ADDENDUM #9

FINANCE COMMITTEE

BOARD OF TRUSTEES

NORTHERN MICHIGAN UNIVERSITY

Report of meeting held May 2, 2003

CLOSED AGENDA

The committee reviewed our investment performance and was updated on the changes in managers.  As of March 27^th the transition to our new investment managers was completed.

OPEN AGENDA

Mr. Riipi presented five internal audits to the committee.  The audits covered computer security, tuition and grading controls, the audit of the financial statements of WNMU-TV and FM and a review of the university’s procedures for conducting human subjects research. The committee approved closing all five audits.

Mr. Riipi also presented two external audits performed by Makela, Toutant, Hill and Nardi.  The audits were of two Michigan Economic Development Corporation grants.  The grant regulations require each grant be audited.  The committee accepted the audits.

The proposed audit plan for 2003-2004 was reviewed and approved.

The committee authorized the administration to contract with Andrews, Hooper, and Pavlik to perform the University’s annual financial audit for the fiscal year ending June 30, 2003.

The formals include a recommendation to revise the University’s Educational Assistance Plan to include the Reduction in Force 2003 and 2004 plans.  The committee recommends approval.

Certain areas of the University are covered by the Health Insurance Portability and Accountability Act (HIPAA). To comply with the law the University is required to put into place required policies and procedures.  The resolution that is in the formals authorizes the President to proceed with the implementation of the HIPAA requirements.  The committee recommends approval of the resolution.

Included in the formals is a recommendation to change who is authorized to sign checks.  Due to changes in the University’s organizational structure over the last couple of years it is necessary to change the individuals who are authorized to sign checks.  The committee recommends approval of the recommendation.