THE UNIVERSITY OF TEXAS

AT AUSTIN DEPARTMENT OF
INTERCOLLEGIATE
ATHLETICS

Statement of Revenues and Expenses

for the Year Ended August 31, 2019
and Independent Accountants’ Report
on Applying Agreed-Upon Procedures
 MAXWELL LOCKE & RITTER LLP
Accountants and Consultants
An Affiliate of CPAmerica International
tel (512) 370 3200 fax (512) 370 3250
www.mlrpc.com

Austin: 401 Congress Avenue, Suite 1100

Austin, TX 78701

Round Rock: 411 West Main Street, Suite 300

Round Rock, TX 78664

INDEPENDENT ACCOUNTANTS’ REPORT ON

APPLYING AGREED-UPON PROCEDURES

President of the University of Texas at Austin,

the University of Texas at Austin Department of Intercollegiate
Athletics and the National Collegiate Athletic Association:

We have performed the procedures enumerated below, which were agreed to by the President of the
University of Texas at Austin (the “President”) and the University of Texas at Austin Department of
Intercollegiate Athletics (the “Department”) (collectively, the “Specified Parties”), solely to assist the
Department in evaluating whether the accompanying statement of revenues and expenses (the “Statement”)
of the Department is in compliance with the National Collegiate Athletic Association (“NCAA”) Bylaw
3.2.4.15 for the year ended August 31, 2019. The Department’s management is responsible for the
Statement and the Statement’s compliance with those requirements. The sufficiency of these procedures is
solely the responsibility of the Specified Parties. 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.

The procedures that we performed and our findings are as follows:

A. General Procedures:

1. We, through discussions with Department and University of Texas at Austin

(the “University”) personnel, identified aspects of the University’s internal controls
that are unique to the Department.
2. We tested those internal controls of the University that are both unique to the Department
and have not been addressed in connection with the audit of the University.
3. We obtained the Statement of the Department as of August 31, 2019, including all
applicable notes and disclosures.

Affiliated Company
M L & R W E A LT H M A N A G E M E N T LLC
“A Registered Investment Advisor”
This firm is not a CPA firm
B. Revenue Procedures:

1. General Procedures
a) We agreed all revenue amounts reported on the Statement to the Department’s
general ledger. No exceptions noted.
b) We compared and agreed each operating revenue category with a balance greater
than 4.0% of total revenues reported in the Statement during the reporting period to
supporting schedules provided by the Department. No exceptions noted.
c) We compared and agreed a sample of operating revenue receipts obtained from the
above operating revenue supporting schedules to adequate supporting
documentation. No exceptions noted.
d) We compared each major revenue account over 10% of the total revenues to prior
period amounts and budget estimates and obtained and documented an
understanding of any significant variations greater than 10%. No exceptions noted.

2. Ticket Sales
a) We compared tickets sold during the reporting period, complimentary tickets
provided during the reporting period and unsold tickets to the related revenue
reported by the Department in the Statement and related attendance figures.
No exceptions noted.
b) We recalculated totals. No exceptions noted.

3. Guarantees - Detail procedures were not performed as the balance is below 4.0% of total
revenues.

4. Contributions
a) We obtained and reviewed supporting documentation for a listing from the
Department of individual contribution of moneys, goods or services received
directly by an intercollegiate athletics program from any affiliated or outside
organization, agency or group of individuals not included above (e.g., contributions
by corporate sponsors) that constitutes 10% or more of all contributions received for
intercollegiate athletics during the reporting period. As no individual contributions
constituted 10 percent or more of all contributions received during the reporting
period, we did not present a listing in a supplemental schedule to the Statement.
b) We recalculated totals. No exceptions noted.

5. In-Kind - Detail procedures were not performed as the balance is below 4.0% of total
revenues.
6. Media Rights
a) We obtained and inspected agreements to understand the Department’s total media
rights received by the Department or through the conference office as reported in the
Statement.
b) We compared and agreed the media right revenues to a summary statement and the
Department’s general ledger. No exceptions noted.

c) We recalculated totals. No exceptions noted.

7. NCAA Distributions
a) We compared the amounts recorded in the revenue and expense reporting to general
ledger detail for the NCAA distributions and other corroborative supporting documents.
No exceptions noted.
b) We recalculated totals. No exceptions noted.

