FINANCE COMMITTEE

BOARD OF TRUSTEES

NORTHERN MICHIGAN UNIVERSITY

Report of meeting held September 27, 2007

OPEN AGENDA

Mr. Riipi reviewed internal audits on University Department Credit Card Review, Computer Security for FY 2002-2003 and FY2003-2004, WNMUTV and WNMU-FM Financial Statements, and USOEC.  The committee approved closing all five audits.

Mr. Riipi reviewed the MEDC Grant Audit for the American Eagle Job Training Program grant. The committee approved closing the audit.

In your Board material is a copy of the University’s Financial Report for 2006-07.  The Committee recommends approval of the financial report; a recommendation is in the formals.

Mr. Leach presented an update on the 2008-2009 State Operating Budget Request.  The update was for information and no action is necessary at this time.

Mr. Leach presented to the committee the 2007-2008 General Fund Operating Budget and the 2007-2008 Designated Fund Budget recommendations. The recommendations are included in the formals.  The committee recommends approval.

Mr. Leach also reviewed with the committee the Financial Indicators for September 2007.

Mr. Leach presented to the committee the Facilities Five Year Master Plan and 2008-2009 Capital Outlay Project Request.  Copies of the plan and capital outlay request are included in the Board materials.  The Finance Committee recommends approval of the Five Year Plan and Capital Outlay Project Request.

Mr. Leach reviewed with the committee the Long-term Maintenance Projects for fiscal year 2007-2008.  This was for information purposes and no action is necessary.

Mr. Leach reviewed with the committee an update on the Combined Heat and Power Cogeneration Project.  This was for information only and no action is required at this time.

The committee recommends that NMU hire an additional outside firm to review the cogeneration project and that a copy of the review be provided to the members of the Board of Trustees.  This is conditional upon NMU being able to contract with a firm within 30 days at a cost not to exceed $100,000.

Mr. Leach also presented a revised Retiree Health Policy to the committee.  A copy of the policy is included in the formals.  The committee recommends approval.

Mr. Leach gave a brief bio to the committee on the new NMU HR Director, Internal Auditor, and Senior Financial Analyst.  This overview was for information only.

CLOSED AGENDA

Mr. David Wetzel from Fund Evaluation Group updated the committee on our investment performance as of June 30, 2007, a composite review as of August 31, 2007, and the FEG Advisors Program.  The Committee recommended that NMU move investments from the FEG Traditional Services to the FEG Advisors Investment Program.