MORGANTOWN, W.Va. – West Virginia University’s Department of Intercollegiate Athletics has completed its unaudited financial records for the 2012-13 fiscal year during which the department had a more than $4.2 million excess of revenues over expenses and costs paid.
The department’s revenue was $77,706,696 during the fiscal year, compared to operating expenses of $73,501,593, leaving a positive margin of $4,205,104.
The three largest sources of revenue for the department came from Mountaineer Athletic Club contributions ($23,916,171), ticket sales for all sports ($21,411,615) and conference revenue ($10,354,499).
"Now that our budget numbers are in, I want to say how very pleased and proud I am of our entire athletic department," WVU Director of Athletics Oliver Luck said. "And, I cannot say enough about the job turned in by our Mountaineer Athletic Club staff to reach record-breaking fundraising numbers for the second straight year. I also want to thank the MAC members, who rallied around us and the many fans who purchased tickets to various athletic events. We all know how important it is to have a self-supporting athletic department, and that goal has been reached once again."
The largest operating expense for the department came from compensation ($26,397,507). This line item includes compensation for all coaches, administrators and staff, as well as severance pay. It also includes the accrual for Other Post-Employment Benefits liability as required by the Governmental Accounting Standards Board Statement 45 and the accrual for vacation and compensatory time. While both items are non-cash expenditures, they must be added to compensation operating expenses to be in accordance with generally accepted accounting principles.
Two other additional operating expenses, facility management and student aid, combined to make up an additional 27 percent of the department’s costs. Facilities maintenance and repair ($10,669,275) were 15 percent of the operating costs, but this category also includes a non-cash expense of $5,259,824 for depreciation, which must be included to be in accordance with GAAP. Making up 12 percent of operating expenditures was student aid ($8,737,980), which covers expenses paid to the University for 358 student-athletes.
“The financial statements are prepared in the same categories that are used for the Equity in Athletics Data Analysis (EADA) report that is required by the NCAA each year,” said Athletic Business Administrator Dia Fortney. “We employ Clifton, Larson, Allen, LLP (CLA) to complete our annual NCAA Agreed Upon Procedures. CLA reviews our financial processes each year to ensure reliability, accuracy and effective overall financial performance by the department.”
The $4,205,104 profit comes one year after the department had a deficit of approximately $12.9 million for the fiscal year 2011-12. However, not only did that deficit include non-cash items such as GASB 45 and facility depreciation, but also the one-time exit fee paid by the department to leave the Big East and join the Big 12 Conference.
“Oliver asked all of us to trim our budgets, but do so in a way that would not affect our competitiveness athletically or hinder our student-athletes in the classroom,” said Michael Szul, WVU Associate Athletic Director for Business Operations. “The athletic staff worked with the business office to tighten budgets, and along with our MAC donors’ generosity, we were able to reach our goal of turning an excess.”
A complete list of WVU athletic revenue and expenses for 2012-13 is attached