Editor’s note: This story was updated at 5:32 p.m. Aug. 23 to reflect the details of Thursday’s meeting of the NIU Board of Trustees’ Finance, Audit, Compliance, Facilities and Operations Committee.
DeKALB – A dwindling holding balance and a report stating NIU only had 13 days of cash on hand by June 30, the end of the 2024 fiscal year, were among issues discussed at Thursday’s meeting of the NIU Board of Trustees’ Finance, Audit, Compliance, Facilities and Operations Committee.
The Cash and Investments Holding Summary for the 2024 fiscal year showed the university’s total holdings balance at $77,239,675 as of June 30. Of that balance, about $16 million was available to sustain daily operations for 13 days based on a historical burn rate of $1.2 million per day.
“It’s typical for the university to report a lower amount of unrestricted cash on hand at this time of year — between the end of one fiscal year and the start of the new fiscal year when tuition payments begin to be received,” according to a university statement released to the Northern Star. “While the current amount is below our target level, the university’s deficit mitigation plan and ongoing measures to balance the budget by FY26 are expected to bring working capital within the target range.”
The $77 million in total holdings is a $50 million drop-off from the 2023 fiscal year, in which NIU reported $127,057,908 in total holdings. The report attributed the decrease to “the exhaustion of pandemic relief funds, increased cash disbursements related to payroll, supplier payments, and debt service.” The 2024 fiscal year marks the first time in at least a decade NIU has reported less than $100 million in total holdings.
Additionally, the aforementioned $16 million in unrestricted cash on hand is a sharp decline from the same time last year. NIU reported $65 million was available for 60 days of operations at the end of fiscal year 2023, and $90 million for 90 days of operations the year prior.
“The numbers are not what we want to see,” Committee Chair Dennis Barsema said.
The committee also approved two endorsement requests for bowl game participation expenses for NIU’s football team, as well as a $3 million contract with Trane Inc., a heating, ventilation and air conditioning systems manufacturer, to implement the first phase of the Campus Energy Improvement project. The latter item received full board approval – with an amendment change – during a special meeting of the Board of Trustees that began promptly after the committee meeting.
The Finance, Audit, Compliance, Facilities and Operations Committee will meet next on Nov. 7 in Altgeld Hall Room 315.
