xt7xwd3pwf31 https://exploreuk.uky.edu/dips/xt7xwd3pwf31/data/mets.xml Lexington, Kentucky University of Kentucky 19321120 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, 1932-11-sep20-ec. text Minutes of the University of Kentucky Board of Trustees, 1932-11-sep20-ec. 1932 2011 true xt7xwd3pwf31 section xt7xwd3pwf31 








    Minutes of Meeting of the Executive Committee, University
of Kentucky, September 24, 1932.

     The Executive Committee of the Board of Trustees of the Uni-
ver~ity of Kentucky met in President McVey's office at the Uni-
versity of Kentucky, Sebtember 20, 1932, at 10:30 a. m. The
following members of the Committee were present: Judge R. C.
Stoll, Judge Robert G. Gordon, and E. B. Webb. Dr. W. W. Wash
and Louis Hillenmeyer, members of the Board of Trustees, sat in
the meeting with the Executive Committee.   President F. L. Mc-
Vey and Secretary D. H. Peak were present.


     1. Minutes Approved.   The Minutes of the meeting of the
Executive Committee of July 13, 1932, were approved as published.

     2. President's Report.  President McVey made the following
report which was ordered to be inserted in the Minutes:

     The attendance upon the University this year has fallen to
2612, figures given me on the date of this writing, September
20.   The attendance last year at this time was in round numbers
3100.   Consequently, there has been a decline of 17-1 per cent
over last year.   The number of women students has declined
23.7 per cent and the number of men students 14.25 per cent.
The estimate of student attendance made at the time of the adop-
tion of the budget this year was 2550.   This is a net figure for
full payment of fees, which may not be reached by the figures
for the first semester of this year.

     The income for the year 1931-1932 in the four general divi-
sions of the University was $387,439 less than the year before.
The General Fund decline was $2 85,860; the Experiment Station,
100,545; the Agricultural Extension, $451; and the Trust Funds
1532 less than the year before.   The University began last year
with $170,000 owing to banks and other creditors.   The amount
due banks had to be paid, so that the University was faced with
the necessity of reducing salaries, cutting all expenses and
coming inside of its income as rapidly as possible.    It ended
last year owing in back salaries 5204,500 and with all obligations
to banks paid in full.   Back salary obligations have been reduced
by credits to about 1200, 000.

      In consequence of these difficulties, the University was
compelled to reduce salaries as indicated above and to pass the
salaries due in May a#d June.   This threw upon the staff a very
heavy burden and in order to meet this situation in part a coop-
erative loan organization was created and money subscribed by
professional and business men in the city to the extent of
$K1,000 and the committee in charge of the loans passed upon obli-
gations amounting to .31,000,   The arrangement closed the first
of August and the trustees have since paid to subscribers twenty-




 









five per cent of their subscriptions.

    There were a number of difficulties in financing this year.
One of these was an understanding and interpretation of the bud-
get law.   Little by little these difficulties have been worked
out by Mr. Peak with the Auditor and the State Treasurer.    In
several instances the Attorney General has been asked to make
interpretations, which he has done with good sense and effective-
ness.

     The main difficulty with which the University will be faced
this coming year is the one of securing funds to make payments
of salaries in advance of the receipt of money from taxation.
The last legislature put back the date of payment so it is not
likely that the University will receive the larger part of tax
payments until March or April.   This problem faces the Board of
Trustees and it should be clearly understood and provision made,
if possible, to meet salaries promptly.

     3. Financial Re-orts  The financial reports for the months
of July and August were presented by the Business Agent and the
August report was ordered to be recorded in the Minutes (the Aug-
ust report showing receipts and expenditures for July as well as
August).