8. Conference Distributions and Conference Distributions of Bowl Generated Revenue

a) We obtained and inspected agreements related to the Department’s conference
distributions and participation in revenues from tournaments during the reporting period
to gain an understanding of the relevant terms and conditions.
b) We compared and agreed the related revenues to the Department’s general ledger.
No exceptions noted.
c) We recalculated totals. No exceptions noted.

9. Program Sales, Concessions, Novelty Sales and Parking - Detail procedures were not
performed as the balance is below 4.0% of total revenues.

10. Royalties, Licensing, Advertisements and Sponsorships

a) We obtained and inspected agreements related to the Department’s participation in
revenues from royalties, licensing, advertisements and sponsorships during the
reporting period to gain an understanding of the relevant terms and conditions.
b) We recalculated, compared, and agreed related revenues to the Department’s general
ledger. No exceptions noted.

11. Sports Camp Revenues - Detail procedures were not performed as the balance is below 4.0%
of total revenues.

12. Athletics Restricted Endowment and Investment Income - Detail procedures were not
performed as the balance is below 4.0% of total revenues.

13. Other - Detail procedures were not performed as the balance is below 4.0% of total revenues.

14. Bowl Revenues - Detail procedures were not performed as the balance is below 4.0% of total
revenues.
C. Expense Procedures:

1. General Procedures
a) We agreed all expense amounts reported on the Statement to the Department’s
general ledger. No exceptions noted.
b) We compared and agreed each expense category greater than 4.0% of total expenses
reported in the Statement during the reporting period to supporting schedules
provided by the Department. No exceptions noted.
c) We compared and agreed a sample of expenses obtained from the above expense
supporting schedules to adequate supporting documentation. No exceptions noted.
d) We compared each major expense account over 10% of the total expenses to prior
period amounts and budget estimates and obtained and documented an
understanding of any significant variations over 10%. No exceptions noted.

2. Athletic Student Aid

a) We selected a sample of 10% of students (with a maximum sample size of 40) from
the listing of Departmental student aid recipients during the reporting period.
b) We obtained individual student-account detail for each selection and compared total
aid in the Department’s system to the student’s detail. No exceptions noted.
c) We performed a check of each student selected to ensure their information was
reported accurately in the NCAA’s Compliance Assistant (“CA”) software using the
following criteria:
 The equivalency value for each student-athlete in all sports, including head-count
sports, needs to be converted to a full-time equivalency value. The full-time
equivalency value is calculated using the athletic grant amount reported on the
Calculation of Revenue Distribution Equivalencies Report (CRDE) from CA as
the numerator and the full grant amount which is the total cost for tuition, fees,
required course-related books, room and board for an academic year as the
denominator. If using the NCAA CA software, this equivalency value will be
calculated for you on CRDE report labeled “Revenue Distribution Equivalent
Award”.
 Grants-in-aid is calculated by using the revenue distribution equivalencies by sport
and in aggregate. (Athletic grant amount divided by the full grant amount).
 Other expenses related to attendance (also known as gap money or cost of
attendance) should not be included in grants-in-aid revenue distribution
equivalencies. Only tuition, fees, room, board and course-related books are
countable for grants-in-aid revenue distribution per Bylaw 20.02.07.
 Full grant amount should be entered as a full year of tuition, not a semester or
quarter.
 Student-athletes are to be counted once, regardless of multiple sport participation
and should not receive a revenue distribution equivalency greater than 1.00.
  Athletics grants are valid for revenue distribution purposes only in sports in which
the NCAA conducts championships competition, emerging sports for women and
bowl subdivision football.
 Grants-in-aid are valid for revenue distribution purposes in NCAA sports that do
not meet the minimum contests and participants’ requirements of Bylaw 20.9.6.3.
 Institutions providing grants to student-athletes listed on the CRDE as “Exhausted
Eligibility (Fifth-year)” or “Medical” receive credit in the grants-in-aid
component.
 The athletics aid equivalency cannot exceed maximum equivalency limits.
However, the total revenue distribution equivalency can exceed maximum
equivalency limits due to exhausted eligibility and medical equivalencies
(reference Bylaw 15.5.3.1).
 If a sport is discontinued and the athletic grant(s) are still being honored by the
institution, the grant(s) are included in student-athlete aid for revenue distribution
purposes.
 All equivalency calculations should be rounded to two decimal places.
 If a selected student received a Pell Grant, the value of the grant is not included in
the calculation of equivalencies or the total dollar amount of student athletic aid
expense for the institution.
 If a selected student received a Pell Grant, ensure the student’s grant was included
in the total number and total dollar value of Pell Grants reported for revenue
distribution purposes in the NCAA Membership Financial Reporting System.
No exceptions noted.
d) We recalculated totals for each sport and overall. No exceptions noted.

