Prior to FY97, the UNH Department of Athletics was split roughly along gender lines. The Director of Men's Athletics was responsible for most men's sports, promotions and marketing, men's sports information, compliance, athletics department's financial center, the equipment room, weight room and facilities scheduling/rental arrangements. The Director of Women's Athletics was responsible for all women's sports, the men's ski and swim teams, women's sports information, sports medicine, the athletics ticket office, and academic support. Prior to July 1991 both Directors reported to the President. From July 1991 to June 1995 both Directors reported to the Vice President for Student Affairs. Beginning in FY 96 they reported again to the President. In FY 97 the departments were organized under one Athletics Director.

In 1995 the Athletics Advisory Committee, composed of faculty, staff, and students, was reconstituted. In fall 1995 the Committee was asked to review and evaluate the athletics program in all dimensions, including financial and organizational. In February 1996 that Committee issued its findings, which included a recommendation that the two departments be consolidated in order to eliminate duplication of services and to improve efficiency, effectiveness, accountability, and communication. These organizational findings were accepted and implementation was underway shortly thereafter. Upon completion of some follow-up work to its initial report, the Committee submitted a set of recommendations to the President in December 1996, which included the elimination of six sports-baseball, men's lacrosse, men's and women's golf, and men's and women's skiing. The President did not support elimination of the ski teams because of the special importance of skiing in New Hampshire.

Under the new organization, there is a single Director of Athletics (AD) who oversees the entire department and reports to the President of the University. (See Appendix A.) Establishing this single locus of accountability and responsibility for the department, with a direct line to the President, has been a vitally important step in the evolution of the program. Nearly as important has been the creation of the position of Assistant Athletics Director for Finance (AADF) and the recruitment to that position of an experienced financial administrator. Other important positions are the Senior Associate Athletics Director for Compliance, the Associate Athletics Director for Team Administration & Events Management, and the Director for Athletics Development/Fundraising.

This study commenced during the first year of the new organizational model. The University is pleased with the results to date, but acknowledges that there are still opportunities to improve the structure. The two major areas in which reorganization has been in process through the end of this self-study are the Ticket Office and External Relations.

Until very recently, there were two Ticket Offices--one in the Whittemore Center and one in the Field House. The former was managed by Globe Facility Services on behalf of UNH and handled all ticketing for athletic events held in the Whittemore Center. The latter was managed by the Athletics Department, and handled season tickets and tickets for individual events held at sites other than the Whittemore Center. As of August 15, 1997, the AD engaged Globe Facility Services to handle all the "back room," or operational, aspects of ticketing, leaving the Athletics Department responsible for the "front room," including pricing policy, marketing, promotion, priority point program, season ticket seating, and controls over complimentary tickets. This change is expected to improve efficiency and accountability once the transition period has been completed and all the details clarified and addressed.

The responsibility for External Relations has been diffused. Two separate units of the Athletics Department have engaged in fundraising and marketing. There has been a promotion/marketing effort underway within the Whittemore Center on behalf of but external to Athletics, while the Office of the Vice President for Finance and Administration has handled the licensing of the University logo. As of August 1, 1997, the Athletics Department has brought in a consultant to oversee External Relations. These responsibilities include marketing and promotions, tickets, media relations, sales and licensing activities.

The result of these recent organizational changes, as well as other smaller modifications enacted by the AD, are reflected in the organization chart (Appendix A). This structure is in place beginning in the FY98 fiscal year. It is expected to bring a fuller clarification of the roles of the senior management team, greater accountability, and improved internal and external coordination. An additional effect of the changes will be to position the department to take better advantage of opportunities to increase resources and maximize efficiency and quality.

Upon her arrival in fall 1996, the Assistant Athletics Director for Finance (AADF) began a systematic review of fiscal and business policies and procedures, as well as a significant effort to restructure the chart of accounts of the department to enable more straightforward budgeting, financial management, and management reporting. It is also important to note that the Department of Athletics is one of several pilot sites that the University has established for its new Business Service Center concept. As part of a University-wide effort, all of the business processes such as procurement, payables, cash management, travel, payroll, and billing are being redesigned and made more efficient and effective through technology as well as procedural streamlining. Athletics is heavily involved in, and is an early beneficiary of this work.

