MINUTES OF THE

NATIONAL COLLEGIATE ATHLETIC ASSOCIATION

DIVISION II BUDGET AND FINANCE COMMITTEE

Teleconference call September 22, 2005

Those in attendance were:

Robert Brown, Arkansas Tech University

Thomas Brown, Great Lakes Intercollegiate Athletic Conference

Paul Englemann, Central Missouri State University

George Hagerty, Franklin Pierce College

Arthur Kirk Jr., Saint Leo University, chair

Eddie Moore Jr., Virginia State University

Sue Willey, University of Indianapolis

Jill Willson, Texas A&M University - Kingsville

Joyce Collins, NCAA

Tamara Gingerich, NCAA

Mike Racy, NCAA

Terri Steeb, NCAA

Kathryn Martin, University of Minnesota, Duluth was not able to attend.

[Note: These minutes contain only actions taken (formal votes or stated "sense of the meeting") in accordance with NCAA policy regarding minutes of all Association entities. While certain items on the committee?s agenda were acted on at various times throughout the meeting, all final actions within a given topic are combined in these minutes for convenience of reference.]

The meeting was called to order at 10:07a.m. by the chair, Dr. Kirk.

1. Opening Remarks. Dr. Kirk welcomed everyone and reviewed the meeting schedule.

2. Approval of Previous Minutes.

It was VOTED

?That the minutes of the August 3, 2005 Division II Budget and Finance Committee meeting be approved as distributed.?

3. Recommended Surplus Uses.

The budget and finance committee discussed the 2004-05 preliminary budget-to-actual results.

It was VOTED:

?That the Budget and Finance Committee recommends to the Division II Management Council and the Division II President?s Council that a contribution of up to $1,000,000 of the Division II surplus be made to the institutions affected by hurricanes this year and encourages other divisions and the Executive Committee to provide support as well.?

It was VOTED:

?That the recommended uses of the 2004-05 surplus be approved with the revisions noted.? The original supplement presented to the committee noted a surplus of $4,400,000 with expenses totaling $3,480,000. Adjustments have been made by the national office staff to accommodate overhead expenses, to account for possible hurricane relief funds and the adjustments to television contracts as well as football travel expenses. The revised possible uses for Division II surplus from fiscal year 2004-05 start with an estimated surplus of $5,000,000 and expenses totaling $4,548,000. [Attachment A]

Note: The President?s Council Committee met via conference call on September 26, 2005 in reference to possible hurricane relief funds. It was voted to approve $1,000,000 from the 2004-05 Division II surplus to support the NCAA?s and Habitat for Humanity?s ?Home Team? project.

4. Membership Status.

It was concluded that the University of District of Columbia and the University of Puerto Rico, Cayey are not eligible for conference grant funds due to their failure to meet the sport sponsorship requirements. The Membership Committee has put both of these institutions on probationary status and will notify the Budget and Finance Committee if a change in eligibility occurs.

5. Method of distribution for Conference Grant money.

It was VOTED

?That the revised distribution method suggested by the national office staff be approved. This method uses a base amount of $85,000 for each active Division II conference with the remaining grant balance being distributed in a set premium amount based on the number of institutions in the conference during the academic year the grant application is submitted. Active independent institutions in good standing shall receive $8,000 per institution. Included in the change to the distribution method, the committee also approved the breakdown between required amounts and permissive amounts split 65% and 35% respectively. The committee approved removal of the 10% fund movement rule for sub-categories from the conference grant guidelines. Committee approval was also given for the addition of a compliance component to the governance component of the application and evaluation forms. The committee suggested the national office staff work with the Conference Commissioners Association to determine how the impact forms should be changed to be more beneficial.?

6. Heartland Conference Audit.

The committee reviewed the report presented by national office staff regarding the financial/operational audit.

It was VOTED

?To approve payment of the conference grant distribution to the Heartland Conference for the 2005-06 fiscal year.?

7. Sunshine State Conference grant modification request.

The committee reviewed the Sunshine State Conference response to questions regarding the permissive grant amounts requested. The committee specifically discussed the consortium purchase of insurance in the amount of $4,000.

It was VOTED

?To approve permissive grant amounts requested totaling $124,000, but that the $4,000 originally requested for insurance expense be reallocated to the proposed $3,000 in technology and $1,000 in compliance and rules education category.?

8. Conference Grant for TV (South Atlantic Conference).

The committee discussed the response received from the Division II Management Council Identity Subcommittee regarding the South Atlantic Conference?s request for funding to support television production costs for conferences with football programs and television contracts.

It was VOTED

?To approve television sponsorship funding in the amount up to $15,000 for Division II conferences with game broadcast television agreements in any sport.?

9. Adjournment. The meeting adjourned at 11:35 a.m.

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