Jan. 17, 2013
University of Iowa 2012 Annual Statement of Revenues
and Expenses for the UI Athletics Department
Each January, the NCAA requires its member institutions to provide an annual statement of revenues and expenses for its athletics department covering the previous academic year. This is done in a method and scope directed by the NCAA.
The UI’s report is available here: 2012 UI NCAA Financial Report
The method prescribed by the NCAA includes capital projects as well as operating revenues and expenses. It also often results in capital expenses being shown in a separate year from the related gift or earnings revenues used to pay for these capital projects. Thus, in fiscal year 2012 (academic year 2011-12) the University of Iowa Athletics Department balance is a negative $6.8 million while in the prior two years it was a positive $5.2 million and $14.2 million, respectively.
The negative balance on the 2012 report – like the positive balances on the ’10 and ’11 reports – are a function of (a) when private donations were received for capital projects and (b) when expenses for the capital projects were paid. In FY12 substantial capital expenses were paid from revenues recorded in prior years.
The most prominent capital projects impacting these years are the recent renovation of Carver-Hawkeye Arena as well as renovation and new construction for the Iowa football program.
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“Our fans can be proud of the fact that the UI is one of a handful of institutions that has an athletics program that is self-sustaining. We don’t use State General Fund dollars, University funds, or student fees to operate our athletics programs. We are so fortunate and grateful for the tens of thousands of Hawk fans who make contributions, buy tickets, and support our teams in so many ways.”
UI Director of Athletics
Gary Barta |
“Success in any endeavor comes back to having great people and giving them the tools to be successful. Our commitment to student-athlete scholarships and offering our student-athletes the very best facilities in which to train and compete are at the heart of what we’re trying to do,” said Gary Barta, the UI’s director of athletics.
Some additional notes on the University of Iowa’s statement of revenue and expenses for the year ended June 30, 2012 for the UI Athletics Department:
- Total revenue increased by $4.5 million to $97 million. The bulk of the increase was the result of a $2 million increase in revenue from ticket sales and $1.9 million increase in NCAA and Big Ten Conference distributions.
- Total expense increased by $16 million to $104 million. The bulk of the increase was the result of an $11 million increase in expenses related to the construction and operation of athletics facilities with funds earned in the previous two years.
- The total expense increase also included a $900,000 increase in scholarship expense paid by the UI Athletics Department. This increase moved the total cost of scholarships past $10 million annually for the first time ever.
- The public accounting firm of Deloitte and Touche LLP provides independent accounting services to the UI Athletics Department and the NCAA in preparation of the financial statement. As a part of its review, there is affirmation that the UI Athletics Department is a financially self-supporting component of the UI and is not subsidized.
“Our fans can be proud of the fact that the UI is one of a handful of institutions that has an athletics program that is self-sustaining. We don’t use State General Fund dollars, University funds, or student fees to operate our athletics programs. We are so fortunate and grateful for the tens of thousands of Hawk fans who make contributions, buy tickets, and support our teams in so many ways,” added Barta.