Led by the AD and/or the AADF, the following policy matters have been reviewed and clarified or are under review:

• Policies and procedures related to fundraising, including cash management and related activities.
• The approval routes and controls regarding financial transactions and contracts.
• Controls with respect to raffles, approval processes for coaches regarding fundraising efforts, and policies regarding booster clubs including the requirement that all club checks be co-signed by UNH management.
• The policy regarding approval processes and prioritization of facilities use for inside and outside summer camps.
• Policies and procedures with regard to ticketing, including reconciliations, cash management, and complimentary tickets. The acquisition of the Ticketmaster system has provided an important tool to assist in this effort, but as stated above there is more work to do in this area.
• Procedures in the Financial Aid Office and the Athletics Department regarding the timely assignment of restricted scholarship funds to grants-in-aid for athletes.

2. Explain the institution's philosophy with respect to the funding of the athletics program.

The University of New Hampshire and its student body recognize that the athletics program enriches the collegiate experience of all students-the student athletes themselves and all those who have the opportunity to participate as fans-while enriching the University, town, and statewide community. In keeping with this vision of shared benefits, the University, the students, the faculty and staff, and generous friends of athletics share the responsibility to finance the program through tuition payments, student fees, ticket sales, gifts, and corporate advertising and sponsorships.

For FY 98, the mandatory undergraduate student fee for athletics was $428. This is expected to generate $4.3 million in revenue, or 57% of total revenue. In exchange for this fee, students may attend athletics events at no charge (up to 2100 seats in the Whittemore Center). The University pays tuition for 100 male athletes and 100 female athletes. These payments have a value of about $2.7 million. The faculty, staff, and surrounding community are projected to contribute nearly $900,000 through the purchase of season and single event tickets. And, finally, fundraising and advertising proceeds are expected to generate over $1 million.

• Student Athletic Fee
• Tuition Payments (University Support)
• Endowment/Investment Income*
  Unrestricted
  Restricted
• Current Use Gifts*
  Unrestricted
  Restricted
• Ticket Sales
  Individual Game Ticket Sales
  Season Tickets
  Faculty /Staff
• Summer Camps-Registration Fees
• NCAA/AE
  NCAA Sport Sponsorship
  NCAA Grant-In-Aid
• Guarantees
• Facility Rental
  Indoor Pool
  Summer Camp Facility Fees
  Other Rentals
• Corporate Sponsorships, including Trade Agreements
• Concessions
  Football Concessions
  Other Concessions
  Contracted Vendor Sales
• Other Revenue
  Marketing & Promotions

*Revenue from inside booster groups will be part of these revenue categories

Four sources (organizations) that generate revenue on behalf of UNH Athletics were not under the accounting and financial control of the institution during the three years under study, as defined in the document 1996 Financial Audit Guidelines published by the NCAA. Accounting and financial control of an institution is defined there as "all activities of the organization (including revenues and expenditures) are recorded on the books and records of the institution and are subject to the institution's internal control structure." The four sources we identified are the following:

• UNH 100 Club
• Friends of UNH Hockey
• Friends of NH Skiing
• Friends of Baseball.

The UNH 100 Club, Inc. is a privately incorporated charitable organization which, according to its Constitution and Bylaws, "raises money primarily for scholarships for deserving student/athletes who want to attend the University of New Hampshire", and to turn over the money raised to the University so that the University will award scholarships under its complete control. The secondary purpose shall be to raise money designated for restricted use(s) in support of program enhancement of Men's' Interscholastic Athletics as may be acceptable by the University." The Club maintained two non-UNH bank accounts to conduct their operations, which were not subject to the accounting and financial control of UNH. UNH Athletics became a co-signer on UNH 100 Club accounts during 1995, thereby requiring the AD to sign all UNH 100 Club checks. UNH Athletics brought all financial activities of the UNH 100 Club under complete UNH financial and accounting control as of July 1997.

The Friends of UNH Hockey, Inc. is a privately incorporated charitable organization which according to its Bylaws "is created for the purpose of privately promoting and enhancing the Men's varsity hockey program at the University of New Hampshire in Durham." The Friends of UNH Hockey maintain three accounts (checking, savings, and GMAC demand note) which are not subject to the accounting and financial control of UNH. UNH Athletics became a co-signer on Friends accounts during 1995, thereby requiring the AD to sign all Friends of UNH Hockey checks. UNH Athletics has plans to bring all financial activities of Friends of Hockey under complete financial and accounting control of UNH by April 1998.

