Last night: the dinner cruise was beautiful but got a little rocky when Colleen Garrity, Business Manager at Purdue University drove the boat into the rocky Pacific. Nice job!!! The time zone thing finally got me last night. As much as I would have loved to hang out with everyone after the cruise I could only envision getting upstairs into my bed. Glad I did! Maybe karaoke tonight?
Alarm clock: note to self – be sure the sound is ON before going to bed. That’s the only way you are going to hear the alarm. So much for breakfast on the concierge floor!
Clutch: My computer restarted during Kevin Robinson’s presentation. I thought it was lost forever but Timothy McCleary, CPA – Assurance & Advisory Services at Ernst & Young. Tim has a great story – he is looking for a job in athletic business and came to CABMA to network! Brilliant! Hire him!
Identifying Fraud: Kevin Robinson, Executive Director, Department of Internal Auditing, Auburn University
Occupational Fraud: where a person commits fraud on the organization. Today we are talking about employees who had no intention of committing fraud.
The Ultimate Ponzi scheme: Social Security!
Kevin’s stand-up routine is very engaging.
Fraud Triangle: Pressure (non-sharable) – Rationalization – Opportunity
Slides – he has great slides with big pictures. He must have read “The Presentation Secrets of Steve Jobs” because his words tall his story and he uses his slides to support it. They are well laid out and clearly written!
Higher Ed: out of 22 industries higher education is 7th in frequency of fraud
Red flags: Individual: high debt, in early out late, lifestyle Organizational: lack of internal control, low employee morale, turnover, and lack of ethical tone at the top.
Most common sources of theft: P-cards, Cash, Expense Vouchers
Take away thought: Pay attention! Perception of detection is the best deterrent to fraud. And, NEVER leave your P-card purchased margherita machine on top of the refrigerator so the investigative reporters can record it!
Taking a Critical Look at our Radar Screen: Dutch Baughman, division IA Athletic Directors Association
Talk about what we know, not what we think
Knight Commission www.knightcommission.com : economic impact study
To create more transparency – comparison of athlete costs and academic costs
Create a reward system where schools are rewarded by academic success
Time to consider Student Athletes as STUDENTS, not as PROFESSIONALS
Leadership: humility (from “Good to Great” by Jim Collins) regarding Level 5 Leadership
Filter reality in your head.
Coordinator salaries are increasing even faster than head coaches. Unsustainable. It is like playing mom against dad.
Compensation: he does not see anything self-correcting about this. The concept of level playing field will never occur.
Criteria: who will come up with the comparison between academic costs and athletic costs? How will we gather data to actually compare apples with apples or as Dutch says it, what we know, not just what we think.
Search: Right fit; best qualified for the job; Interview – chemistry test. Can this person come into our institution and speak? If you are selected is simply because they liked you better. They can trust this person. Understand the elevator speech where you have 90 seconds to make your pitch. Understand the conclusive statement and the impact it has on your audience.
Take away thought: You are what you think. Don’t say what you think, say what you know.
Vendors: I love visiting with the vendors. It’s like Christmas in June. That’s the upside. The downside is that it’s like shopping at Tiffany’s with a $100 budget. We make less in ticket revenue than it costs to invest in real interactive streamlined customized ticketing software.
Creative Facility Financing: Tom Stultz, Senior VP & Managing Director, and Steve Moore, IMG
Currently: demand for facilities up, political pressures and academic funding is significantly reduced
Mindset in college athletics: Old: pricing and operating to meet current budgets. New: pricing and operating to maximize future revenues.
Partners: it is imperative to have several national partners with like minds to work together to achieve any large project
Current climate: now is the time to build.
Funding models: bonds, operating lease vs. capital lease, donors, public financing, tax increment funding – any combination of these to maximize new and existing revenue opportunities
Zags: there is Jared Hertz, Gonzaga again! Just noticed there is a Zags picture (and others) on the bottom of the slides!
Assisting the Business Office: IMG would work with the business office staff to prepare the financial research. Bond application is very time consuming. IMG would take more of the burden on themselves to take charge of that process.
Take away thought: Use of funds becomes a question of stewardship
Awards Luncheon:
And the winner is:
George Eldridge Distinguished Service Award: Jim Kotch from Texas A & M
CABMA Manager of the Year: David Steele, Associate AD/Finance at Marshall University
Preparing Effective Financial Presentations: Craig Angelos, Director of Athletics at Florida Atlantic University
Speak to the stakeholders
Educate the population – use terms people will understand; reach out to all learning styles
Head Coaches: how much money is left? When do I get reimbursements?
Associate/Assistant AD’s: awareness of revenue if they are responsible for its generation; the sports that report to them if they are a supervisor; their cost center
Director of Athletics: good to meet regularly. Are we going to balance? What are the variances?
VP Business Affairs/CFO: current budget review, variances and your plan for next year
President: 3-5 year projections, how we are in relation to our peers and simply if we are going to balance
Board of Regents/Trustees: the big picture only; the budget plan
Boosters: impact of donations, capital projects
Athletic Board of Directors: benchmarking
Be transparent – hide the ball
Credibility
Methods of delivery: charts, Excel spreadsheets
Craig: has a fun presentation style
Take away thought: It’s important to educate people along the way about the financial condition of your school with transparency to add to credibility.
Round Tables: Today I had the opportunity to talk to folks about Strengthening the Business Office/Athletic Department Relationship. I met with a lot of people who had some great ideas of how they build the relationship. My favorite thing that happened, however, was when a woman sat next to me and asked me if I knew Tom Caserta. I not only know one but I am married to him. Maria Behm, Associate Director of Athletics at Loyola Marymount University graduated from Canisius College a few years before I did and knew my husband. Small World!!!!
Until next time!
Jude Russo Caserta
AthleticBudgetCoach.com/blog
Twitter: JudeCaserta Linkedin: Jude Russo Caserta
E-mail: judi_caserta@athleticbudgetcoach.com
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I’m not sure where the age line is except to say I am well over the line where cash means something to me. I’m not just saying that money means something to me but actual paper currency has a distinct value to me.
I’m not sure I will ever see a completely cashless society but I have no doubt it is coming. How sad that even piggy banks will be virtual some day.