                                                  EXHIBIT "B"



Statement of Income and Expenditures
       Month of August, 1932



Previously
Repbrted



Current    Fiscal
Month      Year
           To Date



General Fund Income
  Federal Appropriation
  Vocational Education Bd.
  Bureau of Mineral & Top.
    Survey - Misc. Receipts
  Bureau of Mineral & Top.
    Survey - State Appro.
  State Tax
  Int. on Endowment Bonds
  Student Fees
  Student Fees - Summer Sch.
  Student Fees - Univ. H.S.
  Student Fees - El. Tr.Sch.
  Student Fees - Un. Ext.
  Misc. Receipts



   194.08



 .,322.25
   128.17
13,351.82
    55.00
    30.00
 1,580.69
 2,764.38



42, 750.00
1,540.05

    82. 32



42,750.00
1i540.05

   276. 40



   735.00     735.00
22,972,77 22,972.77
            4,322.25
    95.79     223.96
    718.29 14,070.11
               55.00
               30.00
 1,149.70   2,730.39
 1,521.22   4,285.60




 







3.



Rentals                       142.50
Ments Dormitories             364.25
            Total            22.933.14

Expenditures
  Instruction                 3,749.53
  Adm. Fxp. and Maint.        6,711.17
  Additions and Betterments      38.78
            Total            10,499.48

 Excess of Expenditures over
   Income                    122433.66



Patterson Hall Income
Room Rent - Summer Sch.



1 !209.00



Expenditures
Expense                       977.04

Excews of Expenditures over
    Income                      231.96

General Fund Income          24,142.14
General Fund Expenditures    11,476.52
  Excess of General Fund
    Expenditures over In-
    come                     12,665.62
 Accounts Payable liqui-
    dated
 Excess of Receipts over Ex-
     enditures for General
   Eedger accounts         24,440.69
 Excess of Receipts over Ex-
   penditures for the fiscal
   year to date - General
   Fund                    37,106.31
 Excess of Receipts over Ex-
   penditures for the fiscal
   year to date - General Fund
 Cash in Bank July 1, 1932 -
   General Fund
 Cash in Bank August 31,
   1932 - General Fund



Experiment Station Income
  Hatch   Federal Appro.
  Milk and Butter - Cash Re-
  ceipts
  Dairy Cattle Sales
  Sheep Sales



3,750.00

801. 34
  48.95
  13.07



   271.30     413.80
   108.95     473.20
 7L, 94539  94 .878.53


 87,245.64  90,995.17
 38,536.09  45,247.26
     63.99     102.77
125. 845.72 136,345.20


(53.900. 33)(41,466.67)



27.60   1,236.50



1,446.52   2,423.56



(1,419.02) (1,187.06)

71,972.89  96, 115.03
127.292,24 138.768.76



( 55, 319. 35 ) ( 42, 653. 73 )

(1,065.85) (1,065.85)


49 784. 32 74,225.01



(6 600.88) 30 505.43


            30,505.43

            (12.274.36)

            18, 231.07



          3,750.00

844.15    1,645.49
             48.95
 91.50      104.57




 






4.



Poultry Sales              114.20
Farm Produce Sales        174.65
Horticultural Sales         73.57
Seed Inspection           426.85
Rentals                    166.67
Miscellaneous               28.80
Fertilizer - Fees          242.50
Public Service - St. Appro.
Feeding Stuffs - Fees    2,060.75
Adams - Federal Appro.  3')750e00
Serum - Sales              113.19
Serum - Virus Sales          8. 70
Serum - Supply Sales         2.50
State Appropriation
Creamery - License Fees  3,910.00
Creamery - Testers Lic.    850.00
Creamery - Glassware
  Tested                    38.00
Robinson,-Misc. Receipts 2,266.90
West Ky. -Misc. Receipts 1,573.02
Purnell - Federal Appro. 25,000.00
Nursery Inspection -
  Fees                      65.00
Poultry improvement
Blood Test                  67.75
Dark Fired Tobacco Growerst
  Assfn                  2,651.31
Stemming District Tobacco
  GrowersO Ass'n           395.96)



Total



38,593.68



Expenditures
  Expense                  3,983.67
  Additions and Betterments



          Total          3983. 67
Excess of Income over
  Expenditures          34,610.01
Excess of Receipts over
  Expenditures for Gen-
  eral Ledger accounts   3,859.13
Excess of Receipts over
  Expenditures          38. 469.14
Excess of Receipts over
  Expenditures for the
  fiscal year to date - Ex-
  periment Station
Cash in Bank July 1, 1932
  - Experiment Station
Cash in Bank August 31,
  1932 - Experiment Station,