The Friends of NH Skiing is an organization which exists to provide support to ski programs at New Hampshire higher education institutions (including UNH) as well as college graduates who wish to further their ski careers. The organization maintains its own bank account, which is not subject to the accounting and financial control of UNH. Because this organization's purpose is not specific to UNH, UNH Athletics does not have plans to bring the financial activities of this organization under the complete financial and accounting control of UNH.

The Friends of Baseball is a privately incorporated charitable organization whose purpose has been to support the UNH baseball team. During FY97, UNH decided to eliminate baseball (among other sports) beginning in FY98. In spring 1997 the Friends of UNH Baseball initiated a fundraising campaign in an effort to raise the dollars needed to fund the baseball program, with an agreement with the donors that funds would be returned in the event UNH upheld its decision to eliminate the sport. In May 1997, UNH upheld its decision. UNH Athletics believes that the Friends of Baseball organization still retains the funds collected in anticipation of possible legal action against UNH in an effort to reinstate baseball. UNH Athletics can accept no responsibility for this organization and is not currently monitoring its financial activities.

There are two processes that relate to the development of the athletics budget: one is the University Budget Process and the other is the Mandatory Student Fee Process. These processes are inter-related and occur simultaneously. They both relate to revenue sources listed in item 3 above. The sources of revenue listed in item 4 above are excluded from the process of developing budgets for intercollegiate athletics. The Friends of NH Skiing makes a contribution to UNH Skiing based on the number of ski passes sold by the ski area operators in New Hampshire. The head men's ice hockey coach advises the Friends of Hockey when there is need for additional resources to support the program. The Friends of Hockey Board votes as to whether to support the expenditure. The 100 Club sets separate revenue/expenditure budgets for their activities: Hall of Fame, football parking, newsletters/mailings, Bill Knight Memorial Golf Tournament, and other fundraising activities that are approved by the Board. Each activity is either self-supporting or produces a donation to the scholarship fund.

The athletics' budget process parallels that of the University in general. The first step taken is to project revenues. Some factors taken into account are the following:

• student enrollment projections received from institutional administration
• anticipated changes to student athletic fee
• schedule of home competitions along with any projected changes to ticket prices
• impact of faculty or staff contracts with respect to ticket packaging pricing benefits
• programmatic changes with potential to affect NCAA distributions for grant-in-aid or sports sponsorship funds
• fundraising events planned, goals set and changes to endowment distribution calculations
• guarantee contracts in process
• historical trends
• contract changes for concessions, rentals, etc.
• new departmental initiatives planned.
• conference expectations.

On the expense side, University guidelines are distributed to units indicating expected increases for salaries, fringe benefits, equipment, etc. Initially these are applied to opening budgets of the current year and projected out for a preliminary forecast. At this point, departmental priorities and commitments (for example, the Office for Civil Rights Title IX Agreement) are applied to the budget model. As schedules for the next year become firmer, meetings are held with department managers and head coaches to analyze individual sport schedules and University calendars to determine the impact of any changes on budgetary needs (changes in travel, training camp schedules, guarantees, etc.). Individual priorities and one-time needs are also solicited for consideration at this time as well.

Once all input has been received, the AADF reviews the entire budget with the AD, and expense priorities are reconciled with revenue projections to bring the budget into balance.

After budgets have been endorsed and finalized at the University level and the Board of Trustees, amounts allocated are distributed to department managers and head coaches. The University's financial system includes expenditure controls by appropriation unit or fund balance, ensuring that transactions are not processed against insufficient funds. Changes between categories of expense are generally permitted upon request with the exception of recruiting budgets, which are scrutinized more carefully to meet proportionality goals. Requests for addition to budgets require permission of the AD. Monthly hard-copy reports are distributed showing budgets compared to current period and year-to-date expenditures. More frequent information is available upon inquiry at the department's Financial Center. Management of allocated funding is a factor in performance appraisals of those responsible for budgets in the department.