3. Guarantees - Detail procedures were not performed as the balance is below 4.0% of total
expenses.

4. Coaching Salaries, Benefits, and Bonuses Paid by the Department and Related Entities
a) We obtained and inspected a listing of coaches employed by the Department during
the reporting period. We selected a sample of coaches’ contracts that included
football and men’s and women’s basketball from the listing.
b) We compared and agreed the financial terms and conditions of each selection to the
related coaching salaries, benefits, and bonuses recorded by the Department and
related entities in the Statement during the reporting period. No exceptions noted.
c) We obtained and inspected payroll registers for each selection. No exceptions
noted.
d) We compared and agreed related payroll summary registers from the reporting
period to the related coaching salaries, benefits, and bonuses paid by the
Department. No exceptions noted.
e) We compared and agreed the totals recorded to employment contracts executed for
the sample selected and recalculated totals. No exceptions noted.
5. Support Staff/Administrative Salaries, Benefits, and Bonuses Paid by the Department and
Related Entities
a) We selected a sample of support staff/administrative personnel employed by the
Department during the reporting period.
b) We obtained and inspected summary payroll registers for each selection.
No exceptions noted.
c) We compared and agreed related summary payroll registers to the related support
staff/administrative personnel salaries, benefits, and bonuses paid by the Department
during the reporting period. No exceptions noted.
d) We recalculated totals. No exceptions noted.

6. Severance Payments - Detail procedures were not performed as the balance is below 4.0% of
total expenses.

7. Recruiting - Detail procedures were not performed as the balance is below 4.0% of total
expenses.

8. Team Travel
a) We obtained documentation of the Institution’s team travel policies and compared
and agreed to existing institutional and NCAA related policies.
b) We obtained general ledger detail and compared to the total expenses reported.
No exceptions noted.
c) We recalculated totals. No exceptions noted.

9. Equipment, Uniforms and Supplies - Detail procedures were not performed as the balance is
below 4.0% of total expenses.

10. Game Expenses

a) We obtained general ledger detail and compared to the total expenses reported.
No exceptions noted.
b) We selected a sample of transactions to validate existence of transactions and accuracy
of recording. No exceptions noted
c) We recalculated totals. No exceptions noted.

11. Fund Raising, Marketing and Promotion

a) We obtained general ledger detail and compared to the total expenses reported.
No exceptions noted.
b) We selected a sample of transaction to validate existence of transactions and accuracy
of recording. No exceptions noted.
c) We recalculated totals. No exceptions noted.

12. Sports Camp Expense - Detail procedures were not performed as the balance is below 4.0%
of total expenses.
13. Spirit Groups - Detail procedures were not performed as the balance is below 4.0% of total
expenses.

14. Athletic Facility Debt Service, Leases and Rental Fees

a) We obtained a listing of debt service schedules, lease payments and rental fees for
athletics facilities for the reporting year.
b) We compared a sample of facility payments including the top two highest facility
payments to additional supporting documentation. No exceptions noted.
c) We compared amounts recorded to amounts listed in the general ledger detail and
recalculated totals. No exceptions noted.

15. Direct Overhead and Administrative Expenses

a) We obtained general ledger detail and compared to the total expenses reported.
No exceptions noted.
b) We selected a sample of transactions to validate the existence of transactions and
accuracy of recording. No exceptions noted.
c) We recalculated totals. No exceptions noted.

16. Medical Expenses and Medical Insurance - Detail procedures were not performed as the
balance is below 4.0% of total expenses.

17. Memberships and Dues - Detail procedures were not performed as the balance is below 4.0%
of total expenses.

18. Student-Athletic Meals (non-travel) - Detail procedures were not performed as the balance is
below 4.0% of total expenses.

19. Other Operating Expenses and Transfers to Institution - Detail procedures were not
performed as the balance is below 4.0% of total expenses.

