Addendum #6

FINANCE COMMITTEE

BOARD OF TRUSTEES

NORTHERN MICHIGAN UNIVERSITY

Report of meeting held December 12, 2003

CLOSED AGENDA

President Roy and Mr. Leach presented the committee with the University’s investment performance for the period ending September, 2003.  The report was for information and no action was taken.

OPEN AGENDA

Mr. Riipi presented one internal audit to the committee.  The audit covered Payroll controls for fiscal year 2002-2003. The committee recommends approval.

Mr. Riipi also presented an external audit performed by Makela, Toutant, Hill, and Nardi.  The audit was for Michigan Economic Development Corporation grants (Grede Foundries Grant #02-503 and UP Special Delivery Grant #02-638).  The grant regulations require each grant be audited.  The committee recommends approval.

Mr. Leach presented to the committee the recommendation to engage the firm Andrews, Hooper, and Pavlik p.l.c. as the external auditors for fiscal year 2003-04.  The committee recommends approval.

Mr. Leach presented to the committee the recommendation to transfer Magers Hall from a state building to a Housing and Residence Life building.  The cost of the transfer is $776,357 which will be funded through Housing and Residence Life internal borrowing over a five-year period.  The committee recommends approval.

Mr. Leach presented to the committee the recommendation for the Housing and Residence Life Magers Hall renovation project.  The project will be funded from 2001 bond proceeds ($4,600,000) that are available by not moving forward with the Quad II renovation, and with Housing and Residence Life Reserves ($1,300,000) for a total project cost of $5,900,000.  The committee recommends approval.

Mr. Leach presented the committee with the Financial Indicators.  This was for information only and no action was taken.