2.9

Subject: RESOLUTION ON ACCOUNTING POLICIES AND PROCEDURES

Date Adopted: June 22, 1987

Reference: Minute Book: 38 Page: 15

The Board of Regents of Murray State University is deeply concerned that the University's system of financial accounting and reporting does not presently meet necessary standards as established by the American Institute of Certified Public Accountants nor does it provide adequate stewardship of public funds as recommended by the National Association of College and University Business Officers.

It is the policy of the Board of Regents that financial management and the accounting system at Murray State University shall be in compliance with generally accepted accounting principles for colleges and universities; accounting and reporting directives of the Commonwealth of Kentucky; and accountability standards of the Office of Management and Budget and related Federal agencies. The purpose of this policy is to assure an appropriate degree of accountability and to protect individual faculty, staff, and Board of Regents members from undue risk of financial or legal liability.

Therefore, the Board of Regents hereby instructs the President and other administration officials of Murray State University to proceed immediately to commit the energy and financial resources necessary to implement accounting policies and procedures that will effectively address those accounting system problems outlined in the management letters from our independent auditors and other weaknesses that are known or may become known to the administration of the University. The Board of Regents expects the co-operation of all persons associated with the University as the President and administrative officials proceed in accomplishing these objectives. The goal of the administration of Murray State University must be to ensure that accounting practices commensurate with Board of Regents policy as stated above are established and that all existing problems are corrected in order to receive an unqualified opinion from the auditors on the financial statements of the University.