  160.88
    9.52
    30. 85
1 586.87
  144. 67
    8.35
  472. 50
1,577.17
2 115. 25

  178.86
  10.05
    6.30
1, 976. 93
  270.50
  191.00

  22.08
  34.10
  380.01


  175.00
  300.00
  130. 50

1,750. 00

2,706.20
15) 173* 24



47,864.69
   200.00



  275.08
  184.17
  104.42
2, 013.72
  311.34
  37.15
  715.00
1 577.17
4,176.00
3 750.00
  292.05
  18.75
    8.80
1,976.93
4,180.50
1 , 041. 00

    60.08
 2,301.00
 1,953.03
15, 000.00

   300.00

   198.25

 4, 401.31

 3,102,16
 53, 766.92



51,848.36
   200.00



48,064.69    52,048.36

(32,891.45)    1,713,66


- 1,680.18      5,539.31

(31,211.27)    7,257,87



7,257.87

(5. 383.43)



1,874.44




 








5.



Extension Division Income
Federal Smith-Lever
  Federal Add. Co-op.
  Federal Supplementary
  Federal Capper-Ketcham
  State Smith-Lever
  State Capper-Ketcham
  County and Other
                  Total



Expenditures
  Expense



          74 154. 38  74, 154. 38
          15 500.00 15,500.00
          26.V545.52  26,545.52
          18, 400.49  18, 400. 49
 449. 70  10,699.05  11 148.75
 302.83                302.83
 416.66     118.66     535.32
1,169.19 145,418.10 146,587.29



61.35 58e884.12 58,945.47



Excess of Income over Ex-
penditures



Excess of Income over Ex-
  penditures for the fiscal
  year to date - Extension
  Division
Cash in Bank July 1, 1932 -
  Extension Division
Cash in Banwk August 31, 1932
  Extension Division

Trust Fund Income
Student Loan Fund
Student Notes Paid
        Total Receipts



Expenditures
Expense
Student Notes



1,107. 84  86,533.98  87,641.82



                   87, 641.82

                   7,737.68

                   95, 379.50


 59.11       4.72      63.83
1S90. 00    25.00     215.00
249.11      29.72     278 83



1.69
80.00
81. 69



Total



Excess of Expenditures over
Receipts



76.00
218.50
294. 50



77.69
298.50
376.19



167. 42   (264.78)     ( 97. 36)



Excess of Expenditures over
Receipts for the fiscal year
to date - Trust Fund
Cash in Bank July 1, 1932 -
Trust Fund
Cash in Bank August 31, 1932 -
Trust Fund



  (97.36)

1 308.58



1,211.22




 





6.



Summary
  General Fund Income         24,142.14
  Experiment Station Income   38,593.68
  Extension Division Income    1,169.19
  Trust Fund Income               59.11
               Total          63,964.12

  Seneral Fund Expenditures   11,476.52
  Experiment Station Expend.   3,983.67
  Extension Division Expend.      61.35
  Trust Fund Expenditures          1.69
                              15,523.23



Excess of Income over Ex-
  penditures                48,440.89
Accounts Payable liquidated
Excess of Receipts over Ex-
  penditures for General
  edger Accounts           28,299.82
Student Loan Fund - Notes      110.00
Excess of Receipts over Ex-
  penditures for the fiscal
  year to date - Combined
  Fund                      76$850.71
Excess of Receipts over Ex-
  penditures for the fiscal
  year to date - Combined
  Fund
Cash in Bank and on hand July
  1, 1932 - Combined Fund
Cash in Bank and on hand August
  31, 1932 - Combined Fund



71 972. 9
15,173.24
145,418.10
      4.72
232,568.95

127,292.24
48 , 064.69
58,884.12
     76. 00
234 3317405


(1 748 10)
1,065.85)


51,464.50
    194. 50



 48 457 05



96, 115 03
53,766.92
146, 587.29
     63.83
296,533.07

138,768. 76
52, 048.36
58,945.47
     77.69
249,840 28

46,692,79
(1,065.85)


9 9764.32
     83.50



125.307.76



125,307.76

  (6,611.53)

  118 . 696.23



Abstract of item shown on State-
ment of Income and Expenditures
as "Excess of Receipts over Ex-
penditures for General Ledger Ac-
counts $79,764.32".

