Upload
vucong
View
214
Download
1
Embed Size (px)
Citation preview
• '
THE UNIVERSITY of TEXAS SYSTEM
FOURTEEN INSTITUTIONS. UNLIMITED POSSIBILITIES.
Audit Office
210 West 6th Street, Suite B140.E Austin, Texas 78701
512-499-4390 /Fax: 512-499-4426
WWW. UTSYSTEM.EDU
January 1 5, 201 6
Ricardo Romo, Ph.D., President The University of Texas at San Antonio, Main Campus One UTSA Circle San Antonio, Texas 78249- 1644
Dear Dr. Romo:
We have completed our NCAA Agreed-Upon Procedures for the Intercollegiate Athletics Program at The University of Texas at San Antonio for the fiscal year ended August 31 , 201 5 . The results of the engagement are detailed in the attached repmt.
We appreciate the assistance provided to us by the various depaitments at The University of Texas San Antonio.
Sincerely,
�·.A_��s J. Michael Peppers, CPA, CIA, QIAL, CRMA Chief Audit Executive
cc: Steven Leslie, Ph.D., Executive Vice Chancellor for Academic Affairs Kathryn Funk-Baxter, Vice President for Business Affairs Samuel Gonzales, Vice President for Student Affairs Lynn Hickey, Assistant Vice President/Director of Athletics She1man Corbett, Assistant Athletic Director for Business Operations J. Richard Dawson, Chief Audit Executive Paul Tyler, Director of Auditing
The University of Texas at Arlington • The University of Texas at Austin· The University of Texas at Dallas· The University of Texas at El Paso
The University of Texas of the Permian Basin • The University of Texas Rio Grande Valley· The University of Texas at San Antonio
The University of Texas at Tyler · The University of Texas Southwestern Medical Center · The University of Texas Medical Branch at Galveston
The University of Texas Health Science Center at Houston· The University of Texas Health Science Center at San Antonio
The University ofT� xas MD Anderson Cancer Center· The University of Texas Health Science Center at Tyler
The University of Texas at San Antonio
Department of Intercollegiate Athletics
Independent Auditor's Report on the
Application of Agreed-Upon Procedures
For the Fiscal Year Ended August 31, 2015
January 2016
THE UNIVERSITY OF TEXAS SYSTEM AUDIT OFFICE
210 WEST SIXTH STREET, SUITE B.140E
AUSTIN, TX 78701
(512) 499-4390
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 3 1 , 2015
INDEPENDENT1 AUDITOR'S REPORT ON THE APPLICATION OF AGREED-UPON PROCEDURES
We have perfonned the procedures enumerated below, which were agreed to by the President of The University of Texas at San Antonio (UTSA), solely to assist UTSA management in evaluating whether the accompanying Statement of Revenues and Expenses (SRE) ofUTSA's Department of Intercollegiate Athletics (Athletics) is in compliance with the National Collegiate Athletic Association (NCAA) Bylaw 3.2.4.16 for the fiscal year (FY) ended August 31, 20 1 5 . UTSA's management is responsible for the SRE and compliance with NCAA requirements.
This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Ce1tified Public Accountants. The sufficiency of these procedures is solely the responsibility of the specified users of the repmi. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.
Our procedures and findings are explained in the following pages. Repmtable findings are defined as errors or misclassifications equal to or greater than one percent of total revenues or total expenses. Also attached to this report are the following appendices:
• · Appendix A, SRE of Athletics for the Fiscal Year Ended August 3 1 , 20 1 5 ; • Appendix B, Findings and Recommendations; • Appendix C, Follow-up on the Prior Year's Recommendation; • Appendix D, Notes to the SRE; • AppendixE, Budget to Actual Analysis of Major Revenue and Expense Amounts; and • Appendix F, FY 14 to FY 15 Variance Analysis of Major Revenue and Expense Amounts
Agreed-Upon Procedures Related to the Statement of Revenues and Expenses
Agreed-Upon Procedures Related to all Revenues and Expenses
1 . Agreed the amounts reported on the SRE to UTSA's general ledger.
In most instances, revenues and expenses reported on the SRE materially agreed to the amounts reported in UTSA 's general ledger cost centers. In addition, there are certain items recorded on the SRE that are not required to be recorded in athletic cost centers, such as gifts-in-ldnd. The NCAA requires that these items be reported on the SRE to fitlly reflect the operations of the A thletics Department. A s a result of procedure performed, we identified nine material adjustments that were made to the SRE. Six of the nine errors were overstatements or understatements that affected either total revenue or total expenses. Three of the nine errors were the result of misclassifications that had no net effect to the bottom line of the SRE. Management agreed and recorded the nine adjustments in the SRE located in Appendix A of this report.
1 The NCAA requires this agreed-upon procedures engagement to be conducted by an independent accountant. For purposes of this engagement, the NCAA considers the UT System Audit Office to be independent.
-1-
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 3 1, 2015
Consistent with our recommendation from the FY 201 4 agreed-upon procedures engagement, we provided management one recommendation to reduce the risk of errors going forward. See the recommendation in Appe11dix B for details. The specific adjustments identified and recorded are described for the affected SRE revenue and expense categories in the results below.
2 . Performed the following procedures for all revenue and expense categories applicable to the SRE: a. Compared and agreed each operating revenue and expense category reported in the SRE
during the reporting period to supporting schedules provided by the institution. If a specific reporting category is less than 0.5% of the total revenues, no procedures are required for that specific category.
b. Compared and agreed a sample of operating revenue receipts and operating expenses obtained from the above supporting schedules to adequate supporting documentation.
c. Compared each major revenue and expense account over 1 0% of the total revenues or total expenses to prior period amounts and budget estimates . Obtained and documented an understanding of any variations over the lesser of $ 1 million or 1 0%. (See Appendices E
and F for Variance Analyses.) d. Recalculated totals.
As part of the procedure described in #1 above and from comparing and agreeing each operating revenue and expense category reported on the SRE during the reporting period to supporting schedules provided by the institution, we identified material adjustments that management agreed to record in the SRE. These are the same adjust111ents described in item #1 above and are described for the affected SRE line items in the results below.
3 . Identified and documented aspects ofUTSA's internal control structure that is unique to Athletics. Tested specific elements of the control environment and accounting systems that ( 1 ) are unique to Athletics and (2) have not been addressed in connection with the audit of the institution' s financial statements.
No material exceptions were noted as a result of these procedures.
4. Identified all intercollegiate athletics related affiliated and outside organizations and obtained those organizations ' financial statements for the repo1iing period.
No exceptions were noted in pe1forming this procedure. (See Appe11dix D, Note 5)
Agreed-Upon Procedures Related to Revenues
Ticket Sales 1 . Compared tickets sold during the reporting period, complimentary tickets provided during the
reporting period, and unsold tickets to the related revenue reported by UTSA in the SRE and the related attendance figures and recalculated totals.
No material exceptions were noted as a result of these procedures.
