Intercollegiate Athletics Department - Term Paper Example

Intercollegiate Athletics Department Introduction University Of Manchester’s Economists Intercollegiate Athletics Department has prepared the operating budget for the year 2012. The department has the allocated budget amounting to Rs. $12,500,000.00 (12.5 Million). Institute contributes to the athlete development with 16 various games. University Of Manchester’s Economists Intercollegiate Athletics Department has proposed the given operating budget in alignment with mission and philosophy. Institute has further recommended improved Mascot with IPAD that asserts growth and connectivity. MISSION STATEMENT OF INTERCOLLEGIATE ATHLETICS DEPARTMENT The mission of University Of Manchester’s Economists Intercollegiate Athletics Department is to remain committed to provide Sport Friendly Environment to its students. Within available resources we strive to provide opportunity to our students to play athletics at the highest level. Our consistent efforts to foster growth of our students and other associated partners including coaches etc is not only aimed at giving them opportunity to play sports but also fostering sportsman spirit in students to overcome the challenges ahead to life. We are committed sustain history of equal opportunity and fair treatment to worthy players without any racial, gender and other discriminations biases in compliance with title IX. Manchester’s Economists Intercollegiate Athletics Department with its sport activities is also committed to develop sense of integrity, excellence, accountability, community in its way of achieving educational goals, academic growth with welfare and well-being of student athletes and associated personnel. PHILOSOPHY STATEMENT OF INTERCOLLEGIATE ATHLETICS DEPARTMENT University Of Manchester’s Economists Intercollegiate Athletics Department has fair simple philosophy of conducting sports operations that supports mission statement. The department follows practices of business that are beneficial for students, coaches, program attendants and all other associated departments along with strictly abided by ethical decision making. Entire philosophy revolves around making arrangements that provide first class experience to all those who participate either as player, player trainers, facilitator or as spectator with opportunity to foster their social, moral, cultural values. Hence, philosophy is to invest where everyone gains the best with maximum potential. MASCOT Manchester’s Economists Intercollegiate Athletics Department has decided to take up IPAD as mascot. To remain aligned with mission to foster growth from all perspective of student- athlete and other associated personnel, IPAD is sign of being connected with latest technology and growth. Therefore we decide to take up it as new mascot for Manchester’s Economists Intercollegiate Athletes. Budget Highlights MANCHESTER’S ECONOMISTS INTERCOLLEGIATE ATHLETICS DEPARTMENT PROPOSED OPERATING BUDGET FOR THE YEAR 2012 For the year 2012, Manchester’s Economists Intercollegiate Athletics Department has allocated budget of amount of $12,500,000.00 (12.5 Million). With operations of 16 games (discussed in detail later) the department has budgeted revenue of amount of $.13,200,812.00 (13.2 Million) as against expense of $.12,458,771.85 (12.5 Million). 2012 budget for operations has been prepared for 16 different games; including scheduled games and special events. Revenue has been generated from mainly from spectators’ admission ($. 5.5 Mn), donation (($. 1.0 Mn), special arrangement ($. 2.9 Mn) and other incomes ($. 1.1 Mn). Against budgeted revenue of $. 13.2 Mn the department has projected revenue of $. 13.9 Mn. The department has developed feasibility of budgeted expenses of $. 12.45 Mn with mainly generated from $.3.3 Mn from Sports expense, general administration accounting for $. 1.1 Mn, team support and salary expenses accounting for 1.0 Mn each, Miscellaneous expenses of $2.3 Mn and food arrangement contributing $1.1 Mn. The net operating surplus is $. 0.74 Mn, net available from budgeted amount $. 0.14 Mn combining to amount $. 0.88 Mn. Amount transferred to capital accounts is $. 0.5 Mn from budgeted amount. Projected expenses are higher than allocated budget. However, will be covered from projected revenues. The budgeted and projected revenue provide positive signal with net surplus of $.0.8 Mn and $. 