                   Debit



Accounts Receivable

Sundry Accounts



21,645.76



1,881.44



Notes Payable



60, 000.00



1,881.44



81,645.76
1,881.44
79,746.32



Credit




 







7,



    4. Report of Annual Audit. The report of the annual audit
of the Business Office, made by Peat, Marwick, Mitchell and Com-
pany of Chicago, was received and ordered to be made a part of
the records of the Business Office.   The Business Agent was au-
thorized to pay the dharge for the audit, according to agreement.

     5. Statement of State Warrants Sold, 1931-1932 Appropriations.
The following statement showing sale of State Warrants for 1931-
1932 appropriations was filed by the Business Agent.   It was ap-
proved and ordered to be inserted in the Minutes.


                    SALE OF STATE WARRANTS

                           1931-1932

     Statement of State Appropriations for year 1931-1932
     for which State Warrants were received in whole or in
     part.   Statement shows warrants and checks received
     and amount for which the Warrants were sold.


               Agricultural Extension Division.



Amount

$10, 000.00
3,129.33
10,000.00
3,110.79
10,000.00
3,367.65
10, 000.00
  3,142.39
10,000.00
  3 442.46
13,215.44
18, 793.12
17,726.59
17,640.46
  8,673.07
142,141.30



Int.



Warrant
   It
   11
   11
   if

   If
   11

   It

Check
   it
   if
   II



Resale Warrant 5154 under



T326. 39
115. 17
205. 56
110. 61
368.00
106. 17
333. 30
86.42
361. 10
80.80
290.00



Per Cent



$8 800. 00
2 ,753.81
8,800. 0
2,791.93
8, 800.00
3,022.47
7 975.00
2a820. 30
8, 575. 00
3, 089.60
9,911.58



contract with Security Trust
    Co. at
        32 adv.



Total



$9, 126. 39
2,868.98
9, 005.56
2,902.54
9, 168. 00
  3,128.64
  81308. 30
  2n906.72
  83 9363 10
  3:170:40
  10 201.58
  18, 793. 12
  17, 726.59
  17, 640. 46
  8,673.07
132 , 556. 45



    449. 70
133,006.15



No.



E.1359
   641
   3379
   1360
   640
   1980
   2650
   2651
   1979
   3380
   5154




 








8.



Special Agriculture Appropriations



Into



$ 198.60
174. 36
  178.20
  158.52
  141. 86
  78.08



Per Cent



$3,249.97
3,149.29
3,563 95
3,552.02
3i,824.58
4,437.e65



Total



$3,448.57
3,323.65
3,742.15
3,710.54
3,966.44
4,515.73
2.253.26
24,960.34



Amount

$4, 333. 30
4,199.05
4,751. 93
4, 736. 03
4,795.71
4,930. 73
2R 253e26 W
30, 000.00



Resale Warrants No. 643, 1262) 2653 under contact with  642.57_
                         Security Trust Co. at 3-i- adv.25,602.91



                Summer Session Appropriation



E 639   $10,000.00 Warrant



$ 458.33 $ 7,500.00 $ 7,958.33



Resale Warrant No. 639 under contract Security
                        Trust Co. at 3-2 adv.



