NCAA Executive Committee

$SULO NCAA National Office Indianapolis, Indiana

Page 1/86

Division I Gene Block Chancellor University of California, Los Angeles 2147 Murphy Hall, Box 951405 Los Angeles, California 90095-1405 Phone: 310/825-2151 Fax: 310/206-6030 E-mail: [email protected] Term Expiration: August 2016 Assistant: Dawn Scherer Assistant email: [email protected]

Nathan Hatch President Wake Forest University 1834 Wake Forest Road Winston Salem, North Carolina 27106 Phone: 336/758-5211 Fax: 336-/758-5212 Email: [email protected] Term Expiration: August 2014 Assistant: Donna Gung Assistant email: [email protected]

Rita Cheng Chancellor Southern Illinois University at Carbondale 1265 Lincoln Drive Anthony Hall, Room 116 Carbondale, Illinois 62901-4304 Phone: 618/453-2341 Fax: 618/453-4235 E-mail: [email protected] Term Expiration: August 2016 Assistant: Julie McDannel Assistant email: [email protected]

David Hopkins President Wright State University 3640 Colonial Glenn Highway Dayton, Ohio 45435 Phone: 937/775-2323 Fax: 937/775-2421 Email: [email protected] Term Expiration: August 2015 Assistant: Teresa Bedwell Assistant email: [email protected]

Michael Drake Chancellor University of California, Irvine Chancellor’s Office Irvine, CA 92697 Phone: 949-824-5111 Fax: 949-824-2087 E-mail: [email protected] Term Expiration: August 2016 Assistant: Anne Demarie Assistant email: [email protected] Patrick Harker President University of Delaware 175 S. College Avenue, 104 Hullihen Hall Newark, Delaware Phone: 302/831-8436 Fax: 302/831-1297 E-mail: [email protected] Term Expiration: August 2016 Assistant: Susan Williams Assistant email: [email protected]

David Leebron President Rice University President’s Office MS-1, P.O. Box 1892 Houston, Texas 77251 Phone: 713/348-5050 Fax: 713/348-5010 E-mail: [email protected] Term Expiration: August 2016 Assistant: Hope Gatliff Assistant email: [email protected] Horace Mitchell President California State University, Bakersfield 9001 Stockdale Highway Bakersfield, CA 93311 Phone: 661/654-2241 Fax: 661/654-3188 E-Mail: [email protected] Term Expiration: August 2017 Assistant: Tina Giblin Assistant email: [email protected]

Page 2/86

Kirk Schulz President Kansas State University 110 Anderson Hall Manhattan, Kansas 66506 Phone: 785/532-6221 Fax: 785/532-7639 E:mail: [email protected] Term Expiration: August 2016 Assistant: Dana Hasting Assistant email: [email protected]

Harris Pastides President University of South Carolina, Columbia 206 Osborne Administration Building 915 Bull Street Columbia, South Carolina 29208 Phone: 803-576-6017 Fax: 803/777-3264 Email: [email protected] Term Expiration: August 2015 Assistant: Pam Pope Assistant email: [email protected]

Lou Anna Simon {Chair} President Office of the President Michigan State University Hannah Administration Building Auditorium Road, Room 450 East Lansing, Michigan 48824 Phone: 517/355-6560 Fax: 517/432-0200 Email: [email protected] Term expiration: August 2014 Assistant: Marti Howe Assistant email: [email protected]/ [email protected]

Joseph Savoie President University of Louisiana, Lafayette P. O. Drawer 41008 Lafayette, Louisiana 70506 Phone: 337/482-6203 Fax: 337/482-5194 E-mail: [email protected] Term Expiration: August 2017 Assistant: Liz B. Landry Assistant email: [email protected]

DIVISION II Judith Bense President University of West Florida 11000 University Parkway Pensacola, Florida 32514 Telephone: 850/474-2200 FAX: 850/474-3131 Email: [email protected] Term Expiration: September 2014 Kathy Loden ([email protected]) or Debbie Brown ([email protected])