-2-
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 3 1, 2015
Student Fees 2. Compared and agreed student fees reported by UTSA in the SRE for the reporting period to
student enrollments during the same reporting period and recalculated totals. 3 . Obtained and documented an understanding of the institution's methodology for allocating student
fees to intercollegiate athletics programs . . 4. If the athletics department is repo1iing that an allocation of student fees should be countable as
generated revenue, recalculated the totals of their methodology for supporting that they are able to count each spmi. Tied the calculation to supporting documents such as seat manifests, ticket sales repmis and student fee totals.
No material exceptions were noted as a result of these procedures.
Direct State or Other Governmental Support 5 . The agreed-upon procedures require that we compare direct state o r other governmental supp01i
recorded by UTSA during the reporting period with state appropriations, institutional authorizations, and/or other conoborative supporting documentation and recalculate totals.
Athletics reported a $138, 584. 00 contribution received by the Roadrunner Foundation into Direct State or Other Government Support. Based upon reporting guidelines from the NCAA 's agreedupon procedures and communication with the NCAA, contribution revenue fi'om the Roadrunner Foundation should only be reported when an expense is paid by the Foundation on behalf of the university and not when the contribution is received by the Foundation. The initial reported amount was removed ji-om the final SRE tharappears in Appendix A of this report. See the recommendation in Appendix B.
Direct Institutional Support. 6. Compared the direct institutional support recorded by UTSA during the reporting period with
institutional suppmiing budget transfers, documentation, and other corroborative supp01iing documentation and recalculated totals.
No material exceptions were noted as a result of this procedure.
Transfers Back to Institution 7. Compared the transfers back to institution with permanent transfers back to institution from the
athletics department and recalculate totals.
The Athletic Department did not provide a transfer of funds back to the institution.
Indirect Institutional Support 8. Compared the indirect institutional suppo1i recorded by UTSA during the reporting period with
expense payments, cost allocation detail, and other cmToborative suppmiing documentation and recalculate totals.
No material exceptions were noted as a result of this procedure.
-3 -
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 31, 2015
Guarantees 9. Selected a sample of settlement repmis for away games during the reporting period and agreed
each selection to UTSA's general ledger and/or the SRE and recalculate totals. 1 0. Select a sample of contractual agreements pertaining to revenues derived from guaranteed contests
during the reporting period. Compared and agreed each selection to UTSA's general ledger and/or the SRE and recalculate totals.
No material exceptions were noted as a result of these procedures.
Contributions 11. Obtained and reviewed supporting documentation for any contributions of moneys, goods, or
services received directly by the intercollegiate athletics program from any affiliated or outside organization that constituted 1 0 percent or more of all contributions received for intercollegiate athletics during the reporting period and recalculated totals. (See Appendix C, Note 3)
From the procedures pe1formed, we identified two material errors: • The contribution fi'om the Roadrunner Foundation to fimd the Kansas State University
(KSU) football game cancellation fee was inadvertently recorded twice in this line item resulting in a $500 , 000 . 00 overstatement of this reporting category.
• All contributions generated by the Roadrunner Foundation in FYI 5 were recorded in this ·
line item resulting in an overstatement of $443 ,l 85. 75. Based upon reporting guidelines from the NCAA 's agieed-upon procedures and communication with the NCAA, contribution revenue from the Roadrunner Foundation should only be reported when an expense is paid by the Foundation on behalf of the university and not when the contribution is received by the Foundation.
The Contribution category was corrected for both errors in the final SRE that appears in Appendix A of this report. See the recommendation in Appendix B.
In-Kind 12. Compared the in-kind recorded by UTSA during the reporting period with a schedule of in-kind
donations and recalculated totals.
According to guidelines in the NCAA 's 201 5 Agreed-Procedures, "if a specific reporting categ01y is less than 0. 5% of the Total Revenues, no procedures are required for that specific category. " Because the total categ01y amount was less than 0 . 5% of Total Revenues, no testing procedures were performed.
Compensation and Benefits Provided by a Third-Party 1 3 . Obtained the summary of revenues from affiliated and outside organizations (Summary) as of the
end of the reporting period from UTSA. Selected a sample of funds from the Summary and compared and agreed each selection to supporting documentation, UTSA's general ledger and/or the Summary and recalculate totals.
1 4. If the third party was audited by independent auditors, obtain the related independent auditors' rep mi.
-4-
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 3 1, 2015
Athletics personnel did not receive compensation or benefits directly fi'om a third party that is guaranteed by the institution; however, certain Athletic personnel have the use of courtesy vehicles which are provided by third parties. UTSA reported the value associated with courtesy vehicles in Royalties, Licensing, Advertisements, and Sponsorships. No material exceptions were noted.
Media Rights 1 5 . Obtained and inspected agreements to understand UTSA's total media (broadcast, television,
radio) rights received by UTSA or through their conference offices as reported in the SRE. 16. Compared and agreed the media right revenues to a summary statement of all media rights
identified, if applicable, and UTSA's general ledger and recalculate totals.
No material exceptions were noted as a result of these procedures.
NCAA Distributions 1 7. Compared the amounts recorded in the revenue and expense reporting to UTSA's general ledger
detail for NCAA distributions and other corroborative supporting documents and recalculate totals.
No material exceptions were noted as a result of these procedures.
Conference Distributions 1 8 . Obtained and inspected agreements related to UTSA's conference distributions and paiiicipation
in revenues from tournaments during the rep01iing period to gain an understanding of the relevant terms and conditions.
1 9 . Compared and agreed the related revenues to UTSA's general ledger and/or the SRE and recalculated totals.
No material exceptions were noted as a result of these procedures.
Program Sales, Concessions, Novelty Sales, and Parking 20. Compared the amount recorded in the revenue reporting category to UTSA's general ledger detail
of program sales, concessions, novelty sales, and parking as well as any other conoborative supporting documents and recalculate totals.
No material exceptions were noted as a result of these procedures.
Royalties, Licensing, Advertisements, and Sponsorships 2 1 . Obtained and inspected agreements related to UTSA' s participation in revenues from royalties,
licensing, advertisements, and sponsorships during the reporting period to gain an understanding of the relevant terms and conditions.
22. Compared and agreed the related revenues to UTSA's general ledger and/or the SRE and recalculate totals.
No material exceptions were noted as a result of these procedures.
-5-
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 3 1, 2015
Sports Camp Revenues 23 . Inspected sp01is-camp contracts between UTSA and persons conducting institutional spo1is-camps
or clinics during the rep01iing period to obtain an understanding of the UTSA's methodology for recording revenues from sports-camps.
24. Obtained schedules of camp participants and selected a sample of individual camp participant cash receipts from the schedule of sp01is-camp participants and agreed each selection to UTSA's general ledger and/or the SRE and recalculate totals.
No material exceptions were noted as a result of these procedures.
Athletics Restricted Endowment and Investment Income. 25. Obtained and inspected endowment agreements to gain an understanding of the relevant terms and
conditions. 26. Compared and agreed the classification and use of endowments and investment income reported in
the SRE during the reporting period to the uses of income deferred within the related endowment agreement and recalculated totals.