                Farm Purchase

$25,000.00


      Experiment Station - 50 Thoisand



E 637  $ 3,329,16 Warrant
1357    4,854.18   "
         3,382.85    "
         3,584.99   II
 2800    6,722.97    it
 3382    5,703.77    11
 5153    7,271.80    It
         5,372.19  Check
         5,673.37    i
         4 104.72   If
         50,000.00



$25, 000. 00



$ 122.53  $ 2,929.66  $ 3,052.19
194.84    4,162.46    4,357.30
                        3,382.85
                        3,584.99
  208. 22   5, 764.95   5,973.17
  160.02    49890.99    5,051.01
  82.82    6,444.63    6,627.44
                        5,372.19
                        5,673.37
                        47,1047.2
                        47;;179. 23



E. 643
  1262
  1976
  2653
  3383
  5156



Warrant
  if
  ,I
  ,,
  it
  I,
Check



  375.00
8, 333.33



No.




 






9.



Nursery Inspection

             Int.



  145.33  Check
  250.00    "
  145.33    It
  24.19
  701.02  Warrant
  283,33    It
  255 13    "
  118.11  Check
  952.90    "
  104. 66   "
  110o04    1
     9.96    i
$2, 500.00



$ 16. 35
   4.84
   3.05



$   616.90
    267. 74
    224. 52



Public Service Appropriation



E 636  $1,833.33
        1,833.33
 1356   1,833.33
 3377   1,833.33
 5157   1,833.33
 9182   1,833.33
        1,833.33
        1,833.33
        1,833.33
        1,833.33
        17833.33
        1 833. 37

        22, 000.00



Warrant
Check
Warrant
  I,
  II
  It
Check
  i,
  it
  it
  ,,
Warrant



$ 73.08  $ 1,648.42



59. 58
37. 42
21.e90
8. 66



1,613,33
1 613.33
1 , 613. 33
1,439.16



$1,718 50
  1 ,833.33
1,672. 91
1 ,650. 75
3 1,639.23
D 1, 447.e82
  1,833 33
  1,833.33
  1,833.33
  1,833. 33
  1,833.33
  1 , 464n14

  20, 189.33



Robinson Sub-Experiment Station



E 1076  1, 234.67
        1,562.76
        1,475.26
  2798    991.66
  3122  1,762.34
  4013  1,984.54
  5159  2,255.80
        2,164.14
        1,529.28
        1,437.11
  9864  4,059.10
  10076  4,543.34
       25, 000.00



Warrant
Check
  It
Warrant
  it

Check
  If
  It
Warrant
  it



40.28


23.15
38.42
34.45
26.95



18.04
5.04



1,138.90  1,179.18
          1,562.76
          1,475.26
  872.66    895.81
1,550.85  1,589.27
1, 786. 09  1,820.54
1,985.11  2,012.06
          2,164.14
          1, 529.28
          1,437.11
3,480.68  3,498. 72
3,566.52  3,571.56
         22,735.69



Amount



Per Cent



E2799
3384
5158



Total



145.33
250.00
1453 S3
24.19
633.25
272. 58
227.57
118.11
352.90



  104.66
  110.04
     9.96
$25393.92



No.




 







10.



Western Kentucky Sub-Experiment Station



Amount



Int.



Per Cent



       $ 1,873.48
         2,058.40
         2,465.48
E 3121   2, 041,67
  4014   1,399,49
  5160   1,392.55
         1,057.40
         1,576.86
         2,042.29
  8865     804.72
  10075   3,287.66

        20,000.00



Warrant
  It
  II
  11



44. 52



Check
  It



Warrant
  It



3058



          ; 1 873.86
            2, 058e 40
            2,465.48
1,796.67    1,841.19
            1 , 342.92
            1, 329, 31
            1,057.40
            1,576.86
            2,042.29
  690.05      B93.63
2,623.73    2,623.73

           18905e 07



Agricultural Extension
       Capper-Ketcham



E 642
1361



4,119. 10 Warrant
  4, 51915     II



1978   4 144 24     1
2654   4, 143. 61
3378   4 133. 31
5155   4, 095.91    if
       3, 920,07 Check
8243   8, 214. 61 Warrant
      37,290.00



$ 164.20
187.65
130e 66
132.94
121, 69
  65.42

  58. 20



* 3,696.89 $ 3,861.09
  3, 389. 37  3, 577. 02
  3,719.48   3,850.14
  3, 553.13  3,686.07
  3 099.98   3,221.67
  3 676.08   3, 741.50
              3, 920.07
  7, 04403   7,102.23
            $32, 959. 79



Resale Warrants Nos. 3378, 1361 under contract with
                  Security Trust Co. at 3-L adv.