In December, preliminary budget guidelines are provided to the groups responsible for making recommendations on mandatory student fees, including the mandatory athletics fee. Departments meet to discuss the guidelines and their budget priorities for the upcoming year.

In January, the departments prepare initial operating budgets that include the proposed fee amounts, revenue and expense budget information with an impact statement on individual unit reserves. The departments then review the fee proposal and budgetary rationale with student government representatives. A progress meeting is held with the Vice President for Student Affairs, Vice President for Finance and Administration, student groups and directors of departments to discuss concerns and questions.

In February, a second draft of the fee proposals and operating budget is prepared. The second draft is reviewed and final recommendations are sent to the departments upon which final refinements are made.

In March, the fee proposals and operating budgets are presented by the Fee Oversight Committee to the Student Senate. (The description of the Fee Oversight Committee will be provided at the time of the site visit.) The Student Senate formally certifies its position on the fee amounts for the upcoming academic year. The proposed fees are sent to the President for approval and then on to the Student Affairs and Financial Affairs committees of the Board of Trustees for review and recommendation for approval to the full Board.

In April, the full Board of Trustees reviews and approves the fee amounts.

See Appendix M (FY95), Appendix N (FY96), and Appendix O (FY97). Each Appendix provides sport-by-sport information for men's sports, women's sports, and co-ed sports.

The University of New Hampshire (UNH) is a component institution of the University System of New Hampshire (USNH), which is the State of New Hampshire's public system of higher education. USNH is a not-for-profit educational organization operating under the laws of the State of New Hampshire and is directed by a 25-member Board of Trustees.

NCAA Constitution 3-2-(c) requires that all expenditures for or in behalf of the UNH Athletics program, including those by outside entities, be audited annually by an individual from outside the institution selected by the institution's chief executive officer. The annual audit at UNH Athletics, is conducted by the USNH Internal Audit Department. This is in compliance with the NCAA Financial Audit Guidelines dated May 1996, which describe that "...an individual employed by the state university system to perform audits for the colleges and universities within a state university system is considered to be an independent auditor, provided the individual is not a regular employee of the institution being audited...".

The USNH Internal Audit Department is independent of UNH and the other campuses of USNH, as noted by its dual reporting responsibilities to the USNH Chancellor's Office (who is the Chief Executive of USNH and to whom each of the campus Presidents has a reporting relationship), and to the USNH Board of Trustees (through the Audit Committee). It should also be noted that members of the USNH Internal Audit Department have experience in conducting NCAA financial audits at other institutions, and currently conduct this audit at the other institutions within USNH.

The three most recent external audits have addressed fundamental weaknesses in the financial operations at UNH Athletics. While the audit reports describe weaknesses, they do not include significant instances of noncompliance with NCAA regulations. The weaknesses have been the result of (a) an organization structure that was not suitable to accommodate appropriate internal controls, (b) inadequately defined specific roles and responsibilities of athletics employees with regard to internal controls, and (c) insufficient business practices and accounting policies and procedures. These weaknesses include general weaknesses in financial management and accountability, insufficient procedures for handling the volume and variety of financial transactions, lack of adequate monitoring of outside organizations (booster groups), and significant benefits that could be realized with enhanced coordination of fund-raising between athletics and the UNH Foundation as well as enhanced controls and oversight of team fund-raising. See Appendix P (FY 95), Appendix Q (FY 96), and Appendix R (FY 97) for management letters for these audits. The complete audits for each of these years will be available at the time of the site visit.

During Calendar 1995 and 1996, UNH management reorganized the reporting structure such that athletics now reports to the UNH President (previously reported to the Vice President for Student Affairs), and athletics is now managed by one AD (previously a Men's Director and a Women's Director). The AD reorganized the structure within the Athletics Department as described in the answer to Question #1. This reorganization included an allocation of all athletics management functions and responsibilities to these positions.

With the new organization structure in place at the top level, as well as the allocation of defined roles and responsibilities at this level, athletics management is evaluating its financial operating procedures and controls and reengineering these procedures and controls to apply more effective business practices. (See Evaluation and Plan for Improvement.)

