Repository: UIHistories Project: Board of Trustees Minutes - 1944 [PAGE 281]

EXTRACTED TEXT FROM PAGE:

278

BOARD OF TRUSTEES SUSPENSION OF CIVIL SERVICE

[February 20

The Comptroller presented a statement on proposed legislation to suspend the operation of the State and University civil service systems during the war and after. This matter was referred to the Committee on General Policy for consideration and report. The Board resumed open session.

REPORTS OF FINANCE COMMITTEE

M r . Davis, for the Finance Committee, reported on the matters.

following

ENGAGEMENT OF, AUDITORS T h e Finance Committee has considered the question of an audit firm for the current year ending June 30, 1943. Arthur Andersen & Co. have handled the audits for the past ten years. Their work has been highly satisfactory. However, it is the opinion of the Committee that an occasional change of auditors is desirable to secure the benefit of a new viewpoint. After considering various firms, the Committee selected Arthur Young & Company and has reviewed the matter with them. This firm proposes to make audits for the current year similar to those carried out in recent years, the work to be charged at per diem rates plus expenses, the total cost not to exceed the following amounts: University of Illinois, $3,500; University of Illinois Foundation, $500; Athletic Association, $300. The Finance Committee recommends that Arthur Young & Company be engaged for these audits for the year ended June 30, 1943, at these terms. O n m o t i o n of M r . D a v i s , t h i s r e c o m m e n d a t i o n w a s a d o p t e d . SALE OF BONDS T h e University has owned $15,000 Nebraska Power Company ^/2% bonds of 1981 as investment of endowment funds. These were purchased at a price of 109 and have a present book value of 107^2. T h e First National Bank of Chicago recommended the sale of such bonds because of certain developments within the territory served by this company. Inasmuch as there was some possibility that the market price might decline substantially, the Finance Committee authorized the sale of these securities as an emergency. T h e sale was completed at a price of io8'>6, and this report is made for record. O n m o t i o n of M r . D a v i s , t h i s r e p o r t w a s r e c e i v e d f o r r e c o r d . INVESTMENT O F E N D O W M E N T FUNDS T h e Finance Committee, on advice of investment counsel, recommends the following securities for investment: Statutory Funds— $15,000 Pacific Gas & Electric Co., 1st and refunding bonds, 4 % , Series G, maturing in 1964, approximate m a r k e t — i n j ^ . $10,000 California Water Service Co., 1st mortgage, 4 % bonds, maturing in 1961, approximate market—109. $30,000 United States W a r Bonds, Series G, 2^4%, maturing in 1955. Non-Statutory Funds— T h e following common stocks, $10,000 each: Current Price Fidelity Phenix Fire Insurance 43V2 General Electric 35J4 General Foods 36J4 Phillips Petroleum 46^

On motion of Mr. Davis, these investments were authorized as recommended.