According to guidelines in the NCAA 's 201 5 Agreed-Procedures, "if a specific reporting categ01y is less than 0 . 5% of the Total Revenues, no procedures are required for that specific category. " Because the total category amount was less than 0 . 5% of Total Revenues, no testing procedures were pe1formed.
Other Operating Revenue 27. Performed minimum agreed-upon procedures referenced for all revenue categories and recalculate
totals (see page 1 ) .
No material exceptions were noted as a result of these procedures.
Agreed Upon Procedures Related to Expenses
Athletic Student Aid 28. Selected a sample of students from the listing of institutional student aid recipients during the
reporting period. 29. Obtained individual student-account detail for each selection and compared the total aid allocated
from the related aid award letter to the student's account. 30. Performed a check of each student selected to ensure their information was rep01ied accurately in
the NCAA Membership Financial Rep01iing System. 3 1 . Recalculate totals for each sport and overall .
No material exceptions were noted as a result of these procedures.
Guarantees 32. Obtained and inspected visiting institution's away game settlement reports received by UTSA
during the reporting period and agreed related expenses to UTSA's general ledger and/or the SRE and recalculate totals.
-6-
. The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 31, 2015
33 . Obtained and inspected contractual agreements pertaining to expenses recorded by UTSA from guaranteed contests during the Reporting period. Compared and agreed related amounts expensed by the institution during to UTSA's general ledger and/or the SRE and recalculate totals.
Due to scheduling conflicts, UTSA cancelled an away football game with Kansas State University (KSU) that was to have taken place in Manhattan Kansas. As result of the cancellation, UTSA was contractually obligated to pay $500 ,000. 00 to KSU UTSA rem.itted the obligation to KSU in FY 201 5. Athletics reported the settlement payment as a Guarantee expense. According to the reporting guidelines fi·om the NCAA 's agreed-upon procedures, Guarantee expenses incurred are limited to amounts paid to visiting teams. Consequently, the initial amount reported as Guarantee expense was over-stated and the amount remitted to KSU, which is not a recurring type of expense, should have been reported as an Other Operating Expense. There was no net effect to the bottom line of the SRE as the result of this misclassification. The Guarantee expense categ01y was corrected in the final SRE that appears in Appendix A of this report. See the recommendation in Appendix B.
Coaching Salaries, Benefits, and Bonuses Paid by the University and Related Entities 34. Obtained and inspected a listing of coaches employed by UTSA and related entities during the
reporting period. Selected a sample of coaches' contracts, including football and men's and women's basketball from the listing.
35 . Compared and agreed the financial terms and conditions of each selection to the related coaching . salaries, benefits, and bonuses recorded by UTSA and related entities in the SRE during the reporting period.
36 . Obtained and inspected payroll summary registers for the reporting year for each selection. Compared and agreed payroll summary registers from the reporting period to the related coaching salaries, benefits, and bonuses paid by UTSA and related entities expense recorded by UTSA in the SRE during the reporting period.
3 7. Compared and agreed the totals recorded to any employment contracts executed for the sample selected and recalculate totals.
According to the reporting guidelines from the NCAA 's agreed-upon procedures, Coaching Salaries should include compensation fi•om sports camps hosted by the university. We determined that $3 26, 695. 57 in Coaching Salaries were initially included in Sports Camp Expenses. Consequently, Sports Camp expenses were over-stated bj1 this amount while Coaching Salaries were understated by this same amount. There ·was no net effect to the bottom line of the SRE as the result of this misclassification. Each of these categories was corrected in the final SRE that appears in Appendix A of this report. See the recommendation in Appendix B.
Coaching Other Compensation and Benefits Paid by a Third-Party 38 . Obtained and inspected a listing of coaches paid by third parties during the reporting period.
Selected a sample of coaches' contracts, including football, and men's and women's basketball from the listing.
39. Compared and agreed the financial terms and conditions of each selection to the related coaching other compensation and benefits paid by a third-paiiy and recorded by UTSA in the SRE during the reporting period.
-7-
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 31, 2015
40. Obtained and inspected reporting period payroll summary registers for each selection. Compared and agreed related payroll smmnary register to the coaching other compensation and benefits paid by a third-paiiy expenses recorded by UTSA in the SRE during the rep01iing period and recalculated totals.
Athletics personnel did not receive compensation or benefits directly fi'om a third party that is guaranteed by the institution; ho·wever, certain Athletic personnel have the use of courtesy vehicles which are provided by third parties. Consequently, procedures 3 8, 3 9, and 40 did not need to be pe1formed.
Support Staff/Administrative Salaries, Benefits, and Bonuses Paid By the University and Related Entities
4 1 . Selected a sample of supp01i staff/administrative personnel employed by UTSA and related entities during the repo1iing period.
42. Obtained and inspected rep01iing period summary payroll register for each selection. Compared and agreed the related payroll summary registers to the related suppo1i staff/administrative salaries, benefits, and bonuses paid by UTSA and related entities expense recorded by UTSA in the SRE during the reporting period and recalculate totals .
According to the reporting guidelines from the NCAA 's agreed-upon procedures Coaching Salaries and Support StajJ/Administrative Compensation should include compensation from sports camps hosted by the university. We determined that $52, 73 9. 79 in Support StajJ/Administrative Salaries were initially included in Sports Camp Expenses. Consequently, Sports Camp expenses ··
were over-stated by this amount while Support Staff/Administrative Salaries were understated by this same amount. There was no net effect to the bottom line of the SRE as the result of this misclassification. Each of these categories was corrected in the final SRE that appears in Appendix A of this report. See the recommendation in Appendix B.
Support Staff/Administrative Other Compensation and Benefits Paid by a Third-Party 43 . Selected a sample of suppo1i staff/administrative personnel employed by third parties during the
reporting period. 44. Obtained and inspected reporting period payroll summary registers for each selection. Compared
and agreed related payroll summary registers to the related support staff/administrative other compensation and benefits expense recorded by UTSA in the SRE during the rep01iing period and recalculate totals.
Athletics personnel did not receive compensation or benefits directly fi'om a third party that is guaranteed by the institution; however, certain Athletic personnel have the use of courtesy vehicles which are provided by third parties. Consequently, Procedures 43 and 44 did not need to be performed.
Severance Payments 45 . Select a sample of employees receiving severance payments by UTSA during the reporting period
and agree each severance payment to the related termination letter or employment contract and recalculate totals.
-8-
. The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 3 1, 2015
Procedure 45 did not need to be pe1formed as Athletics did not make severance payments during the reporting period.
Recruiting 46. Obtained and documented an understanding ofUTSA's recruiting expense policies. 47. Compared and agreed to existing institutional- and NCAA-related policies. 48. Obtain general ledger detail and compare to the total expenses reported and recalculate totals.
No material exceptions ·were noted as a result of these procedures.
Team Travel 49. Obtained and documented an understanding ofUTSA's team travel policies. 50. Compared and agreed to existing institutional- and NCAA-related policies. 5 1 . Obtain general ledger detail and compare to the total expenses repo1ted and recalculate totals.
No material exceptions were noted as a result of these procedures.
