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The University of Texas at

Austin Department of
Intercollegiate Athletics

Statement of Revenues and Expenses


for the Year Ended August 31, 2020
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, 2020. 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 for the year ended August 31, 2020,
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%.

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.
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 compared and agreed related revenues to the Department’s general ledger. No
exceptions noted.

c) We recalculated totals. No exceptions noted.

11. Sports Camp Revenues

a) We obtained a schedule of camp participants.

b) We selected a sample of individual camp participant cash receipts from the schedule of
sports camp participants and agreed each selection to the Department’s general ledger.
No exceptions noted.

c) We recalculated totals. No exceptions noted.

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%.

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 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 20.02.7.
 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, ensure 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, men’s basketball, 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 - Detail procedures were not performed as the
balance is below 4.0% of total expenses.
12. Sports Camp Expense

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.
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 in
accordance with Bylaw 20.9.6.3. 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 dollar amount 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 13, 2021
The University of Texas at Austin
Department of Intercollegiate Athletics
Statement of Revenues and Expenses
Year Ended August 31, 2020

Men’s Women’s
Football Volleyball Baseball Softball Basketball Basketball
Revenues:
Operating Revenues:
1 Ticket sales $ 44,133,597 580,026 451,076 53,906 4,198,480 431,888
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 1,500,000 - 10,000 - -
8 Contributions 33,611,577 96,271 768,910 82,020 2,711,574 299,583
9 In-kind 904,375 64,000 190,000 117,016 200,000 155,000
10 Compensation and benefits provided by a third party - - - - - -
11 Media rights 20,637,758 - - - 1,790,085 -
12 NCAA distributions 209,931 12,576 37,370 39,594 929,016 33,998
13 Conference distributions (non-media and non-bowl) 614,728 - . - 26,325 23,825
13a Conference distributions of bowl generated revenue 11,707,026 - - - - -
14 Program, novelty, parking and concession sales 4,675,122 44,877 177,802 29,162 450,866 90,112
15 Royalties, licensing, advertisements and sponsorships 26,606,092 630,744 1,007,612 484,403 3,115,737 867,849
16 Sports camp revenues 920 161 46,401 81,477 - 2,311
17 Athletics restricted endowment and investment income 947,053 86,312 167,697 47,869 126,919 160,889
18 Other operating revenue - - - 100 430 166
19 Bowl revenues 1,223,913 - - - - -
Total operating revenues 146,772,092 1,514,967 2,856,868 935,547 13,549,432 2,065,621
Expenses:
Operating Expenses:
20 Athletic student aid 3,978,970 478,862 483,097 408,776 656,565 551,393
21 Guarantees 2,600,000 25,000 26,000 17,500 660,000 109,000
22a Head coach salaries, benefits, and bonuses
paid by the university and related entities 8,283,579 688,580 1,181,133 728,792 4,364,838 2,044,376
22b Assistant coach salaries, benefits, and bonuses
paid by the university and related entities 8,249,628 347,555 558,720 419,422 901,459 904,546
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 4,476,103 124,801 323,666 188,682 788,990 789,240
25 Support staff/administrative compensation,
benefits, and bonuses paid by a third party - - - - - -
26 Severance payments 895,401 - - - - 208,731
27 Recruiting 707,207 45,825 36,114 46,478 270,901 94,672
28 Team travel 1,935,180 439,369 114,459 147,711 1,392,497 848,613
29 Sports equipment, uniforms and supplies 1,213,978 64,620 263,813 158,706 169,744 146,763
30 Game expenses 5,246,070 441,257 209,093 148,784 915,876 559,245
31 Fund raising, marketing and promotion 68,570 - 3,722 902 579 5,050
32 Sports camp expenses 13,880 14,639 38,918 21,247 12,273 2,391
33 Spirit groups 413,503 5,610 - - 51,950 27,726
34 Athletic facilities debt service, leases and rental fees - 56,477 - - - 786
35 Direct overhead and administrative expense 334,540 17,925 130,314 19,199 56,804 24,198
36 Indirect institutional support - - - - - -
37 Medical expenses and insurance 177,371 27,817 15,053 1,890 36,568 12,188
38 Memberships and dues 16,558 1,878 2,566 1,415 4,186 2,866
39 Student-athlete meals (non-travel) 781,405 16,455 110,293 45,643 152,300 26,026
40 Other operating expenses 1,159,019 60,541 120,389 19,162 285,678 913,340
41 Bowl expenses 989,717 - - - - -
41a Bowl expenses - coaching compensation/bonuses 308,383 - - - - -
Subtotal operating expenses 41,849,062 2,857,211 3,617,350 2,374,309 10,721,208 7,271,150
50 Excess transfers to institution - - - - - -
Total expenses 41,849,062 2,857,211 3,617,350 2,374,309 10,721,208 7,271,150
Excess (deficiency) of
revenues over (under) expenses $ 104,923,030 (1,342,244) (760,482) (1,438,762) 2,828,224 (5,205,529)
(continued)

