Addendum #2

FINANCE COMMITTEE

BOARD OF TRUSTEES

NORTHERN MICHIGAN UNIVERSITY

Report of meeting held August 4, 2005

OPEN AGENDA

Mr. Jeff Fineis, Partner and Mr. Duane Reyhl, Senior Manager with Andrews Hooper & Pavlik, our external auditors, reviewed a draft of the 2004-2005 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 2005-2006 General Fund Operating Budget and the 2005-2006 Designated Fund Budget recommendations. The recommendations are included in the formals.  The committee recommends approval.

The draft Audit Report of the Office of the Auditor General and the University’s responses were reviewed by the committee.  Since the Audit Report is a draft and has not been released in final form by the Auditor General no action is necessary at this time.

The committee also reviewed Non-Optional Retirement Plan that is being recommended for approval.  The recommendation is included in the formals. The committee recommends approval.