    302.83
$33, 262.62



Agricultural Engineering Building



E 638 $1, 381.00 Warrant
1358   5 868.63    It
2084   9 394.87   "
3381   4,582,87    "
  305   8, 772.63   "
  303 10, 000.00    "
  304 10,000.00
       50, 000o 00



"' 63.30  $ 1, 035.75
243.70     4,401. 47
344.48     7,046.14
134694     3,437.14
422.83     6P579,47
481.94     7,500.00
481.90     7;975.00



1,099.05
4S645.17
7 390.62
3,572.08
7,002.30
7,981.94
8,456. 90
40, 148. 06



Resale Warrants Nos. 305, 303, 638, 1358, 2084, 3381 under
     contract with Security Trust Co, at 3- adb'.        1.421.92
                                                         41, 569.-98



Total



Division



No.




 












11.



Vocational Education



No.      Amount
E5064 $5 ,879.65  Warrant
9833  .6,852.49    "



Tnt.     Per Cent
,. 132. 30  $4, 409. 73
   6.65  5,139.37



Resale Warrant No. 5064 under contract with Security
                  Trust Co. at 3-b- adv.



Lc



oss on Extension Division Warrants

I " Special Agriculture Appropriation

1 "' Summer School Appropriation

i' Z Experiment Station - 50 Thousand

      lNursery Inspection

   " Public Service

I "I Robinson Sub-Experiment Station

   " Western Kentucky Sub-Experiment Station

   1  Agricultural Extension Division, Capper-
          Ketcham

" 1 kAgricultural Engineering Building

   " Vocational Educational Appropriation



Total



Total
$ 4, 542.03
  5S 146.02

$ 9,688.05

     98. 33
%3 9,786.38




$9s135. 15

4 397.09

1 666.67

2,820.77

   106e 08

 1 410.67

 2,264.31

 1,9094.93


 4, 027 38

 8,430.02

 2,945.76


$381 298.83




 







12.



     6. Sale of State Warrants. The sale of State Warrants, 1932-
1933 appropriations, as shown in following statement was approved:



             Sale of State Warrants, 1932-1933
Face Value  No.                      Discount
           Sold at 85-3/4 per cent
$5;000.00  F 771 Agri. Extension   $4,287.50
5, 000.00 F.772    I                4,287.50
2$432.72   Fe773   "      "         2, 086.06
           Sold at 89-3/4 per cent
2,298.00   Fr,775 Experiment Station 1,970.54
1, 833,33  F.778 Public Service    1 572.08



Int.    Total



13.89
17.34
6.76



$4, 301.39
4,304.84
21 092. 82



6.39   19976.94
5.09   12577,17



    7. State Warrants on Hand.
following State Warrants on hand.



The Business Agent reported the



        Geological Survey                      776.39
                      it (Issued to Unionl
                            Transfer Company) 462.50
        Agricultural Extension              12,154.89
        Experiment Station                   5,221.54
        Public Service                       1, 833.33

     The State Warrant for $462.50 was issued to the Union Trans-
fer Company for transporting the State Geological Suirvey equipment
and materials from Frankfort to the University of Kentucky. The
Business Agent was authorized to deliver the warrant to the Union
Transfer and Storage Company in payment of bills rendered,  The
receipt taken for the delivery of the warrant is as follows:


                                      October 4, 1932
          Received of D. H. Peak, Business Agent of the Uni-
     versity of Kentucky, State Warrant number F-1324 issued
     to the Union Transfer and Storage Company August 16,
     1932, for $462e50 which is in full of bills of said com-
     pany for transporting the Department of Geological Survey
     from Frankfort to Lexington, Kentucky, under orders of
     Professor A. C. McFarlan,

                              (Signed) UNION TRANSFER & STORAGE CO.

