Montana State University-Bozeman
NCAA Athletics Certification
Self-Study 2001-2002

Fiscal Integrity

Previous Certification Self-Study

1. List all the “corrective actions”, “conditions for certification” or “strategies for improvement” imposed by the NCAA Division I Committee on Athletics Certification (if any) as they relate to fiscal integrity issues. In each case provide: (a) the original “corrective action”, “condition” or “strategy” imposed; (b) the action(s) taken by the institution and the date(s) of those action(s); and (c) an explanation for any partial or noncompletion of such required actions. (Note: The institution is not required to respond to recommendations for required actions developed by the peer-review team unless those same recommendations were adopted by the Committee on Athletic Compliance.)

The Committee on Athletics Certification, in its letter of March 1, 1996, did not impose any conditions for certification that were related to the fiscal area.

2. List all actions the institution has completed or progress it has made regarding all plans for improvement/recommendations developed by the institution during its first-cycle certification process in the fiscal integrity area. Also, describe any additional plans for improvement/recommendations developed by the institution since the first-cycle certification decision was rendered by the Committee on Athletics Certification. Specifically include: (a) the original plan; (b) the action(s)taken by the institution; (c) the date(s) of the action(s); (d) actions not taken or not completed; and (e) explanations for partial completion.

Recommendations of the 1995 Self-Study and Response to Institutional Actions

Below are the four recommended plans for improvement in the fiscal area identified by Montana State University-Bozeman in its self-study report of 1995. Each item is followed by a description of the action taken by the institution. a. Significant additional funding is necessary in the future.

Since 1994-1995, Department of Intercollegiate Athletics’ revenues have increased $1,612,959, or 35%. This change is largely due to increased revenues generated through guarantees, gate receipts, booster contributions, and corporate sponsors. Per the Department of Intercollegiate Athletics’ budget plan projections through 2006, the following additional revenue sources have now been identified:

  1. Increase in student athletic fees annually to 2006.
  2. Construction of four (4) additional Sky Suites.
  3. Annual increase in corporate sponsorship dollars.
  4. $120,000 additional annual funding from the University for general operations expenses.
  5. Ticket surcharge to all events in the stadium and fieldhouse.
  6. Filling of the Major Gifts position in conjunction with a reorganization of the fundraising approach.

b. Determine whether an external review committee is needed to ensure compliance with NCAA expenditure rules.

In spring 2001, representatives from the NCAA were invited to campus to evaluate the compliance operations of the Department of Intercollegiate Athletics. MSU intends to utilize this procedure every three years. In addition, a Compliance Committee has been formed that consists of the compliance staff from the Department of Intercollegiate Athletics as well as representatives from the Registrar’s Office, Financial Aid, and the Faculty Athletics Representative. A major purpose of this committee is to evaluate current procedures and suggest improvements.

c. University and the Boosters Board should cooperate to develop policies and procedures governing the use of the discretionary account to ensure NCAA compliance, proper internal controls, and appropriate use of funds.

Primary discretionary funds are now subject to the same controls as all other Department of Intercollegiate Athletics’expenditures. Requests for payments from these funds are routed through the Department of Intercollegiate Athletics for approval by senior administrative staff, as well as approval by the Compliance Office.

d. Develop a written policy or procedure to address the manner in which an account deficit will be handled.

All university departments have been given a directive by the President to eliminate deficits, as well as having a plan to prevent deficit reoccurrence. The Department of Intercollegiate Athletics currently has an approved plan that will erase the current deficit and provide funding that will prevent future deficits. In addition, the Board of Regents has mandated that all budget deficits be eliminated. If a department should have a deficit, a plan must be developed in the succeeding year to erase the deficit.

Section 15 of the Department of Intercollegiate Athletics Compliance/Operations Manual, developed in 2001-2202, reflects this attitude and philosophy toward the budget process. If expenditures exceed budget in a category for a given year, adjustments will be made in other categories as an offset.

3. List all actions the institution has completed or progress it has made regarding required actions identified by the NCAA Committee on Athletics Certification during the institutions interim-report process (if applicable) as they relate to fiscal integrity issues. Specifically, include for each: (a) the required action, (b) the action taken by the institution, (c) the date(s) of these action(s), (d) action(s) not taken or completed, and (e) explanation(s) for partial completion.

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