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Tab F-1
Minutes of the Finance & Budget Committee Meeting of the
University of Louisville Athletic Association, Inc.

In Open Session
Members of the Finance & Budget Committee of the University of Louisville Athletic Association, Inc. met on Friday, October 7, 2005, in the Jefferson Room of Grawemeyer Hall, with members present and absent as follows:

Present:           Mr. Robert Benson, Chairman
                        Mr. Burt Deutsch
                        Mr. Grant Helman
                        Dr. Blaine Hudson
                        Mr. Wade Houston
                        Mr. D. Harry Jones
                        Prof. Bruce Kemelgor
                        Mr. Larry Owsley
                        Mr. Sam Rechter
                        Prof.  Robert Stenger
                        Prof. Jerry Tolson
                        Mr. Greg Virgin
                        Prof. Elaine Wise

Other Directors
Present:           Dr. James R. Ramsey
                        Prof. Beth Boehm
                        Mr. William Brammell, Jr.
                        Dr. Henry S. Enck
                        Mr. Gordon Gahm
                        Mr. Tom Jurich, ex officio
                        Prof. Glenda Neely
                        Mr. Bill Stone (attending for Mr. Owsley B. Frazier)
                        Dr. Shirley Willihnganz
From the
University:      Ms. Angela D. Koshewa
                        Mr. Mike Curtin
                        Mr. Kevin Miller
                        Ms. Julie Hermann
                        Mr. Kyle Moat
                        Ms. Anne Rademaker
                        Mr. Marvin Mitchell
                        Mr. Gary Friedman
                        Mr. Terry Veleta
                        Mr. Dave Barker
                        Mr. Kyle Moat
                        Mr. Larry Zink
                        Ms. Kathleen Smith
                        Ms. Debbie Dougherty

Guests:            Mr. Keith Messmer, CPA, BDK
                        Ms. Mary McKinley, CPA, BDK
I.    Call to Order

Having determined a quorum present, Chair Benson called the meeting to order.

         Approval of Minutes

Prof. Kemelgor made a motion, which Mr. Deutsch seconded, to approve the minutes of June 3, 2005.  The motion passed unanimously.

II.         Action Item:  Approval of Audited Financial Statements for Year Ending June 30, 2005              

Vice President Curtin introduced Mr. Keith M. Messmer and Ms. Mary McKinley from BDK, the University’s external auditors.  Mr. Messmer reported a clean, unqualified audit.  He recognized the Athletic Association has had a very good year, noting net assets in excess of $ 80.6 million, with total assets at $135.5 million for an increase of $10 million.  The most significant change was in the current assets, which increased $5.2 million (51%).  Total liabilities were $55 million, an increase of $4.5 million (9%).  Net assets were $80.5 million, an increase of $5.5 million (7%).  Operating revenues amounted to $23.5 million.  When offset by operating expenses of $39.7 million, an operating loss of $16.2 million occurred.  The overall loss was balanced by $21.7 million in net nonoperating revenues for an overall increase in net assets of $5.5 million.  Mr. Rechter made a motion which Prof. Kemelgor seconded, to approve the   
Athletic Director’s recommendation that the Board of Directors approve the attached audited financial statements for the period ending June 30, 2005, as presented under Governmental Accounting Standards Board (GASB) 34 (copy available upon request). 

            The motion passed unanimously.  Chair Benson thanked Mr. Messmer and Ms. McKinley for an excellent presentation.  Vice President Curtin also thanked Mr. Messmer and Ms. McKinley, the Controller’s staff and Kevin Miller for their excellent assistance throughout the audit process. 

III.       Information Item: Financial Statements thru June 30, 2005      

Mr. Miller reviewed the financial statements through June 30, 2005.  He stated the original ULAA budget anticipated transferring $1.7 million from Athletic accounts held in the UofL Foundation.  This included $1 million from UofL Reserve and $750,000 from UofL Foundation earnings.  He was pleased to report that ULAA did not need any funds from the UofL Foundation to meet budget goals.  Therefore, reserve and earnings remained in the Fund balance.  Mr. Miller reviewed expenses as compared to anticipated budget.  Total expenses (including June 30 encumbrances) stayed under budget by $474,000.   He noted this accomplishment even though ULAA addressed the following expenses that were not originally budgeted:

  1. Allocation for additional financial aid for summer/5th year aid - $52,000
  2. Allocation for change in employee contracts – estimated $500,000
  3. Allocation for change in Track program - $190,000
  4. Allocation for upgrades in other sports – approximately $200,000

Chair Benson thanked Mr. Miller for an excellent report.

IV.       Action Item:  Authorization for Capital Projects        

Mr. Miller briefed the Committee on the details of each capital project request. 

  1. Track & Field Upgrades.  Based upon recommendations from Head Track Coach Ron Mann, the upgrades will improve the long jump area, the pole vault area, and other features of the Field Event venue adjacent to Parkway Field.  New surfaces, improved drainage, and changing existing fences are major components of this project.  The goal is to have the upgraded facilities available for use in spring 2006.  Funding is budgeted.


  1. McDonald’s Soccer Field.  This facility requires a drainage system and a sand base subsurface with a Bermuda grass surface.  Although the McDonald’s Field is sloped, water continues to pool with heavy rains.  The current field consists of natural soil (clay) with a Bermuda grass surface.  The new field configuration will allow soccer athletes to practice on a more flexible and dry surface that minimizes risk of injury.  The goal is to have the upgraded facility available for use in summer 2006.  Funding is budgeted.
  1. Lacrosse Field.  Lacrosse is planned to become a varsity sport in 2007-08.  The current Club level team practices at Cardinal Stadium because presently there is no facility available.  The proposed site for the Lacrosse Field is the recently cleared Algood property.  The field requires a “Field-Turf” playing surface, perimeter fencing, and lighting.  The field will be used by the Lacrosse Varsity Club Team as soon as construction is completed.   Funding is budgeted from the unused funds set aside for the razing of the Algood buildings and the liquidation of the CFA Football Operations Account (market value as of 6-30-05 is $1.035M).


