(401A) Budget: Formulation

All divisions within Kansas Athletics submit annual budget requests which, once approved, are incorporated into Kansas Athletics’ annual operating budget. This budget becomes the basis of authority for the financial operations of each individual division within Kansas Athletics during the fiscal year, which begins July 1.Budget priorities for Kansas Athletics are established each year by the Director of Athletics, who sets overall goals (e.g. salary improvements, enhancement of student support services, facility improvements, etc.). The allocation of funds is ultimately based on the justification of programs using the following criteria:

1. The objectives of the intercollegiate athletics program, as defined in its Mission Statements and Philosophy (see Policy 101 in this Manual);
2. The short and long-term goals for Kansas Athletics operations;
3. The activities and programs needed to achieve these goals, to include facilities and capital equipment improvements; and
4. An analysis of factors and situations that may affect planned activities (e.g. competition schedules, G&A costs, program expansion, salary competitiveness, etc.).

The Associate Athletics Director for Internal Affairs coordinates budget formulation activities for the Division of Athletics with the approval of the Director of Athletics. The budget is prepared through participatory budgeting (i.e. a method by which all levels of management responsible for individual cost center performance are involved). Historical cost center budget information, as adjusted for anticipated changes in activity levels, is utilized to determine line item projections.

Budget Planning Cycle

Kansas Athletics budget planning cycle begins in December of each year, with the budget finalized by May 31st. The budget is then presented to the Board of Directors of Kansas Athletics for final review and approval.

The Chief Financial Officer coordinates the budget formulation process with oversight from Associate Athletic Director/Internal Affairs. Staff members with budgetary responsibilities (e.g. coaches, program directors and department heads) receive a budget request package which includes budget worksheet(s), projected revenues and historical performance data. The Chief Financial Officer, in conjunction with the budget captains, will consult each head coach and his/her sport supervisor and go over income and expenses for his/her sport, help him/her evaluate future financial requirements, and arrive at a proposed budget for the next year.

Staff members with budgetary responsibilities are asked to project the actual cost of the operations necessary to perform the required functions in their sport or administrative area. Priority is given to salaries, team and recruiting travel and other required operating accounts. Capital needs are funded according to projected reserves only after other needs are addressed.

Preliminary budget requests, including support documentation detailing wages, travel, equipment and capital expenses, are submitted by required deadlines to the Associate Athletics Director/Internal Affairs for review. The Associate Athletics Director/Internal Affairs combines individual budget requests into a total Kansas Athletics proposed balanced budget. The Director of Athletics reviews the proposed budget and makes necessary adjustments as dictated by Kansas Athletics needs, ensuring compliance with University guidelines.

After each individual budget is developed, a composite budget must be made for presentation to the Athletics Director. After consultation with the Chancellor, the Athletics Director will take the proposed budget to the Board of Directors for its recommendation of approval to the Chancellor. The Chancellor must then approve the budget no later than June 15th of each year.

After the budget is prepared and approved, any contemplated budget changes require approval from Director of Athletics. Approved budgets should not be exceeded but adjustments may be made by authorization of the Director of Athletics or his designee.

Coaches will be given a copy of their budget and monthly statements. There are certain budget items over which coaches will have little or no control (Salary, Fringe Benefits, Scholarships, etc.). In those areas, which the coaches do control, it is desirable that they set up their own accounting system so that a daily balance is easily accessible. This accounting system should be reconciled each month to the reports furnished by the business office.

Confirmation of information in critical budget areas can be obtained from the Director of Business Operations whenever this information is needed.

Coaches and staff must evaluate each area of expense and plan every purchase. All budget decisions should be based upon whether the contemplated expense item is necessary, what it will cost, and what it will leave for further necessary investments during the budget period.

Budget Formulation Timeline

December – Estimate the approximate cost of a grant-in-aid for the coming year for a student athlete. Establish ticket prices for all sports for following fiscal year.

Revenue is estimated based on previous year’s home game experience and other factors (schedule, perceived success of team, etc.). Estimates are made on a sport-by-sport basis for each component of revenue. Conference income and contribution income are estimated based on the previous year and adjusted for changes in policy. The amount of State appropriation is estimated based on the prior years’ allocation increased by the percentage of change recommended by the Governor to the Kansas Legislature for the next fiscal year.

January – Estimate the percentage increase in salaries and other operating expenses from the Governor’s budget message to the Kansas Legislature. University philosophy generally is that Kansas Athletics employees may be eligible to receive the same annual percentage increase as University employees.

Prepare budget information for each coach and administrator that contains the following information:

Monthly budget report

Expenditure history for two previous years

Budget workbook (Excel)

Budget memo and budget instructions

Each coach and administrator prepares a budget request using the above documents and excel file.

January/March – Director of Athletics approves ticket prices for following year.

February – Budget meetings are scheduled with the coach or administrator, chief financial officer and their supervisor, if applicable, to discuss the request. Additional capital outlay items are requested from administrators who do not have individual budgets.

April/June – The documents are accumulated and a total request is determined. These are reviewed by the Director of Athletics, Associate Athletics Director/Internal Affairs the Senior Woman Administrator and Chief Financial Officer to adjust the requests to fit the income estimates. The budget is reviewed by the Board of Directors.

Final budget documents are prepared and sent to the Board of Directors for review and sent to the Chancellor for final approval.

Reallocation of budgets requires recommendation of the Chief Financial Officer and administrator in charge of the area. The Director of Athletics must approve these changes. Increases to the overall budget require approval of the Chancellor.

Revenue Estimates

Revenue projections are developed annually by the Associate Athletics Director/Internal Affairs with the assistance of the Business Manager and Chief Financial Officer and used as the basis for overall budget preparation. Currently, Kansas Athletics revenues are derived from the following sources:

• Donations
• Ticket Income
• Other Income
• Contract Income (Radio & TV rights fees)
• Big Twelve Conference Revenue Sharing
• University fees and allocation
• Postseason Competition
• Marketing (Host Communications)

The Associate Athletics Director/Internal Affairs prepares the revenue portion of the formulated budget based on actual data (e.g. contract amounts) and historical data, figuring variances due to competition scheduling, etc. Staff members are asked to submit anticipated income projections from sources other than ticket sales that will benefit their activity. In the event that actual income falls short of budget projections, budget revisions may be made.

Budget Approval

With the approval of the Director of Athletics, the final Kansas Athletics budget is submitted to the Board of Directors. If necessary, changes are made and the finalized budget is submitted as a component of the University’s operating budget to the Chancellor for approval at the end of June. Following final approval, staff members with budgetary responsibilities within Kansas Athletics receive copies of their individual approved budget. Depending on the actions of the State Legislature, funding of the University budget may not be instituted until after July 1.