Thomas J. Haas President Grand Valley State University One Campus Drive Allendale, Michigan 49401 Telephone: 616/331-2100 Fax: 616/331-3503 Email: [email protected] Term Expiration: January 2015 Assistant: Rachel Siglow Assistant email: [email protected]

DIVISION III Sharon Herzberger President Whittier College 13406 East Philadelphia Whittier, California 90608-0634 Phone: 562/907-4201 FAX: 562/907-4242 E-Mail: [email protected] Term Expiration: January 2015 Assistant: Irene Gallardo E-Mail: [email protected]

Alan Cureton President University of Northwestern 3003 Snelling Avenue North St. Paul, Minnesota 55113 Phone: 651/631-5250 Fax: 651/631-5129 Cell: 612/281-0094 Email: [email protected] Term Expiration: January 2016 Assistant: Rachel Morgan Email: [email protected] 2

Page 3/86

LEADERSHIP/MANAGEMENT COUNCIL CHAIRS Division I

Division III

Noreen Morris Commissioner Northeast Conference 399 Campus Drive, Vantage Court North Somerset, New Jersey 08873 Phone: 732/469/0440 Fax: 732/469-0744 Email: [email protected] Term Expiration: July 2015

Terry Rupert Director of Athletics Wilmington College (Ohio) 251 Ludovic Street Wilmington, Ohio 45177 Phone: 937/382-6661 Fax: 937/383-8566 E-Mail: [email protected] Term Expiration: January 2015 Assistant: Judy Doyle E-Mail: [email protected]

Division II Karen Stromme Assistant Athletics Director/Senior Woman Administrator University of Minnesota Duluth 1216 Ordean Court Duluth, Minnesota 55812 Phone: 218/726-7143 Fax: 218/726-6529 Email: [email protected] Term Expiration: January 2016

Executive Committee Staff: Donald Remy Executive Vice President of Law, Policy and Governance/Chief Legal Officer Email: [email protected] Delise S. O'Meally Director of Governance and International Affairs Email: [email protected]

US MAIL ADDRESS NCAA P.O. Box 6222 Indianapolis, IN 46206-6222 SHIPPING ADDRESS NCAA Distribution Center 1802 Alonzo Watford Sr. Drive Indianapolis, IN 46202 Telephone: 317/917-NCAA (6222) Fax: 317/917-6071

documentcenter.ncaa.org/msaa/gov/AssociationwideCommittees/NCAAExecutiveCommittee/ExecutiveCommittee/2013/EC20Roster102013.doc

Page 4/86

AGENDA

National Collegiate Athletic Association Executive Committee

NCAA National Office Indianapolis, Indiana

1.

April 24, 2014 2 to 4 p.m.

Welcome and announcements.

2.

Approval of January 17, February 27 and March 14 meeting reports. (Action) [Supplement No. 1, Supplement No. 2 and Supplement No. 3] (5 min.) Anticipated Action. Approve the January 17, February 27 and March 14, meeting reports.

3.

NCAA President’s report. (10 min.) a.

Regulatory review update. (Information) [Supplement No. 4]

b.

Officiating limited liability company consolidation. (Information) [Supplement No. 14]

c.

Supplemental Support Fund/Accelerated Academic Success Programs. (Action) [Supplement No. 5]

4. NCAA Executive Committee Finance and Audit Committee report. (Action) (15 min.) Anticipated Action. Review and approve financial statements and related reports. a.

BCA funding request. (Action) [Supplement No. 6]

b.

NCAA 10-Year Financial Plan. (Action) [Supplement No 7]

c.

Modified FY 2013-14 internal audit plan. (Information) [Supplement No. 10]

Page 5/86

NCAA Executive Committee Agenda April 24, 2014 Page No. 2 ________

5. Update on Confederate battle flag policy. (Action) [Supplement No. 11] (10 min.) Anticipated Action. Review current NCAA policy on Confederate battle flag.

6.

Update from the Executive Committee Subcommittee on For-Profit Institutions. (Information) [Supplement No. 12] (5 min.) Informational. Receive an update from subcommittee and provide feedback.

