NMU External Audit Results in ‘Highest Level of Assurance’

An external audit of Northern Michigan University's most recent financial statements resulted in a "clean, unmodified report, which is the highest level of assurance we can place on them," said Josh Sullivan of Rehmann during a special meeting of the NMU Board of Trustees Friday morning. Rehmann's Traverse City location conducted the audit for the fiscal years ending June 30 of 2024 and 2023.

NMU President Brock Tessman credited Vice President for Finance and Administration Gavin Leach, and the team assisting him, for their hard work and accuracy in compiling the financial information.

"This kind of clean, unmodified report is rarer than we might assume, especially for the type of institution we are, as evidenced by some of the national headlines we see," Tessman added. "The strong position we're in does give us the opportunity to make some investments. We just have to make those very carefully in our people and academic programming in a way that continues to perpetuate Northern's growth and the solid position we've achieved."

Northern's 2024 total net position increased nearly $57 million from the previous year, to $371 million. Sullivan said the bulk of that increase was attributed to a state appropriation to pay down the MPSERS retirement system unfunded liability at NMU and six other institutions.

"We've had some great headwinds, I would say, with the increase from MPSERS; the increase in our net position is pretty fantastic," said Board Vice Chair Alexis Hart, who also chairs the finance committee. "We always get such an excellent report from Rehmann on the way the finances are handled at Northern, so we really appreciate all of the hard work that goes into this."

"This is probably the sixth or seventh audit during my time on the board, and I can't remember ever getting a remotely negative report," added Board Chair Steve Young. "That says something about the team we have assembled at Northern and how seriously they take this work, because not everybody gets these kinds of reports. It's been an amazing run."

The six trustees participating in the virtual meeting unanimously and enthusiastically accepted the audit report, which was the only item on the agenda.