Sports Equipment, Uniforms, and Supplies 52. Obtain general ledger detail and compare to the total expenses reported. Select a sample of
transactions to validate existence of transaction and accuracy ofrecording and recalculate totals .
No-material exceptions were noted as a result of these procedures.
Game Expenses 53 . Obtain general ledger detail and compare to the total expenses reported. Select a sample of
transactions to validate existence of transaction and accuracy of recording and recalculate totals.
No material exceptions were noted as a result of these procedures.
Fund Raising, Marketing, and Promotion 54. Obtain general ledger detail and compare to the total expenses reported. Select a sample of
transactions to validate existence of transaction and accuracy of recording and recalculate totals .
No material exceptions were noted as a result of these procedures.
Sports Camps Expenses 55 . Obtain general ledger detail and compare to the total expenses repo1ted. Select a sample of
transactions to validate existence of transaction and accuracy of recording and recalculate totals.
According to the reporting guidelines fi'om the NCAA 's agreed-upon procedures Coaching Salaries and Support StafjlAdministrative Compensation should include compensation from sports camps hosted by the university. We determined that $3 79, 435. 3 6 in Coaching and Support Stajj/Administrative Salaries were initially included in Sports Camp Expenses. Consequently, Sports Camp expenses were over-stated by $3 79, 435. 3 6 while Coaching Salaries were understated by $3 26, 695. 57 and Support Staff/Administrative Salaries were understated by
-9-
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 31, 2015
$5 2, 7 3 9. 79. There was no net effect to the bottom line of the SRE as the result of these misclassifications. Each of these categories was corrected in the final SRE that appears in
Appendix A of this report. See the recommendation in Appendix B.
Spirit Groups 56 . Obtain general ledger detail and compare to the total expenses reported. Select a sample of
transactions to validate existence of transaction and accuracy of recording and recalculate totals.
According to guidelines in the NCAA 's 201 5 Agreed-Procedures, "if a specific reporting category is less than 0 . 5% of the Total Revenues, no procedures are required for that specific category." Because the total category amount was less than 0 . 5% of Total Revenues, no testing procedures were pe1formed.
Athletic Facility Debt Service, Leases and Rental Fees 57. Obtain a listing of debt service schedules, lease payments and rental fees for athletics facilities for
the reporting year. Compare a sample of facility payments including the top two highest facility payments to additional supporting documentation (e.g. debt financing agreements, leases, rental agreements).
58 . Compare amounts recorded to amounts listed in the general ledger detail and recalculate totals.
No material exceptions were noted as a result of these procedures.
Direct Overhead and Administrative Expenses 59. Obtain general ledger detail and compare to the total expenses reported. Select a sample of
transactions to validate existence of transaction and accuracy of recording and recalculate totals.
From the procedures pe1formed, we identified two material errors in this reporting categ01y:
• Direct Overhead and Administrative expenses were understated by $1 ,469, 61 8. 51 . This amount was initially included as Other Operating Expenses. Based upon communication with the NCAA, administrative expenses previously reported as Other Expenses are to be reported as Direct Overhead Expenses. According to the NCAA, the new guidance provided for Direct Overhead Expenses ·was an attempt to clean up the "other" categ01y as it was being used by many institutions as place to report a wide range of expenses and was growing in size compared to some other SRE expense categories. There was no net effect to the bottom line of the SRE as the result of this misclassification.
• In addition to the understatement described above, we determined the initial total amount reported for Direct Overhead and Administrative Expenses included expenses that were already accounted for in other SRE categories, resulting in an overstatement of $29 2, 62 3. 3 6 for this categ01y.
Both errors were corrected in the final SRE that appears in Appendix A of this report. See the recommendation in Appendix B.
- 1 0-
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 3 1, 2015
Indirect Institutional Support 60. Tested with revenue section - Indirect Institutional Support (see procedure# 8 on page 3) .
No material exceptions were noted as a result of these procedures.
Medical Expenses and Medical Insurance 6 1 . Obtain general ledger detail and compare to the total expenses reported. Select a sample of
transactions to validate existence of transaction and accuracy of recording and recalculate totals.
No material exceptions were noted as a result of these procedures.
Memberships and Dues 62. Obtain general ledger detail and compare to the total expenses reported. Select a sample of
transactions to validate existence of transaction and accuracy ofrecording and recalculate totals.
From the procedures pe1formed, we determined that Memberships and Dues were missing $220, 090 . 60 in reportable expenses; consequently, this category was initially understated on the SRE. The Memberships and Dues categ01y was corrected in the final SRE that appears in Appendix A of this report. See the recommendation in Appendix B.
Other .Operating Expenses and Transfers to Institution 63 . Obtain.general ledger detail and compare to the total expenses reported. Select a sample of
transactions to validate existence of transaction and accuracy of recording and recalculate totals.
From the procedures pe1formed, we identified three material errors in this reporting category:
• Other Operating Expenses were overstated by $1 , 469, 61 8. 51 . This amount should have been included as part of Direct Overhead and Administrative Expenses. Based upon communication with the NCAA, administrative expenses previously reported as Other Expenses are to be reported as Direct Overhead Expenses. According to the NCAA, the new guidance provided for Direct Overhead Expenses was an attempt to clean up the "other" categ01y as it was being used by many institutions as place to report a wide range of expenses and was growing in size compared to some other SRE expense categories. There was no net effect to the bottom line of the SRE as the result of this misclassification.
• UTSA had to cancel an away football game ·with Kansas State University (KSU) that was to have taken place in Manhattan Kansas. As result of the cancellation, UTSA was contractually obligated to pay $500 , 000. 00 to KSU UTSA remitted the obligation to KSU in FY 201 5. Athletics reported the settlement payment as a Guarantee expense. According to the reporting guidelines ji-om the NCAA 's agreed-upon procedures, Guarantee expenses incurred are limited to amounts paid to visiting teams. Consequently, the initial amount reported as Guarantee expense was over-stated and the amount remitted to KSU, which is not a recurring type of expense, should have been reported as an Other Operating Expense. There was no net effect to the bottom. line of the SRE as the result of this misclassification.
-11-
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 3 1, 2015
• In addition, Other Operating Expenses included $443 , 962. 56 in expenses that were already (1-Ccounted for in other SRE categories, resulting in an overstatement of this categ01y .
Each of the errors described above was corrected in the final SRE that appears in Appendix A of this report. See the recommendation in Appendix B.
Additional Minimum Agreed-Upon Procedures • Compared and agreed the sports sponsored repmted in the NCAA Membership Financial
Reporting System to the squad lists of the institution.
No material exceptions were noted as a result of these procedures.
We were not engaged to and did not conduct an examination, the objective of which would be the expression of an opinion on the compliance of the accompanying SRE of Athletics. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report relates only to the procedures specified above and does not extend to UTSA's financial statements.
This report is intended solely for the information and use of UTSA management and is not intended to be and should not be used by anyone other than those specified parties. However, this report is a matter of public record and its distribution is not limited.