7.

Discuss the structure of the Executive Committee. (Information) [Supplement No. 13] (25 min.) Informational. Participate in facilitated dialogue regarding options for revised Executive Committee scope, duties, responsibilities and membership.

8. Legal report. (Information) (30 min.) Informational. Receive oral report from legal counsel

9.

NCAA Division I Board of Directors and Divisions II and III Presidents Councils reports. (Action may be necessary from the reports.) (20 min.) Informational. Receive oral reports from the chairs of the Division I Board of Directors and the Divisions II and III Presidents Councils regarding divisional issues that have Association-wide impact.

10. Future meetings. (Informational) Informational. Review dates of future Executive Committee meetings.

11.

a.

Wednesday, August 6, 2014, Indianapolis, Indiana.

b.

Wednesday, October 29, 2014; Indianapolis, Indiana (added date).

c.

Friday, January 16, 2015, Washington, D.C. (In conjunction with the 2015 NCAA Convention.)

Adjournment.

documentcenter.ncaa.org/msaa/gov/Associationwide20Committees/NCAA20Executive20Committee/Executive20Committee/2014/201404_agenda_v6.docx

Page 6/86

SUPPLEMENT NO. 1

Page 7/86

SUPPLEMENT NO. 1 Executive Comm. 4/14 .REPORT OF THE NCAA EXECUTIVE COMMITTEE JANUARY 17, 2014

KEY ITEMS. None.

ACTION ITEMS. None.

INFORMATIONAL ITEMS. 1.

Welcome and announcements. President Simon convened the meeting at 1:39 p.m. and welcomed all members. She specifically welcomed new member Horace Mitchell, president of California State University, Bakersfield, and recognized departing members J. Patrick O’Brien, Jack Ohle and Robert Boerigter.

2.

Approval of meeting reports. The report of the October 29 meeting was approved as distributed.

3.

NCAA President’s report. President Emmert provided a brief report, outlining earlier discussions with the Administrative Subcommittee that would be presented to the full Executive Committee during executive session. He also provided a brief review of discussions that took place during the Division I dialogue Thursday afternoon and Friday morning.

4.

NCAA performance review process. The Committee convened an executive session to continue dialogue on the performance review process, as well as various administrative matters.

5.

NCAA Executive Committee Finance and Audit Committee report. a.

Fiscal year 2012-13 audited financial statements. The Finance Committee met with the audit firm of Deloitte and staff to review fiscal year 2012-13 financial statements and conducted the required audit communications and review. Deloitte issued an unqualified opinion for the fiscal year statements ending August 31, 2013. Highlights of the Consolidated Statement of Financial Position are: (1)

The Association’s total net assets increased by approximately $61 million, which was $9 million less than the prior year. This increase was a combination of increases in revenue from television and marketing rights and championships.

Page 8/86

NCAA Executive Committee Report January 17, 2014 Page No. 2 ________

(2)

Accounts receivable decreased from $14 million to $12.2 million but is still comparable to the prior year.

(3)

The irrevocable trust amount of $15.5 million represents the remaining proceeds from the 2012 bonds that were in advance refunded in 2011-12. These funds are exclusively restricted for future obligations and semiannual payments. The corresponding liability is reflected in bonds payable.

(4)

The contributions receivable amount of $44.5 million represents the value of the 50-year lease on the Dempsey building and the additional land for the Brand building. This is a valuation of the state’s contribution to the NCAA office facilities and land for $1 a year rent over the 50-year time period.

(5)

The increase in NCAA properties reflects the final result of the new construction related to the new office expansion.

(6)

Deferred revenue decreased at $5.2 million, which represents a decrease of $10 million related to the timing of refunds on tickets for prior year and is offset by an increase of $5 million related to reclassified and exploratory membership dues. All allocations to the respective reserves, per Executive Committee policy, have been made.

(7)

The Association had an overall increase in revenue of $41.1 million this past year, primarily related to the increases in television and marketing rights fees of $17.5 million as well as an increase of $8.7 million in championship revenues and a good investment year.

