campus, they could have still ended up
with the same decision. Therefore, based on the Committee's unanimous recommendation to
him that he could make that decision now, he chose to do so. He said that he reviewed all the
recommended candidates' credentials, and after that review, he had chosen Dr. Nietzel as the
most qualified. Some of this is based on his long, distinguished service to the University of
Kentucky already, his intimate knowledge of the institution, his high standing with his peers
on campus, the innovative performance that he has shown to him during the last fifteen
months, and the working relationship that he has had with Dr. Nietzel.

President Todd gave a very brief review of Dr. Nietzel's credentials. Dr. Nietzel
began his career at UK in 1973 as an instructor in the Department of Psychology. In 1976,
he was appointed Director of the Clinical Psychology Training Program. In 1987, he was
named Acting Director of Graduate Studies for the Department of Psychology. In 1988, he

was named Associate Director of Graduate Studies. From 1991 to 1997, Dr. Nietzel served
as the Chair of the Department of Psychology. He was named Dean of the Graduate School
for UK in 1997 and held that position until he was appointed Acting Provost in 2001.
President Todd recommended that the Board of Trustees approve the appointment of Dr.
Michael T. Nietzel as Provost effective November 1, 2002. Mr. Shoop moved approval. Ms.
Wilson seconded the motion, and it carried unanimously. (See PR 5 at the end of the
Minutes.)

Mr. Reed said that it is a Board policy to respect President Todd's decision, and they
will commend him for his decision. It is President Todd's obligation to make personnel
decisions. He pointed out that President Todd had done one thing that he did not have to do,
and that is to be as inclusive as he has been in formalizing his decision. He said that the
Board appreciates the fact that President Todd was very inclusive so that he could make the
best decision possible.

President Todd recognized Dr. Sandy D'Angelo, Dr. Nietzel's wife. He thanked her
for her patience through the last year and a half and thanked her for coming to the Board
meeting. Dr. D'Angelo received a round of applause. He asked Dr. Nietzel if he would like
to say anything at this time.

Dr. Nietzel thanked President Todd. He said that he appreciated the vote, and the
appointment that he would like to accept. He said he was very pleased that his wife, Sandy,
could be there. She has stood with him through personal and professional matters all
throughout a long period, and he is really grateful for her support. There were features of
this that she did not bank on in terms of the last fifteen or eighteen months, and she
maintained a great deal of calmness or, at least for his benefit, pretended that she did.
Through that process, it was extremely helpful to him to have that kind of support from her.
He is very happy that she is present and able to share in this with him.

Dr. Nietzel thanked President Todd. He said twenty months ago they barely knew
each other. Whatever they have as a relationship has evolved through the opportunity to
work together, and it has been a terrific experience for him, one that stretched him in this
period of time a lot more than he thought it would. He said he knew President Todd took a
risk on him, and he is very grateful that President Todd is giving him this chance to do the
job permanently. He said he was really pleased to go from a two-word title to a one-word
title.

Dr. Nietzel thanked the members of the administration who have extended themselves
in all sorts of personal and professional ways to him during the past fifteen months to help
him do the job, and he knows that they will continue to do that.

He recognized some staff with whom he has worked very closely with over the past
year in the audience and extended his thanks to them. He singled out Kris Hobson and Joyce
Fannin in the Provost's Office who put up with him daily and make his job a whole lot easier
by their effectiveness and efficiency, and the fact that they like to work at the University of
Kentucky.

Dr. Nietzel said that he thought the University, from an academic point of view, is
continuing to make very good progress toward becoming one of the esteemed public
universities in the country. No good university stands still and so the people that we are
marching against or competing against are improving, but if you look at the experience of the
past couple of years, you will see that UK's pace has quickened more than many of them.
And, if UK stays rooted in the three missions for the University, research, outstanding
teaching, and service, it will be able to maintain that pace of progress as it fulfills the
obligation the legislature gave and the opportunity that the state has given UK to become a
leading research university for the nation and also the world. He said that he looked forward
to having a discussion about that at the Board retreat.

Dr. Nietzel expressed appreciation for everyone's support, and said that he looked
forward to working with the Board and Dr. Todd, who he thinks has allowed this progress to
occur because he has found it an uncommonly effective way to unite the missions of
research, teaching and service for the University and articulating it in a way that has not been
done before. It makes it very easy to lead the academic programs of the University when you
have that kind of vision over-arching all of it. Dr. Nietzel received a round of applause.

President Todd asked Loys Mather and other members of the Advisory Committee to
please stand and be recognized. The Committee received a round of applause.