- 1 2-
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 3 1 , 2015
APPENDIX A - THE UNIVERSITY O F TEXAS A T SAN ANTONIO'S DEPARTMENT O F INTERCOLLEGIATE ATHLETICS
STATEMENT OF REVENUES AND EXPENSES FOR THE FISCAL YEAR ENDED AUGUST 31, 2015
Operating Re11em1es Ticket Sales
Direct State and Other Gov't Support
Student Fees
Direct Insti!utional Support
Less - Transfers to the Institution
Indirect Institutional Support
Guarantees Revenue
Contribufons
In-Kind
Comp & Beneftts Provided by 3 3rd Pony
Medo Rights
NCAA Di<tnbutions
Conference Distributions
Prag, Novelty. Parking & Concess. Sales
Royilhies. Lisceru;ing, Advert. & Sponsor.
Sports Camp Revenues
Athletics Rest. Endow. & Invest. Income
Other Operating Revenues
Tolal Operating Revenues
Operating Expenses Athk!tics Student Aid
Guarantees
Co:iching Salaries. Benefits & Bonuses Paid
by Univ. & Refated Entities
Coaching Salaries. Benefits & Bonuses Paid
by a 3rd Pany
Support Staff/Admin. Compensation. Benefits
& Bonuses Pnid by Univ. & Related Entit�s
Support Staff/Achnin. CompensatJ:in. Benefits
& Bonuses Paid by a 3rd Pony
Severance Payments
Recruiting Expenses
Team Travel -
Sports Equipment, Unifonns. & Supplies
Game Expenses
Fundraising. Marketing & Promotions
Spons Camp Expenses
SpQ-1 Groups
Ath. Facilities. Debt Svc .. Leases & Rent:il
Fees
Direct Overhead and Admin Expenses
Indirect lnstitutionnl Support
Medical Expenses and Insurance
Memberships & Dues
Other Operating Expenses
Total Operating Expenses
Excess (Deficiency) of Revenues /Over
(Under) Expenses
Football Men's Basketball Women's Basketball
2.035378.74
300,000.00
320972.66
48,797.58
284923.55
92.410.00
3.082.482.53
2.477.695.23
400.000.00
1.496.925.45
470,095.59
215.412.61
925.182.77
459.797.32
914,905.87
60.110.IO
350.00
470290.57
51 ,007.20
4.975.00
562.037.91
8.508,785.62
(5.426303.09) s
59.597.30
176260.00
3,098.00
8937.50
216.743.00
53,724.00
8.833.34
527.193.14
238.426.95
30.000.00
562.808.40
57.421.31
67.602.74
214224.66
39375.71
1 18,649.15
1331 1 .42
5970.00
35918.82
298.37
1 295.00
34985.00
1 .420287.53 s
(893,094.39) s
24.786.90
40.000.00
2.133.00
8.562.00
2924100
1.000.00
105.724.90
342.726.63
32.600.00
341.869.28
49,024.53
43.132.13
157326.27
29300.87
99.585.46
13.864.62
1950.00
40.843.85
640.00
30.819.40
1.183.683.04
(1.077958.14)
83Seb:ill
15.724.00
19.529.00
82.482.79
98.075.00
2.450.00
21 8260.79
222.227.91
9.000.00
336.15&.03
501.28
28.292.01
161296.07
66.652.93
41,933.35
600.00
24,638.57
73.361.20
1 1 ,841.31
103.00
9.686.44
986292.10 s
(768.031.31) s
Men's Golf
54,174.72
3.100.00
57274.72
86334.36
130.079.02
6.685.23
50252.91
17.462.53
28926.20
810.00
1.473.75
322,024.00
(264,749.28) s
Women's Golf
36.490.50
24208.00
3.800.00
64.498.50
71.533.43
123.265.82
4.823.82
54.430.74
27.761.55
7339.70
660.00
460.00
1.900.00
292.175.06 s
(227.676.56) $
Soccer
4.632.00
9.700.00
3,179.00
76.612.00
8.833.33
102956.33
3 13.007. 10
155.71 1.53
4276.35
1 8909.40
104322.86
14.759.91
16236.87
19204.51
2 13.480.00
20.593.72
1200.00
95.00
89. 15
881$86.40
(778930.07) $
Softball
9.451 .00
4.080.00
26,178.18
45210.00
400.00
85319.18
236.840.05
300.00
228.815.03
1.068.14
1 1 ,167.14
1 13.992.42
38.058.33
18.706.30
7.137.15
31276.88
14.644.27
1 .410.00
4.697.68
708.113.39 s
Men's Tennis
835.39
1 .692.00
43.775.00
46302.39
99293.18
96.953.56
5254.93
53.842.92
20293.99
5.490.00
13.473.38
1.549.67
495.00
1210.00
297.856.63
(622.794.21) s (251.554.24)
Women's Tennis
207.00
1300.00
1.507.00
145348.63
63392.67
1294.46
2.201.26
41529.92
14551.64
5250.00
593.94
495.00
354.15
275.0 1 1 .67 $
(273.504.67) s
Track & Fie Id
2.405.00
14.688.58
6270.00
5.006.00
2,450.00
30.819.58
493502.65
426.671.57
73259.89
284.932.33
83.601.73
13.172.47
143.590.60
30308.24
700.00
1.657.60
1.551397.08 s
( 1 .520.577.50) s
Volleyball
17,464.00
6300.00
6376.00
9333.33
39.473.33
154953.82
3.600.00
282.244.03
2,155.46
16.691.52
142.552.91
25,617.78
14926.98
1 1 ,874.41
2.864.00
24.712.79
345.00
1.70
682.540.40
(643.067.07) $
Non-Program
Specific
( 13957.03)
12,032205.86
1.522914.00
238.862.00
2.493.605.65
1,185.717.00
1,043.728.00
898.564.00
2,835,136.15
208959.22
22,445.734.85
206.870.76
3301.793.62
588.92
67.671.79
157.864.94
20307.66
1304.686.75
97.638.00
295.454.23
1.722.188.43
238.862.00
399.505.13
793.551.08
460.828.41
9.067$1 1 .72
13377923.13
Total
2.155.481.91
12,032205. 86
1522914.00
238.862.00
555.869.00
3.044,421.47
57.735.08
1 . 185.717.00
1301203.00
898.564.00
284.923.55
2.835.136.15
444.055.00
41.500.00
208.959.22
26.807.547.24
5.088.760. 70
475.500.00
4244.894.39
3.887.630.74
494.021.60
2371,558.57
995.099.23
1269.164. 1 1
1305286.75
163.614. 16
97.638.00
768296.91
2.409.751.51
238.862.00
452.670.70
805374.08
l,I09.741.19
26.177.864.64
629.682.60
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 31, 2015
APPENDIX B FINDINGS AND RECOMMENDATIONS
The following are our engagement findings, related recommendations, and management' s responses.
