Financial Policies

1
Financial Policies Procedures

• Linda D. Robertson
• Associate Executive Director for Business

2
Policy Change

• Policy 9.2.1 Membership Fees
• REDUCED 50 - 215,000 cost savings
• High Schools 165 Min - 550 Max
• Based on 0.275 per 9-11 grade student
• Middle Schools 110
• Legal Fees remain same 180 High School
  25 Middle School
• FIAAA membership 25 collected by FHSAA

3
Policy Change

• Policy 9.7
• State Series Ticket Prices
• 2 Increase Football Finals
• 1 Increase Other Sports Finals
• 1 Increase All Sports Regionals
• 1 Increase All Sports Districts
• Competitive Cheer No increase in price

4
Policy Change

• Impact of Ticket Price Increase
• Host Schools will earn 600,000 more
• FHSAA will earn 180,000 more
• FHSAAs increase will be returned to schools
  through reduction of membership fees which will
  cost FHSAA 215,000

5
State Series Ticket PricesRegular
Admission

• No admission for Golf Tennis
• 6/7/8 Flag, Lacrosse, Water Polo, Bowling
• 6/7/9 CC, Soccer, SB, Swim, TF, VB, Wr
• 5/6/10 Competitive Cheer
• 6/7/10 Basketball
• 7/8/9/12 - Football
• Reserved Seats cost more see policy 9.7

6
Policy ChangeState Series Games

• 9.8.2 Ticket Policy for Children
• Children 3 and under are FREE
• FHSAA will permit the Host sites gate procedure
  on free child admission during regular season to
  be upheld if slight variance (ie. Pre-school age)

7
Policy Change 9.9 - Football Revenue
SharesSame fees - New classifications
JAMBOREE - 150 Spring 450
Fall   CLASSIC - 20 of the gross receipts OR a
flat fee as listed below, WHICHEVER is LESS
according to the following table           
Classification  Fall Classic Spring Classic
5A,6A, 7A, 8A 1,150   600
1A, 3A, 4A 750    350
2A, Independent       450 200
8
Policy Change

• 14.1 Facility Standards for Hosting State
  Series Rental Restrictions (limits Host expense
  claims)
• 1,000 Max can be claimed
• If visitor has facility, use it
• Must have prior written approval from FHSAA Exec
  Dir

9
Policy Change

• Policy 7.8 -Third Party Promoted Events
• Intended for PROFIT making promoted events (ESPN,
  KSA, Paragon Sports, etc)
• Sanction 90 Days Prior, new AT2S and AT3S form
  required
• FHSAA party to the contract
• Sets minimum financial expectations (20-25 of
  gate to FHSAA) subject to negotiation
• Does NOT apply to local televised regular season

10
Policy Review

• Ticket Prices
• FHSAA does NOT regulate prices for
• Regular season games
• Invitationals
• Classics Jamboress (except for Football)

11
Policy Review

• Ticket Prices
• FHSAA regulates prices for
• State Series Events
• Football Classics 4 min max is regular season
  price
• Football Jamborees No min max is regular
  season price

12
State Series Ticket Price

• STUDENT PRICES
• No Complimentary student tickets allowed
• Even if Private School Policy includes activity
  fee within tuition cost and students attend
  regular season events for free
• Students are charged regular adult price

13
Policy Review

• Policy 9.7 - Ticket Price Waivers
• prices shall be charged for all FHSAA state
  series contests unless waived in writing by the
  Executive Director or his/her designee in advance
  of the event.

14
Ticket ProceduresState Series Games

• Pre-numbered Tickets or Arm Bands Required
• Tickets must be torn by ticket takers
• Arm bands must be applied before entering the
  gate and difficult to remove
• Tickets reported as sold on Financial Report must
  match ticket inventory
• Keep ticket sales record at school (1 yr)
• FHSAA may audit records

15
Ticket ProceduresState Series Games

• Participating schools coaches, student
  supervisory staff (admins), spirit coaches, band,
  and team/band drivers do NOT need to sign Pass
  Log or purchase ticket
• Event staff, media, security staff do NOT sign
  the Pass Log or purchase ticket
• All others buy ticket or show State Series Pass

16
Policy Review

• Policy 9.10.1 State Series Revenue Sharing
• Football
• 25 of ticket sales paid to FHSAA, or total Net
  Profit (whichever is less)
• Ticket Sales, minus FHSAA share, minus host
  expenses remaining balance available
• 45 of remaining balance goes to visitor
• 55 of remaining balance kept by Host

17
Policy Review

• Policy 9.10.2 State Series Revenue Sharing
• Baseball, Basketball, Soccer, Softball and Girls
  Volleyball
• 15 of ticket sales paid to FHSAA, or total Net
  Profit (whichever is less)
• Ticket Sales, minus FHSAA share, minus host
  expenses remaining balance available
• 45 of remaining balance goes to visitor
• 55 of remaining balance kept by Host

18
Policy Review

• Policy 9.10.3 State Series Revenue Sharing
• Cross Country, Swimming Diving, Track Field,
  and Wrestling
• 15 of ticket sales paid to FHSAA, or total Net
  Profit (whichever is less)
• Host retains all other funds (no sharing with
  visitors required)

19
Policy Review

• Policy 9.10.4 State Series Revenue Sharing
• Bowling, Flag Football, Water Polo, Tennis, Golf,
  Lacrosse, Boys Volleyball, Weightlifting
• Zero required to be paid to FHSAA
• No financial reporting for these sports
• Not eligible for Loss Reimbursement