20. Bowl Expenses - Detail procedures were not performed as the balance is below 4.0% of total
expenses.
D. Additional Minimum Agreed-Upon Procedures:

1. Grants-in-Aid
a) We compared and agreed the sports sponsored reported in the NCAA Membership
Financial Reporting System to the Calculation of Revenue Distribution
Equivalencies Report (CRDE) from Compliance Assistant (CA). No exceptions
noted.
b) We compared current year Grants-in-Aid revenue distribution equivalencies to prior
year reported equivalencies per the Membership Financial Report submission.
2. Sports Sponsorship
a) We obtained the Sports Sponsorship and Demographics Forms Report and validated
countable NCAA sports reported by the Department to ensure they met the
minimum requirements for the number of contestants and number of participants.
No exceptions noted.
b) We compared current year number of sports sponsored to prior year reported per the
Membership Financial Report submission.
3. Pell Grants

a) We agreed the total number of student athletes who received Pell Grant awards and
the total value of these awards reported in the NCAA Membership Financial
Reporting System to a report generated out of the Department’s financial aid
records. No exceptions noted.

b) We compared current year Pell Grants total to prior year reported total per the
Membership Financial Report submission.

E. Minimum Agreed-Upon Procedures Program for Other Reporting Items:

1. Excess Transfers to Institution and Conference Realignment Expenses

a) We obtained general ledger detail and compared to the total expenses reported. No
exceptions noted.
b) We selected a sample of transactions to validate existence of transactions and
accuracy of recording. No exceptions noted.
c) We recalculated totals. No exceptions noted.

2. Total Athletics Related Debt

a) We obtained repayment schedules for all outstanding Department debt.
b) We recalculated annual maturities (consisting of principal and interest) provided in
the schedules obtained. No exceptions noted.
c) We agreed total annual maturities and total outstanding athletic related debt to
supporting documentation and the institutions general ledger. No exceptions noted.
 3. Total Institutional Debt
a) We agreed total institutional debt to supporting documentation and the institutions
general ledger. No exceptions noted.

4. Value of Athletics Dedicated Endowments

a) We obtained a schedule of all athletics dedicated endowments maintained by
athletics, the institution, and affiliated organizations.
b) We agreed the fair market value in the schedule to supporting documentation and the
general ledger. No exceptions noted.

5. Value of Institutional Endowments

a) We agreed the total fair market value of institutional endowments to supporting
documentation and the general ledger. No exceptions noted.

6. Total Athletics Related Capital Expenditures

a) We obtained a schedule of athletics related capital expenditures made by athletics,
the institution, and affiliated organizations during the reporting period.
b) We obtained the general ledger detail and compared to total expenses reported.
No exceptions noted.
c) We selected a sample of transactions to validate existence of transactions and
accuracy of recording. No exceptions noted.
d) We recalculated totals. No exceptions noted.

This agreed-upon procedures engagement was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants. We were not engaged to, and did
not conduct, an examination or review, the objective of which would be the expression of an opinion or
conclusion, respectively, on the compliance of the Statement of the Department. Accordingly, we do
not express such an opinion or conclusion. Had we performed additional procedures, other matters
might have come to our attention that would have been reported to you.

This report is intended solely for the information and use of the President, the Department and the
NCAA and is not intended to be and should not be used by anyone other than those specified parties.

