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PRESENTED BY Florida Agricultural and Mechanical University Athletics Update 1 Finance and Administration
PRESENTEDBY
FloridaAgriculturalandMechanicalUniversity
AthleticsUpdate
1
FinanceandAdministration
AthleticsUpdate
§ Mid-August,BoardofTrusteessetsa$10.2Mbudget§ LateAugust,budgetisbookedintoaccountingsystem§ Immediatelyitshowsspendingtrendsheadingtowards$10.8M.
§ CFOinformsPresidentandhecallsforimmediateexpensecontrols.
§ CFOalsosuggeststhat$8.9MinrevenuessetinBoardactionisaggressive.
§ 3-yearrevenuetrendsuggests$8.4MandPresidentsupportsfindings
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BudgetStillinPlace,AssumptionsChanging
Approvedexpensebudgetis$10.2MSpendingnowtrendingtowards$10.8M
Approvedrevenuebudgetis$8.9MMulti-yearRevenuetrendssuggest$8.4M
Budgetdeficittrendingupwardsfrom$1.3Mtopossiblyover$2.0Mduetochangingassumptionsandspendingtrends
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InterimControls
• Presidentordersthefollowing– Uselowerrevenuefigures.-complete– ImplementHiringFreeze– October1– ReassembleAthleticAssessmentTeam– reportoutbyOctober30th• Seniormanagementteamformedtofindexpensereductions.• SameteamthatreportedtoBoardinJuly.• StudyeliminationofNon-essentialpersonnel/reassignment
– ImplementmultipleteamstolookatBOGallowablescholarshipandoperationalrevenueenhancements.Reportbymid-Octoberandimplementspringsemester.
– BalanceBudget– assoonaspracticaltakingintoaccountNCAAandTitleIXissues.
– Intotal,approximately40seniorandmid-levelmanagers,plusstudentsnowlookingattheissue.
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Athletics– CurrentStateandApproach
• Approach:– RevenueEnhancements $600k- $1.0M– ExpenseReduction $600k- $1.0M
• DSO– Continuestofillinshortfallinathleticsbudgetasnecessary
– Revenueenhancementsandexpensereductionslessentheneed.
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PotentialRevenueEnhancements
– ScholarshipBuyDown:• AuxiliaryInterest• FinancialAidPackaging• Waivers
– Revenue:• RebalanceStudentFees
– DSOSupport:• InvestinginChampions• Boosters• Other
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ExpenseControlAreas
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– Personnel– Salaries– Travel– Scholarships
KeySuccessFactors• FullUniversityEngagement• AggressiveRevenueGeneration• AggressiveExpenseReductions• ConsultationwithKeyStakeholder:
– Athletics– Students– Alumni– OversightBoards– NCAA/MEAC
• DSOSupport• Data-drivenandInformedDecision-making• TransparentCommunicationtoStakeholders 8
