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Finance Committee Minutes -- Jan. 8, 2004 -- Board of Trustees -- University of Louisville

by Bendl,Kurt last modified Nov 08, 2009 04:26 PM

MINUTES OF THE FINANCE COMMITTEE
UNIVERSITY OF LOUISVILLE BOARD OF TRUSTEES

January 8, 2004

In Open Session

The Finance Committee of the University of Louisville Board of Trustees met Thursday, January 8, 2004, in the Jefferson Room, Grawemeyer Hall, with members present and absent as follows:

Finance Committee Present:

Mr. Nathaniel Green, Chair
Ms. Joyce Hagen, Vice Chair
Mr. Kevin Cogan
Prof. David Ensign
Mr. Michael Sticklen
Ms. Elizabeth Worland

Finance Committee Absent:

Mr. Owsley B. Frazier

Other Trustees Attending:

Ms. Marie Abrams
Judge Angela McCormick Bisig
Mr. Ulysses L. Bridgeman, Jr.
Ms. Virginia C. Brown
Ms. Linda Wallbaum Cauble
Ms. Donna Tinsley Denny
Mr. Grant Helman
Mr. Milton M. Livingston
Ms. Jessica S. Loving

From the University:

Dr. James R. Ramsey, President
Dr. Shirley Willihnganz, Acting Executive Vice President and Provost
Dr. Joel A. Kaplan, Executive Vice President Chancellor for HSC
Ms. Angela D. Koshewa, University Counsel
Mr. Larry L. Owsley, Vice President for Business Affairs
Mr. Joseph S. Beyel, Vice President for University Advancement
Dr. Denise D. Gifford, Vice President for Student Affairs
Dr. Nancy C. Martin, Vice President for Research
Mr. Ronald L. Moore, Vice President for Information & Technology
Mr. Michael J. Curtin, Vice President for Finance
Dr. David Howarth, Associate Provost
Dr. Dale Billingsley, Associate Provost
Mrs. Terri Rutledge, Associate Vice President for Finance & Administration
Ms. Rae Goldsmith, Associate Vice President for University Relations
Ms. Susan Ingram, Director of Budget and Financial Planning
Ms. Dana Mayton, Assoc. Vice President for University Advancement
Mr. Larry Zink, Controller
Mr. John Drees, Director of Public Information
Ms. Carolyn Cochran, Assistant to the Provost
Mrs. Kathleen M. Smith, Assistant Secretary, Board of Trustees
Ms. Debbie Dougherty, Board Liaison, President’s Office

Guest:

Mr. Bernie Backert, Deloitte & Touche
Mr. Jim Carpenter, Deloitte & Touche

I. Call to Order

Having determined a quorum present, Chair Green called the meeting to order at

1:45 p.m.

Approval of Minutes, October 9, 2003

Mr. Cogan made a motion, which Ms. Hagen seconded, to approve the minutes of October 9, 2003. The motion passed unanimously.

II. Action Item: Approval of Capital Construction Project Improvements – Belknap Campus

President Ramsey reported the University received from the Transportation Cabinet a $1 million grant as the state’s partner to improve campus areas contiguous to communities in the South Central area of Louisville. Mary Lou Northern and Jane Ramsey co-chair the Task Force to develop a plan for moving ahead with many improvements around Central Avenue and Third Street. This recommendation will begin the effort to look at the traffic pattern on Eastern Parkway. The University will work with the state to monitor and possibly reduce vehicular traffic on this very busy street. Mr. Sticklen noted this study is critical. Ms. Hagen made a motion, which Mr. Sticklen seconded, to approve the

President’s recommendation that the following renovation project be approved:

Project Estimated Cost Fund Source
Improvements – Belknap Campus    
* Traffic Study 150,000 State Grant

The motion passed unanimously.

III. Action Item: Approval of Establishment of the Neurological Research Fund Endowment Match Program

President Ramsey reported this endowment for mission support will significantly enhance the scientific investigation of Drs. Scott Whittemore, Chris Shields, and the research team working in the area of spinal cord injury and neurological rehabilitation. Ms. Worland made a motion, which Mr. Sticklen seconded, to approve the

President’s recommendation that the Board of Trustees approve the establishment of the Neurological Rehabilitation Research Fund, which will be funded from the Commonwealth’s Endowment Match Program and the Spinal Cord and Head Injury Research Trust Fund; and authorize the Chair of the Board of Trustees to execute any documents required to complete the establishment of this endowment fund.

