PRESENTEDBY

FloridaAgriculturalandMechanicalUniversity

AthleticsUpdate

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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