As a former collegiate coach, the topic of finances for big time football programs has always been of interest. Please read a 2015 article from The Washington Post titled, Playing in the Red.

1.  As a former collegiate coach, the topic of finances for big time football programs has always been of interest. Please read a 2015 article from The Washington Post titled, Playing in the Red.

In regards to the programs that are revenue generating, and operating essentially with an auxiliary budget, what are your thoughts on their financial success? For the majority that run a deficit, what case are they making to continue this trend? Think of this as a budget request each year that continues to be approved. Finally, whose responsibility is it for the financial loss? (i.e. coaches, athletic director, CFO, president)

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2. Barr & McClellan briefly address the impact social change has on, specifically, capital budgets/projects. This topic was addressed previously in our discussion regarding the Ivory Tower documentary but it’s worth revisiting because it heavily influences budgetary decision.

Applying the text, provide an example of where on your campus you have witnessed a renovation/construction project that was shaped by the campus environment? Where do you draw the line between practical for education and attractive to recruit/retain students?

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3.  Barr & McClellan make it clear the benefits of an auxiliary budget department and the importance of a high bond rating. In this post I would like you to research your institution (or select one) and list the auxiliary departments on campus. In addition, find the institution’s bond rating and describe why you think it was rated the way it was.

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4.  The text highlights how to best plan for a capital project and includes the importance of having a program statement. Similarly, when beginning a fundraising campaign you must put together a case statement. These statements are becoming more and more elaborate and accessible. Most institutions now create entirely separate websites to house campaign information, updated statistics, and videos/blueprints of future capital projects.

Research an institution that either just began or is currently in a campaign and describe below 1) what are the goals of the campaign 2) what difference will the campaign make on campus/in the lives of students 3) do they mention sustainability/maintenance costs for new capital projects 4) were you surprised by anything you read

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Question 1

The success of the big time football financial programs is perhaps due to the balance that exists between the revenue collected through the tickets fees, large donations and others auxiliaries and the expenses (Hobson & Rich, 2015). Therefore, for success to exist the auxiliary budget perhaps has more value in the revenue than in the expense. And that is why the Auburn University football coach decides to build a high definition screen to attract more of the finances through ticket fees since this will attract more supports and also the best players will also like to join the club, therefore, attracting more revenue.

The wrong financial decisions cases in most of the clubs have led to the fiscal deficit and also continued refusal of the authorities to submit the financial budgets and reports each year. According to the Washington Post, every year NCAA receives reports for analysis and to determine the profitability of the programs initiated by the athletics departments. For example, Rutgers continued with the deficit due to inconsiderate to take the reports and budgets to the right place for evaluation and also due to the wrong financial budgets that are made by their top officials (Davison & Hanna, 2009).

The athletic directors are responsible for the financial loss in every athletic department. The coach is the sole decider of most programs, but it is the role of the athletic directors to make such decisions especially in the issuing of finance to ensure that the programs that are undertaken are perhaps financial viability. Therefore, for any loss and success of the departments, it is the directors to be held liable, and it is their responsibility to make sure that the budget prepared is correct and worthy to be financed (Suggs, 2009).

Question 2

I witnessed one time in the university when there was a constant rising of goods and services in the surrounding environment. The students were eating outside the school, and since they could not afford the eating outside, they compelled the university to construct a student dining zones within the school and subsidy the amount due to the present economy. The university responded to the call of the students and constructed three large students’ canteens so service the students in affordable foodstuffs than the outside environment. Therefore, it is vivid that the construction of the containers was shaped by the hostile environment in the university as a result of the students call for assistance. According to the article by Barr and McClellan, the rising cost of the goods and services has the power to influence some budgetary decisions within the university and other institutions (Barr & McClellan, 2011).

