BOT: Trustees to hear audit results, discuss CMED Saginaw construction
Marking their first meetings in fall 2014, the Central Michigan University Board of Trustee will a presentation about the annual fiscal audit at its Sept. 18 meeting.
President George Ross will also give a report of the university and his final 2014-15 goals – including approving university priorities, initiatives and corresponding metrics for the next five years.
Plante Moran, a Michigan-based accounting firm, conducted the audit for the fiscal year that ended June 30.
Last year, CMU's overall net position increased by $32.3 million to a yearly total of $673.4 million. Net position is defined as being the difference in total value of assets and the cost it takes to maintain that value.
The calculation was created by looking at increases in CMU's total assets and non-operating revenues, as well as decreases in total liabilities, account payments and long-term debt.
As compared to 2012, the university increased its total net position to $641.1 million. Operating revenues took a $2 million hit as compared to last year's figure of $321.5 million – total operating revenues stand at $319.5 million. Operating revenues are comprised of factors such as tuition and fees, federal, state and local grants, as well as "auxiliary enterprises," according to the audit.
Any increases in revenue were brought about by CMU's non-operating revenues, including state appropriations and increases in investment income. State appropriations grew in 2013 to a total $71.3 million, up from $68.1 million last year, while external financial investments rose to $24 million, up from $1.6 million last year.
Although these figures show signs of growth, the audit exposed the university's physical cash-on-hand as down by $9 million from last year.
Trustees will also be discussing contracting for construction, furnishing and equipping of the CMU College of Medicine Phase II building in Saginaw at the meeting.
The Barton Mallow Company from Southfield was hired on as the contractor for Phase I of the project. Steve Lawrence, vice president of Facilities Management, said the project has a $25.2 million construction budget.
Saginaw's CMED building is scheduled to be complete by May 2015.
Board of Trustees Chair William Kanine also will announce members of the Board of Trustees nominating committee at Thursday's meeting.
