The UNC
Policy Manual
1100.1.1[R]
Adopted 06/25/14
I.
Purpose
Consistent with the University of
North Carolina’s commitment to ensuring integrity and transparency in its
financial and other operations, this regulation establishes financial and other
reporting requirements for the intercollegiate athletics programs of the
constituent institutions. These
requirements ensure that the chancellors, the boards of trustees, the president,
and the Board of Governors receive and review the information needed to understand
the sources that contribute to the athletics budget, monitor institutional
expenditures, and objectively consider the balance between athletics and the
academic mission of each constituent institution within the University.
II.
Athletically Related Financial Reporting Requirements
A.
Reports to the Chancellor
1. Reports to the U.S. Department of
Education and the National Collegiate Athletic Association. The chancellor of each constituent
institution with an intercollegiate athletics program shall review and approve
the athletically related financial information required by and reported to the
National Collegiate Athletic Association (“NCAA”), the U.S. Department of
Education, and the Board of Governors through applicable University policy and
regulations including, but not limited to, the financial information contained
in the constituent institution’s Equity in Athletics Disclosure Act (“EADA”)
Report and in its NCAA Operating and Capital Financial Data Report.
2. Review
of Financial Indicators. The chancellor
of each constituent institution with an intercollegiate athletics program shall
annually receive and review the most recent year’s data and five-year trend
data for the financial indicators contained in the NCAA Dashboard “Presidential
View” for the constituent institution’s NCAA division.
a. The financial indicators reviewed for
Division I institutions must include, at a minimum, the following:
(1)
NCAA Academic Progress Rate;
(2)
Generated Revenues/Total
Athletics Revenue (%);
(3)
Net Athletics
Revenues ($);
(4)
Total Athletics
Expenditures ($);
(5)
Salaries and Benefits (%) (as a share of
Total Athletics Expenditures);
(6)
Athletics Expenditures/Student-Athlete ($);
(7)
Athletics Expenditures/Institutional
Expenditures (%); and
(8)
Athletics Expenditures Rate of Change vs.
University Expenditures Rate of Change (%).
b. The financial indicators reviewed
for Division II institutions must include, at a minimum, the following:
(1)
Student Fees Revenue/Total Athletics Revenue (%);
(2)
Total Athletics Revenue ($);
(3)
Athletic Student Aid/Total Athletics Expenses (%);
(4)
Coaches Compensation/Total Athletics Expenses (%);
(5)
Administrative Staff Compensation/Total Athletics
Expenses
(%);
(6)
Team Travel Expenses/Total Athletics Expenses (%); and
(7)
Average Academic Success Rates.
3. Review
and Approval of Annual Intercollegiate Athletics Budget. The chancellor
of each constituent institution with an intercollegiate athletics program shall
review and approve the annual institutional budget for intercollegiate
athletics, including:
a.
Major sources of revenue and expenses;
b.
Athletically related student fees data,
including the institution’s current athletics student fee and the percentage of
student fee revenue as a share of total operating revenue for athletics; and
c.
Any relevant financial reports pertaining to
the operation of the institution’s intercollegiate athletics program.
4. Chancellor’s
Role in the Annual Report. The
chancellor shall ensure that the annual report required by Policy 1100.1
incorporates the information included in this regulation, including the
indicators from the NCAA Dashboard “Presidential View” and the athletically related
student fees data. The chancellor shall
also ensure that the report is forwarded to appropriate members or bodies of
the faculty and that any response from such members or bodies is received and considered
by the chancellor.
B.
Reports to the Boards of Trustees
1.
The board of trustees of each institution, through the chancellor,
must annually receive and review the financial indicators contained in the NCAA
Dashboard “Presidential View” for the institution as described in Section
II.A.2., above. This “Presidential View” data should be reported on an annual
basis and shall include the most recent year’s data as well as five-year trend
data.
2.
The board of trustees shall also receive and review the annual
institutional budget for intercollegiate athletics, including major sources of
revenue and expenses. This budget report shall include, at a minimum:
a.
Major sources of revenue
and expenses;
b.
Athletically
related student fees data, including the institution’s current athletics
student fee and the percentage of student fee revenue as a share of total
operating revenue for athletics; and
c.
Any
relevant financial reports pertaining to the operation of the institution’s
intercollegiate athletics program.
C.
Reports to the President and the Board of Governors
1.
The president and, through the president, the Board of Governors shall
annually receive and review the financial indicators contained in the NCAA
Dashboard “Presidential View” for each institution as described in Section
II.A.2., following review by the chancellor and the board of trustees. This information shall be provided by each institution
as part of its annual report described in Policy 1100.1.
2.
The president and Board of Governors shall also receive and review
the athletically related student fees data for each institution, including each
institution’s current athletics student fee and the percentage of student fee
revenue as a share of total operating revenue for athletics.
III.
Other Athletically Related Reporting Requirements
A.
Additional Information to be Included in the Annual Report
Section
13 of Policy 1100.1 requires that chancellors submit an annual report to the board
of trustees of the constituent institutions with a copy to the president, who
will provide an appropriate summary to the Board of Governors. The annual report from the constituent
institutions shall be designed according to criteria and format defined by the president
and must include all the elements listed in the policy and the elements listed
in this regulation, including the following elements:
1.
As part of the discussion of the organization and philosophy of
athletics programs (Section 13.a.), the chancellor shall include:
a.
An explanation of the institution’s reporting structure for
athletics compliance and whether and to whom the athletics compliance director
reports outside of the department of athletics;
b.
Any especially effective practices the institution has adopted
that reinforce the integral connection between academics and athletics;
c.
The indicators from the NCAA Dashboard “Presidential View” as
described in this regulation; and
d.
Athletically related student fees data, including the
institution’s current athletics student fee and the percentage of student fee
revenue as a share of total operating revenue for athletics.
2.
As part of the information about the admission policy for
student-athletes including the definitions utilized for exceptions to
campus-based criteria (Section 13.b.), the chancellor shall include:
a.
Any recruited student-athlete exceptions to the Board of
Governors’ minimum admissions requirements, listed by sport.
3.
As part of the provision of academic progression information for
student-athletes (Section 13.f.), the chancellor shall include:
a.
Information related to academic integrity and academic success
measures such as the APR and six-year graduation rates;
b.
A summary of student-athlete GPA comparison information as set out
in Policy 700.6.1[R].
c.
Course-clustering information as set out in 700.6.1.1[G].
4.
As part of the information about “booster” club organizations
(Section 13.g.), the chancellor shall include:
a.
Information related to any associated entity that supports its
intercollegiate athletics program, including financial information, operating
procedures, and annual audit reviews.
5.
The institution’s financial indicators contained in the NCAA
Dashboard “Presidential View” as described in Section II.A.2., of this
regulation, following review by the chancellor and the board of trustees.
IV.
Effective Date
These review and reporting requirements shall
take effect with and be incorporated in the annual reports due in 2014.