Addendum #6

FINANCE COMMITTEE

BOARD OF TRUSTEES

NORTHERN MICHIGAN UNIVERSITY

Report of meeting held August 5, 2004

CLOSED AGENDA

Mr. William Hummel from Fund Evaluation Group reviewed with the committee the University’s investment performance for the period ending June 30, 2004.  He also presented other investment information that FEG prepared for the committee.  The reports were for information and no action was taken.

OPEN AGENDA

Mr. Jeff Fineis, Partner and Mr. Duane Reyhl, Senior Manager with Andrews Hooper & Pavlik, our external auditors, reviewed a draft of the 2003-2004 financial statements.  They informed the committee that they will be issuing a clean opinion and that the audit went very well.  The committee also had an opportunity to meet with the external auditors without the staff present.  The committee authorized the administration to proceed with the printing of the University’s financial statements and they will be presented to the Board of Trustees at the October meeting.

Mr. Leach presented to the committee the 2004-2005 General Fund Base Budget and the 2004-2005 General Fund Designated and Carry-Over Budget recommendations. The recommendations are included in the formals.  The committee recommends approval.

Mr. Leach reviewed with the committee the recommended 457B Deferred Compensation Plan. The plan will allow employees to defer compensation under the plan beyond the current 403(b) limitation and would permit employees to borrow against funds in the account with certain limitations. The recommendation is included in the formals.  The committee recommends approval.

With the renovation of the C. B. Hedgcock Building it is necessary to re-designate the building and certain areas within the building to accurately reflect how the building will be used and to recognize major donors to this project.  The recommendation to re-designate the building is included in the formals.  The committee recommends approval.

Dr. Roy informed the committee the State Auditor General’s Office has notified Northern that it plans to do a performance audit of the University starting in late August.  The last comprehensive audit by the Auditor General’s Office was in 1990.  The audit will last three to four months.  No action is necessary at this time.