20
State Series Revenue Sharing
Policies 9.10.1 - 9.10.3

• If profit is 0 to 250, no FHSAA, no school
  revenue sharing (must still file report)
• If loss is incurred, FHSAA will pay up to 350,
  IF policies were followed
• 80,800 paid to Hosts in 2010-11

21
Loss Reimbursement

• To Qualify, host must follow all policies
• Loss Reimbursement ONLY for State Series
• Host may still suffer a loss
• District Planning Meeting minutes must show how
  to share losses, otherwise FHSAA policy prevails
  and host is financi
• Not available to Recognized Sports
• Important to discuss at Planning Meetings

22
State Championships Where Money Goes

• Income Ticket sales (host keeps parking and
  concessions)
• Expenses
• Host Gets Share of Ticket Sales (10 to 40)
• Game Officials travel costs
• Trophies Awards
• Event staff travel
• Participating Schools Reimbursements

23
Policy Review

• Policy 9.11.1
• Team Compensation for Championships
• For Football
• Flat Fee 4,250
• Mileage Rate 5

24
Policy Review

• Policy 9.11.2
• Team Compensation for Championships
• Baseball, Basketball, Soccer, Softball, Girls
  Volleyball
• Flat Fee 2,500
• Mileage Rate 2.50

25
Policy Clarification

• Policy 9.11
• Team Compensation for Championships
• When net profits after expenses do not allow for
  the payment of this schedule, participating teams
  shall divide 100 percent of the net profit based
  on their pro-rata share

26
2010-11 Championships

• Sports where net profit did not support full
  payment formula for schools
• Baseball
• Softball Girls Basketball
• Boys Soccer Girls Soccer Girls VB

27
Football Jamborees

• Flat sanction fee
• Do not send financial report to FHSAA
• FHSAA will invoice the school for the sanction
  fee
• Submit Approval Form AT2 30 Days Prior
• No further reporting is required!

28
Football Classics

• Pay FHSAA LOWER of 20 of sales or flat fee shown
  in the chart
• Sales FHSAA Share - Host Expense Net Profit
• Visiting School gets 35, Host 65 of Net Profit
• (or alternative split agreed upon by contract)
• Submit Approval Form AT3 30 Days Prior
• Submit FB4 Financial Report within 30 Days

29
Penalties Fines 2010-11
3,000 fines issued 497,800
30
Prevent Fines

• Make Sure Coaches watch on-line Clinics
• 27 of all fines were missing clinics
• Plan Ahead Meet Deadlines
• 21 of all fines were deadline issues
• Get Special Events Approved 30 Days Prior
• Turn in Financial Reports within 30 Days
• Report Game Scores on Time
• Attend District Planning Meetings (or send
  substitute), 6 of fines were for missed meetings

31
Requesting Appeals

• Put in writing to Asso. Exec Director of
  Athletics (or Business, if late fee for event
  financial report)
• State Compelling reason for the violation
• FHSAA will consider
• Past performance (pattern of fines)
• Extenuating circumstances (illness, emergencies,
  etc.)

32
History of Fines to Member Schools

• FY 2008 521,475
• FY 2009 321,635
• FY 2010 339,919
• FY 2011 497,800

33
2011-12 Projected Revenue4,619,042
34
2011-2012 Expenses 4,585,938
35
Highlights of 2011-12 Budget

• 50 Decrease in Member Fees (215K loss to FHSAA,
  Gain for schools)
• State Series ticket price increase (600K gain
  for Host Schools, 180K gain for FHSAA)
• 8 Classification System for Team Sports (33 more
  teams will get to experience State Series)
• Improved Championship Venue Contracts (16 sports
  higher gate share to FHSAA better team
  payouts)
• New Assistant AD to assist Middle Schools

36

• 3 Year Report Card 978K/year to
  Member Schools
• 215K reduced membership fees (2011)
• 600K more to Host Schools for State Series
  ticket price increase (2011)
• 25K more to schools for Championship
  participation (better pay formulas 2010)
• 54K More retained by schools for FB Classics
  Jamborees (effective 2010)
• 60K saved elimination of 50 participation
  fees (effective 2009)
• 24K less in statewide fines (since 2008)

37
Financial Changes past 3 Yrs

• Shifted focus of event revenue sharing from
  ticket sales to after event costs
• Capping FHSAA shares for State District
  Regional games to avoid losses for hosts
• Focusing on Service to Members
• Compliance Seminars Came to You

38
We Are Working on it

• Better payouts for participating teams in
  Championships for sports that do not have large
  ticket revenues
• Flat sanction fees for every sport
• Financial reporting eliminated except for State
  Series
• Increasing Corporate Sponsorships so membership
  fees can be decreased

39
What Events Require Financial Report?

• If AT2 required, No Report Due
• FHSAA will invoice a flat Fee
• If AT3 required, then Financial Report Due
• These events require a of gate to FHSAA
• If AT2S or AT3S required, then Financial Report
  Due (new form FN3P Third Party)
• If Hosting State Series, then Financial Report
• Unless Hosting a Sport listed in Policy 9.10.4

40
Financial FormsFHSAA Website, Not
C2C

• Forms must be mailed, not submitted by C2C
• FB 3 Football Bowl Game
• FB 4 Football Classics
• FB 5 Football State Series
• FN 1- Invitational Meets
• FN 2 Sanctioned Sports State Series
• FN3P Financial Report 3rd Party Promoted

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