NCAA News Archive - 2001

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Division III CEOs mull financial issues
Changes proposed to budget group


Nov 19, 2001 11:27:23 AM

BY KAY HAWES
The NCAA News

Budgetary issues, the proposed financial aid audit and preparation for the 2002 NCAA Convention dominated the agenda at the November 1 meeting of the Division III Presidents Council.

The Council, which met in Indianapolis, sent several recommendations to the Division III Budget Committee, which will meet in December. The Council recommended that the committee address the 2000-01 budget deficit and make necessary adjustments to the current 2001-02 budget to control for potential shortfalls, particularly in championships travel. The Council also asked that the committee identify and examine specific structural reasons for the 2000-01 championships shortfall to help prevent future problems.

The Council urged that the deficit be addressed as soon as possible and endorsed the Championships Committee's plan for establishing a contingency fund to deal with any future championships shortfalls.

The Council also endorsed in principle a reallocation of funds proposed by the Division III Initiatives Task Force. The task force, which met in late October, had reviewed the championships shortfall and the evolution of the proposed financial aid audit and had examined its own budget with an eye toward offering assistance.

The presidents discussed the need to remain committed to the Division III initiatives and also reviewed the funds supporting the initiatives, eventually determining that the task force's suggestion to reallocate $150,000 of $183,387 in unallocated funds from the task force's 2000-01 budget and to eliminate the allocation of $420,000 of new funds from the task force's budget in 2003-04 was feasible.

Council members noted that creation and maintenance of programs already established for 2001-02 and 2002-03 by the Division III Initiatives Task Force would continue uninterrupted. The Council further noted that the championships experience was related to one of the task force's priorities -- student-athlete welfare.

The Council also endorsed the task force's recommendation to reduce the Conference Technology Grant Program during 2003-04 from $10,000 to $5,000 per conference, permitting an additional $150,000 to be reallocated.

The Council noted that it expected to review more specific recommendations from the budget committee at the Council's January meeting, including the proposed allocation of the new pool of available resources to address strategic initiatives related to championships and financial aid education.

Financial aid audit

In other action, the Council reviewed the Management Council's recommendations to withdraw proposed legislation from the 2002 NCAA Convention establishing a Division III financial aid audit. The presidents agreed with the Management Council that the audit process was not finalized to their satisfaction.

The Presidents Council noted that it was committed to the concept of a financial aid audit in Division III, but it also noted that too many issues remained to recommend that audit specifics move forward at the Convention.

The Council agreed to withdraw Proposal No. 2-51 (Financial Aid -- Audit Procedures), and it also recommended the creation of a special task force to examine precisely how an audit should work in Division III. The task force will include members of the Presidents Council, Management Council, Financial Aid Committee and also financial aid officers who have relative experience with such audits (such as those who serve institutions in conferences that require similar financial aid audits, for example).

The Council then referred the entire issue of a proposed financial aid audit to the new task force and asked it to develop a financial aid audit process and relevant legislation for consideration at the 2003 NCAA Convention.

In other action, the Council:

Reviewed and approved the 2002 NCAA Convention schedule and grouping of Convention proposals.

Took positions of support or opposition on many legislative proposals from the membership.

Endorsed the nomination of Bette Landman, president of Arcadia University, as chair, effective January 2002.


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