Austin, Texas
January 14, 2020
 THE UNIVERSITY OF TEXAS AT AUSTIN
DEPARTMENT OF INTERCOLLEGIATE ATHLETICS
STATEMENT OF REVENUES AND EXPENSES
YEAR ENDED AUGUST 31, 2019
Men’s Women’s
Football Volleyball Baseball Softball Basketball Basketball
REVENUES:
Operating Revenues:
1 Ticket Sales $ 42,498,959 434,898 1,473,640 114,430 4,368,954 447,598
2 Direct State or Other Government
Support - - - - - -
3 Student Fees - - - - - -
4 Direct Institutional Support - - - - - -
5 Less - Transfers to Institution - - - - - -
6 Indirect Institutional Support - - - - - -
6a Indirect Institutional Support - Athletic
Facilities Debt Service, Lease and Rental Fees - - - - - -
7 Guarantees 900,000 - - -
8 Contributions 39,702,504 75,197 1,989,943 54,094 2,965,371 343,284
9 In-Kind 855,125 64,000 165,000 122,088 293,675 166,000
10 Compensation and Benefits Provided
by a Third Party - - - - - -
11 Media Rights 20,416,495 - - - 1,775,347 -
12 NCAA Distributions 522,099 96,026 90,207 113,634 2,193,042 154,326
13 Conference Distributions
(Non Media and Non Bowl) 722,614 - 40,110 2,660 507,273 29,456
13a Conference Distributions of Bowl
Generated Revenue 10,861,340 - - - - -
14 Program, Novelty, Parking and
Concession Sales 5,259,406 50,030 463,009 65,536 617,984 114,022
15 Royalties, Licensing, Advertisements
and Sponsorships 32,233,567 727,426 1,224,555 606,276 3,726,698 1,054,223
16 Sports Camp Revenues 191,440 643,655 313,045 160,260 77,533 63,515
17 Athletics Restricted Endowment
and Investment Income 847,438 67,596 342,315 38,041 181,656 126,171
18 Other Operating Revenue 150 - - 1,566 - 740
19 Bowl Revenues 1,950,440 - - - - -
Total Operating Revenues 156,961,577 2,158,828 6,101,824 1,278,585 16,707,533 2,499,335
EXPENSES:
Operating Expenses:
20 Athletic Student Aid 4,516,178 542,512 489,666 505,668 792,821 746,617
21 Guarantees 1,611,000 - 43,500 15,500 567,995 139,500
22a Head Coach Salaries, Benefits, and
Bonuses Paid by the University and
Related Entities 6,707,545 837,903 1,163,602 773,437 4,181,244 1,061,361
22b Assistant Coach Salaries, Benefits, and
Bonuses Paid by the University and
Related Entities 7,847,509 452,896 506,114 403,944 1,023,467 605,962
23 Coaching Salaries, Benefits and Bonuses
Paid by a Third Party - - - - - -
24 Support Staff/Administrative Compensation,
Benefits, and Bonuses Paid by the
University and Related Entities 4,218,087 194,697 386,810 199,084 761,502 648,189
25 Support Staff/Administrative Compensation,
Benefits, and Bonuses Paid by a Third Party - - - - - -
26 Severance Payments 2,714,208 - - - - -
27 Recruiting 1,275,368 61,442 74,027 57,452 547,467 152,919
28 Team Travel 2,338,223 578,060 558,185 292,413 1,515,961 734,861
29 Sports Equipment, Uniforms and Supplies 1,123,145 70,881 225,455 198,945 202,577 158,369
30 Game Expenses 5,049,157 317,305 525,990 208,238 1,081,606 663,252
31 Fund Raising, Marketing and Promotion 73,004 1,383 4,254 295 1,058 4,163
32 Sports Camp Expenses 237,417 224,485 50,247 28,195 92,547 33,170
33 Spirit Groups 380,514 45,181 - - 116,943 41,002
34 Athletic Facilities Debt Service, Leases
and Rental Fees 6,831 60,267 - - - -
35 Direct Overhead and Administrative Expense 376,088 64,369 174,199 24,901 91,181 72,228
36 Indirect Institutional Support - - - - - -
37 Medical Expenses and Insurance 225,841 43,855 33,627 17,274 46,333 15,921
38 Memberships and Dues 8,713 6,293 675 2,522 4,528 9,194
39 Student-Athlete Meals (non-travel) 945,844 23,797 121,343 43,245 108,210 56,012
40 Other Operating Expenses 897,036 37,019 91,771 23,322 313,983 172,521
41 Bowl Expenses 1,687,662 - - - - -
41a Bowl Expenses - Coaching Compensation/Bonuses 799,800 - - - - -
Subtotal Operating Expenses 43,039,170 3,562,345 4,449,465 2,794,435 11,449,423 5,315,241
50 Excess Transfers to Institution - - - - - -
Total Expenses 43,039,170 3,562,345 4,449,465 2,794,435 11,449,423 5,315,241
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER) EXPENSES $ 113,922,407 (1,403,517) 1,652,359 (1,515,850) 5,258,110 (2,815,906)
(continued)

