Addendum #7
FINANCE COMMITTEE
BOARD OF TRUSTEES
NORTHERN
Report of meeting held October 6, 2005
CLOSED AGENDA
The committee reviewed the asset allocation and spending policies and the investment performance of the NMU Endowment Fund. Mr. David Wetzel from Fund Evaluation Group presented information related to each of these topics and made a couple of recommendations which the committee discussed. Based on the discussion the committee believes changes to the University’s asset allocation policy would be appropriate. We recommend that the Board of Trustees approve the following changes: reduce the Large Capital Stocks target from 40% to 35% and add international emerging markets up to 2.5% and international small capital stocks up to 2.5%. In addition, the target for U.S. Bonds would be lowered from 30% to 27.5% and real estate would be added up to 2.5%
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OPEN AGENDA
The committee reviewed a report prepared by Mr. Riipi on the adequacy of the internal audit function staffing at NMU. The report was for information and no action is required at this time.
The committee was updated on the Office of the Auditor General Performance Report. The report was published by the Office of the Auditor General on August 19th. The published report included the University’s preliminary response and the University will be sending an updated response to the legislature by October 19th.
Mr. Riipi reviewed audits on computer security, room and board, athletic tickets, WNMU-TV/FM contribution processing, and cash handling procedures in the School of Applied Science & Technology. The committee approved closing all five audits.
In your Board material is a copy of the University’s Financial Report for 2004-05. The Committee recommends approval of the financial report; a recommendation is in the formals.
Mr. Riipi reported to the committee that this would be the normal time to seek bids for our external auditors. The committee asked the administration to seek bids for the next three to five years and report back to the committee in December.
Mr. Leach updated the committee on the fiscal year 2005-2006 Operating Budget. The report was for information and no action is required.
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.
Included in the formals is a recommendation to move unexpended funds in the Cohodas Chair Professorship account to the endowment fund. The committee recommends approval of this recommendation.
Also included in the formals is a 2006-2008 Reduction in Force Plan. This would extend the existing plan until July 2008. The committee recommends approval.
Mr. Leach reviewed with the committee the Key Indicators. No action is required.
Dr. Roy presented the Facilities 5-Year Master Plan and the Capital Outlay Project Request. Copies are in the formals. The committee recommends approval.
The committee was updated on the current University capital projects. The report was for information and no action is required.
Dr. Roy reviewed with the
committee the purchase of