                                       By  L. Garland

     8. State Warrants to be Converted into Certificates of Bene-
f       a interests.  It was ordered that an amount not to exceed
W$0,0O .00 of the State Warrants on hand be converted into certifi-
cates of Beneficial Interest according to the plan now in operas
tion at the Security Trust Company, Lexington, Kentucky.




 








13.



     99 Opinions of Attorney General on Collections, on Salaries,
on Geological Survey.

     a. It was ordered that the opinion of Attorney General on
"balances at end of fiscal year". "Millage and inheritance taxes",
"petty cash fund", and. "uaestioning accounts by proper state of-
ficers" ,etc. given on request of the presidents of the State
teachers' colleges, be inserted in and made a part of the minutes.



                                 June 25, 1932

     Hon. H. H, Cherry, President
     Western Ky, State Teachers College
     Bowling Green, Kentucky

     Hon. H. I.n Donovanq President
     Eastern Kye State ieachexs College
     Richmond, Kentuoky

     Hon. JS Howard Payne President
     Morehead State Teachers College
     Moreheads Kentucky

     Hon. Rainey T, Wells, Presjdent
     Murray State Teachers College
     Vurray, Kentucky

     Gentlemen;

          I have your letter of JIne 22, and a pertinent part
     of it reads as follows;

               "On behalf of the state educational institu'-
          thons represented by use we desire to submit for
          your advice some questions that will materially af-
          fect the administration of these institutions.

               "For the past two years, and more, these in-
          stitutions have received from the State a millage
          and inheritance tax under the provisions of Chapter
          152 of the Acts of the General Assembl y of 1930,
          In addition to this fund they have received from
          the students sums for room and board, tuition, lab-
          oratory, health and incidental fees 8




 








].A      .



     "Based upon your recent opinion to
the University of Kentucky, we are advised
that during the next two years these insti-
tutions will derive their sole income from
the sources enumerated above.

     "Anticipating a decrease in the main-
tenance fund derived from the above sources,
the administration of these different insti-
tutions have underxaken to practice the
closest economy and have not expended the
necessary sums for libraries, laboratories
and other departments of these institutions
in order that they may be able to maintain
a summer school in each institution during
the present year, and for this reason they
have in their respective treasuries certain
sums of money at the close of business on
June 30, 1932.   These entire sums will be
needed and have been contracted for the pur-
pose of continuing the summer schools to their
close.

     "Question 1

     "Shall the respective institutions retain in
their treasuries the sums on hand on July 1, 1932,
which have been received from the millage and in-
heritance taxes, board, tuition, laboratory,
health and incidental fees?

     "Question 2

     "Shall the funds derived from the millage
and inheritance taxes and collected under the
provisions of Chapter 152 of the Acts of the
General Assembly of 1930, be paid monthly when
and as collected to the treasurer of these in-
stitutions?

     "Question 3

     "May each institution be provided with an
adequate cash account out of which business of-
fices may be able to pay the daily operating ex-
penses, provided a Monthly report be made by
each business office of the funds so expended?




 







15.



          "Question 4

          "Under the provisions of the law affecting the
     administration of these institutions, may we ask
     do the administrative officials under the direction
     of the governing boards have authority to incur ex-
     penses in their operation, and has any other person
     any authority to question any account or the amount
     thereof?

          "In view of the fact that these are pressing
     questions and demand an immediate answer in order
     that we may be able to know how to administer these
     institutions on and after July 1st, may we ask
     for a reply at your earliest convenience?"

     I shall answer your questions in the order given
above.

     Section 4019, Baldwints Supplement to Kentucky Stat-
utes, 1930 edition, among other things, provides that a
certain per cent of the annual ad valorem taxes on real
estate and all other property directed to be assessed for
taxation shall be for the support and erection of buildings
for your institutions.