Finding Preparation of the SRE From the agreed-upon procedures performed, we identified nine material errors. Three were misclassification errors which did not affect the net revenues or net expenses. The remaining six en-ors led to both over and understatement of revenue and expense categories. Adjustments to correct the errors were made to the final SRE that appears Appendix A of this report. Factors contributing to the observed eiTOrs include the following and, in many instances, reflect conditions that existed during the FY 201 4 agreed-upon-procedures engagement: • Preparation of the SRE continues to be a
manual, time consuming process and responsibility for preparation of UTSA 's SRE has changed three times over the last two years. Multiple accounts and cost centers map to multiple SRE line items which significantly increases the time to create the SRE.
• For the FY 20 1 4 SRE became the responsibility of the Assistant Athletic Director for Business Operations, who had no prior experience in preparing an SRE. For FY 201 5, preparation of the SRE became the responsibility of the athletic depaiiment' s former chief financial officer, who left campus at the end ofNovember 201 5 . Consequently, the responsibility fell back to the Assistant Athletic Director for Business Operations for the FY 20 1 5 SRE.
• Changes made by the NCAA to the Agreed-Upon Procedures Revenue and Expense categories also increased the likelihood that certain line items might be materially misstated for all member
Recommendation & Management's Response Recommendation : Consistent with our recommendation from the FY 201 4 Report on UTSA 's A pplication of A greed-Upon Procedures, the Athletics Depaiiment, in coordination with other UTSA departments such as Student Affairs, Business Affairs, and the PeopleSoft Sustainment Center should work together to develop a streamlined approach to creating the Statement of Revenues and Expenses (SRE) to include the following actions :
• Develop (PeopleSoft) reports that pull all Athletics transactions, transfers, Athletic student fees, and Athletics endowments and scholarship information.
• Review and modify standard accounts and cost centers to ensure appropriate . mappmg of transactions to each SRE line item.
• Develop written procedures and checklists to document the steps for creating the SRE.
• Create the SRE qua1terly or at mid-year to ensure transactions are processed correctly.
• Cross train staff on the SRE process.
Management Response: UTSA A thletics agrees with the recommendations outlined above. The former Sr. A ssociate A thletics Director for Business began implementation of certain recommendations. These included a PeopleSoft revenue and expense que1y specific to NCAA reporting, additional cost centers and account codes to improve mapping of transactions, a service agreement with software provider, Jumpforward (Elevation) , to provide financial reporting support to EADA and NCA A specifications, and involvement of additional A thletics' staff members in the development of the SRE. A thletics will continue to work with the appropriate departments to improve reports for a streamlined approach and continue to develop written procedures to encompass all procedures needed for the report.
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 3 1 , 2015
Finding Recommendation & Management's Response institutions.
• Documented procedures/processes for Anticipated Implementation D ate:
creating the SRE and cross-training do not exist. August 3 1 , 2016
• The SRE is not created quarterly or at mid-year for Athletics personnel to review and ensure transactions are being processed cotTectly or to measure the financial activity of each sport.
- 1 6-
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 31, 2015
APPENDIX C FOLLOW-UP ON THE PRIOR YEAR'S RECOMMENDATION
The following are our engagement findings from fiscal year 201 4 and related follow-up.
Findin2 Recommendation & Mana2ement's Response
Pre�aration of the SRE Recommendation : Preparation of the SRE is a manual, time The Athletics Depaiiment, in coordination consuming process that includes information with appropriate UT San Antonio accounting from UT San Antonio 's general ledger and personnel and with appropriate UTShare information that does not have a direct personnel at the Arlington Regional Data financial impact on athletic departmental Center, should develop a customized accounts such as depreciation, out-of-state PeopleSoft, Envision, or other automated waivers, overhead charges, and gifts-in-kind. report that can generate a SRE from the
athletic depaiiment accounts and, if possible, Prior to FY 201 4, the SRE was prepared by from other applicable UT San Antonio the Senior Associate Athletic Director for accounts. Business Operations. The individual who held this position for several years left UT Ideally, the customized report would allow the San Antonio during FY 201 4. Athletic Department to drill down and obtain
detailed transactions that make up the SRE line Preparation of the FY 20 1 4 SRE became the items. A customized, user-friendly report
- responsibility of the Assistant Athletic should significantly reduce the amount of time Director for Business Operations, who had to prepare the SRE, facilitate troubleshooting, no plior expelience in preparing an SRE. and reduce the risk of errors and omissions. Though the former Senior Associate Athletic Direct for Business Operations left working Because the steps for preparing the SRE would papers that provided general guidance on change and since the SRE includes amounts SRE preparation, he did not provide training that may not be recorded in athletic department for preparing the SRE. PeopleSoft accounts, the Athletic Department
should document procedures for preparation of In addition to a change in personnel, UT San the SRE, including procedures necessary to Antonio experienced a change in accounting identify, locate, and correctly record non-systems from the legacy *DEFINE system to athletic account information into the SRE. the PeopleSoft based UTShare system. This Lastly, the Athletic Depa1iment should complicated preparation of the SRE consider cross-training of at least one requiring the combination of financial additional staff member in preparation of the infonnation from disparate systems. With SRE. the change in accounting systems and change in personnel, we identified several Management Response:
material adjustments that were incorporated UTSA A thletics agrees with the into the SRE. recommendations outlined above. UTSA
A thletics will work with the appropriate departments to develop automated reports for a streamlined approach. Written procedures
- 1 7-
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 3 1 , 2015.
Finding
Follow-Up Status: Partially Implemented
Recommendation & Management's Response will be developed to encompass all of the procedures needed for the report.
Anticipated Implementation Date: August 31 , 201 5
Request for Extension: The recommendation from FY 201 4 is essentially the same as the recommendation for FY 20 1 5 . Prior to commencement of the FY 201 5 agreed-upon procedures engagement, the Athletics Depaiiment, in August 201 5, requested an extension to fully implement the recommendation described above by August 3 1 , 20 1 6. The request was approved by the UTSA Internal Audit Committee.
Reason Provided by the Athletic Department in August 2015 to Request an Extension : The conversion to PeopleSoft has caused difficulties in getting th e necessmJl reporting, therefore, Athletics is worldng with a software provider for financial reporting. The contract was signed on June 5, 201 5 and work has been ongoing to get the system programmed as soon as possible.
Status Update Provided by the Athletic Department as of January 2016:
1 . The former Senior Associate Athletics Director for Business requested from UTShare/PeopleSoft a customized query to pull revenue and expense transactions specific to Athletics. UTShare provided the query, UTS_Fl_ATHLETIC_TRANS; its detail was used for NCAA repo1ting purposes.
2 . During the budget process for FYl 6, the former Senior Associate Athletics Director for Business requested additional cost centers be added to Athletics in order to better account for and categorize business activity within Athletics. Existing and additional cost centers such as Marketing, Development, Ticketing, Communications, and the Business Office were given stand-alone budgets separate of the former "all-encompassing" Administrative cost center. Also, additional accounts codes were identified by the Business Office to use for specific business activity. These cost centers and account codes are in present use and will improve the mapping of transactions in the Athletics Department.
3 . Athletics has contracted with JumpForward, LLC, to provide financial reporting tools that compile and audit data for EADA and NCAA repo1ts. Presently, Athletics uploads monthly transactions from the PeopleSoft query to Elevation, JumpForward's business tool. Elevation downloads the information into their system that min-ors the EADA and NCAA reports. On-going work continues between Athletics and Elevation for the proper mapping of cost centers and account codes. Weekly educational meetings continue to properly use the software for its intended purpose.
