 Montana State University-Bozeman
NCAA Athletics Certification Self-Study 2001-2002 Fiscal Integrity 
Operating Principle
3.2 Fiscal Management and Stability The Association’s principles require each institution to administer its intercollegiate athletics program in keeping with prudent management and fiscal practices. To demonstrate fulfillment of this requirement, the institution shall provide evidence that the management and fiscal practices of the institutions assure the financial stability necessary for providing all student-athletes with relatively full and stable opportunities for athletics participation. Self-Study Items 1. Explain the institution's philosophy with respect to the funding of the athletics program. MSU-Bozeman’s published Statement of Philosophy on the Role of Intercollegiate Athletics has been in effect since 1994 and revised in July 2002.
Opportunities for a richly diverse academic and athletic environment in which the entire University community is fully engaged in supporting student-athletes’ success.
A competitive opportunity that strives for athletic excellence within the Big Sky Conference and NCAA while promoting self-discipline, sportsmanship and ethical conduct.
A mutually beneficial relationship which enhances welfare, personal growth and success between student-athletes and all constituencies.
The Department of Intercollegiate Athletics is committed to promoting honesty, integrity, fiscal responsibility, and a sense of Bobcat Pride throughout the University community and the State of Montana. Student-athletes and staff of the department shall be afforded these opportunities regardless of sex, race, creed, or national origin." While the above statement serves as a general guide, the Montana Board of Regents’ policies (revised in 1999) also govern the funding of athletics. Relevant sections are as follows:
1201: Insofar as an intercollegiate athletic program is maintained at any of the campuses of the Montana University System, non-spectator sports should be given such emphasis and support as is appropriate to their continuation and to the maintenance of a well-rounded program.
Although the Board of Regents’ policy supports funding a program competitive in the conference, it also acknowledges the need for financial support beyond that which the state supplies, either directly or in the form of fee waivers.
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.
See Appendix III-F for spreadsheets reporting this activity.
3. Describe the institutional procedures that are in place to address any deficit in the intercollegiate athletics budget incurred during any fiscal year(s).
The Department of Intercollegiate Athletics has operated in a deficit since FY 1998. Despite these chronic problems, there have been no standard institutional procedures in place to address the deficits except to cut expenditures and backfill as needed by transferring funds from the University Reserve. With the opportunity afforded by the recent changes in upper University and Athletics administrations, institution-wide operating principles (www.montana.edu/upba/upbacpriorities.html) now have been put in place that emphasize realistic estimates of revenues and expenses, and accountability. At this writing, these principles have not yet been translated into policies and procedures.
We focus in this response on the specific way in which the current critical situation is being addressed. It is anticipated that the present deficit will be eliminated during FY 2004 with a projected revenue stream and expense reduction that will provide ongoing stability (See Self-Study Item 6 below.) for the program.
For several years, MSU had been anticipating the need to accumulate funding necessary to replace the roof of the fieldhouse, built in 1957, with an anticipated need of about $1.8 million by the summer of 2002 or 2003. When the projects from the Series 1996-D revenue bonds were completed, including Phase I of the stadium renovation and the entire renovation of the fieldhouse, the Bond Fund contained excess investment earnings. These earnings resulted from aggressive investing and cash monitoring, accumulated savings on several of the projects that has been scheduled for funding with the bond proceeds, and from several delays in drawing on funds as a result of project delays.
The excess accumulation of earnings was identified in January 2001, as the various construction projects were being closed out. In April 2001, it was decided that $1.8 million of the excess investment earnings, representing the vast majority of the funds, would be used to fund the replacement of the fieldhouse roof, bringing the total fieldhouse project cost to over $12.6 million. This decision freed the use of the monies that were being accumulated in anticipation of the roof replacement.
As a result, the accumulated funds that had been slated for the fieldhouse roof replacement were unencumbered and became available for distribution as Other Lawful Purpose funds. After lengthy discussion by the President’s Executive Council, it was decided that $1.5 million of these would be released to the Department of Intercollegiate Athletics to assist in eliminating the FYE program deficit, as follows:
In Figure III-1, accompanying Self-Study Item 6 of this Operating Principle, these measures appear in the category titled "University Support".
4. Outline the sources, uses and amounts of subsidization of the intercollegiate athletics program from nonathletics department and/or noninstitutional sources.
The Department of Intercollegiate Athletics does not receive any funds from these sources.
5. Identify the sources, uses and amounts of Department of Intercollegiate Athletics surplus and/or reserve funds.
This is not applicable, as there have been no Department of Intercollegiate Athletics surpluses or reserve funds over the period in question.
6. Describe how the university will accommodate future financing needs of the intercollegiate athletics program or plans to respond to changing conditions based upon the institution's future financing projections.
