Addendum #5

FINANCE COMMITTEE

BOARD OF TRUSTEES

NORTHERN MICHIGAN UNIVERSITY

Report of meeting held July 8, 2010

 The meeting of the Finance Committee of the Board of Trustees was convened at 11:02 a.m., Thursday, July 8, 2010, 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 (via conference call)

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

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

Mr. Jon G. LaSalle – Board of Trustees Member

            Dr. L. Garnet Lewis – Board of Trustees Member

            Dr. Leslie E. Wong – President and ex officio

            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

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 11:25 a.m.

OPEN AGENDA

The minutes from the April 29, 2010 and June 21, 2010 Finance Committee meetings were approved as written.

Ms. Jill Compton reviewed the Open Issues Report with the committee.  The committee approved the report as written.

Ms. Compton provided the committee with several dates in which the external auditors would like to meet to discuss the proposed Financial Statements for year ending June 30, 2010.   The committee selected September 9, 2010 (with a time to be determined).  Video conferencing will be arranged and held the offices of Rehmann Robson for those members located down state.

Ms. Compton provided the committee with a copy of the Professional Services Plan for the fiscal year 2009-2010 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.

Ms. Compton also provided the committee with a copy of the Engagement Letter from Rehmann Robson.  This was for information and no action was required.

Mr. Leach presented the committee with a few scenarios regarding Tuition and Fees and the fiscal year 2010-2011 budget.  The committee had met previously via conference call on June 21 to ensure they had all of the information they 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 that full-time resident undergraduate tuition and fees be increased by $205 per semester, non-resident undergraduate tuition and fees be increased by $226 per semester, and graduate tuition and fees be increased by $28 per credit hour.

The recommendations to implement a $25 Biology lab course fee, $40 Chemistry lab course fee, and $75 Nursing program fee were discussed.  The recommendations are in the formals and the committee recommends approval.

Mr. Leach reviewed the GASB exposure draft on pension plan accounting with the committee.  The report was for information and no action is required.

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 was required.

Mr. Leach provided the committee with an update on facilities projects.  The report was for information and no action was required.

Mr. Leach provided the committee with the Finance and Administration division’s Road Map to 2015 update.  The report was for information and no action was required.

The meeting was adjourned at 12:08 p.m.