NORTHERN MICHIGAN UNIVERSITY

BOARD OF TRUSTEES

Minutes of the Meeting of the Finance Committee

Wednesday, July 13, 2011

The meeting of the Finance Committee of the Board of Trustees of Northern Michigan University was convened at 2:29 p.m., Wednesday,

July 13, 2011, in room 602 Cohodas Hall by Mr. Stephen F. Adamini, Chair.  Also present at the meeting were:

Mr. Stephen L. Gulis, Jr. – Board of Trustees Member and Committee Member     

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

Mr. Brian D. Cloyd – Board of Trustees Member and ex officio

Mr. Jon G. LaSalle – Board of Trustees Member

            Dr. L. Garnet Lewis – Board of Trustees Member

            Mr. Richard M. Popp – Board of Trustees Member (via conference call)

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. Arthur J. Gischia – Associate Vice President for Auxiliary/Business Services

            Mr. J. David Wetzel – Fund Evaluation Group

 CLOSED AGENDA

Mr. David Wetzel from Fund Evaluation Group provided the committee with a portfolio overview and investment strategy/current holdings report.  The report was for information only.

The meeting was opened to the public at 3:01 p.m.

OPEN AGENDA

The minutes from the April 28, June 28, and July 6, 2011 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.

Mr. Leach 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, 2011.   The committee selected September 9, 2011 in Lansing (with a time to be determined).

Mr. Leach presented the committee with Tuition and Fees scenario based on feedback received at the June 28 and July 6, 2011 committee conference calls.  The conference call meetings were held to ensure the members 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 2-1 vote, the committee is recommending the following for fiscal year 2011 – 2012:

· To increase resident undergraduate annual tuition and fee rate by $550 ($275 per semester) from $7,864.04 to $8,414.04.

· No increase in $225 One-time Student Athletic fee.

· To increase the non-resident undergraduate annual tuition and fee rate by $431 per semester.

· To increase the resident graduate tuition and fees by $27.50 per credit hour.

· To increase the nonresident graduate tuition and fees by $38.75 per credit hour.

· To increase the MBA graduate tuition by $38 per credit hour.

The recommendations to implement a $200/semester Art and Design technology fee, a $25 Clinical Lab Sciences fee, and a bowling fee adjustment by agreement with the third party provider were discussed.  The recommendations are in the formals and the committee recommends approval.

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 and Mr. Gischia provided the Committee with an update on the Combined Heat and Power Renewable Energy Plant Project.  The Committee is recommending to the Board that the administration be authorized to proceed with construction of the Combined Heat and Power Renewable Energy Plant Project ($16.4 million) and to address the long-term maintenance items of the exiting Ripley Heating Plant ($800,000) for a total project cost not to exceed $17.2 million.  A copy of the recommendation is in the formals.

Mr. Gulis presented the committee with a report of the Alternative Funding Subcommittee meeting that was held on July 13, 2011.  The report was for information only 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 4:08 p.m.