10
 THE UNIVERSITY OF TEXAS AT AUSTIN
DEPARTMENT OF INTERCOLLEGIATE ATHLETICS
STATEMENT OF REVENUES AND EXPENSES (continued)
YEAR ENDED AUGUST 31, 2019
Men’s Women’s
Men’s Golf Women’s Golf Swimming Swimming Men’s Tennis Women’s Tennis
REVENUES:
Operating Revenues:
1 Ticket Sales $ - - 150,545 146,035 - 1,360
2 Direct State or Other Government
Support - - - - - -
3 Student Fees - - - - - -
4 Direct Institutional Support - - - - - -
5 Less - Transfers to Institution - - - - - -
6 Indirect Institutional Support - - - - - -
6a Indirect Institutional Support - Athletic
Facilities Debt Service, Lease and Rental Fees - - - - - -
7 Guarantees - - - - 1,500 -
8 Contributions 580,695 94,423 15,651 13,521 16,781 14,521
9 In-Kind 60,250 69,000 67,200 57,200 40,000 50,000
10 Compensation and Benefits Provided
by a Third Party - - - - - -
11 Media Rights - - - - - -
12 NCAA Distributions 81,121 63,627 89,987 113,983 70,618 76,267
13 Conference Distributions
(Non Media and Non Bowl) - - - - - -
13a Conference Distributions of Bowl
Generated Revenue - - - - - -
14 Program, Novelty, Parking and
Concession Sales 10,670 5,739 36,808 23,081 8,889 3,488
15 Royalties, Licensing, Advertisements
and Sponsorships 147,896 117,396 85,166 130,166 85,166 85,166
16 Sports Camp Revenues 204,350 124,825 569,251 569,251 125,468 125,468
17 Athletics Restricted Endowment
and Investment Income 67,433 65,160 270,882 98,931 35,543 65,455
18 Other Operating Revenue - - 1,100 - 1,885 -
19 Bowl Revenues - - - - - -
Total Operating Revenues 1,152,415 540,170 1,286,590 1,152,168 385,850 421,725
EXPENSES:
Operating Expenses:
20 Athletic Student Aid 140,885 251,135 463,718 724,191 144,847 474,465
21 Guarantees - - - - - -
22a Head Coach Salaries, Benefits, and
Bonuses Paid by the University and
Related Entities 463,370 252,453 435,224 339,796 369,861 322,322
22b Assistant Coach Salaries, Benefits, and
Bonuses Paid by the University and
Related Entities 123,935 116,787 275,383 319,428 116,387 134,040
23 Coaching Salaries, Benefits and Bonuses
Paid by a Third Party - - - - - -
24 Support Staff/Administrative Compensation,
Benefits, and Bonuses Paid by the
University and Related Entities 137,609 119,645 222,682 191,287 80,549 49,838
25 Support Staff/Administrative Compensation,
Benefits, and Bonuses Paid by a Third Party - - - - - -
26 Severance Payments - - - - - -
27 Recruiting 32,943 38,011 68,799 54,555 60,940 43,271
28 Team Travel 168,773 169,070 214,817 196,481 150,744 184,366
29 Sports Equipment, Uniforms and Supplies 46,587 61,125 152,356 86,719 76,935 92,748
30 Game Expenses 1,237 40,045 170,538 109,615 51,576 (2,813)
31 Fund Raising, Marketing and Promotion 1,146 180 841 1,791 2,018 -
32 Sports Camp Expenses 53,748 27,580 235,490 235,490 36,860 36,860
33 Spirit Groups - - - - - -
34 Athletic Facilities Debt Service, Leases
and Rental Fees - - 2,686 3,685 - -
35 Direct Overhead and Administrative Expense 121,718 14,455 40,411 42,666 42,087 22,259
36 Indirect Institutional Support - - - - - -
37 Medical Expenses and Insurance 1,739 906 24,722 33,137 9,574 1,947
38 Memberships and Dues 3,465 2,695 7,851 6,523 2,894 2,565
39 Student-Athlete Meals (non-travel) 26,666 20,351 165,180 119,954 34,049 19,364
40 Other Operating Expenses 33,635 54,493 132,349 54,452 17,891 32,942
41 Bowl Expenses - - - - - -
41a Bowl Expenses - Coaching Compensation/Bonuses - - - - - -
Subtotal Operating Expenses 1,357,456 1,168,931 2,613,047 2,519,770 1,197,212 1,414,174
50 Excess Transfers to Institution - - - - - -
Total Expenses 1,357,456 1,168,931 2,613,047 2,519,770 1,197,212 1,414,174
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER) EXPENSES $ (205,041) (628,761) (1,326,457) (1,367,602) (811,362) (992,449)
(continued)

