Finance and Compliance Committee – BOR Retreat June 7-8, 2018 Page 1 of 2 ACTION ITEM #3 2018-2019 Athletics Budget Approval (Joan King) June 8, 2018 TO ALL MEMBERS OF THE BOARD OF REGENTS SUBJECT: 2018-2019 Athletic Budget Approval PROPOSED: That the Washington State University Board of Regents: (1) Approve the 2018-2019 WSU Athletics budget; (2) Approve the plan for reducing operating deficits in future fiscal years; and (3) Approve transfers necessary at FY18 year-end to cover the deficit balance. SUBMITTED BY: Joan King, Associate Vice President/Chief University Budget Officer SUPPORTING INFORMATION: Washington State University has implemented a 3-year fiscal health restoration plan and has nearly completed the first year of the plan. As a part of the University’s plan, WSU Athletics has developed a targeted plan to ensure that it will return to an operating breakeven position in the next few years. The Athletics plan also ensures that WSU is fully compliant with Substitute Senate Bill 6493, which was passed by the 65 th Legislature during its 2018 regular session. This bill requires certain actions of the boards of the state’s colleges and universities, related to intercollegiate athletics programs. (See SSB 6493, attached.) This bill requires that the WSU Board of Regents specifically approve, in an open public meeting, the annual budget for the Athletics program; the plan for reducing the operating deficits in future fiscal year; and any transfers that are necessary at year-end for WSU Athletics. The three prior fiscal years’ financial statements for the program will also be conspicuously posted to the University’s web site. ATTACHMENTS: Attachment A: Substitute Senate Bill 6493 Attachment B: FY15 – FY17 Athletics Actual Revenues and Expenditures
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Finance and Compliance Committee – BOR Retreat June 7-8, 2018 Page 1 of 2
(Joan King) June 8, 2018 TO ALL MEMBERS OF THE BOARD OF REGENTS SUBJECT: 2018-2019 Athletic Budget Approval PROPOSED: That the Washington State University Board of Regents: (1) Approve the 2018-2019 WSU Athletics budget; (2) Approve the
plan for reducing operating deficits in future fiscal years; and (3) Approve transfers necessary at FY18 year-end to cover the deficit balance.
SUBMITTED BY: Joan King, Associate Vice President/Chief University Budget Officer SUPPORTING INFORMATION: Washington State University has implemented a 3-year fiscal health
restoration plan and has nearly completed the first year of the plan. As a part of the University’s plan, WSU Athletics has developed a targeted plan to ensure that it will return to an operating breakeven position in the next few years. The Athletics plan also ensures that WSU is fully compliant with Substitute Senate Bill 6493, which was passed by the 65th Legislature during its 2018 regular session. This bill requires certain actions of the boards of the state’s colleges and universities, related to intercollegiate athletics programs. (See SSB 6493, attached.)
This bill requires that the WSU Board of Regents specifically approve, in an open public meeting, the annual budget for the Athletics program; the plan for reducing the operating deficits in future fiscal year; and any transfers that are necessary at year-end for WSU Athletics. The three prior fiscal years’ financial statements for the program will also be conspicuously posted to the University’s web site.
ATTACHMENTS: Attachment A: Substitute Senate Bill 6493 Attachment B: FY15 – FY17 Athletics Actual Revenues and
Expenditures
Finance and Compliance Committee – BOR Retreat June 7-8, 2018 Page 2 of 2
Attachment C: FY18 Athletics Budget, including estimates of May and June activity plus FY 2019-2023 Proposed Budgets with breakeven in 20-23
Attachment D: Transfer Process and Projected Amounts, based on financial information as of 4/30/18
Attachment B
( $ M)
FY15 FY16 FY17
REVENUES:
01 - Ticket Sales 6.8 5.5 7.7
02 - Direct State/Gov Support - - -
03 - Student Fees 1.1 0.8 1.6
04 - Direct Inst. Support 3.7 3.7 3.3
05 - Less Xfer to Inst. - - -
06 - Indirect Inst. Support 1.2 0.4 0.4
06A - Debt Service, Lease, Rentals - - -
07 - Guarantee Revenue 0.4 0.3 0.3
08 - Contributions 6.4 7.6 8.1
09 - In-Kind 0.2 0.1 0.1
10 - 3rd Party Compensation - - -
11 - Media Rights 17.0 17.9 18.8
12 - NCAA Distribution 1.3 1.3 3.2
13 - Conference Distribution 8.2 9.4 10.7
14 - Program/Concessions etc. 0.2 0.2 0.9
15 - Royalties/Advert. etc. 4.0 6.3 4.4
16 - Sport Camp Revenue 0.4 0.4 0.4
17 - Endowments 0.6 0.6 0.6
18 - Other Revenue 2.4 2.1 1.4
19 - Bowl Revenue - 1.9 2.4
Total Revenue 54.1 58.8 64.3
EXPENSES:
20 - Athletic Aid 9.7 11.0 10.7
21 - Guarantee Expense 1.3 1.7 1.6
22 - Coaches Comp: WSU 10.7 11.7 11.8
23 - Coaches Comp: 3rd Party - - -
24 - Admin Comp: WSU 12.1 12.8 13.4
25 - Admin Comp: 3rd Party - - -
26 - Severence 1.0 0.0 0.1
27 - Recruiting 1.2 1.1 1.2
28 - Team Travel 4.0 4.0 4.1
29 - Equipment 2.4 3.0 2.0
30 - Game Expenses 2.4 1.6 1.8
31 - Fund Raising/Marketing 1.9 2.4 2.2
32 - Sport Camp Expense 0.3 0.3 0.3
33 - Spirit Groups 0.2 0.2 0.2
34 - Facilities: Debt/Lease/Rental 11.5 9.7 9.3
35 - Direct Admin Expense 0.0 2.3 2.4
36 - Indirect Inst. Support 1.2 0.4 0.4
37 - Medical/Insurance 1.1 1.0 0.8
38 - Dues & Memberships 1.8 1.8 1.7
39 - Student-Athlete meals - 0.8 1.0
40 - Other Expense 4.5 4.1 4.9
41 - Bowl Expenses 0.0 1.7 1.9
Total Expenses 67.4 71.7 71.8
Net Operating Income (13.3) (12.9) (7.5)
Cumulative Deficit (38.6) (51.5) (59.0)
Washington State UniversityFY15 - FY17 Athletics Actual Revenue & Expenses