UNH follows state guidelines as well as those published in the USNH Financial and Administrative Procedures Manual in approving expenditures for intercollegiate athletics, regardless of funding source. All expenditures initiate in the Athletics Department. Routine expenditures under $5,000 are approved by either of two accounting clerks within Athletics. Unbudgeted and unusual expenditures, as well as those $5,000 and over, are approved by either the Athletics Business Manager or the AADF who review the transactions for compliance with these guidelines and procedures. Processing and further approval requirements depend on the type of transaction. Transactions can be grouped into the following categories:

1. Transactions requiring a purchase order are reviewed by USNH Purchasing for compliance with guidelines and procedures. A purchase order is sent to the vendor who forwards an invoice to Accounts Payable. Accounts Payable compares the invoice and purchase order, verifies the funding source, and reviews all documents for compliance. If the payment relating to the invoice is less than $3,000 no confirmation is required from athletics prior to payment by accounts payable. Athletics is simply notified that the payment has been made. The Athletics Department is then notified that an invoice has been received.
2. If the payment is over $3,000 it must again be approved by Athletics prior to release of payment by accounts payable.
3. Transactions processed on payment vouchers are reviewed by Accounts Payable for compliance with guidelines and procedures as well as funding source before being approved for payment.

All hiring decisions made by the Athletics Department are approved by the President and initially reviewed by Personnel for compliance with personnel policy. Athletics reviews and approves the bi-weekly timecards of hourly employees prior to sending the information to Payroll for final approval and payment. Additions to compensation for budgeted salaried employees subsequent to hire require the approval of both Athletics and Personnel.

Scholarships approved by athletics are reviewed by Financial Aid for compliance, proper funding availability, and level of tuition awarded. Upon approval by Financial Aid, Business Services processes the awards to the student accounts.

Internal transfers from athletics (e.g., debt payment, pre-season housing charges, etc.) are processed on Journal Vouchers that require the review and approval of the Controller's Office.

Staff expansion for athletics must follow the same Trustee-mandated approval process which is required for all parts of USNH. Each year during the University budget process the campuses of the USNH are required to submit a listing of new positions they wish to establish for the next fiscal year (beginning July 1) to the Chancellor's Office. The listing must include the justification for the position and the funding source. All new positions, regardless of their funding source, with the exception of grant positions, must be included on the list. The campus-wide list is coordinated and reviewed by the Vice President for Finance and Administration, endorsed by the campus President, and forwarded to the Chancellor for approval. New positions will be created during the budget process with an effective date of July 1 or after.

If the need arises during the year to create a new position, a term position can be created. This benefits-eligible position is created with the approval of the campus administration and for a limited time period of up to three years. If a decision is made to make this position a permanent one, within the time limit, then the process described above must be followed during the next budget cycle.

Athletics is accounted for as an auxiliary operation. As such, it is required to be self-supporting and to maintain financial equilibrium within the limits of its own resources, except to the extent that the University's general fund supports tuition payments for student-athletes and also contributes toward building operating costs of the field house. An operating deficit in any one year should be covered by reserve balances within the department. As of the end of FY 96, Athletics had $104,000 in reserves after covering an FY96 operating deficit of $201,000. In FY 97, Athletics had a $550,000 deficit and a year-end cumulative deficit of $397,000. It is the responsibility of Athletics, working closely with the Vice President for Finance and Administration, to develop and implement a financial plan that will restore equilibrium and retire any cumulative deficits.

In December of 1997, the President, the Director of Athletics, the Vice President for Finance and Administration, and three undergraduate student leaders met with a sub-committee of the USNH Board of Trustees to obtain conceptual agreement to a financial plan that meets the financial goals described above consistent with gender equity requirements and NCAA regulations.

That plan is now under review in the context of the student fee process at UNH, and is expected to receive formal Board approval in March of 1998. If approved, the plan calls for a 9.8% increase in the student athletic fee for FY 99, from $428 to $470. In addition, a $20 per student surcharge would be required for five years to retire the 6/30/98 cumulative deficit of the department. By the time of the NCAA site visit the plan will be finalized and available for review and discussion.

The University System has formal policies regarding economic gain received by USNH staff members as a result of University affiliation or the use of institutional facilities. These include specific policies on conflict of interest, property rights, and procurement regulations. Description of the policies is below:

In general, faculty and staff members are permitted to receive remuneration from non-USNH sources which involve a staff member's professional expertise as long as such activities further and contribute to the development of the staff member's profession and professional competence. The staff member's supervisor should be made aware of such activities, and such activities should not interfere with the staff member's other University System obligations.

