<strong>USNH</strong> <strong>2011</strong> ANNUAL REPORTMurals created by Plymouth State <strong>University</strong> students adorn a vacant Brown Company building and capture Berlin’s cultural history and heritage.PSU Student Murals Depict Berlin’s Cultural History – The richhistory of the Brown Company in Berlin and the surroundingcommunities is coming to life thanks to a unique partnershipwith the Center for Rural Partnerships at Plymouth State<strong>University</strong>, Tri-County Community Action Program (CAP), WhiteMountain Lumber, and the Neil and Louise Tillotson Fund of theNew Hampshire Charitable Foundation. The highlight of thepartnership is a group of twenty-four murals created by PSUstudents displayed on the side of a vacant Brown Companybuilding in Berlin depicting Berlin’s cultural history and heritage.The former research and development building opened in1915, and over the next fifty years the company’s scientistspioneered innovations in the wood pulp and paper industries,transformed the use of forest products, and enhanced the valueand productivity of forests across New England and the world. It islisted on the 2010 “Seven to Save” list as a state threatened historicresource.UNH Expands Global Initiatives to Attract InternationalStudents – The <strong>University</strong> of New Hampshire advanced its effortsto make the institution more global and diverse with the launch ofthe state’s only Confucius Institute and a new partnership with anAustralian firm that recruits and supports international students.In addition to providing UNH students with access to a completecurriculum in Chinese language and culture, the institute alsoprovides opportunities for cultural learning and exchange forprimary through post-secondary schools in the region.A second effort—the university’s partnership with Navitas—willnot only make UNH a more diverse and international institutionwith the students it brings to campus, but will broaden theuniversity’s revenue stream. The first group of students arrived oncampus in May.GSC Delivering Leadership Training – Granite State Collegeand Bruce Mast & Associates, Inc. (BMA) joined forces to provideempowering hands-on leadership development programs tobusinesses and their employees statewide. Based in Portsmouth,BMA is a human resource firm that focuses on leadership andorganizational development. BMA’s proprietary five-sessionStepping Up To Leadership® program and the ten-sessionLeadership On The Line® program are each custom-tailored to NewHampshire’s business community. The Stepping Up To Leadershipprogram was first offered at GSC campuses, in Rochester, Conwayand Claremont, with additional program expansions planned for<strong>2011</strong>.Stepping Up To Leadership offers employers and current businessleaders compelling perspectives and insights into the kinds ofleadership roles—and the leaders needed to fill them—necessaryto ensure the further growth and success of their businesses.Meanwhile, individuals identified as emerging leaders garner afundamental understanding of leadership and its impact, bothpersonal and from an organizational perspective, as well as anunderstanding of the basic tools of leadership. GSC and BMAserve a common constituency (the businesses in the State of NewHampshire) and share a common commitment to assist thosebusinesses in building effective leaders.12
<strong>USNH</strong> <strong>2011</strong> ANNUAL REPORTManagement’s Responsibility for <strong>Financial</strong><strong>Report</strong>ing and Internal ControlsThe accompanying financial statements, footnotes,management’s discussion and analysis, and all informationin this <strong>Annual</strong> <strong>Report</strong> are the responsibility of management.Management has prepared the financial statements and accompanyingnotes in accordance with generally accepted accounting principles and,in the process, has made judgments and estimates which affect theamounts as reported. Management is responsible for the integrity andobjectivity of all representations in this report.The financial reporting process utilizes an on-line budgeting andaccounting system with spending controls on operating funds andelectronic access and approvals. Managers of all <strong>USNH</strong> funds havecontinual on-line access to the status of their accounts in order tomeasure operating results against the budget and to assure effectivecustodianship of funds. Transactions as recorded in the accountingsystem are aggregated and reflected in regular monthly reports tomanagement, in periodic interim reports to the Board of Trustees’<strong>Financial</strong> Affairs Committee, and in the annual audited financialstatements, approved by the full Board.The internal control systems include an organizational structure thatprovides for careful recruitment and training of qualified personnel,proper segregation of financial duties, and a program of regular internalaudits. These controls are designed to provide reasonable assurancethat assets are safeguarded against loss from unauthorized use ordisposition, transactions are executed in accordance with management’sauthorization, and such transactions are recorded properly, resultingin financial statements that are free from material misstatement.Management seeks to continually improve internal controls, given coststhereof and management’s assessment of the probability andpotential consequences of future events. According to the “InternalControl – Integrated Framework” report published by the NationalCommission on Fraudulent <strong>Financial</strong> <strong>Report</strong>ing (the TreadwayCommission), internal controls can be judged effective if managementhas “reasonable assurance that (1) they understand the extent to whichthe entity’s operating objectives are being achieved, (2) publishedfinancial statements are being prepared reliably, and (3) applicable lawsand regulations are being complied with.” Based on these requirementsit is management’s opinion that the internal control systems employedby <strong>USNH</strong> are effective.The Audit Committee of the Board of Trustees is responsible foroverseeing <strong>USNH</strong>’s financial reporting process and internal controlsystems, as well as recommending and engaging independent publicaccountants for the annual audit. The internal auditors, while employeesof <strong>USNH</strong> are nevertheless objective in the planning, conducting andreporting of their audits. The Audit Committee, the voting membersof which are solely outside trustees, meets at least three times per yearand at the request of the Director of Internal Audit. Both internal andexternal auditors have unencumbered access to the Audit Committee atall times.PricewaterhouseCoopers LLP, certified public accountants, have issuedtheir unqualified opinion as to the fair presentation of the financialstatements that follow. Thus, for all 48 years of its existence, <strong>USNH</strong> hasreceived only unqualified opinions from its independent auditors. Aspart of their audit, PricewaterhouseCoopers LLP assessed the accountingprinciples used and significant estimates made by management.Although it is not practical to examine all transactions and accountbalances, the auditors have conducted a study and evaluation of <strong>USNH</strong>internal control systems and performed tests of transactions andaccount balances to provide reasonable assurance that the financialstatements are free from material misstatement.The <strong>Report</strong> of Independent Auditors, which expresses the auditor’sopinion on the <strong>2011</strong> financial statements, is reproduced on the followingpage.Kenneth B. CodyVice Chancellor for <strong>Financial</strong> Affairsand Treasurer/CFOCarol A. MitchellController13