(8)

Investment income of $41.4 million was an increase of $11.8 million over the prior year. This was a combination of increases of $2.6 million in realized gains $7.3 million in unrealized gains and $1.9 million in investment earnings.

(9)

On the expense side, the distribution to Division I represents a 4.7 percent increase over prior year, or a total increase of $23.6 million.

(10)

The Division I championships increase of $11.7 million is the result of several factors. Increases in the ancillary events, the National Association of Basketball Coaches contract, seating configurations for Men’s Final Four, per diem rates, ticketing expenses and the cost of the Final Four 75th anniversary all contributed to the overall increase.

(11)

Championship and program expenditures for Divisions II and III also showed increases. Both divisions experienced increases in per diem and travel costs.

Page 9/86

NCAA Executive Committee Report January 17, 2014 Page No. 3 ________

Division II also had television enhancements for championships, while Division III added two new positions. (12)

Association-wide programs reflected an increase of $7.2 million. Current year expenses include a $3.9 million increase in salaries and benefits, $1.7 million in a marketing agreement and a $1.5 million write-off associated with the dissolution of Youth Basketball, LLC.

(13)

The increase in management and general is the result of the annual salary and benefit increases and $1.3 million of office expansion expenses, including a full year of depreciation.

(14)

Excess revenues over expenses for the year were approximately $60.7 million.

It was VOTED “To approve the fiscal year 2012-13 audited financial statements.” b.

Recommended uses of unallocated net assets. Fiscal year 2012-13 ended with the Association having $60.7 million in unrestricted net assets available for allocation. The Finance and Audit Committee recommends the approval of the uses of unallocated net assets as follows: (1)

A $48 million supplemental distribution is recommended for Division I. This is $6 million higher than the supplemental distribution that occurred last January and, if approved, will be distributed in early February.

(2)

$10 million is recommended for the Sports Science Institution Center of Excellence. Funding will be used for the creation of a collaborative concussion grant program with the U.S. Department of Defense.

(3)

A $2.7 million legal fee contingency is recommended.

It was VOTED “To approve the proposed unallocated net assets allocations.” c.

First quarter fiscal year 2012-13 budget to actual. (1)

The Association has limited financial activity in the first quarter, with the majority of revenues and expenditures occurring in the second half of the year related to championship activity and revenue distributions.

Page 10/86

NCAA Executive Committee Report January 17, 2014 Page No. 4 ________

d.

(2)

Television and marketing rights revenue received is 15.7 percent of the budget and is consistent with the prior year. Championships revenue is 2.8 percent of plan, or $2.14 million, which is slightly lower compared to prior year. Most of this is attributed to timing differences.

(3)

The Association’s total operating expenses are approximately seven percent of the total budget for the first quarter, which is slightly lower than prior year. The decrease is primarily due to championships commencing one week later than previous calendar year. Countering this were additional expenses related to catastrophic injury insurance, including claim fund expansion.

Review of insurance coverage and mitigation. z

e.

The Committee reviewed a summary of NCAA insurance coverage, with a focus on General Liability and Directors and Officers programs. A high level explanation of policy structure (e.g., limits, retention levels) was provided, including examples of how the programs work for open claims. As the national office has been using its main broker, American Specialty, for five years, it has decided to execute a comprehensive RFP in the brokerage market during the fall of 2014. In advance of the RFP, the national office has engaged the services of Hanover Stone Partners to review all current insurance policies, assess the current broker against industry best practices, as well as review the cost-benefit of alternative risk financing options.

Grant-in-Aid Receivable Analysis. z

The Committee noted that Grant-in-Aid receivables are still outstanding from 13 institutions and discussed methods for collecting on these receivables.

It was VOTED “To withhold balances from the 2014 and 2015 supplemental distribution, waive any interest charges during 2014 and 2015, and effective January 1, 2016, to initiate interest charges at a rate of six percent on any remaining receivable balances.”

6.

