A Letter from AD John Currie - November 11
--- Click here to read previous letters from John Currie
Now that we have completed the first quarter of the 2009-10 fiscal year (FY10) and are past the halfway mark of the academic semester, I want to take this opportunity to share some of my initial observations as well as a financial accountability update for the fiscal year ending June 30, 2009 (FY09) and an outline of our 2009-10 budget (FY10).
When I was introduced as your athletics director on May 18, I emphasized my first priority of simply getting to know our K-State people on campus and across the state and nation. It has been a joy to interact with tens of thousands of K-Staters at Catbacker events, alumni functions and other gatherings stretching as far north as Minneapolis, south to Houston, west to Los Angeles and east to Washington, D.C. Whether walking a feedlot outside Scott City, visiting a dean's office on campus or meeting with our congressional delegation in D.C., I have witnessed a common sense of identity and purpose that I believe to be unsurpassed at any university in America.
A second immediate priority was to rebuild trust and re-establish accountability by developing a transparent communication process. This summer, we promised to you - as part of the K-State Pledge - that we would take seriously the investments you make in our student-athletes and programs.
K-State Athletics (KSA) recently received its FY09 audit report from its external auditors, Sink, Gilmore & Gordon, LLC. The audited financial statements for the fiscal year ending June 30, 2009, show net operating results of $1.3 million. In addition to operating results, the financial statements also must recognize changes in the market value of endowed accounts held on behalf of K-State Athletics at the KSU Foundation. Market conditions caused losses in the endowments of nearly all institutions this past fiscal year, including our accounts, which lost $4.1 million in value. This means that K-State Athletics experienced an overall financial loss of $2.8 million in FY09. All buyouts for former coaches and administrators have been accounted for in the financial statements.
The FY10 operating budget was incomplete when we arrived but has now been finalized and approved. That budget includes revenues and expenses of $44.1 million but does not reflect any potential endowed account market fluctuations. In keeping with our commitment to fiscal integrity and transparency, you will find enclosed detailed information regarding the FY10 budget. Beginning with this year, we will be building and releasing the next year's budget each spring, i.e., the budget for the July 1, 2010- June 30, 2011, fiscal year (FY11) will be prepared and essentially complete by June 1, 2010.
As you are aware, the athletics department is an active participant in President Kirk Schulz's audit oversight committee. Reid Sigmon, our new senior associate athletics director for administration, represents the athletic department on this committee. The review of business practices that I requested from Deloitte and Touche, LLC, will be released with the audit oversight committee report later this month.
Each day we work towards our vision of K-State having a model intercollegiate athletics program. We are focused on our goals of offering a world-class student-athlete experience, delivering value to our university, community and state, maintaining fiscal integrity and transparency, achieving championship athletic performances and providing the best fan experience in the Big 12.
To achieve these goals it is more important than ever that we earn the trust and support of K-Staters nationwide. As you review the budget information, you will see that private support through ticket purchases and contributions make up over 55 percent of KSA's annual revenue - representing, by far, the largest percentage. Your help in attracting new fans to come to games and encouraging friends and family to become members of the Ahearn Fund is the winning edge for K-State.
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We will be conducting our second Fan Forum conference call from 2-3 p.m., on November 17, to provide you the live opportunity to ask questions about this letter or anything relating to K-State Athletics. More than 3,000 K-Staters participated in our inaugural call back in August and we feel this is a great way to communicate and hear from our fans.
An automated system will call the daytime phone numbers of those listed in the department's ticket and Ahearn Fund databases between 1:45 - 2 p.m. on November 17. By simply answering this automated call, fans will be connected into the conference call. Fans with ticket or Ahearn Fund accounts are encouraged to update their contact information. Those without ticket or Ahearn Fund accounts who wish to participate in the call need to email their name, phone number, and home address to email@example.com in order to participate.
Thank you for your commitment to K-State Athletics. As always, please feel free to contact me at firstname.lastname@example.org with your questions, concerns and suggestions.