I. Appointment of Vice President for Research (PR 6)

President Todd said that he had a second exciting recommendation that he would like
to bring to the Board. The recommendation is that the Board approve the appointment of Dr.
Wendy Baldwin as Vice President for Research effective January 1, 2003. He noted that
when he assumed office in July 2001, he asked Dr. James Boling to be Acting Vice President
for Research. He asked Dr. Boling to stand and be recognized, following which he received
a round of applause.

President Todd reported that in January of 2002, he appointed a search committee
chaired by Professor Kimberly Anderson from the College of Engineering to seek candidates
for the position of Vice President for Research. As a result of that search, there were four
finalists for the position. Three were brought to campus, and one was an internal candidate.
The candidates met with him, the faculty and the staff of various organizations. Persons
meeting with the candidates were invited to send their comments and their preferences on
each of the candidates to the Committee and these, in turn, were forwarded to him.

He briefly reviewed Dr. Baldwin's credentials. He said that she began her career as a
social worker in the Suffolk County Department of Social Services in Bayshore, New York.
During the period of 1968 to 1972, she served as a research assistant in the Department of
Sociology at the University of Kentucky, while obtaining her M.A. and Ph.D. degrees. In
1973, Dr. Baldwin began a twenty-year period of service to the National Institute of Child
Health and Human Development. During that period, she served as the Health Scientist
Administrator for the Behavioral Sciences Branch of the Center for Population Research, as

Chief of the Demographics and Behavioral Sciences Branch of the Center for Population
Research and as Deputy Director. Since 1993, Dr. Baldwin has served as Deputy Director
for Extramural Research at the National Institute of Health in Bethesda, Maryland.

Dr. Baldwin is a member of numerous professional associations, has published
dozens of papers and articles, and has testified extensively before Congress on a broad range
of research issues. She is a member of the Board of the Human Frontier Science Program,
served as a U.S. Representative to the World Health Organization, and is a member of the
International Advisory Committee for the Scientists for Health and Research for
Development Association. Dr. Baldwin also has served on the Pew Charitable Trust, the
Federal Demonstration Partnership of the National Science and Technology Council and the
American Association for the Advancement of Science.

President Todd said that Dr. Baldwin could not attend the meeting; however, she
would be at the Board Retreat Wednesday afternoon. He recommended that the Board
approve the appointment of Dr. Wendy Baldwin as Vice President for Research at the
University of Kentucky.

Mr. Reed called for a motion of approval of PR 6. Mr. Chellgren so moved. Dr.
Plattner seconded his motion, and it carried unanimously. (See PR 6 at the end of the
Minutes.)

President Todd extended his congratulations to Professor Kimberly Anderson and any
members of the search committee for the Vice President for Research. He said it was a long,
extended process, and they did a wonderful job.

President Todd noted that Dr. Baldwin would be available to the press by phone. He
pointed out that Dr. Baldwin received her Doctor of Sociology at the University of Kentucky.
She has done research in the area of arts and sciences. About 65% of UK's extramural
research funding has come from NIH where Dr. Baldwin serves as Deputy Director. She has
been involved with extramural funding of universities and knows that landscape extremely
well. He said he was pleased that she could be at the University of Kentucky on January 1,
2003.

J. Appointment of General Counsel (PR 7)

President Todd recommended that the Board of Trustees approve the appointment of
Paul C. Van Booven as General Counsel effective November 1, 2002. He reported that Mr.
Van Booven has served as Acting General Counsel since May 2002. He has been associated
with the University in various capacities for almost three decades. Mr. Van Booven's
institutional knowledge and understanding of the University's organizational structure and
operations make him an excellent recommendation for the position of General Counsel.

Mr. Van Booven received his bachelor's degree from DePauw University before
returning to Kentucky to receive his Juris Doctor degree from the University of Kentucky
Law School in 1976. At UK, Mr. Van Booven has served as the Managing Editor of the

Kentucky Law Journal. He served as an Assistant and an Associate Dean in the UK College
of Law from 1976 through 1989. He moved to the UK Office of Legal Counsel in 1989 as
Associate General Counsel and has served as Deputy General Counsel, and on two
occasions, as Acting General Counsel.

Mr. Van Booven is admitted to practice in the Commonwealth of Kentucky, United
States District Court for the Eastern District of Kentucky, and the United States Court of
Appeals for the Sixth Circuit, and the United States Supreme Court.

The position of General Counsel was advertised online through the Office of Human
Resources. Several applications were received and reviewed. From the review, it was clear
that Mr. Van Booven was the most qualified of the applicants, principally through his years
of service in the University's Office of Legal Counsel, his educational background, and his
dynamic personality. President Todd said it was his pleasure to recommend that the Board of
Trustees approve the appointment of Paul C. Van Booven as General Counsel for the
University of Kentucky effective November 1, 2002.

Mr. Reed called for a motion for approval of PR 7. Mr. Williams so moved. His
motion, seconded by Professor Kennedy, unanimously carried. (See PR 7 at the end of the
Minutes.)

