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by Bendl,Kurt last modified Jan 21, 2010 04:47 AM


Minutes of the Regular Meeting of the Finance & Budget Committee of the
University of Louisville Athletic Association, Inc.

October 5, 2006 

In Open Session

Members of the Finance & Budget Committee of the University of Louisville Athletic Association, Inc. met on October 5, 2006, in the Jefferson Room of Grawemeyer Hall, with members present and absent as follows:

 

Present:            Mr. Robert Benson, Chairman
Mr. Zach Brooks
Mr. Burt Deutsch         
Dr. Blaine Hudson
Mr. Harry Jones
Prof. Bruce Kemelgor
Mr. Larry Owsley
Mr. Sam Rechter
Prof. Bob Stenger
Prof. Jerry Tolson
                        Prof. Elaine O. Wise

Absent: Mr. Grant Helman
                        Mr. Wade Houston

Board Members
Present:            Dr. James Ramsey  
Mr. Brent Fryrear                                                          
Mr. Gordon Gahm                                           
Prof. Brenda Hart                                                          
Mr. Tom Jurich, ex officio
Prof. Melissa Laning    
Mr. Darrell Messer   
Mr. Mike Seebert   
Dr. Shirley Willihnganz   

Also Attending: Mr. Bill Stone, Trustee

From the
University:        Ms. Angela D. Koshewa         
                        Marvin Mitchell   
Mike Curtin
Mr. Kevin Miller
Ms. Julie Hermann
Mr. Marvin Mitchell                             
Gary Friedman    
Ms. Julie Hermann       
Mr. Kenny Klein
Mr. Kyle Moats
Mr. Pete Cautilli                     
Mr. Larry Zink
Ms. Anne Rademaker
Ms. Kathleen Smith                 
Ms. Debbie Dougherty

Guests: Ms. Mary McKinley, BKD Auditors

I.          Convene meeting

Having determined a quorum present, Chair Benson called the meeting to order at 8:30 a.m.

Approval of Minutes:  June 5, 2006

Prof. Stenger made a motion, which Mr. Jones seconded, to approve the minutes of June 5, 2006.  The motion passed unanimously.

  • Action Item:  Approval of Audited Financial Statements

    Vice President Curtin reported the external auditors issued a clean, unqualified report.  The Association’s financial position as of June 30, 2006 was characterized by the following:

 

  • Total assets were $138.4 million, an increase of $2.9 million, or 2%, from June 30, 2005.  The most significant increases were in the current assets, which increased $5.7 million, or 37% from June 30, 2005.
  • Total liabilities were $54.3 million, a decrease of $0.7 million, or 1%, from June 30, 2005.
  • Net assets, which represent the residual interest in assets after liabilities are deducted, were $84.1 million, an increase of $3.6 million, or 4%, from June 30, 2005.
  • Operating revenues amounted to $29.7 million.  When offset by operating expenses of $42.4 million, an operating loss of $12.7 million resulted.  The operating loss was offset by $16.3 million of net nonoperating revenues resulting in an increase in net assets of $3.6 million for the year ended June 30, 2005.
  • Net nonoperating revenues of $16.3 million consisted of $17.3 million in gifts and $2.8 million in net investment gains less $3.8 million of other net expenses.

Vice President Mike Curtin introduced Ms. Mary McKinley, engagement manager for BKD, LLC.  Ms. McKinley recognized staff in the Controller’s office and Athletics who were instrumental in ensuring the audit went smoothly.  Prof. Kemelgor complimented staff for an excellent report and inquired regarding pay down of some of the non-current liabilities in light of the capital improvements.  Mr. Miller responded that Athletics is on schedule for all payments of pledges supporting debt service.  There had been a default on one of the payments for Papa John’s Cardinal Stadium which reduced 2005-06 revenue.  He doesn’t anticipate, however, any problems.   Mr. Curtin said President Ramsey had suggested the University seek review by Lehman Brothers, a company that inspects universities and their financial position.  The University of Louisville has a strong financial position and could manage additional debt.  Mr. Deutsch referred to the Foundation’s interest-free loan and noted the Foundation is very satisfied with the planned schedule for repayment.  Prof. Kemelgor made a motion, which Prof. Stenger 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, 2006, as presented under Government Accounting Standards Board (GASB) 34 (copy attached).

The motion passed unanimously.

III.       Information Item:  Financial Statements through June 30, 2006 and
            August 31, 2006

Mr. Miller reviewed highlights of the financial statements for period ending June 30, 2006 and August 31, 2006.  The budget was in excellent shape.  He noted this was the first year in the Big East Conference.  The Athletic Association was able to balance the budget without using reserve funds.  Television appearances increased revenues over budget.  The Association subsidized opportunities for students to go to the Middle Tennessee State game and was considering a similar arrangement for the Dayton basketball game.  Chair Benson thanked Mr. Miller for an excellent overview of the budget process.  Mr. Benson invited all board members to attend the budget workshops, which are usually scheduled in January and May.  Notice will be given before the next workshop.

IV.       Adjournment

Mr. Deutsch made a motion, which Dr. Hudson seconded, to adjourn the meeting at 9:00 a.m.  The motion passed unanimously.

 

 


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