FINANCE COMMITTEE

BOARD OF TRUSTEES

NORTHERN MICHIGAN UNIVERSITY

Report of meeting held December 13, 2012

The meeting of the Finance Committee of the Board of Trustees was convened at 2:36 p.m., Thursday, December 13, 2012, in room 602 Cohodas Hall by Mr. Stephen L. Gulis, Jr., Acting Chair.  Also present at the meeting were:

            Mr. Richard M. Popp – 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

            Dr. H. Sook Wilkinson – Board of Trustees Member

            Dr. David S. Haynes – 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

            Ms. Sandra Haavisto – Controller

            Ms. Sherri A. Towers – Budget Director

            Mr. J. David Wetzel – Fund Evaluation Group

            Mr. William Sheltrow, CPA – Anderson, Tackman & Company, p.l.c.

Committee Members Absent:

            Mr. Stephen F. Adamini – Board of Trustees Member and Committee Member

CLOSED AGENDA

Mr. David Wetzel from Fund Evaluation Group updated the Committee on the performance of our investments and investment strategies.  The report was for information and no action was required.

The meeting was opened to the public at 3:05 p.m.

OPEN AGENDA

Mr. Sheltrow from Anderson, Tackman & Company, p.l.c. reviewed the audit of WNMU-TV and WNMU-FM Financial Statements for year ended June 30, 2012.  Mr. Sheltrow indicated that they are issuing a clean, unqualified opinion.   The Committee approved the audit as written.

Ms. Compton reviewed the Audit Issues Report with the Committee.  The Committee approved the report as written.

Ms. Compton reviewed the Proposed Audit Plan for fiscal year 2012 – 2013.  The Committee approved the plan as written.

Mr. Leach provided a summary of the three Request for Proposals for external audit services that the University received.  Based on the proposals and reference checks, the Internal Auditor and the Finance staff recommended that Rehmann Robson be engaged as the external auditors for the fiscal year 2013 through fiscal year 2018. The committee recommends that the Board authorize the administration to hire the firm of Rehmann and Robson PCL as the external auditors for Fiscal Year 2013 through Fiscal Year 2018. This is a special action item and is not included in the formal recommendations; therefore it requires a motion at this time and a vote by the full Board.

Mr. Leach presented an update on the 2013-2014 State Budget Development.   The report was for information only and no action was required.

Mr. Leach also reviewed with the Committee the Financial Indicators for December 2012.  This report was for information only and no action was required.

Mr. Leach presented the final copy of the Facilities Five-Year Master Plan.  This report is for information only and no action is 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 a report on a one-day liquor license application for a special event being held on campus in April 2013.  The Committee recommends that the Board approve the adoption of the resolution for the one-day special event liquor licenses.  A copy of the resolution is on file with the Secretary of the Board of Trustees.

Mr. Gulis provided the Committee with an update on the Spending Guideline.  The report was for information only and no action was required.

Mr. Gulis provided the Committee with a report on the Investment Policy Statement for the Endowment Fund.  The committee recommends that Board approve the Investment Policy Statement for the Endowment Fund.  This is a special action item and is not included in the formal recommendations; therefore it requires a motion at this time and a vote by the full Board.

Mr. Leach informed the Committee that NMU received a Certificate of Recognition and an $840 check for reaching 94.59% participation of MPSERS employees utilizing the MPSERS Retirement Reform website for information on changes in the law.  This report was for information only and no action was required.

The meeting was adjourned at 3:55 p.m.