DIVISION II BUDGET GUIDELINES AND PRINCIPLES

The Division II Presidents Council and Management Council are committed to developing budgetary principles/guidelines that are reflective of the Division II philosophy and NCAA principles. These principles/guidelines will be used to guide any deliberations that may occur related to the possible use of funds allocated to Division II.

These principles/guidelines include the following:

1. That an institution's expenses for participating in championship rounds in an NCAA Division II championship will be adequately covered, and that consistent transportation and per diem guidelines be maintained for all Division II championships.

2. That Division II championships will be the top priority as budget discus-sions occur and decisions are made.

3. That Division II championships policies will reflect an interest in generating Division II championships revenue to the greatest extent possible consistent with Division II championships principles and guide-lines. Further, Division II championship policies will reflect an overall cost-containment philosophy supporting initiatives such as the regionalization concept. For purposes of these budget principles, cost containment encompasses the effi-cient and cost-effective operation of Division II championships.

4. That, at a minimum, $3.0 million will be distributed annually to Division II institutions and conferences via the current Division II enhancement fund distribution formula or any other formula(s) that may be adopted.

5. That the Division II Championships Committee will be responsible for the mechanics of distributing the enhancement fund and the distribution policies will be developed by the Division II Budget/Finance Committee and ratified by the Division II Management Council and Presidents Council.

6. That the membership trust reserve maintain a balance of at least $3,000,000.

7. That the use of the annual operating surpluses from the previous fiscal year will be discussed each year at the Budget and Finance Committee?s winter meeting. In addition, operating surpluses attributed to the Division II championships budget each year are available to the Championships Committee to recommend specific uses.

8. That the division maintains, at a minimum, a $1.0 million net surplus each year. To clarify, this surplus amount includes the division?s annual revenue allocation plus any unallocated funds from the prior years less the division?s annual expenses.

9. That care will be taken to avoid funding special interests of various segments of the Division II membership or items that may be more an in-stitution's responsibility than that of the Association.

10. That budget decisions will be made to support the initiatives outlined in the Division II strategic plan.

11. That Division II will follow the Association?s request for proposal (RFP) process when the division has specific vendor relationships and/or consultant needs.

12. That these budget principles will be reviewed annually by the Budget and Finance Committee, Presidents Council and Management Council and modified as necessary to ensure that they are reflective of the Division II philosophy and direction. The Presidents Council has ultimate authority to approve the modifications to these guidelines and principles.