SECOND CYCLE CERTIFICATION
FISCAL INTEGRITY SUBCOMMITTEE - SELF
STUDY INSTRUMENT
OPERATING PRINCIPLE TWO
3.2.1 Explain the
institution's philosophy with respect to the funding of the athletics program.
Funding of the athletics program
is based upon the University's commitment to maintaining its membership in the
Mid-American Conference and competing effectively as an NCAA Division I-A
institution. Operational funding and facilities will be consistent with these
objectives and within NCAA rules. Eastern Michigan University values a
broad-based intercollegiate program consistent with the mission of the
institution. This program is
appropriately aligned with NCAA Division I-A expectations, Mid-American
Conference sports sponsorship requirements and institutional objectives.
Eastern Michigan University’s
Intercollegiate Athletics is funded by revenue from the General Fund,
Designated Fund and funds generated by the Athletics Department. The General Fund consists of revenue from
state appropriations, student tuition and fees. The General Fund records
operations from olympic sports and athletics scholarships. The student general fee is recorded in the
Designated Fund. A portion of the
student general fee is allocated to the athletics program. The operations from
the revenue producing sports, football and men’s basketball are recorded in the
Designated Fund.
A general student fee schedule was implemented effective July l,
1994, which allocates revenue to athletics based upon a set formula. The
general fee was last adjusted effective fall 2000. The purpose of this fee was
to provide the necessary funding for athletics to achieve its objectives
without compromising academic programs and services.
In conjunction with the
implementation of the General Fee, all non-personnel service athletics budgets
were frozen. All personnel salaries and fringe benefits are increased based on
the University’s Human Resource Board of Regents approved policy. The
University’s General Fund supports scholarships for students’ tuition and
mandatory fees, room and board, and provides a book loan program. All other program increases are to be funded
by the General Fee or Athletics revenues.
Prior to the adoption of the General
Fee, the funding policy for athletics specified that the University’s General
Fund provided 100 percent of the resources for the athletic program with the
exception of football and men’s basketball.
Effective in the 2000-01 fiscal year the
Board of Regents approved the move of revenue sports, football and men’s
basketball, to the Designated Fund to be funded entirely by the general fee and
athletics revenues. However, grants-in-aid for men’s football and men’s
basketball remain in the general fund.
Olympic sports continue to be funded in the General Fund.
Funding for Men’s Tennis and Men’s
Soccer was eliminated effective with the 2000-01 fiscal year with operating
budgets reallocated to a new Women’s Crew program. The elimination of these
men’s sports underscores the department’s continued desire to be in full
compliance with Title IX and equitable distribution of resources.
It is anticipated that game
guarantees will be self-funding over time to allow the athletics administration
greater flexibility in scheduling games. The balance of net guarantees is
carried over at year end and reserved exclusively for this purpose. This
includes funds necessary to support tournament guarantees. The Athletics Department
has developed a multi-year plan through June of 2007 balancing guarantee
revenue and expense. Athletics guarantee revenues and expenses are housed in
the Designated Fund. All NCAA revenue
distributions are treated as athletics revenues within the context of the above
policy.
The University places no restrictions on the solicitation of gifts for the athletic program other than to conform to NCAA and general University policy. Private donations are treated as ancillary support and are recorded in the Designated Fund.
The
policy regarding the funding of athletics grants-in-aid is consistent with the
overall funding policy for athletics, i.e. the number of athletics
grants-in-aid for each sport should enable each sport to compete effectively
within the Mid-American Conference and NCAA Division I-A. University policy is
to fund the maximum number of grants-in-aid in each sport as allowed by the
Mid-American Conference and NCAA. In 2001-02, nine women's sports, with the exception
of women's rowing, are funded at maximum NCAA grants-in-aid limits. Three out of seven men's sports are not at
the maximum allowable levels due to budget constraints (NCAA counts indoor
track, outdoor track and cross-country as one sport).
The General Fund funds athletics
grants-in-aid. The Office of Financial
Aid administers all grants-in-aid. Endowed
scholarship support from private contributions is available to a few sports,
such as men's track, men's golf and wrestling. (See complete list beginning on
page 6.) In 1999-00, the General Fee
supported partial grants-in-aid for women’s Softball, Tennis, Swimming,
Gymnastics, Track/Cross Country, Soccer and Golf. Beginning in 2000-01, the university restructured the
scholarships funding source by moving all scholarships to the General Fund.
Scholarships were not reduced, only consolidated, in the General Fund.
Although athletic funding is derived from several sources,
all funds are under the financial control of the University and are subject to
standard operating procedures.
