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Message: [QUOTE="javadoc, post: 475022, member: 338"] I am embarking on a nice bottle of Nine Points Dry Creek Valley Zinfandel, and finally have some time to get down to the nitty gritty about some basic financial and operational matters. Please forgive if I ask or say anything uninformed - I have never run a business, nor been in management, and I do not know the first thing about real accounting. I've been trying to assimilate and digest hundreds of posts here, comments from these past four years in various outlets, and it's starting to make sense. At least, I think it is. But I have some questions, and I am hoping that those truly in the know can help. cto, if you can help out here, I will pick up any bottle of Napa Valley wine under $50 for you. :) We've heard the the BOT determines the Chancellor's salary. The Chancellor determines the Athletic Director's (hereafter referred to as AD; the Athletic Department will be termed "the Department") salary, and generally is the direct report for the AD in all matters. 1. Is the Department its own standalone P&L within the University? 2. Who sets the Department's budget for the year, and how? Is it formalized? 3. As currently constituted, do funds from the Department flow to/from the University's other funds? In particular, if there is a deficit in the Department's finances, is there "paperwork" through which the Department requests funds from the University? Is there even a mechanism in place whereby funds can cross business unit boundaries? 4. To the extent that the Department has been tracked as a P&L, has it run a deficit in any of the last 4 years? (Starting on glass #2, that was fast, I'm in high dudgeon here) Now say that the AD wants to spend money on something for the physical plant. 5. Are any physical plant expenditures allowed as line items in the "standard" annual budget? In particular, let's talk about the field turf. We had heard for years from Jake that it was not possible to put field turf in the Dome. It took Dr. Gross all of a couple months to detonate that myth, and we put field turf in a lot more places than the Dome. If I recall, that was an expenditure of a couple hundred thousand dollars. 6. What did Dr. Gross have to do to get approval for that expenditure? Did he even have to get approval? 7. Does Dr. Gross have plenary authority over expenditures that are part of the standard budgetary process in the Department? Now say that someone wants to spend millions of dollars to build new, or upgrade existing facilities. It could be the AD, or a coach, who I presume would raise the issue to the AD for action. 8. If the project "fits" within the annual budget, does the AD have plenary authority to approve and act, in the case of upgrades that do not alter the physical footprint of the facility? 9. If the project requires the use of land not currently occupied by a Department facility, who must be involved? What is the AD's course of action? Now for major expenditures. We've heard that the BOT is involved in the big projects, and that there is some algorithm for determining when the project can proceed, and how it must be funded. In particular, such projects must be funded partially through donations, outside the standard annual budget. Which brings me to a couple bedrock questions. 10. How does the Department handle donations? Are separate "projects" or "accounts" established for identifiable allocations? Is there a separate "bucket" for football and basketball, e.g.? 11. If the AD says, "I need a new football practice facility, and it will cost $25M," does he have to create a new "donation account", and if so, who has to approve or otherwise be involved? Are there comparable policies in place for similar projects on the academic side, such as a new Law School building? 12. How is the algorithm for major projects determined? Who authors it? Let's say that a $4 million project would have been outside the Department's budget in 2012, but it would fit cleanly in the 2013 budget based on different revenue from ACC membership. Would it become an AD-only decision at that point? And: 13. Has Dr. Gross requested a dedicated new football practice facility? Is there an official, accountable fundraising "campaign" dedicated to such? When was it created? How much was requested, and how much as been raised? Going to cut myself off there before getting into the derivative issues. [/QUOTE]

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