11
 THE UNIVERSITY OF TEXAS AT AUSTIN
DEPARTMENT OF INTERCOLLEGIATE ATHLETICS
STATEMENT OF REVENUES AND EXPENSES (continued)
YEAR ENDED AUGUST 31, 2019
Non-Program
Rowing Soccer Men’s Track Women’s Track Specific Total
REVENUES:
Operating Revenues:
1 Ticket Sales $ - 38,221 280,103 280,103 16,846,167 67,081,013
2 Direct State or Other Government
Support - - - - - -
3 Student Fees - - - - - -
4 Direct Institutional Support - - - - - -
5 Less - Transfers to Institution - - - - - -
6 Indirect Institutional Support - - - - - -
6a Indirect Institutional Support - Athletic
Facilities Debt Service, Lease and Rental Fees - - - - - -
7 Guarantees 7,000 - - - - 908,500
8 Contributions 13,521 13,531 13,721 13,721 2,371,009 48,291,488
9 In-Kind 92,000 73,500 115,000 115,000 500,950 2,905,988
10 Compensation and Benefits Provided
by a Third Party - - - - - -
11 Media Rights - - - - - 22,191,842
12 NCAA Distributions 169,521 113,234 126,579 162,886 4,237,157
13 Conference Distributions
(Non Media and Non Bowl) - - - - 293,336 1,595,449
13a Conference Distributions of Bowl
Generated Revenue - - - - - 10,861,340
14 Program, Novelty, Parking and
Concession Sales 31,997 30,019 59,258 59,258 1,658,947 8,498,141
15 Royalties, Licensing, Advertisements
and Sponsorships 85,166 262,432 262,432 262,432 5,963,885 47,060,048
16 Sports Camp Revenues 19,089 497,895 49,020 49,020 797,446 4,580,531
17 Athletics Restricted Endowment
and Investment Income 107,058 130,403 69,656 32,527 - 2,546,265
18 Other Operating Revenue 66,860 - 53,220 53,220 992,838 1,171,579
19 Bowl Revenues - - - - - 1,950,440
Total Operating Revenues 592,212 1,159,235 1,028,989 1,028,167 29,424,578 223,879,781
EXPENSES:
Operating Expenses:
20 Athletic Student Aid 792,119 630,870 551,995 792,530 524,914 13,085,131
21 Guarantees 7,500 - - - - 2,384,995
22a Head Coach Salaries, Benefits, and
Bonuses Paid by the University and
Related Entities 304,525 304,849 403,094 403,094 - 18,323,680
22b Assistant Coach Salaries, Benefits, and
Bonuses Paid by the University and
Related Entities 273,443 232,477 468,512 468,512 - 13,368,796
23 Coaching Salaries, Benefits and Bonuses
Paid by a Third Party - - - - - -
24 Support Staff/Administrative Compensation,
Benefits, and Bonuses Paid by the
University and Related Entities 132,942 250,135 77,104 77,104 29,802,200 37,549,464
25 Support Staff/Administrative Compensation,
Benefits, and Bonuses Paid by a Third Party - - - - - -
26 Severance Payments - - - - 116,380 2,830,588
27 Recruiting 84,688 63,867 101,887 115,736 - 2,833,372
28 Team Travel 272,213 427,261 487,548 556,642 1,625 8,847,243
29 Sports Equipment, Uniforms and Supplies 309,536 142,688 158,123 166,024 20,406 3,292,619
30 Game Expenses 43,568 87,807 368,822 419,360 1,152,373 10,287,676
31 Fund Raising, Marketing and Promotion - 3,176 2,798 3,178 9,171,153 9,270,438
32 Sports Camp Expenses 7,354 218,522 18,344 20,838 715,250 2,272,397
33 Spirit Groups - - - - 344,197 927,837
34 Athletic Facilities Debt Service, Leases
and Rental Fees 1,017 410 5,426 6,163 25,912,648 25,999,133
35 Direct Overhead and Administrative Expense 26,205 237,872 12,884 13,792 37,041,708 38,419,023
36 Indirect Institutional Support - - - - - -
37 Medical Expenses and Insurance 7,655 18,871 39,760 45,164 1,685,046 2,251,372
38 Memberships and Dues 2,435 5,844 2,056 2,336 405,105 475,694
39 Student-Athlete Meals (non-travel) 203,572 70,326 131,205 149,039 718,136 2,956,293
40 Other Operating Expenses 43,285 25,155 70,761 78,340 4,292,729 6,371,684
41 Bowl Expenses - - - - - 1,687,662
41a Bowl Expenses - Coaching Compensation/Bonuses - - - - - 799,800
Subtotal Operating Expenses 2,512,057 2,720,130 2,900,319 3,317,852 111,903,870 204,234,897
50 Excess Transfers to Institution - - - - 3,193,147 3,193,147
Total Expenses 2,512,057 2,720,130 2,900,319 3,317,852 115,097,017 207,428,044
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER) EXPENSES $ (1,919,845) (1,560,895) (1,871,330) (2,289,685) (85,672,439) 16,451,737

