Repository: UIHistories Project: Board of Trustees Minutes - 1994 [PAGE 227]

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1995]

UNIVERSITY OF ILLINOIS

215

Stukel reminded all that a "Certificate of Need" for building the Ambulatory Care Facility was required from the State and this had not yet been secured. Mr. Todd and Patricia Askew, interim vice chancellor for student affairs, described remodeling plans for several residence halls at the Urbana campus. Ms. Reese then asked about the report in the board meeting agenda concerning repair of the parking garage at the Krannert Center for the Performing Arts at Urbana. President Ikenberry explained the need to proceed with this project, as discussed at the February meeting of the board, as this garage is used very heavily. He added that it would be a large project and thus completed in phases.

MEETING OF THE COMMITTEE ON FINANCE AND AUDIT

Mrs. Gravenhorst convened and chaired this meeting in the absence of the chair, Mrs. Calder. She asked Dr. Bazzani to begin the presentation. He introduced Mr. Doug Patejunas from the firm, Ennis, Knupp and Associates, and asked him to report on the performance of University funds managed by his firm. Mr. Patejunas reported that the performance was not as good as it had been for the past few years. Mr. Engelbrecht asked about variance from the endowment pool policy asset allocation and whether a variance range had been established. To this Mr. Patejunas responded that the endowment pool investment policy limits the variance of individual asset classes to a few percentage points but that the asset allocation usually is within 1 to 2 percentage points of the policy allocation. At that point, Mr. Douglas Beckmann, director of cash management and investments, told the board that under the policy he is responsible for informing the board if any one asset class varies from the policy allocation by more than 20 percent. Mr. Patejunas called the board's attention to a report he had circulated. (A copy is on file with the secretary.) He concluded by stating that 1994 was a disappointing year for the markets and investments. He observed that thus far 1995 looked better. Dr. Bazzani then apprised the board that every three to four years, his office evaluates all of the University's investment managers. Following this, Dr. Bazzani asked Associate Vice President for Business and Finance Richard L. Margison to report on the University's real estate program. Dr. Bazzani noted that this was a project undertaken with the University of Illinois Foundation. He said that the Foundation has given the University a line of credit for purchase of property for the University's growth. Mr. Margison explained that this real estate program is one his staff is managing for the Foundation. The Foundation is willing to acquire self-supporting income property and to hold it until a campus needs it. The Foundation borrows funds for these purchases. These purchases are of property within a campus' Master Plan. He explained that this provides a mechanism for responding to needs for