1.1 Mn from budgeted and projected revenue respectively. University Of Manchester’s Economists Intercollegiate Athletics Department OPERATING BUDGET FOR YEAR 2012 REVENUE SOURCE TITLE Budget (A) Projected (B) CHANGE IN B-A             in % In Amt Spectators’ Entry Income 5,525,540.00 5,801,817.00 5.00% 276,277.00 Donations 1,092,500.00 1,095,231.25 0.25% 2,731.25 Athlete Scholarship 206,000.00 206,412.00 0.20% 412.00 Gifts 180,050.00 189,952.75 5.50% 9,902.75 Broadcasting/Sponsorship/Royalties 202,300.00 220,507.00 9.00% 18,207.00 Food and Program Concession 85,000.00 91,800.00 8.00% 6,800.00 Lottery and Lucky draw Proceeds 800,000.00 802,000.00 0.25% 2,000.00 special Arrangement Proceeds 2,929,000.00 3,192,610.00 9.00% 263,610.00 Rentals 43,000.00 47,300.00 10.00% 4,300.00 Parking 981,422.00 1,128,635.30 15.00% 147,213.30 Other incomes 1,156,000.00 1,158,890.00 0.25% 2,890.00           TOTAL REVENUE 13,200,812.00 13,935,155.30 5.56% 734,343.30 EXPENSES TITLE Budget Projected CHANGE IN B-A             in % In Amt Sports expense 3,333,967.00 3,567,344.69 7.00% 233,377.69 General Administration 1,138,730.00 1,139,071.62 0.03% 341.62 Team Support Expense 1,035,600.00 1,035,807.12 0.02% 207.12 Salary and Wages 1,086,000.00 1,087,086.00 0.10% 1,086.00 Marketing Expense 994,600.00 999,573.00 0.50% 4,973.00 Marketing of Mascot only 25,000.00 25,062.50 0.25% 62.50 Media Servicing Arrangements 557,900.00 558,904.22 0.18% 1,004.22 Regulation Compliance Cost 186,800.00 186,800.00 0.00% - Food Arrangements 1,150,000.00 1,157,820.00 0.68% 7,820.00 Miscellaneous Expenses 2,356,900.00 2,358,172.73 0.05% 1,272.73 Contingency Funds 593,274.85 593,571.49 0.05% 296.64           TOTAL EXPENSES 12,458,771.85 12,709,213.36 8.86% 250,441.51 NET OPERATING SHORTAGE / SUPLUS FROM REVENUES 742,040.15 1,225,941.94 -3.30% 483,901.79 NET FROM AVAIIABLE BUDGET 141,228.15 (109,213.36)   250,441.51 NET AVAILABLE FROM REVENUE AND BUDGET 883,268.30 1,116,728.58     TRASNFER TO CAPITAL EXPENDITURE 529,960.98 556,459.03     NET FROM CURRENT BALANCE 353,307.32 560,269.55 DETAILS OF BUDGET 1- ACCOUNTING BASIS The accounting details have been prepared for the Manchester’s Economists Intercollegiate Athletics Department separately from the operations of school’s other departments. This budgeting is conducted with projections to maintain the margin. The annual budget’s audit is conducted by PwC auditors. 2- GAMES Department manages arrangement for the 16 games. The variations embrace opportunities for large spectator revenues. Given below are the details of revenues from various games. Spectators income from budgeted amount surpasses its budgeted expense presents healthy sign for the operations.   SECTATORS COMPONENTS Rev. in $ Expense in $ 1 Football $ 2,000,270.00 $ 1,200,162.00 2 Men's Basketball $ 1,830,000.00 $ 1,098,000.00 3 Women's Basketball $ 127,850.00 $ 76,710.00 4 Men's Baseball $ 150,000.00 $ 90,000.00 5 Men's Golf $ 50,000.00 $ 30,000.00 6 Men's Tennis $ 350,000.00 $ 262,500.00 7 Men's Track $ 85,000.00 $ 21,250.00 8 Women's Acrobatics & Tumbling $ 191,000.00 $ 114,600.00 9 Women's Golf $ 9,000.00 $ 5,850.00 10 Women's Lacrosse $ 20,000.00 $ 12,000.00 11 Women's Soccer $ 185,000.00 $ 111,000.00 12 Women's Softball $ 30,000.00 $ 18,000.00 13 Women's Tennis $ 291,140.00 $ 160,127.00 14 Women's Track $ 109,000.00 $ 65,400.00 15 Women's Volleyball $ 47,280.00 $ 28,368.00 16 Sports Camps $ 50,000.00 $ 40,000.00       $ - Total Spectators Income & Expense $ 5,525,540.00 $ 3,333,967.00       - 3- REVENUES The revenue from other sources include following: REVENUE SOURCE TITLE Budget (A) Projected (B)             Spectators Entry Income $ 5,525,540.00 $ 5,801,817.00 Donations $ 1,092,500.00 $ 1,095,231.25 Athlete Scholarship $ 206,000.00 $ 206,412.00 Gifts $ 180,050.00 $ 189,952.75 Broadcasting/Sponsorship/Royalties $ 202,300.00 $ 220,507.00 Food and Program Concession $ 85,000.00 $ 91,800.00 Lottery and Lucky draw Proceeds $ 800,000.00 $ 802,000.00 special Arrangement Proceeds $ 2,929,000.00 $ 3,192,610.00 Rentals $ 43,000.00 $ 47,300.00 Parking $ 981,422.00 $ 1,128,635.30 Other incomes $ 1,156,000.00 $ 1,158,890.00       TOTAL REVENUE $ 13,200,812.00 $ 13,935,155.30 Since sources of revenue are not confirmed, hence, two estimated have been provided. Efforts will be made to collect the projected revenue; however, the budgeted amount has some conservative estimates. The projections have been increased with percentages ranging from 0.20% to 15% based on assumption that successful events will increase