The motion passed unanimously.

IV. Action Item: Approval of Audited Financial Statements for FY 2003

President Ramsey asked Vice President Curtin and Mr. Bernie Backert of Deloitte & Touche to review the audited financial statements. Vice President Curtin reported that the external auditors issued a clean, unqualified opinion. He noted that University affiliates’ (ULAA, UofL Research Foundation) financial information is reported on this consolidated financial statement. The financial status of the University is very strong. Mr. Backert shared the following highlights:

  • The University’s financial position remains strong at June 30, 2003, with assets of $715 million and liabilities of $229.4 million. Net assets, which represent the residual interest in the University’s assets after liabilities are deducted, were $485.6 million as of June 30, 2003.

  • Gross tuition and fees were $99 million for the year ended June 30, 2003, an increase of $5.2 million, or 5.5% more compared to the previous year. Approved tuition rate increases for 2002-03 generated approximately $5 million in additional tuition revenue.

  • Total general fund appropriations from the Commonwealth of Kentucky were $151 million for the year. Appropriations and certain other revenues and expenses are now reported under Government Accounting Standards Board (GASB) Statement No. 35 as nonoperating revenues.

  • Operating revenues amounted to $333.3 million and operating expenses were $510.7 million resulting in a net operating loss of $177.4 million. When adjusted for $151 million in state appropriations and $17.9 million in other net nonoperating revenues, net assets of the University decreased by $8.5 million for the year ended June 30, 2003.

Ms. Cauble commented the audited financial statements provide much information. Ms. Cauble applauded Senior Vice President Nancy Martin and her staff for their work related to grants and contracts, noting they have done great job at increasing grants. Dr. Martin thanked Ms. Cauble and emphasized the deans and faculty members were the ones who have worked exceedingly hard to obtain the grants and contracts.

Chairman Green thanked Vice President Curtin and Mr. Backert for an excellent financial report. Mr. Cogan made a motion, which Prof. Ensign seconded, to approve the

President’s recommendation that the Board of Trustees approve the audited financial statements for the period ending June 30, 2003, as presented under Governmental Accounting Standards Board (GASB) 34 (attached).

The motion passed unanimously.

V. Information Item: Report on Furnishings Pursuant to HB 269

President Ramsey stated that this information item represented the capital purchases of $5,000 or greater made during the past six months. The University submits this report to the state. President Ramsey welcomed Vice President Owsley upon his return from administrative leave and asked him to comment. Vice President Owsley noted the report (copy attached) is for the period

July 2003- November 2003. During that time period, $2 million in capital purchases were reported.

VI. Other Business

President Ramsey reported on the status of budget issues coming from the Council on Postsecondary Education and the Gubernatorial Office. The budget directives are serious, and the University has begun campus-wide discussions to address the proposal for next year. On average, state agencies will receive a cut of 2.5%. President Ramsey recently learned the Governor’s proposed budget cut may include all university fund sources, which would represent an even larger cut. This would include all athletic dollars, clinical fees generated by physicians, and donations. President Ramsey will keep the Board informed of any developments.

Chairman Green said that Chairman Bridgeman asked him to report regularly about University of Louisville Foundation items. Mr. Green referenced the letter in the board binder (copy attached) which covers all actions at the last Foundation board meeting.

Chairman Green noted the Finance Committee held its first seminar on Tuesday, January 6, 2004. He welcomed board members to attend any future seminar, which will be held every Tuesday preceding the Finance Committee meetings. The next seminar is scheduled for Tuesday, March 9, 2004. Ms. Loving stated that she could not attend the seminar and asked if there were any issues raised. Chairman Green responded that most of the seminar information dealt with the audited financial statements. The University’s financial position is solid. Chairman Green recognized the significant impact that University of Louisville Foundation funding has had on the University’s many programs.

VII. Adjournment

Ms. Hagen made a motion, which Prof. Ensign seconded, to adjourn the meeting at 2:30 p.m. The motion passed unanimously.


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