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THE UNIVERSITY OF TEXAS AT AUSTIN
DEPARTMENT OF INTERCOLLEGIATE ATHLETICS

NOTES TO FINANCIAL STATEMENT

YEAR ENDED AUGUST 31, 2019

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Organization - The University of Texas at Austin Department of Intercollegiate Athletics

(the “Department”) is an auxiliary department of the University of Texas at Austin
(the “University”). The University is a component unit of The University of Texas System
(the “System”), an agency of the State of Texas (the “State”). The Department’s purpose is to
provide quality sports entertainment to the University’s students and faculty while providing
quality education to the student athletes. The Department receives substantial funding from ticket
sales revenues and from private donations. The Department operates and oversees all
University-sponsored athletic events and is responsible for the maintenance of certain
University-owned athletic facilities. Facilities under the Department’s control that do not directly
provide revenue for the general operations of the Department have been excluded from these
statements in accordance with rules established by the National Collegiate Athletics Association
(the “NCAA”).

Basis of Presentation - The Department’s financial statement has been prepared in accordance
with the modified cash basis of accounting and the constitution and bylaws of the NCAA.
Revenues are recorded when received and expenditures are recorded when paid. Significant
modifications to the cash basis include the unearned portion of revenues for ticket sales and
student athletic fees relating to the following fiscal year and the limitation of endowment and
investment income to the extent expended. This financial statement, prepared on the
aforementioned basis, is not presented in conformity with accounting principles generally accepted
in the United States of America.

Federal Income Taxes - The activities and organizational structure of the System and its
component institutions are established as an integral part of the State’s public education program.
The Department, as a component unit of the University and the System, is exempt from federal
income taxes, except as it relates to unrelated business income tax, because of the agency
relationship of the System within the State’s government. Unrelated business income tax is filed
and paid by the System on behalf of the Department. The activities of states and their political
subdivisions are exempt from federal income taxation in accordance with the constitutional law
doctrine of intergovernmental tax immunity.

Plant Funds - The University owns the Department’s buildings and facilities and accounts for
related transactions in the University plant funds. Therefore, changes in plant funds of the
Department are not reflected in the accompanying financial statement.

Assets are acquired by issuing a purchase requisition and then a purchase order. Purchasing laws
of the State of Texas are followed in regards to the various dollar amount levels. Capital assets are
recorded at cost at the date of acquisition, or, if donated, at fair market value at the date of
donation. Depreciation is computed using the straight-line method over the estimated useful life of
the asset. Assets are disposed of through the University surplus process. Expenditures for plant
acquisitions in the plant funds benefiting the Department, net of disposals and transfers, were
$26,100,552 during the year ended August 31, 2019.

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2. FUTURE MINIMUM DEBT REQUIREMENTS

As of August 31, 2019 the University had outstanding debt totaling $1,648,705,623. Of that
balance, the Department had outstanding debt totaling $181,605,000. Debt service requirements to
maturity for the Department’s outstanding debt are summarized as follows:

Total
Fiscal Year Principal Interest Requirement
2020 $ 6,705,000 $ 7,889,429 $ 14,594,429
2021 6,990,000 7,581,660 14,571,660
2022 7,330,000 7,265,211 14,595,211
2023 7,595,000 6,933,392 14,528,392
2024 7,950,000 6,578,775 14,528,775
2025-2029 43,030,000 27,533,976 70,563,976
2030-2034 49,245,000 17,702,764 66,947,764
2035-2039 44,200,000 7,051,991 51,251,991
2040-2044 8,560,000 1,020,790 9,580,790
$ 181,605,000 $ 89,557,988 $ 271,162,988

3. ENDOWMENTS

As of August 31, 2019 the University held dedicated endowment accounts with fair market values
totaling $4,288,183,739. The total fair market value of athletics dedicated endowments at the end
of the year was $46,055,267.

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