The Department of Intercollegiate Athletics budget approved by regents July 18 projects an operating surplus of $1.8 million for the year ending June 30, 2003. The department also announced a projected surplus of $5.5 million for the 200102 fiscal year, approximately a $4.4 million improvement over the budgeted surplus of $1.1 million.
We are pleased to once again project an operating surplus in 2003, Athletic Director Bill Martin said. It is a continuous struggle to balance our revenue streams. The athletic department funds all of our sports to the full NCAA scholarship limit and our mission of competitive excellence in all 25 sports comes at a significant financial commitment.
The favorable results for FY 2002 resulted from greater than expected licensing revenues, annual donations and football admission revenues, said Jason Winters, chief financial officer of athletics. Winters also noted that expenditures are expected to be consistent with budgeted levels for the year ended June 30, 2002, because of continued cost controls.
Winters cautioned that while the athletic department projects an operating surplus for FY 2003, it is primarily a result of a seventh home football game, and long-term financial stability has yet to be achieved. In the future, fund raising will become even more important to our ongoing financial health, Winters says.
The department has budgeted approximately $3.6 million in capital expenditures for FY 2003, an increase of $1.2 million from last year, which is to be partially funded by cash reserves. While we are happy to have stabilized our operating cash flow, there are several long-term facility renewal and renovation projects that we need to address going forward, Winters said.
However, Martin also warned that the department still faces many financial challenges. We must make a significant investment in our aging physical plant, Martin said. Replacement decisions will be driven by our fund-raising efforts.