4 . Athletics hired an Administrative Manager whose main responsibility is a human resource liaison. This person works closely with Human Resources and deals directly with the Payroll Office. She receives the Payroll Distribution Reports from the Athletics
- 1 8-
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 3 1 , 2015
Findin2 I Recommendation & Mana2ement's Response Director which are then used to develop the coaches ' and staffs salaries and benefits lines on the SRE. Along with the Asst. AD for Business Operations, the new Accounting Technician is to take an expanded role in developing the SRE.
- 1 9-
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 31, 2015
APPENDIX D NOTES TO THE STATEMENT OF REVENUES AND EXPENSES
NOTE 1 - Summary of Significant Accounting Policies Fiscal Year - UT San Antonio 's fiscal year is the period begim1ing each September 1 st and ending each August 3 1 st of the subsequent calendar year.
Principles of Preparation - The statement of revenues and expenses (SRE) is prepared in accordance with the NCAA agreed-upon procedures guidelines. Information used in the SRE's preparation is obtained primarily from subsidiary ledger information recorded in UT San Antonio ' s financial accounting system. Other information, such as amounts estimated for non-cash trade-out agreements, gifts-in-kind, and other information is obtained from records maintained by the Athletics Department and the Office of Accounting
NOTE 2 - Student Fees For the Fall of 20 1 4 and the Sp1ing and Summer of 20 1 5 semesters, the Athletics Department received $ 1 2,026,673.92 in student fees, which is based upon a student athletic fee of $20.00 per semester credit hour enrolled, with a maximum fee cap of $240 ( 1 2 hours) per student per semester.
NOTE 3 - Contributions Constituting More than Ten Percent of All Contributions Revenue from contributions was $3,044,42 1 .47 for FY 20 1 5 . The Athletic Department received one contribution for operating activities that was greater ten percent of all contributions combined:
The Roadrunner Foundation made a contribution totaling $500,000.00.
NOTE 4 - C apital Assets Athletics acquires, depreciates, and disposes assets in accordance with UTSA institutional policy as follows:
• Acquisition - Athletics acquires capital assets through the normal process at the institution. All purchases are centralized and are to be made using the method that provides the best value to UTSA. Competitive bidding is required for all assets above $5 ,000.00, which is the capitalization threshold.
• Depreciation - Depreciation is allocated to Athletics based on the assets, or portions of real-assets, under the control of Athletics. Depreciation is calculated on a straight-line basis.
• Disposal - Disposal of capital assets must be done in accordance with State of Texas law and institutional policy.
NOTE 5 - Affiliated and Outside Organizations Affiliated and outside organizations includes entities that have a primary purpose which benefits UT San Antonio 's Athletic Department and are not under UT San Antonio 's accounting control . The Roadrunner Foundation is an exempt charitable non-profit corporation, as defined under Internal Revenue Code
-20-
. The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 31, 2015
section 50 1 (c)(3), whose purpose is to support programs and activities of UT San Antonio athletics. A governing board of the Foundation approves requests for assistance from UT San Antonio Athletics and makes such disbursements as funding allows. UT San Antonio has no institutional control over the Foundation.
NOTE 6 - Future Debt Repayment Schedule UTSA and all UT System institutions receive proceeds from commercial paper issued and held by UT System to support capital equipment financing. The revenues of all UT System institutions, including UTSA, are pledged for repayment of the commercial paper. No amount of indebtedness related to the commercial paper has been recorded on UTSA's financial statements.
As of August 3 1 , 201 5 , UTSA (through UT System) had outstanding commercial paper related to Athletics totaling $ 1 ,960,000. Debt service requirements to maturity for this outstanding debt are estimated to be and summarized as follows:
Fiscal Year Principal Interest* Total
20 1 6 $ 1 96,000.00 1 8,865.00 2 1 4,865 .00 201 7 199,000.00 33,803 .00 232,803 .00 20 1 8 202,000.00 44,678.00 246,678.00 201 9 202,000.00 5 1 ,490.00 .453,490.00 2020 202,000.00 46, 1 23 .00- 248, 1 23 .00
202 1 -2025 959,000.00 1 02, 1 1 2 .00 1 ,06 1 , 1 1 2.00 Total
$ 1,960,000.00 297,070.00 2,257,070.00 Requirements
* The interest on commercial paper is vaiiable, is based on forecast rates, and is assumed to be 1 .00% in FY1 6, 2 .00% in FYI 7, 3 .00% in FY1 8, 4.00% in FY1 9, and 4.25% in FY20 and beyond.
Note 7 - Other Required Disclosures:
Description Amounts
Excess Transfers to Institution $0.00
Conference Realignment Expenses Not Applicable
Total Athletics Related Debt $ 1 ,960,000.00 Total Institutional Debt $329 ,362,000.00 Value of Athletics Dedicated Endowments $914,907.72 Value of Institutional Endowment $ 1 2 1 ,96 1 ,6 1 8 .63
-2 1 -
I
The University of Texas at San Antonio Independent Auditor's Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 3 1 , 2015
APPENDIX E ANALYSIS OF BUDGET TO ACTUAL AND ACTUAL ANALYSIS OF MAJOR REVENUE
AND EXPENSE CATEGORIES
FY 15 Budget to FY 15 Actual Variance Analysis
Major SRE Rc\•enuc Categories Actual Total Budget Total Variance Percent
Explanation for Variance Variance
Student Fees $ 12,032,205. 86 $ 1 2,933,000.00 $ (900,794. 14) -7.5% Variance between fiscal year 2014 and 2015 was not
I greater than 10% or $1 ,000,000.
' $500,000 of the increase is from the Athletics
Contributions 3,044,42 1.25 2,390,539.00 653,882.25 2 1 .5% Foundation for the Kansas State game cancellation
payout; remaining increase due to increased efforts by
Development for contributions to the RAF.
Royalties, Licensing, Advertisements and Increase due to budget exclusion of Trademark and
2,835,136. 1 5 1,61 2,900.00 1,222,236. 1 5 43. 1% Adidas revenue and from h·ade and other revenue from Sponsorships
the Learfield settlement.
Ticket Sales 2, 1 55,48 1.91 2,35 1,000.00 ( 1 95,51 8.09) -9. 1% Variance between fiscal year 20 14 and 2015 was not
11!.reater than 10% or $1 ,000,000.
Increase due to inclusion of Work Study and
D irect lnstih1tional Support 1,522,914.00 1,1 98,552.00 324,362.00 2 1 .3% Compliance fw1ds not included in D irect Institutional
Support part of the budget.
NCAA Distributions 1,30 1 ,203.00 1 ,697,306.00 (396, 103.00) -30.4% Decrease due to separation of Conference-USA
dish·ibution. Category specific to NCAA dish·ibutions.
