Addendum #5

FINANCE COMMITTEE

BOARD OF TRUSTEES

NORTHERN MICHIGAN UNIVERSITY

Report of meeting held December 16, 2004

CLOSED AGENDA

Mr. David Wetzel from Fund Evaluation Group updated the committee the on the University’s investment performance. He also reviewed with the committee alternative investments and how they might impact our investment performance if they were included in our asset allocation.  The reports were for information and no action is required.

OPEN AGENDA

Mr. Riipi reviewed the audited financial statements for WNMU-TV and FM.  He noted that the financial statements were filed with the Corporation for Public Broadcasting as required.

The committee reviewed the planned audit scope for the fiscal year that will end June 30, 2005. The administration recommended that the firm of Andrews Hooper & Pavlik, p.l.c. be retained as our external auditors. The committee supports the recommendation.  A copy of the recommendation is in the formals.

Dr. Roy reviewed the resolution amending the authorization of the General Revenue Bonds.  The total bond authorization increased by eight million dollars to allow the administration to proceed with the boiler and electrical gear replacement in the Ripley Heating Plant. The amended resolution also authorizes the administration to refund prior bond issues in order to take advantage of lower interest rates.  The committee recommends approval of the resolution.  A copy is in the formals.

Dr. Roy discussed with the committee a new retirement plan option the administration is considering.  The plan would allow the University to make payments to a retirement plan for those faculty and staff that were excluded because of regulations of the Michigan Public School Employee Retirement System.  No action is required at this time.

The committee was updated on the current and projected financial status of the United States Olympic Education Center.  Dr. Roy reported that with the recent federal appropriation for the USOEC operation and the renewal of the Olympic Scholarship Program, that the Center would have adequate funds to cover operations through fiscal year 2010.  The report was for information and no action is required.

Dr. Roy informed the committee about discussions with Telkite on the possibility of moving the University’s Aviation Maintenance Technology Program to Sawyer in space that would be leased to the University by Telkite.  The report was for information, no action is required.  He also shared with the committee some of the ideas being considered for Lee and Carey Halls.  The report was for information and no action is required.

Mr. Gavin Leach reviewed with the committee an analysis on the University’s tuition and fee revenue, based on this past Fall’s lower than expected student enrollment.  His analysis shows that because of the increase in the number of full-time undergraduate students and non resident students, actual tuition and fee revenue will be close to the amount that was budgeted.   Mr. Leach also shared with the committee a study comparing Northern’s cost with other state universities and updated financial, recruitment, and enrollment indicators.   The report was for information and no action is required.