The University of Maine System Board of Trustees voted to accept the audit committee's recommendation and approve the FY2025 annual financial report as presented.

Darla Reynolds, a system finance presenter, told trustees the draft report carries a "clean opinion, unmodified" that covers the system, its component unit and its fiduciary activities. Trustee Mishou, chair of the audit committee, said "the auditors didn't find any surprises, which as you know, is exactly how we like it."

The presentation said the report is still in draft pending board approval and highlighted accounting changes that affected FY25 results. One change created a new liability of about $3,400,000. A separate reclassification tied to recently issued guidance shifted reported student aid amounts: scholarship allowance now accounts for roughly 94% of total aid awarded, compared with about 83% under the prior methodology, producing a large year-over-year swing in those lines.

Reynolds also summarized operating results. She said the system reported income before other changes of $13.8 million for FY25 and other changes of $99.0 million, bringing the total reported change in net position for FY25 to approximately $113.2 million. Total assets and deferred outflows increased about 8% year over year. Reynolds noted cash and investments declined despite positive investment returns because the system used cash temporarily to front construction costs it expects to reimburse with a future revenue bond issuance.

The presenter reported total net position of about $1,193,000,000 and said category shifts (unrestricted net position versus net investment in capital assets) were caused in part by the construction-fronting transaction and the planned reimbursement by bond proceeds.

Reynolds told trustees that liabilities fell from about $34,000,000 in the prior year to about $5,000,000 in FY25 after the University of Southern Maine Foundation removed its assets from the UMS endowment pool on 07/01/2024.

After the presentation, Chair Michelle Riley introduced a resolution accepting the audit committee's recommendation and approving the FY2025 annual financial report. A trustee moved the motion and Trustee Kane seconded. The clerk called the roll; all trustees present voted yes (Trustee Riley; Trustee Mishou; Trustee McMahon; Trustee Martin; Trustee Kane; Trustee Kemmler; Trustee Alexander; Trustee Moore; Trustee Balducci; Trustee Johnson; Trustee Loring). The chair announced the motion carries.

In closing remarks, Chair Riley thanked the chancellor and staff for their work and noted the board's satisfaction with the system's financial position following the audit presentation.