FINANCE COMMITTEE

BOARD OF TRUSTEES

NORTHERN MICHIGAN UNIVERSITY

Report of meeting held July 16, 2009

 The meeting of the Finance Committee of the Board of Trustees was convened at 3:09 p.m., Thursday, July 16, 2009, in room 602 Cohodas Hall by Mr. Stephen F. Adamini, Chair.  Also present at the meeting were:

            Mr. Brian Cloyd – Board of Trustees Member and Committee Member

            Mr. Larry C. Inman – Board of Trustees Member and Committee Member

            Mr. Gilbert L. Ziegler – Board of Trustees Member and Committee Member

Mr. Jon G. LaSalle – Board of Trustees Member

            Dr. Douglas B. Roberts – Chair of the Board of Trustees and ex officio

            Dr. Leslie E. Wong – President and ex officio

            Dr. L. Garnet Lewis – Board of Trustees Member

            Mr. R. Gavin Leach – Vice President for Finance and Administration and Treasurer of the Board of Trustees

            Ms. Jill M. Compton – Internal Auditor

            Mr. J. David Wetzel – Fund Evaluation Group

The minutes from the May 2009, July 1, July 8, and July 14, 2009 Finance Committee meetings were approved as written.

CLOSED AGENDA

Mr. David Wetzel from Fund Evaluation Group updated the committee on the performance of our investments.  The report was for information only.

The meeting was opened to the public at 3:34pm

OPEN AGENDA

Ms. Jill Compton reviewed the Audit Issues Report and Proposed Audit Plan for 2009-2010 with the committee.  The committee approved the reports as written.

Mr. Leach provided the committee with a few dates in which the external auditors would like to meet to discuss the proposed Financial Statements for year ending June 30, 2009.   The committee selected September 10, 2009 (with a time to be determined).  A video conference will be arranged and held at the Grand Rapids offices of Rehmann Robson for those members located down state.

Mr. Leach provided the committee with a copy of the Professional Services Plan for the fiscal year 2008-2009 financial audit to be performed by Rehmann Robson.  The Professional Services Plan outlines the auditors’ responsibilities in the financial statement audit and includes their responsibilities for testing and reporting on compliance with laws and regulations and internal controls over financial reporting.  The committee accepted the plan.

The recommendation for an increase to the Student Athletic Fee was discussed.   The new fee would be $225 effective fall 2009 semester.  The recommendation is in the formals and the committee recommends approval.

Mr. Leach presented the committee with a few scenarios regarding Tuition and Fees and the fiscal year 2009-2010 budget.  The committee had met previously via conference call on July 1, July 8, and July 14 to ensure they had all information needed to make an informed decision as to a tuition and fee increase that would be recommended to the full Board for its review and discussion.  With a 3-1 vote, the committee is recommending a 4.8% tuition and fee increase.

Mr. Leach shared with the committee an update on the Key Indicators for this past fiscal year.  The report was for information and no action is required.

Mr. Leach reviewed with the committee the resolution to approve that the administration have the authority to access a Line of Credit if there are delayed or cancelled state appropriation payments.  This is a proactive measurement that provides the administration with the authority to pursue a line of credit should the need arise, but the university does not plan on pursuing it at this time.  A copy of the resolution is in the formals and the committee recommends approval.

The remaining agenda items, Adopt-a-Flower Bed Program, Cogeneration Project update, and WiMax Project update, were tabled until the September 2009 meeting.

The meeting was adjourned at 4:44pm.