10
The University of Texas at Austin
Department of Intercollegiate Athletics
Statement of Revenues and Expenses
Year Ended August 31, 2020

Men’s Women’s
Men’s Golf Women’s Golf Swimming Swimming Men’s Tennis Women’s Tennis
Revenues:
Operating Revenues:
1 Ticket sales $ - - - 2,268 - -
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 - - - - - -
8 Contributions 221,150 20,155 19,313 19,063 49,063 19,063
9 In-kind 20,000 20,000 79,912 69,912 50,000 50,000
10 Compensation and benefits provided by a third party - - - - - -
11 Media rights - - - - - -
12 NCAA distributions 16,601 19,973 36,574 47,555 19,575 24,633
13 Conference distributions (non-media and non-bowl) - - 56,892 56,892 - -
13a Conference distributions of bowl generated revenue - - - - - -
14 Program, novelty, parking and concession sales 5,037 3,804 18,713 7,710 5,046 1,378
15 Royalties, licensing, advertisements and sponsorships 127,450 99,150 69,882 69,882 69,882 69,882
16 Sports camp revenues - - 8,936 8,936 - -
17 Athletics restricted endowment and investment income 85,892 84,352 323,578 128,280 45,828 84,737
18 Other operating revenue - - 1,440 - - 1,150
19 Bowl revenues - - - - - -
Total operating revenues 476,130 247,434 615,240 410,498 239,394 250,843
Expenses:
Operating Expenses:
20 Athletic student aid 125,068 237,930 535,787 676,419 248,078 511,972
21 Guarantees - - - - 1,200 -
22a Head coach salaries, benefits, and bonuses
paid by the university and related entities 450,783 269,119 429,915 315,620 280,443 281,537
22b Assistant coach salaries, benefits, and bonuses
paid by the university and related entities 107,355 101,370 215,053 252,208 151,539 104,254
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 49,466 84,262 78,454 66,377 38,694 30,721
25 Support staff/administrative compensation,
benefits, and bonuses paid by a third party - - - - - -
26 Severance payments - - - - - -
27 Recruiting 16,596 13,374 53,144 50,957 25,442 27,964
28 Team travel 131,252 102,324 282,224 212,362 171,657 133,743
29 Sports equipment, uniforms and supplies 33,591 34,684 145,041 91,352 61,300 61,262
30 Game expenses 205 42,922 63,144 28,756 60,102 -
31 Fund raising, marketing and promotion 754 731 179 589 181 1,343
32 Sports camp expenses 6,481 13,660 32,501 32,501 8,992 8,992
33 Spirit groups - - - - - -
34 Athletic facilities debt service, leases and rental fees - - 1,045 1,548 - -
35 Direct overhead and administrative expense 141,386 6,514 11,631 16,363 34,917 23,560
36 Indirect institutional support - - - - - -
37 Medical expenses and insurance - 700 15,564 22,825 2,189 1,668
38 Memberships and dues 3,300 2,090 5,317 4,194 2,063 2,743
39 Student-athlete meals (non-travel) 14,630 18,059 138,978 62,487 32,864 16,757
40 Other operating expenses 47,715 43,757 14,999 67,443 31,709 37,394
41 Bowl expenses - - - - - -
41a Bowl expenses - coaching compensation/bonuses - - - - - -
Subtotal operating expenses 1,128,582 971,496 2,022,976 1,902,001 1,151,370 1,243,910
50 Excess transfers to institution - - - - - -
Total expenses 1,128,582 971,496 2,022,976 1,902,001 1,151,370 1,243,910
Excess (deficiency) of
revenues over (under) expenses $ (652,452) (724,062) (1,407,736) (1,491,503) (911,976) (993,067)
(continued)

11
The University of Texas at Austin
Department of Intercollegiate Athletics
Statement of Revenues and Expenses
Year Ended August 31, 2020

