MINUTES OF THE FINANCE COMMITTEE University of Kentucky Board of Trustees March 4, 2008 11:30 AM
Committee Members Present
Stephen Branscum, Chair; Dermontti Dawson, Frank Shoop; JoEtta Wickliffe Approval of Minutes
The minutes of the January 22, 2008, Finance Committee meeting were approved as presented. FCR 1, Approval of Leases
Frank A. Butler, Executive Vice President for Finance and Administration, presented FCR 1, which requests that the Board authorize the Executive Vice President for Finance and Administration to renew a lease between the University and Kentucky Utilities for space located at One Quality Street, Lexington, KY for the use of 48,026 square feet at an annual rate of $308,864. This lease is for space on the 6th, 7th, and 8th floors of the KU Building which is being used for classrooms and offices. The original lease was executed on August 1, 2002. Frank Shoop approved the authorization. Dermontti Dawson seconded, and the motion for approval unanimously carried.
FCR 2, Renovate/Expand the Center for Applied Energy Research
Jim Tracy, Vice President for Research, presented FCR 2 which requests the Board approve initiation of the renovation and expansion of the Center for Applied Energy Research. The Kentucky General Assembly appropriated $2 million of state funds in the 2007 Special Session to improve the Center. This project will create additional space for research and the processing of minerals. The consultant hired for the expansion will prepare a plan for the entire facility along with a prioritized cost list to be implemented sequentially in accordance with the stated goals of the legislation. This project is expected to cost $2 million, the scope authorized and funded by the Kentucky General Assembly. Dermontti Dawson approved the request. Frank Shoop seconded, and the motion for approval unanimously carried.
FCR 3, Acceptance of Interim Financial Report for the University of Kentucky for the Six Months ended December 31, 2007
Marc Mathews, Treasurer, presented FCR 3 which requests acceptance of the Interim Financial Report for the three months ended December 31, 2007. As of December 31, 2007 the University has realized 54 percent of the revenue estimate and expended 45 percent of the approved budget. The balance sheet is strong with assets of $3.3 billion and liabilities of $950 million. Fund balances of $2.2 billion represent a 67 percent equity position in the total assets. Revenues and appropriated fund balances have exceeded expenditures to date by $176.2 million, creating a strong cash position and balance sheet as of December 31, 2007. At the end of the first six months of the 2007-08 fiscal year, financial operations are consistent with the budget plan and the University's financial condition is excellent. Frank Shoop approved the acceptance of the report. JoEtta Wickliffe seconded, and the motion for approval unanimously carried.
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