Media Rights 1 , 1 85,7 17.00 1,247,5 16.00 (61 ,799.00) -5.2% Variance between fiscal year 2014 and 2015 was not
greater than 10% or $1 ,000,000.
I I I I Majo1· SRE Expense Categories Actual Total B udget Total Variance
Percent Explanation for Valiance
Variance
Athletic Student Aid $ 5,088,760. 70 $ 5,029,075.00 $ 59,685.70 1 .2% Variance between fiscal year 2014 and 2015 was not
greater than 10% or $ 1 ,000,000.
Coaching Salaries, Benefrts and Bonuses 4,244,894.39 4,062,605.00 1 82,289.39 4.3%
Variance between fiscal year 2014 and 2015 was not
P a id by the University and Related Entities greater than 1 0% or $ 1,000,000.
Support Staff/Administrative Compensaton Increase due to increase in salaries and additional
Benefits and Bonuses Paid by the 3,887,630. 79 3,358,82 1.00 528,809.79 13.6% positions to the Athletics Department
University and Related Entities Variance due to change in FY 15 AUP definition; Line
D irect Overhead and Adminish·ative 35 now captures a wide array of recurring expenses
2,409,75 1 . 5 1 700,000.00 1 ,709,75 1 .51 7 1 .0% previously in Other Expenses; significant expesnes Expenses
included are ticket commissons of $46 1,756 and non-
team h·avel expenses of $282,322.
Team Travel 2,37 1,558.57 2,333,000.00 38,558.57 1 .6% Variance between fiscal year 2014 and 2015 was not
greater than 10% or $1 ,000,000.
The reduction is mainly due to a reduction of sport-
specific expenses u1 Baseball, Golf, and Track. There Fund Raisu1g, Marketu1g and Promotion 1 ,305,286.00 1,441,915.00 ( 136,629.00) - 1 0.5%
was also a reduction u1 the non-sports specific
Marketing expenses from FY 14 and FY 15.
Game Expenses 1 ,269,1 64. 1 1 1 ,144,468.00 1 24,696. 1 1 9.8% Variance between fiscal year 2014 and 2015 was not
I greater than 10% or $ 1 ,000,000.
Variance due to change in FY 1 5 AUP defmition;
Other Operating Expenses 1 , 109,74 1 . 1 9 1 ,833,789.00 (724,047.81) -65.2% majority of reduction of $1 ,469,61 9 accounts for
recurring adrninish·ative expenses (see Line 35).
Note: Major Revenue and Expense SRE Categories were limited to those, that when summed together, comprised of 80% or more of Total Revenue and Expense Categories.
-22-
I
The University of Texas at San Antonio Independent Auditor' s Report on the Application of Agreed-Upon Procedures For the Fiscal Year Ended August 3 1, 2015
APPENDIX F ACTUAL TO ACTUAL ANALYSIS OF MAJOR REVENUE AND EXPENSE CATEGORIES
FY 2014 to FY 2015 Variance Analysis
Major SRE Revenue Categories FY1 5 FY14 Difference Percent
Explanation for Variance Variance
Student Fees $ 12,032,205. 86 $ 12,1 58,967. 1 5 $ ( 1 26,76 1 .29) - 1 . 1% Variance between fiscal year 20 1 4 and 20 1 5 was not
greater than 1 0% or $ 1 ,000,000.
$500,000 of the increase is from the Athletics
Foundation for the Kansas State game cancellation Conh·ibutions 3,044,42 1 .25 2,500,751 .29 543,669.96 1 7.9% payout; remaining increase due to increased efforts by
Development for conh·ibutions to the Roadnumer
Athletic Fund.
Royalties, Licensing, Advertisements and 2,835, 1 36. 1 5 2,85 1 , 1 1 8.40 ( 15,982.25) -0.6%
Variance between fiscal year 20 1 4 and 20 1 5 was not
Sponsorships greater than 10% or $ 1 ,000,000.
Ticket Sales 2,155,48 1.91 2,368,530.23 (2 1 3,048. 32) -9.9% Variance between fiscal year 2014 and 20 1 5 was not
greater than 10% or $ 1 ,000,000. Variance due to omission of tuition waivers available to
Direct Institutional Support 1 ,522,9 14.00 2,060,6 10.00 (537,696.00) -35.3% all students ($845,270) and reduction of patt of Pepsi
conh·act ($ 1 90,000) that were both included the year
before. Decrease due to separation of conference dish·ibution.
NCAA Distributions 1 ,30 1 ,203. 00 2,388,987.80 ( 1 ,087,784. 80) -83.6% Category specific to NCAA distributions as updated for
the FY 1 5 AUP.
Media Rights 1 , 1 85,7 1 7.00 - 1 , 1 85,71 7.00 1 00.0% Increase due to specific conference distribution for TV
.. revenue. No specific distribution was given in FY 14 .
I - I . Major SRE Expense Categories FY1 5 FY14 Variance
Percent Explanation for Variance
Variance
Decrease due to omission of tuition waivers available
Athletic Student Aid to all students that are no longer required to be
$ 5,088,761 $ 5 845 1 79 $ (756,4 18) - 1 4.9% reported in the SRE ($845,270).
Coaching Salaries, Benefits and Bonuses Variance between fiscal year 20 1 4 and 20 1 5 was not
Paid bv the University and Related Entities 4,244,894 4 1 08,830 1 36,065 3.2% greater than 10% or $ 1 ,000,000.
Support Staff/Administrative Compenation, Variance between fiscal year 20 1 4 and 20 1 5 was not
Benefits and Bonuses Paid by the greater than 10% or $ 1 ,000,000.
University and Related Entities 3,887,63 1 3,592,58 1 295,050 7.6%
Variance due to change in FY l 5 AUP definition; Line
Direct Overhead and Administrative 35 now captures a wide airny of recurring expenses
Expenses previously in Other Expenses; significant expesnes included are ticket c01runissons of $46 1,756 and non-
2,409,752 1 ,808,799 600,953 24.9% team travel expenses of $282,322.
Team Travel Variance between fiscal year 20 1 4 and 20 1 5 was not
2,371 ,559 2,607,543 (235,984) - 1 0.0% greater than I 0% or $ 1 ,000,000.
The reduction is mainly due to a reduction of sport-
Fund Raising, Marketing and Promotion specific expenses in Baseball, Golf, and Track. There
was also a reduction in the non-sports specific
1 ,305,286 1 ,44 1 ,9 1 5 ( 1 36,629) - 1 0.5% Marketing exoenses from FY 14 and FY l 5.
Game Expenses Variance between fiscal year 20 1 4 and 201 5 was not
1 ,269, 164 1 ,275,886 (6,722) -0.5% greater than 1 0% or $1 ,000,000.
Variance due to change in FY 1 5 AUP defmition;
Other Operating Expenses majority of reduction of$1 ,469,61 9 accow1ts for
1 1 09,74 1 2,240,224 < I , 130,482) - 1 0 1 .9% recmTinl! adininistrative exoenses (see Line 35).
Note: Major Revenue and Expense SRE Categories were limited to those, that when summed together, comprised of 80% or more of Total Revenue and Expense Categories.
-23-