The greatest task in eliminating the present financial difficulties in the Department of Intercollegiate Athletics is to develop a plan for long-term sustainability. The Carr report (report by Carr Sports Associates, Inc., external consultants, completed in October 2001) also addresses this issue at length, providing insight into the opportunities that might be considered. In addition, it has been determined that a broad-based solution is needed to provide a balanced budget from year to year. Expenses need to be addressed, but just as important, additional revenue is needed to support any plan of ongoing deficit elimination. Continuing support is needed from the University, the fans, the Booster organizations, and the student body. Each area of support is addressed separately in the plan outlined below. University Support
Booster and Fan Support
Athletic and Sports Facilities Support
Student Support The current student athletic fee is $31.75 per semester. With the exception of a $1.75 adjustment in August 2001, the fee has remained constant since its inception in the fall of 1993. This fee will increase by $10.00 per semester in the fall of 2002 and increase an additional $7.50 per semester beginning in the fall of 2003. The increase will be expended for athletic scholarships, academic center support, and preseason room and board costs. The athletic fee would be as follows:
The current athletic fees of other Big Sky Conference schools are provided below for comparison.
Source: Information is based on 2000-2001 or 2001-2002 statistics, depending on availability. A summary of the above plan, in graphic form, is displayed below as Figure III-1.
Figure III-1 7. After reviewing the institution's Equity in Athletics Disclosure Act survey forms for the three most recent years for which the information is available, comment on the institution's provision of full and stable opportunities to student-athletes. In particular, provide comment, sport-by-sport, on per diem, transportation, equipment, percentage of sport budget that has to be obtained via fundraising and other applicable comparisons. Analyze, explain and address any significant discrepancies.
MSU’s provision of opportunities for student-athletes is both full and stable. Provision is "full" in that MSU competes at the Division I-A level in five men’s sports (basketball, tennis, cross country, indoor track and field, and outdoor track and field), eight women’s sports (basketball, golf, skiing, tennis, cross country, indoor track and field, outdoor track and field, and volleyball), and in football at the Division I-AA level. Participation Although participation in skiing and tennis has declined, overall student participation in the various sports has been largely stable over the last three years.
FY99 FY00 FY01 Football 95 98 94 Men’s Basketball 16 14 13 Women’s Basketball 16 18 16 Golf 8 6 10 Skiing 26 25 20 Tennis 20 17 11 Cross Country 26 20 37 Indoor Track and Field 65 64 69 Outdoor Track and Field 77 68 73 Volleyball 16 15 12 Total* 365 345 355 Expenditures
Expenditure data show significant growth in all areas except "minor" men’s sports. Part of the reported growth apparently occurs because of changes in reporting conventions between the years – fewer dollars are listed as "Not Allocated by Gender" and more are directly allocated to the various sports. Nonetheless, the growth in total expenditure indicates increasing opportunities for athletes.
FY99 FY00 FY01 %Change Football $1,588 $1,860 $2,161 36% Men’s Basketball 697 886 969 39% All Other Men 379 373 405 7% Women’s Basketball $18 660 735 42% All Other Women 1,123 1,287 1,405 25% Not by Gender 2,184 2,847 1,633 -25% Total 6,489 7,913 7,308 13% Per Diem and Transportation
Each sport budgets team travel based on schedules that have been set either at the Big Sky Conference or departmental level. Within the travel budgets are the following components: ground/air travel; meals; motels; miscellaneous (registration fees, meeting rooms, etc).
Ground/air travel is not affected by per diem rates, as this is group travel by van, bus, and/or plane.
Each team budgets meals at the applicable per diem rate, i.e. in-state or out-of-state. These budgeted amounts are used to obtain travel advances. All coaches do have the discretion to budget an amount below the full per diem rate depending on their knowledge of the area and arrangements they may obtain.
Actual meals by team may also vary from budgeted per diem rates depending on geographic location and available facilities. Per Montana State University-Bozeman policies, athletic teams are not bound by per diem rates for travel.
Equipment Spending
Spending for equipment, uniforms and supplies increased by 1/3 in the last two years. Equipment budgets are substantially higher in the "major" sports than in the "minor" ones. Indeed, golf, skiing, track and field and cross country may have difficulty providing a full complement of equipment and uniforms.
FY98-99 FY99-00 FY00-01 Football 796 758 1,106 Men’s Basketball 684 1,019 1,208 Women’s Basketball 985 1,109 1,259 Golf 499 1,146 246 Skiing 424 242 225 Tennis 346 655 736 Track and Field, Cross Country: Men 146 189 271 Track and Field, Cross Country: Women 156 196 223 Volleyball 730 739 1,134 Total* 448 506 599 Fund Raising
Data on Cash Contributions from alumni and others appear to be incomplete, particularly for fiscal year 1999-2000. Based on the most recent year, each sport appears to raise between 4.5% and 7% of its budget. Exceptions are men’s basketball (2.3%) and golf (8.3%).
FY98-99 FY99-00 FY00-01 %Expenditure FY00-01 Football 19,390 52,036 133,132 6.1% Men’s Basketball 21,915 2.3% Women’s Basketball 74,790 37,414 5.1% Golf 13,746 8.2% Skiing 14,603 6.9% Tennis 15,098 5.6% Track and Field, Cross Country: Men 12,634 4.4% Track and Field, Cross Country: Women 25,278 6.4% Volleyball 52,630 24,606 5.1% Other 130,190 Total* 277,000 52,036 298,426 5.3% 8. Please provide a copy of Part II of the institution's NCAA Sports Sponsorship Report for the three most recent academic years.
See Appendix III-G for the report. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