• While engaging in professional activities, faculty and staff are obligated to avoid ethical, legal, financial and other conflicts of interest.
• Faculty or staff members who would benefit financially from the supplying of goods or service to the University System by any prospective supplier may not participate in the decision process leading to the choice of the supplier.
• Per USNH Conflict of Interest Policy, "faculty and staff members shall not use University System facilities, supplies, materials, equipment or services for professional activities without first obtaining approval of the appropriate department chairperson, dean, or director and arranging for the total cost for such use." Approval is not necessary when University System property is generally available to University System faculty and staff members upon payment of an established fee. The University System requires a disclaimer on professional publications when the University System or component institutions' names or logos are used if there exists a potential for confusion about official endorsement.

UNH Athletics staff members are required to comply with all USNH policies and procedures as a condition of employment. UNH Athletics employees sometimes receive non-UNH income from product endorsements, speaking engagements and participation in and ownership of sports camps. At UNH, sports camps have been the most significant opportunity for UNH Athletics staff members to receive economic gain from their affiliation with UNH, in addition to salary.

NCAA Bylaws require UNH Athletics personnel to receive prior written approval annually from the CEO (UNH President) for non-UNH income received. While UNH Athletics does have a procedure in place that attempts to collect this information from Athletics personnel, actual practice in FY96 was deficient because (a) actual prior approval had not always been obtained, (b) the information obtained from Athletics personnel describing non-UNH income had been incomplete and inaccurate, and (c) the UNH Compliance personnel and the UNH Athletics Financial Center personnel had inconsistent interpretations of the income reporting requirements, also resulting in incomplete and inaccurate reporting. This issue was addressed during FY 97 to comply with NCAA Bylaws.

With respect to sports camps specifically, UNH Athletics does not have policies regarding the types of sports camps that may be run by Athletics personnel. It also lacks policies on the use of UNH name, logo, and facilities for personal economic gain. As a result, the following inconsistencies exist with regard to sports camps run by UNH Athletics personnel:

• UNH Athletics facilities are utilized at a rate often inconsistent with the established rate schedule, i. e., typically lower than the rate charged to other UNH employees and the general public; UNH name, logo and support services are sometimes utilized for privately-owned camps at no cost to the camp (and therefore for private gain that is not reported); and
• Sports camps for women's sports tend to be administered as institutional camps (financial operations are processed through UNH, and profits are retained by the sports program), and camps for men's sports tend to be administered as privately-owned (financial operations are processed externally, with salary and profits generally retained by the camp owner).

USNH has detailed financial and administrative policies and procedures for all expenditures. These policies and procedures include controls to ensure that expenditures are approved in advance and have an appropriate business purpose. Athletics, as a department of UNH, is subject to these policies and procedures. Expenditures are reviewed and approved by the UNH Controller's Office before checks are disbursed. Expenditures on behalf of UNH Athletics by outside organizations are not subject to these policies and procedures. The expenditures of UNH Athletics are subject to both external and internal audits.

Although UNH Athletics does not utilize an operating manual, there are standard operating procedures in place to help ensure compliance with NCAA rules for specific types of expenditures. Those procedures are described below:

For new coaches, a contract for employment is executed between UNH and the coach. The contract includes a provision that requires the coach to sign a statement that he/she is aware of and will comply with all NCAA, Conference, and UNH rules and regulations.

UNH Students who apply for employment in athletics must fill out an application, on which the student will indicate if he/she is an Athlete. If yes, the form is sent to the Senior Associate Athletics Director for Compliance (SAAD) for review to determine if compensation type and amount is allowable under NCAA Bylaws. If so, the SAAD verbally communicates all relevant facts to the person responsible for hiring. Documentation needs to be created, so that a record may be kept of this communication.

