REPORT OF THE
DIVISION III BUDGET
COMMITTEE
1. ACTION
ITEMS.
a. 2003-04
Year-To-Date Actual Expenses. [Attachment A]
(1) Recommendation. Review the year-to-date 2003-04
financial results of $14,391,500 in revenue and $2,047,467 in expenses.
(2) Rationale. These figures reflect the actual
expenses incurred during the first quarter of 2003-04. Expenses are approximately $135,000
greater than the first quarter of the previous year. Revenue has increased approximately
$965,000 from the previous year.
(3) Budget
Impact. Not applicable.
b. Six-Year
Budget Projections. [Attachment B]
(1) Recommendation. Review the projected revenues and
expenses through 2008.
(2) Rationale. The revenue and expenses from 2002-03
are based on actual results. The
proposed budgets for 2004-05 and 2005-06 include several championship
enhancements that will be submitted during the formal biennial budget process
in the spring.
(3) Budget
Impact. Not applicable at this
time.
2. INFORMATIONAL
ITEMS.
a. Reserve
Policy. During the December 11 conference call,
the committee discussed the current Division III reserve policy and ways to
improve it. The goal is
to determine a mandated reserve level as opposed to tying the reserve level to
a percentage of revenue. The
committee would like to base that mandated level on risk factors that would
necessitate the use of the reserve to cover any major deficits. Examples of these risk factors include:
event cancellation or severe loss of revenue, catastrophic events, unanticipated
jump in inflation, lawsuits or expansion of the membership. Staff will
provide a detailed report for the committee to discuss at its spring meeting.
b. Future
Meetings. The Budget committee will conduct an
in-person meeting in early spring to finalize the Division III budget for
submission to the Management Council.
c. 2004-06
Biennial Budget Timetable. [Attachment C]