  1. Football Practice Field.    Football used one of its three practice fields as the site for the Trager Field House.  It is important that the program have three grass fields to rotate usage and preserve the surfaces.  A new field, therefore, is planned for the space used for media parking on game days (media are now parking in the north Green lot).   Construction of the third field will begin once the area is no longer needed for construction staging for the Trager Field House.  The third football field will have the same surface and drainage as the other two practice fields.  The goal is to have the new field in rotation by summer 2006.  Funding is budgeted.
  1. Baseball Indoor Batting Facility.  The baseball team began using Patterson Stadium in April 2005 without an indoor facility.  At that time, Coach Prado and former coach John Mason began fundraising for an indoor batting facility, which is planned for outside right field next to the stadium.  The facility will provide practice space, in addition to the areas in the stadium, for players and will also function as pre-game practice area for visiting teams.  Having this facility is important to hosting future tournaments at UofL.  The goal is to have the facility ready for use in spring 2006.  Funding has surpassed ½ of goal, and fundraising is proceeding for the remainder.


  1. Golf Locker & Training Facility.   Head Men’s Coach Mark Crabtree and Head Women’s Coach Kelly Rothberg have discussed with the Cardinal Club a proposal to create a 4,500 square foot facility that will provide men’s and women’s locker rooms, offices for both head coaches, instruction bays that allow computer analysis of swing, a putting area, a players lounge, and storage.  The license agreement with Cardinal Club allows the space to construct a locker and training facility.  The goal is to have the locker and training rooms ready for use in spring 2006.  Discussions with Cardinal Club are proceeding, and fundraising has begun to fund the proposal.
  1. Trager Field Hockey Complex.  As a result of successfully hosting the NCAA championships in field hockey, UofL will again host the tournaments in 2006.  It is imperative that the field have a capacity of 2,500 (current capacity is 700).   Rented bleacher seating was used in 2002, and will cost $33,000 for 2006.  This proposal would add permanent seats to bring the required seating to 2,500.  Further, Field Hockey will no longer be able to use locker and training areas at Cardinal Stadium now that KFEC has it scheduled for demolition.  This proposal would build a complex for locker rooms, multipurpose room (which could be used as a locker room by visiting teams), and team meeting room adjacent to Trager Field.  The goal is to have construction begin for the permanent seating and complex when fundraising is substantially complete.  Fundraising is in the early stage.


  1. Football Scoreboard.  The scoreboard and video wall at Papa John’s Cardinal Stadium are eight years old (projected life of the equipment was 7-10 years).  Recent problems with the scoreboard have accelerated the need for new equipment.  The goal is to have a fully functioning state-of-the-art score board in place by August 2006.  Fundraising from the teams’ advertisers has begun. 

    Prof. Kemelgor made a motion, which Prof. Wise seconded, to approve the

Athletic Director’s recommendation that the Board of Directors authorize the construction or facility improvements for the following capital projects within the estimated costs budgeted:

Facility                                            Funding Status                                        Project Scope

  1. Track & Field Upgrades                       Funded                        $225,000
  2. McDonald’s Soccer Field                     Funded                        $350,000
  3. Lacrosse Field                                      Funded                        $870,000
  4. Football Practice Field                         Funded                        $375,000

Further, the Athletic Director’s recommendation that the Board of Directors authorize, based upon “funds available” the planning for and subsequent construction of the following capital projects:

Facility                                          Funding Status                         Project Scope

  1. Baseball Indoor Batting Facility          Fundraising                              $   280,000
  2. Golf Locker & Training Facility          Fundraising                              $   600,000
  3. Trager Field Hockey Complex             Fundraising                              $1,400,000
  4. Football Scoreboard Replacement       Marketing Approach               $1,800,000

            The motion passed unanimously.

V.        Action Item:  Approval of Liquidation of Hickman Camp Scholarship Fund                            
Mr. Miller reported that while soliciting gifts for the Trager Indoor Center, the Athletic Department received, from an anonymous donor, a $2 million pledge toward athletic scholarships in lieu of funding for construction of the Trager Center.  Precedent occurred with the Papa Johns Cardinal Stadium project and Hickman-Camp Funds were liquidated for use toward construction but were offset by donor contribution to the Endowment for Athletic Scholarships.  As of June 30, 2005 the Hickman-Camp Fund had a market value totaling $23.3M. The donor has contributed gifts totaling $1.25M in August and the remaining balance will be funded annually at $250K per year for three years.  The liquidation of Hickman-Camp funds will occur after replacement funds are received. At this time, the request is to move $1.25M from Hickman-Camp Fund to construction.  Mr. Helman made a motion, which Mr. Rechter seconded, to approve the

Athletic Director’s recommendation that the Board of Directors authorize the liquidation of $2 Million from Hickman-Camp Funds (Quasi-Endowment) to be used toward construction of the Trager Indoor Center according to the following schedule and contingent upon receipt of replacement gifts:

            2005                   $1.25 Million
            2006                   $250,000
            2007                   $250,000
            2008                   $250,000

            The motion passed unanimously.

VI.       Adjournment

            The meeting adjourned at 8:55 a.m.


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