Repository: UIHistories Project: Board of Trustees Minutes - 1946 [PAGE 312]

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1944]

UNIVERSITY OF ILLINOIS

3<X)

ratory Schools Building as of benefit to the schools of the State in many ways, and requesting that the Board reconsider the position of this building in the Post-War Building Program. This matter was referred to the President of the University for consideration in conference with the University Building Committee.

REPORT OF FINANCE COMMITTEE ON ENGAGEMENT OF AUDITORS

Mr. Davis presented the following report.

The Finance Committee has considered the matter of engagement of auditors for the University and affiliated organizations for the fiscal year ending June 30, 1945. T h e committee recommends that the firm of Arthur Young & Company of Chicago be again engaged for these audits, their services to be charged on a per diem basis plus expenses, with the understanding that the total charges including expenses will not exceed the following amounts, which are the same as for the year 1943-1944: University of Illinois $3 500 University of Illinois Foundation 500 Athletic Association 300 The maximum costs are named on'the assumption that if the audit discloses extraordinary matters which should be investigated beyond the scope of usual examination the firm will be compensated for such additional work as may be necessary after arriving at a proper understanding with the Finance Committee.

On motion of Mr. Davis, the employment of Arthur Young and Company was authorized as recommended.

INVESTMENT O F E N D O W M E N T FUNDS

Mr. Davis reported also as follows:

On recommendation of investment counsel, the T r u s t Department of the First National Bank of Chicago, the Finance Committee has authorized the purchase of the following items as investments of surplus cash in our endowment funds: $2,500 U.S. Government, Series G, 2 ^ ' % bonds due 1956. (This will bring our purchases to the maximum of $100,000 for 1944.) $25,000 Armour and Company, first 3 % % of 1964, at approximately 103J/2. Yield 3%. $5,000 Central Illinois Public Service, first iYi% of 1971, at 108. Yield about 3 % . ($20,000 now held)

On motion of Mr. Davis, the action of the Finance Committee in authorizing these investments was approved and confirmed.

INVESTMENTS AUTHORIZED

Mr. Davis reported also as follows:

On advice of investment counsel, the First National Bank of Chicago, the Finance Committee recommends the purchase of the following securities as investments of endowment funds as needed: $25,000 par Kansas City Terminal Railroad, 1st 2 & % of 1974, at about 101H. to yield 2.65%. $25,000 par Commonwealth Edison Company, 1st 3 % of 1977, at about 105, to yield 2.75%. $14,000 par Ohio Edison Company, 1st 3% of 1974, at about 102%, to yield 2.80%. (In addition to $11,000 now held) After January 1, 1945: $100,000 United States Savings Bonds, 2^2%, Series G, due 1957, at par.

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