President Todd asked Mr. Van Booven if he would like to step forward and say
anything.

As Mr. Van Booven approached the podium, Mr. Reed said that Mr. Van Booven was
an Associate Dean while he was in Law School. He said that it was nice knowing him from
his days as a student when he was scared to death of him.

Mr. Van Booven said that he did not realize that Mr. Reed was scared of him. He
said it was a distinct honor to be selected as the University's chief lawyer because he has
been selected to be the chief legal representative for the best client that there is in the State of
Kentucky. He said that he has the best job now, and he thanked the Board very much. It
goes without saying that the obligation of a lawyer is to represent the client. His client is the
University of Kentucky, and the Legal Office gets instructions from the Board acting as a
whole, from its Chair, and from President Todd. He said that they do their best to represent
the University in the way that the Board directs them to represent the University.

Mr. Van Booven said that being a lawyer for the Board is not just a one-person affair.
The University has a great Legal Office, and it has great outside counsel. Mr. Van Booven
received a round of applause

K. Search Committee for Senior Vice President for Administration

President Todd reported that he has asked Henry Clay Owen to Chair a Search
Committee for the Senior Vice President for Administration position. He will charge that
Committee on November 7th, and that process will begin. While he would like to have the

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position filled by the end of December, he noted that Dr. Jack Blanton has agreed to serve in
that position until he gets it filled. He said that he looked forward to bringing a
recommendation to the Board in the not too distant future.

L. Change of Organizational Structure of the Kentucky Tobacco Research
Development Center (AACR 1)

Ms. Sparks, Chairperson of the Academic Affairs Committee, reported that the
Committee had four items to bring to the Board's attention and, hopefully, approval. The
first is the change of the organizational structure of the Kentucky Tobacco Research
Development Center. This would be transferred from the Office of Vice President for
Research to the Dean in the College of Agriculture. It comes as a recommendation from the
Futures Task Force. The Acting Vice President for Research has recommended the proposal,
and the Provost supports the recommendation. She moved approval of AACR 1. Ms. Young
seconded the motion, and it unanimously carried. (See AACR 1 at the end of the Minutes.)

M. Bachelor of Science in Biosystems and Agricultural Engineering (AACR 2)

Ms. Sparks said that AACR 2 recommends that the Board approve the change in the
name of the Bachelor of Science in Agricultural Engineering to Bachelor of Science in
Biosystems and Agricultural Engineering. This recommendation changes the undergraduate
degree title to conform to the departmental name. The Undergraduate Council, the Senate
Council and the University Senate have approved this proposal. The Provost also supports
the recommendation. She moved approval of AACR 2. Ms. Wilson seconded the motion,
and it carried unanimously. (See AACR 2 at the end of the Minutes.)

N. Creation of a College of Design (AACR 3)

Ms. Sparks said that AACR 3 is a recommendation to create the College of Design.
This recommendation was also part of the Futures Task Force Study. The College will
include the School of Interior Design, the new School of Architecture and a Department of
Historic Preservation. The proposal has been supported by everyone up the ladder, and the
Provost supports the recommendation. She moved approval of AACR 3. Her motion,
seconded by Ms. Smith Edge, carried unanimously. (See AACR 3 at the end of the Minutes.)

0. Master of Science: Professional Master of Biomedical Engineering (AACR 4)

Ms. Sparks said that AACR 4 is a recommendation that the Board approve the
establishment of a Master of Science: Professional Master of Biomedical Engineering Degree
in the Center for Biomedical Engineering. She reported that the program has met with the
approval of everyone, and she moved that AACR 4 be approved. Ms. Wilson seconded the
motion, and it carried unanimously. (See AACR 4 at the end of the Minutes.)

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P. Acceptance of Interim Financial Report for the University of Kentucky for
Three Months Ended September 30, 2002 (FCR 1)

Paul Chellgren, Chairperson of the Finance Committee, reported that the Finance
Committee met that morning and had a relatively short agenda. The first item, FCR 1, was to
accept the Interim Financial Report for the University of Kentucky for the three months
ended September 30, 2002. That, of course, is the 25% completion point in the academic and
fiscal calendar. The University had received realized income of a little over $416 million
which was some 31% of the anticipated revenues of $1,341 billion, and the expenditures and
commitments were some $361 million or some 27% of the approved budget of $1,341
billion. The Committee discussed the report in some length. Much of the revenue is sort of
front end loaded as the University receives tuition, fees and income from the beginning of the
academic year. There are a few expenditure items that are also front end loaded. Those
would include student financial aid, a debt service and some other like items. He said that
there was nothing that needed to be brought before the Board's attention and moved the
acceptance of FCR 1. Ms. Tobin seconded his motion, and it carried