Athletics has an informal policy requiring that coaches provide a list of names of people who will be working at a UNH camp and wages to be paid. The list is submitted to the SAAD and filed. The form is not consistently reviewed by the SAAD to ensure that volunteer coaches are not being compensated, and that the employment of student-athletes is in accordance with NCAA Bylaws. UNH Athletics has taken the approach that the responsibility for NCAA rules compliance in this area rests with the coaches. In addition, there is no procedure in place to ensure that a form is completed and reviewed for each camp. Therefore, non-compliance in this area may remain undetected.

For all official and unofficial visits of prospective student-athletes, coaches are required to submit a recruiting form to the SAAD detailing the nature of the visit, all costs incurred, recruiting money given to student hosts and the nature of complimentary admissions provided. The prospect, student host and coach are required to sign the form. In addition, student hosts must fill out a form detailing the expenses incurred from entertaining prospective student athletes. The form discloses applicable NCAA rules regarding official visits and all receipts must be attached to receive reimbursement. The form is signed by the student host and the SAAD. The reimbursement to the student host is then subject to USNH financial and administrative procedures.

The AD distributes the number of scholarship awards available to each sport. The SAAD reviews NCAA bylaws to determine the maximum amounts that can be awarded per athlete. Coaches determine which athletes should receive scholarships (partial or full). Coach requests for scholarships are sent to the SAAD and the AD for approval. Once approved, UNH Financial Aid is contacted with the list of names and amount awarded. Financial Aid sends a notification letter (signed by Financial Aid, the Coach, and the AD) to the student-athlete informing him or her of the award. Once signed to indicate acceptance, the letters are returned by the student. The SAAD reviews all student-athlete files to review the types of aid being awarded to each student-athlete (athletically related and institutional) to ensure that student-athletes have not been over awarded, in accordance with NCAA rules. Returning student-athletes are notified prior to July 1 if their athletic aid is not being renewed per NCAA Bylaws 15.3.5.1 & 15.3.5.1.1

All team and practice travel is overseen by the coach. The coach will request a travel advance for games and submit a request for reimbursement upon return from the trip. It is the coach's responsibility to ensure that meals, rooms, and transportation are provided to the student-athletes and are in compliance with NCAA Bylaws. The SAAD does not review these transactions for compliance. The Athletics Business Manager approves all travel reimbursements. All reimbursements are subject to USNH financial and administrative procedures.

As noted in self-study item 4, UNH Athletics has procedures in place which require a UNH Athletics signature on every check disbursed from the Friends of UNH Hockey (account external to UNH). While the procedure is in place, recent financial audits have determined that athletics does not always have a sufficient understanding of the transaction, nor is there sufficient documentation in some instances to support the transaction, that would enable athletics to detect instances of non-compliance with NCAA rules.

Three crucial decisions by the University have had significant impact on the fiscal integrity of the Athletics Department in recent years: the consolidation of a men's and women's department into one; the elimination of four sports; and the implementation of University-wide administrative services redesign and business service centers. These changes have provided the opportunity for efficiency and quality gains; rationalization and clarification of responsibilities; policy revision, formulation and dissemination; and strategic financial planning. There are still financial challenges to surmount, organizational and personnel changes to conclude, and policy development to accomplish. Nevertheless, the Department is in substantial compliance with NCAA requirements.

1. Given the responses above, evaluate whether the activities of the athletics department are in substantial conformity with each of the operating principles set forth in this section. The institution's evaluation should address both of the specific operating principles separately.

The Department of Athletics' conformity with this principle has been steadily improving over the years under study. While certain deficiencies still exist, and will be addressed below, in our view the department is in substantial conformity regarding the several aspects of financial controls.

The department follows the University's established budget processes, and is regularly subject to external audits. Current senior management is prudent and attentive to the importance of sound fiscal procedures. Generally accepted practices of documentation, review, and oversight are increasingly in use in the department. Careful review processes have been employed by the institution, and hard decisions are made with integrity and on the basis of credible consultation.

While certain deficiencies exist in areas specific to Athletics, and will be addressed below, the Department of Athletics is in substantial conformity with this principle. There is great attention paid to compliance issues of both a financial and non-financial nature (see Governance and Commitment to Rules Compliance), and the regular external audits provide additional comfort that any deficiencies will be identified.