3.2.2 Using the institution’s
established budgetary format, prepare a list of both projected and actual
athletic revenues (by source) and expenditures (by budget category) for the
three most recently completed fiscal years. In doing so, make sure that all
athletics administrative costs are included. Provide any revenues and
expenditures on a sport-by-sport basis.
Below are summary charts of the budget and
actual athletics revenues by sources for years 1999-2000, 2000-01 and 2001-02
and a summary chart of actual expenses by budget category. The University
Budget Management Office reports for 1999-2000, 2000-2001 and 2001-02 are in
Appendix ____. These reports detail the expenditures by budget category, by
administrative area and by sport for both men and women.
In addition, revenue was moved from the general
fund base budget development process to the Designated Fund in the middle of
2000-2001. The university did not budget for basketball ticket corporate
sponsors and football ticket corporate sponsors in either 1999-00 or 2000-01.
REVENUE AND FUNDING
SOURCES
|
1999-2000 |
2000-2001 |
2001-2002 |
|||
|
OBJECT CATEGORY |
BUDGET |
ACTUAL |
BUDGET |
ACTUAL |
BUDGET |
ACTUAL |
|
Gift Distribution |
$ |
$2,375 |
$0 |
$0 |
$0 |
$0 |
|
$ |
$5,995 |
$0 |
$11,071 |
$0 |
$10,560 |
|
|
Basketball Ticket
Corporate Sponsors |
$ |
$12,725 |
$0 |
$54,581 |
$55,000 |
$82,529 |
|
Football Ticket Corporate
Sponsors |
$ |
$19,489 |
$0 |
$64,512 |
$64,000 |
$78,195 |
|
Other Sport Concessions |
$0 |
$580 |
$0 |
$1,874 |
$0 |
$0 |
|
Basketball Program Sales |
$1,000 |
$0 |
$1,000 |
$33 |
$0 |
$0 |
|
Basketball Tickets |
$50,000 |
$96,957 |
$50,000 |
$60,799 |
$60,000 |
$49,869 |
|
Basketball Concessions |
$2,000 |
$0 |
$2,000 |
$0 |
$0 |
$0 |
|
Football Tickets |
$150,000 |
$103,454 |
$150,000 |
$87,722 |
$87,840 |
$52,363 |
|
Football Program Sales |
$3,000 |
$2,400 |
$3,000 |
$2,979 |
$2,000 |
$3,944 |
|
Football Concessions |
$6,000 |
$10,610 |
$6,000 |
$10,314 |
$11,000 |
$11,506 |
|
Football Parking Receipts |
$15,000 |
$696 |
$15,000 |
$1,054 |
$1,000 |
$0 |
|
NCAA Sponsorship
Distribution |
$265,000 |
$589,893 |
$265,000 |
$610,866 |
$656,450 |
$626,277 |
|
Miscellaneous, Rentals |
$2,233 |
$19,374 |
$2,233 |
$23,147 |
$16,660 |
$28,171 |
|
Royalties |
|
|
$0 |
$542 |
$500 |
$0 |
Sub-Total IA Revenue |
$494,233 |
$864,548 |
$494,233 |
$929,494 |
$954,450 |
$943,414 |
|
|
|
|
|
|
|
|
|
$4,575,036 |
$4,768,005 |
$6,172,545 |
$4,503,376 |
$5,189,147 |
$5,215,348 |
|
|
$785,664 |
$785,664 |
$0 |
$1,524,279 |
$1,545,663 |
$1,598,106 |
|
|
$2,667,221 |
$2,659,592 |
$3,240,756 |
$3,131,798 |
$3,831,038 |
$3,740,181 |
|
|
$46,785 |
$46,785 |
$52,493 |
$52,493 |
$59,498 |
$59,498 |
|
|
|
|
|
|
|
|
|
|
$8,074,706 |
$8,260,046 |
$9,465,794 |
$9,211,946 |
$10,625,346 |
$10,613,133 |
|
|
$0 |
$(72,822) |
$0 |
$124,089 |
$0 |
$28,460 |
|
|
|
|
|
|
|
|
|
|
$0 |
$388,700 |
$0 |
$394,481 |
$0 |
$201,250 |
|
|
|
|
|
|
|
|
|
|
$0 |
$136,369 |
$0 |
$98,658 |
$0 |
$115,951 |
|
|
$0 |
$71,650 |
$0 |
$68,029 |
$0 |
$62,432 |
|
|
$0 |
$20,076 |
$0 |
$1,388 |
$0 |
$6,136 |
|