The rising competition for students has become one of the factors in higher education since all the university depends on the increasing number of the students to finance the bills and all the operations in the university (McKeown-Moak & Mullin, 2014). Therefore, this has brought a distinguishing factor that most of the universities have abandoned a practical education which is meant to concentrate on the educational excellence to attract the students through the right skills that are passed to the students. However, the university has focused on building the attractive features like real building and others staffs which are meant to attract more of the students since they discovered that the parents and the students like good features. Therefore, practical education is based on the provision of the right skills to the students while the attractive to recruit relies on modern, nice buildings which are appealing to the eyes (Fried, 2011).

Question 3

An auxiliary department is one which is served with a duty of providing services to the students in the university directly or indirectly. The departments in the Duquesne University include;

  • The vending services department.
  • The dining services department.
  • Bookstores or perhaps the library sections.
  • The DU card centers for students services.
  • The banking departments for comfortable paying of the fees within the institutions.
  • The parking services.
  • The computer desks for photocopy and typing.

The above departments are very essential in every university since they cannot learn without this department running efficiently. They exist to make learning more exciting like for examples the bookstores providing reading materials for the students (Russell, 2004).

The bond rating for Duquesne University issued by the moody investor’s services is $50 million series 2016 refunding bonds which are to be published in the county higher education building authority (Wagner, 2004).  The rating shows the close financial management of the university through the consistent operating performance, the provision of the resources to the constant capital investments and contributes to the balance sheet reverse growth. Moreover, the rating can acts as an indication of the university’s market profile in the urban for an attraction of the both the undergraduate and graduate students programs thus attracting much of the financial inflow for the operation and service delivery. Additionally, the rating might also indicate a substantial financial donation from other cartels in the society and another former alumnus who come with funding to the college.

Question 4

The University of Chicago officially announced its bid to raise $4.5 Billion before the end of the decade which indicates that from 2014 they have only spent three years as the campaign is still in progress. The goals of the campaign are to raise $4.5 Billion were part of it will be used to support faculty retention, some for scholarships and some engineering and molecular biology in the university. Other funds will be used to put up a new residential hall and also the investment in the Hyde Park area. The students will benefit so much in most regions like the scholarship programs for the needy and absolute students in the university. The other area is the restructuring of the new residence hall for the students to provide an accessible accommodation for the students.  Therefore, this will be different as before where some of the students dropped due to lack of fees and also other facing high rental accommodation from the private hostels around the university (Barr & McClellan, 2011).

Perhaps, in the reading, there is no part they have mentioned about the sustainability or the maintenance costs. However, they might have covered it in the others sections that they didn’t find it necessary to reveal to the people. I was surprised a bit by the article where it is indicated that for two years the university had raised half the required amount and yet they want to go on for a decade. The surplus amount is not mentioned anywhere in the article and perhaps can pose some worries for many readers. Moreover, the surprising bit is also where the president of the university is expected to rule until the end of the decade (Koo & Fishbach, 2014).

References

Barr, M. J. & McClellan, G. S. (2011). Budgets and Financial Management in Higher Education. San Francisco, CA: Jossey-Bass. (ISBN 978-0-470-61620-8)

Davison, D., & Hanna, K. (2009). Budget Considerations A Primer for Senate Leaders. Academic Senate for California Community Colleges.

Fried, V. H. (2011). Federal higher education policy and the profitable nonprofits.

Hobson, W., & Rich, S. (2015). Playing in the red. Washington Post.

Koo, M., & Fishbach, A. (2014). Dynamics of self-regulation: How (un) accomplished goal actions affect motivation.

McKeown-Moak, M. P., & Mullin, C. M. (2014). Higher education finance research: Policy, politics, and practice. IAP.

Suggs, W. (2009). Old challenges and new opportunities for studying the financial aspects of intercollegiate athletics. New Directions for Higher Education, 2009(148), 11-22.

Russell, B. (2004). Tuition Futures in New York: A Bearish Prospectus. A Report by the New York State Senate Research Service Task Force on Critical Problems.

Wagner, G. A. (2004). The bond market and fiscal institutions: have budget stabilization funds reduced state borrowing costs?. National Tax Journal, 785-804.

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