SUPPLEMENT NO. 12

DIII Presidents Council 1/02

budget committee

Summary of Recommendations

PRESIDENTS COUNCIL ACTION ITEMS

1.	ISSUE:	2001-02 Budget -- September 11 Funds.
Committee Recommendation:
	Approve the allocation of $150,000 from the excess 2000-01 Initiatives Task Force budget to be used to fund the Division III contribution to the September 11 fund and the remainder be allocated for contingency.
	Management Council Recommendation:
	Approve the recommendation.
2.	ISSUE:	2001-02 Division III Mandated Reserve.
Committee Recommendation:
	Approve a Division III mandated reserve of 20 percent of the revenue allocation for the 2001-02 fiscal year rather than the mandated reserve of 35 percent approved previously.
	Management Council Recommendation:
	Approve the recommendation.
3.	ISSUE:	2002-03 Division III Proposed Budget.
Committee Recommendation:
	Approve the proposed Division III 2002-03 budget with $13,454,421 in revenue and $14,158,915 in expenses.
	Management Council Recommendation:
	Approve the recommendation.
4.	ISSUE:	2003-04 Division III Proposed Budget.
Committee Recommendation:
	Approve the proposed Division III 2003-04 budget with $14,459,078 in revenue and $14,855,019 in expenses.
	Management Council Recommendation:
	Approve the recommendation.
5.	ISSUE:	Short-Term Reserve Levels.
Committee Recommendation:
	Approve that the Division III reserve balance should not fall below 15 percent during the 2002-04 and 2004-06 budget cycles. In addition, any unallocated resources will be used to further increase the reserve.
	Management Council Recommendation:
	Approve the recommendation.
6.	ISSUE:	Long-Term Reserve Levels.
Committee Recommendation:
	Explore the possibility of determining a specific dollar amount for the minimum Division III reserve level (e.g., $2 million plus annual inflation factor) as opposed to a percentage of the annual revenue allocation.
	Management Council Recommendation:
	Approve the recommendation for exploration.
7.	ISSUE:	2001-02 Championship Expenses and Procedural Improvements.
Committee’s Recommendation:
	Eight suggested procedural improvements were identified that could decrease championship expenses or provide improved championship budget management: 1) earlier bid and host selection process with hosts selected two years in advance; 2) limit the number of predetermined sites located in areas with a minimal number of institutions in any given year, in accordance with budget priorities and available resources; 3) increase budgets during the planning process, when possible (based on prediction of which teams are most likely to be eligible for championships); 4) finance, championships and governance staff commit to greater communication including meetings after each championships season (February, May, August) to monitor budget-to-actual expenses on a sport-by-sport basis; 5) better plan “one-time” budget implications for specific host sites (e.g., located in areas within a minimum number of institutions); 6) require that institutions fly into a major hub airport within 150 miles of a championship site, effective immediately; 7) change minimum flight distance from 400 to 500 miles effective immediately; and 8) establish deadline by which championship hosts must submit final budget numbers/expenses for reimbursement.
	Management Council Recommendation:
	a. Endorse procedural improvements Nos. 1, 2 (as amended) 3, 4, 5 (as amended) and 8 and request the committee further developed the procedures including membership implications and budget impact. b. Approve procedural improvement Nos. 6 and 7, effective immediately, to support the championships budget during 2001-02 only. The Council recommends greater clarification regarding financial issues associated with the airport hub travel and related reimbursements (No. 6). The Council noted concern with increasing the minimum flight limit from 400 to 500 miles, due to possible impact on student-athlete missed class time and effective competitive preparation. c. The Council recommends a thorough re-evaluation of all policies and procedures for subsequent years, including a cost-benefit analysis related to predetermined sites.

8.	ISSUE:	Association-Wide Priorities.
Committee Recommendation:
	Endorse Association-wide budget priorities consistent with Division III strategic-planning initiatives.
	Management Council Recommendation:
	Endorse the Association-wide budget priorities, noting commitment to Division III priorities of student-athlete welfare, diversity and membership education.

ACTION ITEM – MANAGEMENT COUNCIL ONLY

1.	ISSUE:	Individual/Team Sport AQ Process.
Management Council Action:
	Mandate that the Championships Committee undertake an immediate review of the AQ process including access ratios and establishment of a team component to the NCAA championships for individual sports. The review should include the existing process for sport committee selection of teams and individuals, consistent with overall championships field sizes.

ITEM OF INFORMATION

1.	ISSUE:	2000-01 Division III Expenditures.
Committee’s Action:
	The committee reviewed the financial results for the 2000-01 fiscal year of $10,066,000 in revenue and $9,832,399 in expenses resulting in a total increase in the fund balance of approximately $233,601. It was noted that the championships expenses were over budget by approximately $770,000 while the program initiatives were under budget by approximately $200,000. A review of expenses by sport for the past three years noted that three have consistently been over budget: baseball, football and women’s volleyball. It was noted that the commonality between sports that have been consistently over budget might be predetermined sites. Football has also experienced increase travel expenses due to the success of West Coast teams. Additionally, cross country was over budget in 2000-01 primarily due to the championship site being located in Spokane, Washington, and the travel expenses related to a West Coast site. Generally, significantly increased travel expenses occurred in 2000-01 due to increased fuel prices.
	Management Council Action:
	Accepted the information.

The National Collegiate Athletic Association

January 12, 2002 BB/DTD:skt