Non-Program
Rowing Soccer Men’s Track Women’s Track Specific Total
Revenues:
Operating Revenues:
1 Ticket sales $ - 24,074 7,969 7,969 8,640,292 58,531,545
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 - - - - - 1,510,000
8 Contributions 19,138 19,063 19,085 19,085 11,363,137 49,357,250
9 In-kind 92,000 73,500 122,500 122,500 782,400 3,113,115
10 Compensation and benefits provided by a third party - - - - - -
11 Media rights - - - - - 22,427,843
12 NCAA distributions 60,737 49,376 59,271 71,329 56,367 1,724,476
13 Conference distributions (non-media and non-bowl) - 57,592 38,497 38,497 251,559 1,164,807
13a Conference distributions of bowl generated revenue - - - - - 11,707,026
14 Program, novelty, parking and concession sales 18,263 18,141 13,894 13,894 631,281 6,205,102
15 Royalties, licensing, advertisements and sponsorships 69,882 230,856 230,856 230,856 5,111,779 39,092,794
16 Sports camp revenues - 25,087 - - 652,182 826,411
17 Athletics restricted endowment and investment income 138,851 169,216 90,201 41,906 38,600 2,768,180
18 Other operating revenue 2,706 - 1,250 1,250 1,111,859 1,120,351
19 Bowl revenues - - - - - 1,223,913
Total operating revenues 401,577 666,905 583,523 547,286 28,639,456 200,772,813
Expenses:
Operating Expenses:
20 Athletic student aid 814,820 476,433 446,574 610,966 594,197 11,835,907
21 Guarantees - 38,545 - - - 3,477,245
22a Head coach salaries, benefits, and bonuses
paid by the university and related entities 280,701 308,344 313,606 313,606 - 20,534,972
22b Assistant coach salaries, benefits, and bonuses
paid by the university and related entities 256,351 238,133 407,798 407,798 - 13,623,189
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 138,856 98,157 58,366 58,366 29,253,756 36,646,957
25 Support staff/administrative compensation,
benefits, and bonuses paid by a third party - - - - - -
26 Severance payments - - - - 110,000 1,214,132
27 Recruiting 87,814 43,454 81,986 81,227 29,033 1,712,188
28 Team travel 104,527 408,984 435,492 431,925 165,443 7,457,762
29 Sports equipment, uniforms and supplies 193,419 89,350 125,727 125,605 25,622 3,004,577
30 Game expenses 29,179 92,358 94,647 93,779 1,353,447 9,378,864
31 Fund raising, marketing and promotion 6,166 - 1,973 1,954 6,458,008 6,550,701
32 Sports camp expenses 123 41,978 17 17 - 248,610
33 Spirit groups - 943 - - 309,370 809,102
34 Athletic facilities debt service, leases and rental fees 1,998 216 3,222 3,192 20,696,587 20,765,071
35 Direct overhead and administrative expense 29,533 36,334 1,424 1,412 23,176,911 24,062,965
36 Indirect institutional support - - - - - -
37 Medical expenses and insurance 2,002 10,835 30,833 30,547 1,258,411 1,646,461
38 Memberships and dues 2,959 650 71 70 344,713 397,639
39 Student-athlete meals (non-travel) 180,433 51,021 63,335 62,749 730,432 2,503,867
40 Other operating expenses 35,753 15,823 72,671 72,091 3,482,235 6,479,719
41 Bowl expenses - - - - - 989,717
41a Bowl expenses - coaching compensation/bonuses - - - - - 308,383
Subtotal operating expenses 2,164,634 1,951,558 2,137,742 2,295,304 87,988,165 173,648,028
50 Excess transfers to institution - - - - 5,020,946 5,020,946
Total expenses 2,164,634 1,951,558 2,137,742 2,295,304 93,009,111 178,668,974
Excess (deficiency) of
revenues over (under) expenses $ (1,763,057) (1,284,653) (1,554,219) (1,748,018) (64,369,655) 22,103,839

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The University of Texas at Austin
Department of Intercollegiate Athletics

Notes to Financial Statement


Year Ended August 31, 2020

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
$104,918,167 during the year ended August 31, 2020.

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2. Future Minimum Debt Requirements

As of August 31, 2020, the University had outstanding debt totaling $1,578,510,828. Of that
balance, the Department had outstanding debt totaling $174,900,000. Debt service requirements to
maturity for the Department’s outstanding debt are summarized as follows:

Total
Fiscal Year Principal Interest Requirement
2021 $ - $ 7,607,873 $ 7,607,873
2022 8,697,000 7,346,189 16,043,189
2023 8,965,000 7,022,839 15,987,839
2024 9,333,000 6,672,188 16,005,188
2025 9,666,000 6,315,519 15,981,519
2026-2030 45,689,000 25,708,124 71,397,124
2031-2035 49,345,000 15,546,646 64,891,646
2036-2040 36,775,000 5,189,580 41,964,580
2041-2044 6,430,000 639,158 7,069,158
$ 174,900,000 $ 82,048,116 $ 256,648,116

3. Endowments

As of August 31, 2020, the University held dedicated endowment accounts with fair market values
totaling $4,694,067,678. As of August 31, 2020, the total fair market value of athletics dedicated
endowments was $50,103,374.

4. Contributions

During the year ended August 31, 2020, the Department received a cash contribution totaling
$6,500,000 from an individual that accounted for approximately 13% of all contributions received
by the Department.

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