Addendum #7

FINANCE COMMITTEE

BOARD OF TRUSTEES

NORTHERN MICHIGAN UNIVERSITY

Report of meeting held October 7, 2004

CLOSED AGENDA

Mr. David Wetzel from Fund Evaluation Group reviewed with the committee the University’s investment performance for the period ending September 30, 2004.  Dr. Roy presented a report on hedge funds.  At this time the Committee decided not to invest in hedge funds. The reports were for information.

OPEN AGENDA

Mr. Riipi reviewed three internal audit reports and two external audits on Michigan Economic Development Corporation grants the University has received.  The Committee approved closing the audits.  Mr. Riipi also updated the Committee on the progress of the State Auditor General’s performance audit and on the federal financial aid audit.

The Committee discussed the printed Financial Report 2003-04.  The Committee recommends approval of the financial report; a recommendation is in the formals.

Mr. Leach presented to the Committee the 2005-2006 Operating Budget Request.  A copy of the request is in the formals. The Finance Committee recommends approval.

Dr. Roy presented to the Committee the Facilities Five Year Master Plan and Capital Outlay Project Request.  Copies of the plan and capital outlay request are in the formals.  The Finance Committee recommends approval.

The administration is requesting authorization to proceed with bonding up to $32 million for construction of a 300 bed apartment complex, renovation of Magers Hall into a residence hall, renovation of two additional residence halls, and a variety of major maintenance projects.  Dr. Roy updated the Committee on the projects.  A resolution is in the formals authorizing the issuance of general revenue bonds.  The Committee recommends approval.

Dr. Roy reviewed with the Committee the Tuition Restraint Certification that the administration was required to submit to the State by October 1, 2004.  No Board action is required.

Mr. Leach reviewed with the Committee an update on key indicators.  The report was for information and no action is required.

The Committee also reviewed the draft sharing agreement between the University and the Northern Michigan Foundation.  The Committee recommends the Board authorize the administration to proceed with the implementation of the agreement.  Therefore, I move that the administration proceed with the implementation of a sharing agreement with the NMU Foundation.