     Section 4019 provides further that:

          "The tax herein provided for the University
     of Kentucky and the Normal schools shall be paid
     monthly when and as collected, to the treasurers
     of these institutions in the amount set forth in
     this section, and shall be used by the University
     of Kentucky and the Normal schools for their main-
     tenance and support, and when sufficient sums shall
     have accumulated in, the treasuries thereof, it may
     be used for the erection of buildings and the pur-
     chase of land and equipments"

     The funds for your schools by law, as above cited,
can be used for no other purpose than that provided in
section 4019 of the Statutes, supra, aid in Section 180
of the Constitution, with the exception that:
          I'* * * * where a surplus remains after the
     object to be obtained by a particular levy has
     been accomplished, such surplus might be appro-
     priated ***, even for general purposes, and that
     such appropriation was not prohibited by Section
     1B0 of the Constitution.   Such a construction is
     necessary, because it is impossible to fix accurate-
     ly a tax rate to meet exactly a liability ****"




 






16.



     Field v. Stroube, 103 Ky. 114: Lawrence Coo v. Lawrence
Fiscal Court, 130 Ky. 587.

     These funds may be used by your schools "for their
maintenance and support and when sufficient sums shall
have accumulated in the treasuries thereof, it may be
used for the erection of buildings and the purchase of
land and equipment."

     Such funds, therefore, as you may have on hand Ju-
ly 1, 1932, impressed by contracts or obligations for
equipment, buildings or land, or where the objects for
which they were appropriated have not been accomplished,
may be retained by your respective institutions.

     Such Sums as you have received from board, tuition
and incidental fees were not raised by taxation.   The
act did not provide that they be paid into the State
Treasury, nor were they; nor did it provide by implica-
tion, or otherwise, that any unexpended balance for such
funds should be paid at any time into such Treasury,
These fluids were not levied or collected by the State or
by any governmental agency by act of the General Assembly.
They were collected for board, tuition and other incidentals,
representing for the most part future obligations and
should be retained by your several schools.

     2. It is provided in section 4019 of the Kentucky
Statutes of 1930 that:

          "The tax provided for the University of Ken-
     tucky and the Normal schools shall be paid month-
     ly when and as collected to the treasurer of these
     institutions, in the amounts set forth in this
     section, and shall be used by said schools for
     their maintenance and support."

     These sums, therefae, should be paid over to the insti-
tutions as directed by law.

     3. Inasmuch as your institutions are directed by law
to pay over all sums derived by them, to the State Treasury,
they should be provided monthly with a cash account sufficient
to pay small cash sums necessary to be paid out daily for
operating expenses.

     4. Section 351a-1, Kentucky Statutes, 1930 Edition,
requires
          "That all annual appropriations from the
     Treasury be paid monthly upon itemized statements,
     salary lists and accounts filed by the public of-
     ficials of Departments, institutions and offices




 








17,



          with the Auditor of Public Accounts, * * * and
          if these are found to be authorized by law, the
          auditor shall issue his warrant to the proper
          officials of each of such departments, institu-
          tions or offices, and it shall be the duty of
          such officials, and the auditor shall require
          them, to file voucher checks and receipts, cor-
          responding in number and amounts with such item-
          ized monthly statements, salary lists and accounts
          with the auditor at the end of each year, as is
          authorized by law."

               Under Section 150, 1930 Edition, the Auditor

             " * * * shall have power to require information,
          on oath, from any person, party or privy, toughing
          any matters relative to any account which he is re-
          quired to state, audit or settle, and may adminis-
          ter the oath himself, or have it done by any officer
          authorized to administer an oath."

          It will be seen, therefore, and it is my opinion,
     that accounts or claims presented by your institution or
     any claimant, upon the Treasury of the State may be ques-
     tioned and investigated by the proper officials.

                                   Very truly yours,

                              (Signed) B. P. Woottun
                                        Attorney General

     BPW:B



     b. It was ordered that the opinion of the Attorney General
on salaries of staff in educational institutions given to the aud-
itor of Public Accounts be inserted in and made a part of the
minutes.



                                    September 15, 1932
      The Honorable J. Dan Talbott,
      Auditor of Public Accounts,
      Frankfort, Kentucky

      Dear Mr. Talbott:



-1 have your recent letter reading as fol-



lows:




 








18.



          "We have before us the payrolls from the
     University of Kentucky and Eastern State Normal
     School and we are submitting the question wheth-
     er o