the number of events revenue opportunities. Segregation of categories other than sports that have already been discussed above, are as follow: Donation includes 80% from our regular sources including government sources, businesses, education board; while rest 20 percent accounts for donation from other sources that are generated in accordance with the performance from of games. Winner athletes are given scholarship from sponsors. Gifts for being winner or runner up. Broadcasting accounts for the sizeable revenue; this includes radio, TV and other sources. Live telecast fetches 65% of the broadcasting revenue and rest is collected from repeat telecast. Other revenues are generated from sources as they title implies. Projected revenues of above detailed titles have been increased in related to increase in sports events. Overall increase in projected revenue is 5.56% of budgeted amount. 4- EXPENSES EXPENSES TITLE Budget Projected             Sports expense $ 3,333,967.00 $ 3,567,344.69 General Administration $ 1,138,730.00 $ 1,139,071.62 Team Support Expense $ 1,035,600.00 $ 1,035,807.12 Salary and Wages $ 1,086,000.00 $ 1,087,086.00 Marketing Expense $ 994,600.00 $ 999,573.00 Marketing of Mascot only $ 25,000.00 $ 25,062.50 Media Servicing Arrangements $ 557,900.00 $ 558,904.22 Regulation Compliance Cost $ 186,800.00 $ 186,800.00 Food Arrangements $ 1,150,000.00 $ 1,157,820.00 Miscellaneous Expenses $ 2,356,900.00 $ 2,358,172.73 Contingency Funds $ 593,274.85 $ 593,571.49       TOTAL EXPENSES $ 12,458,771.85 $ 12,709,213.36 Expenses have also been developed in two categories with budgeted carrying the expected amount while projected has accounted for the incremental effect of increase due to increase in events. Break-down of events is as follows: Sports expenses account for sports activities only such apparatus, dresses, travel, recruiting and training and other accessories of the athletes. General administration includes insurance, telephone, ticket printing, other personnel travels, water, electricity expense etc. Team support program includes amount for supporting desirable athlete to finance their education etc in order to retain them in team of university Salary and wages account for the salary of coaches, instructors, trainers and other associate personnel. Marketing for the Mascot has been allocated separate budget since it has been redesigned. This amount includes entire cost of associated of costumes, training, apparatus, recruitment and training of involved personnel etc. In order to meet any contingency, broad has separately accounted for the contingency account. In case this is not used will be transferred to main fund of the department. Important to mention that budgeted amount of $12.6 Mn has will be short by $0.109Mn to meet the expenses. However, with the revenue generated this shortage will be overcome. Overall increase in expense has been 8.86% of the budgeted amount. 5- TRANSFER TO CAPITAL EXPENDITURE Budget Projected TRANSFER TO CAPITAL EXPENDITURE $ 529,960.98 $ 556,459.03 Portion from the return has to be directed to the capital expenditure. It accounts 60% of the remaining from net of revenue and budgeted amount. The projected amount under this title has accounted for the increased of 5% over the budgeted amount. 6- NET BALANCE The net balance remaining after combining revenue and budgeted amount meeting all sports and capital expenses will be: Budget Projected NET FROM CURRENT BALANCE $ 529,960.98 $ 556,459.03 It has chances to further increase in case contingency amount has not been required during the budgeted period. Bibliography FOU. (2008). Operating Budget Book 2008-09. Retrieved November 17, 2012, from http://www.fau.edu/budget/files/08-09-OperatingBudget.pdf Ohio State Buckeyes. (2012). Ohio State Athletics. Retrieved November 16, 2012, from http://www.ohiostatebuckeyes.com/ot/mission-statement.html UAA. (2011). 2011 -2012 Operating Budget. Retrieved November 16, 2012, from http://www.uaa.ufl.edu/uaa/Executive_Summary_2011-2012.pdf University of Michigan. (2011). FY 2012 University of Michigan Department of Athletics Operating Budget. Retrieved November 17, 2012, from http://www.regents.umich.edu/meetings/06-11/2011-06-X-13.pdf University of Oregon. (2011). University of Oregon Intercollegiate Athletics: 2011-2012 Operating Budget. Retrieved November 17, 2012, from http://www.goducks.com/fls/500/pages/athlfin/FY2012-Budget-Breakdown-Programs-Departments.pdf?DB_OEM_ID=500 Read More