It is recognized that there is a need to better formalize, document, and consistently monitor application of policies and procedures. The department is developing a policy manual-adding new components regularly in consultation with coaches and UNH officials-and has codified general procedures for policy development. Moreover, the AD has determined that a copy of the Policy Manual will be kept in the office of each member of the management team, and that all staff in the department will have to sign a statement that confirms that he or she has received a copy of the Manual and has agreed to read it and abide by it.

There is no question that the athletics program is widely regarded as an important and necessary aspect of the University, and that its activities are consistent with the mission and purpose of the institution. The University's mission statement refers to the importance of learning both "inside and outside the classroom." If the athletics program were not seen as a critical component to student development and campus life outside the classroom, there would be no support for the mandatory student fee on which the department heavily relies, there would be no support for the institutional investment in tuition payments for student-athletes, and there would be no support from our alumni and friends. Happily, there is support and a great deal of pride in the program, despite its financial difficulties.

The deficiencies noted in this report fall into several categories, and are discussed below in priority order, acknowledging that all require fairly immediate attention.

As mentioned earlier, a financial plan that will bring the Department of Athletics into financial equilibrium and retire its cumulative deficit over five years has received conceptual approval from a sub-committee of the USNH Board of Trustees. The implications of the plan for FY 99 mandatory student fees must be worked through the student fee process, and ultimately voted on by the Trustees in the spring. The responsible individuals to lead the effort to obtain the necessary approvals and then to implement the plan are the AD, the Assistant Athletics Director for Finance, and the Vice President for Finance and Administration.

We are in the process of revamping ticketing operations, to ensure that excellent financial and business controls are employed with respect to cash management and reconciliations, complimentary and consignment tickets, marketing and sales and the like, and to fix clear accountability. The specific strategy is to "outsource" all operational aspects of ticketing (daily sales, handling of cash, event reconciliations, issuing tickets in accordance with policies established by the AD) to the professionals at Globe Facility Services in the Whittemore Center and to identify a single external relations coordinator, responsible to the AD, to serve as a liaison from Athletics to Globe. The AD will remain directly responsible for overall policy development concerning ticketing. The responsible individuals are the AD and the UNH Associate Vice President for Business Affairs. The transfer of functions occurred on August 15, 1997 with this fall serving as a "shakedown" period. The results of the transitional period will be evaluated and any problems resolved well before the beginning of the next academic year.

We intend to bring the Friends of UNH Hockey under the full accounting and financial control of the University by April 1998. We are revising and expanding our pamphlet for the use of Athletics management and the booster groups regarding the policies and procedures that must be applied to the activities of booster groups. The Director for Athletics Development/Fundraising will be accountable for maintaining close relations with, and the monitoring the activities of the booster groups in accordance with NCAA and UNH policy. The AD is responsible for incorporating the finances and operations of the booster groups under the UNH umbrella.

Clear policies and procedures must be written and enforced consistently for men's and women's sports camps. We intend to document the definition of UNH-related sports camps, clarify rules with respect to the use/rental of UNH facilities and compensation to coaches, and establish clear procedures for obtaining approval for the establishment of new camps. The policy and procedure document on sports camps is the responsibility of the Associate Athletics Director for Team Administration/Events Management in coordination with the AD, SAAD and the AADF, and the deadline for completion and dissemination to all coaches is March 1998.

Clear policies and procedures must be written and enforced consistently for the reporting, review, and approval of athletically-related outside income of coaches. The forms must be clarified, accountability within the department for collecting and evaluating the data must be assigned, and the process for obtaining the President's approval must be genuine and timely. The AD and the AADF are the responsible individuals. The deadline for completion of this work is March 1998.

In the Athletics Department, when a student indicates on the employment application that he/she is an athlete, the Senior Associate Athletics Director for Compliance should report all pertinent information in writing to the Athletics Financial Center for verification of status. The SAAD will be responsible for developing a form in consultation with the Assistant Athletics Director for Finance, for implementation in Fall 1998.

We intend to substantially improve the coordination and accountability for fundraising, promotions, marketing, media relations, sales, and licensing in order to minimize lost opportunities and maximize the revenue potential to Athletics. The strategy is to create an External Relations Unit within Athletics with a single coordinator accountable to the AD. This strategy was implemented August 15, 1997.

Also, UNH has contracted with Collegiate Licensing Company to handle the marketing, licensing, and protection of all UNH sports logos.