FINANCE COMMITTEE

BOARD OF TRUSTEES - NORTHERN MICHIGAN UNIVERSITY

Report of meeting held May 4, 2007

CLOSED AGENDA

Mr. David Wetzel from Fund Evaluation Group updated the committee on the performance of our investments.  The report was for information.

The committee also discussed Fund Evaluation Group’s Advisors program.

OPEN AGENDA

Mr. Riipi presented the proposed audit plan for the coming fiscal year.  The committee approved the plan.

He also reviewed audits of Purchasing, Upward Bound, and the MEDC B3CP Computer Grant. The committee approved closing all three audits.

With the retirement of Mr. Riipi on July 1, 2007, Dr. Roy discussed the transition plans.

Mr. Gavin Leach reviewed with the committee a number of 2007-2008 budget recommendations.  They include:

· The Auxiliary Operations Budget

· The Student Life Budget and the Dining Services and Housing and Residence Life Rate Schedule.

The recommendations are in the formals.  The committee recommends approval.

Since the University has not received its state appropriation and tuition and fees have not been set for next fiscal year, the administration is recommending continuing budget recommendations for the General Fund Base Budget and the Designated Fund Base Budget.  The recommendations are in the formals. The committee recommends approval.

Mr. Leach shared with the committee a General Fund Budget update for the current fiscal year and the Key Indicators report.  The reports were for information and no action is required.

Dr. Roy reported on the progress of the Combined Heat and Power Cogeneration project and the discussions with Marquette General Hospital. The report was for information.

Included in the formal recommendations are two recommendations that involve easements.  The first easement grants to the First Baptist Church the right to place a sign on property owned by the University.  It also grants access to an existing walkway and driveway.  The second is an agreement to release a negative easement that would allow pedestrian access to Kaye Avenue from Marquette General Hospital’s land.  The committee recommends approval of both.

The recommendation to raise the Student Athletic Fee from $175 to $200 was discussed. This is the final part of a three-year plan to raise the fee to $200.  The recommendation is in the formals and the committee supports its approval.

Dr. Roy updated the committee on the Bookstore, Dining Services, and Campus Master Planning studies.  No action is required at this time.

Because the Board of Trustees meeting was moved to July it will be necessary to have a Finance Committee meeting in August to discuss the audit and draft of the financial statements.  The committee decided on August 16^th in Grand Rapids at the offices of our external auditors.