The Finance, Audit, Compliance, Facilities and Operations Committee of the Northern Illinois University Board of Trustees reviewed the university's fiscal 2024 financial audit and corrective-action plan and heard administration's plan to reach a balanced budget for fiscal year 2026. Committee Chair Dennis Barsima opened the discussion and turned the presentation over to Chief Financial Officer George Middlemas.
The nut of the committee's discussion: auditors issued an unmodified opinion on the FY24 financial statements but reported administrative findings; university leaders described active corrective actions and a multi-year plan to stabilize cash and reach a balanced FY26 budget.
Middlemas told trustees the FY24 external audit, completed May 26, 2025, produced an unmodified opinion and identified 15 findings, of which nine were repeats from the prior year and six were new. He said the findings were administrative in nature and that corrective actions have been implemented for items noted in the report.
"The financial stability of NIU is imperative," Middlemas said, adding his office will meet quarterly with each division to monitor budget performance and assist with remedial steps if deficits are projected. He said the university is analyzing data weekly to keep units on track and that leadership will support departments through FY26 and into FY27 budget planning.
Trustees pressed for continued progress and for transparency on implementation. Board Chair Mantell Gales and Vice Chair Leland Strom both praised campus efforts to reach a balanced budget while acknowledging the difficult decisions already made and those still required. Trustee John Butler framed the administration's work as a strategic effort to 'right-size' programs and offerings to better match regional demand and resources.
Middlemas summarized key metrics trustees reviewed: the university's net position decreased nearly $18,000,000 in FY24; the working capital ratio fell to 0.68 (below the board's target range of 1.2'to'2); and long-term debt payable decreased by $11,300,000 due to principal repayments. He said the university expects further declines in net position in FY25 before FY26 improvement as deficit-mitigation actions take effect.
Committee members noted the audit package includes a corrective-action chart that lists each finding, responsible areas, status and the probability that a finding will repeat. Barsima urged trustees to review the chart in the meeting materials.
No formal policy change or new vote resulted from the audit discussion; trustees instead recommended continued monitoring and faster implementation of corrective measures.
The committee also reviewed an annual cash-and-investments summary showing total holdings just under $98 million on June 30, 2025. Middlemas said roughly $10 million of that total was available for daily operations (about eight days of cash on hand) and that approximately $41 million of the overall balance reflected tax-exempt financing tied to the Trane energy-efficiency project. He said excluding those restricted proceeds, total holdings decreased by about $21 million compared with June 30, 2024, reinforcing the board's emphasis on rebuilding cash reserves as the path to fiscal sustainability.
Trustees repeatedly emphasized that achieving and sustaining a balanced budget is essential to rebuild cash reserves and to maintain institutional resilience against future state- or federal-level headwinds.
Looking ahead, Middlemas said his office will continue to track performance and assist divisions with FY27 planning; trustees asked for quarterly reviews and for continued disclosure of corrective-action progress.