Executive Committee Subcommittee on For Profit Institutions. The Committee received a report from President O’Brien regarding the continuing work of the Subcommittee on ForProfit Institutions. O’Brien noted that the timeline for bringing recommendations to the full Committee has been extended until April 2014. O’Brien also noted that the subcommittee would commence video and teleconference meetings with the five institutions that are impacted by this discussion immediately subsequent to the NCAA Convention.

Page 11/86

NCAA Executive Committee Report January 17, 2014 Page No. 5 ________

7.

Litigation update. The Committee received a privileged report from the NCAA chief legal officer regarding litigation and settlement activity.

8.

NCAA Executive Committee Structure. The Committee continued its discussion from the October meeting on its role and structure. President Simon appointed a small Associationwide group to continue the dialogue and offer feedback to the Committee during its April and August meetings. The group includes President Jack Ohle, President Tom Haas, President Ed Ray, President Walt Harrison, President Lou Anna Simon and Commissioner Noreen Morris.

9.

NCAA Division I Board of Directors and Divisions II and III Presidents Councils reports. a.

Division I Board of Directors. The Committee received an update on the actions of the Division I Board of Directors that included the following: z

b.

Governance Discussion – Stakeholder Presentations. During the October meeting, the Board of Directors and Leadership Council participated in a series of governance discussions involving various stakeholders from coaches associations, student-athlete advisory groups, the Knight Commission, Faculty Athletics Representatives, Athletics Directors and Conference officials. These discussions helped to develop the framework for the Division I dialogue held at the Convention Thursday afternoon and Friday morning.

Division II Presidents Council. The Committee received an update on the actions of the Division II Presidents Council that included the following: (1)

Division II officers on Executive Committee. Elected Tom Haas, president of Grand Valley State University, as chair of the Presidents Council for 2014 and Judith Bense, president of the University of West Florida, as vice chair of the Presidents Council for 2014.

(2)

Division II Business Session. Division II will consider 24 proposals during its Convention business session. O’Brien noted significant discussion was likely on the Path to Graduation Initiative that focuses on initial eligibility, progress toward degree and two-year college transfer standings.

(3)

Division II Membership Survey. Delegates have reviewed the results of a membership census survey that was conducted this past year. There were over 2000 respondents and the survey results indicate that Division II constituents are pleased with the direction the Division is taking with regard to its strategic positioning platform and its governance structure and processes. Respondents noted satisfaction with the internal messaging but recognized that there needs to be additional efforts on external marketing of Division II.

Page 12/86

NCAA Executive Committee Report January 17, 2014 Page No. 6 ________

(4)

c.

10.

40th anniversary celebration. Concluded the 40th Anniversary by recognizing some honored guests: Jim Crane, the owner of the Houston Astros; Brian Kilmeade, Fox and Friends; and Violet Palmer, NBA official.

Division III Presidents Council. The Committee received an update on the actions of the Division III Presidents Council. These included: (1)

Round Table Discussion. Conducted round table discussions on nine topics developed by the Division III recruiting working group to get feedback and direction from the membership on ways in which the recruiting process can be improved in Division III.

(2)

Budget Discussions. Discussed short-term and long-term budget challenges, based on two consecutive years of championships overages, primarily driven by escalating travel costs, and charged the Strategic Planning and Finance Committee with conducting a comprehensive review of both championships and nonchampionships budgets, as well as the reserve policy, in preparation for the 2015 strategic plan and operating budget.

(3)

Division III Business Session. Noted that delegates would review 10 legislative proposals.

External Regulatory Review. The Committee received a report from external consultants Cadwalader and Spencer Fane. The report completes the review and presents several proposals for consideration. The Committee noted that many of the proposals involving the national office are either in place or are otherwise underway, and expressed appreciation and encouragement for the staff to continue implementation. The Committee agreed to instruct the NCAA president to develop a scorecard and make an initial presentation to the Administrative Subcommittee not later than February 2014 and periodic updates and presentations thereafter, as needed. The scorecard should organize the proposals into categories and include a recommended timeline for implementation. It was VOTED “To receive the Regulatory Review Report and direct the NCAA President to develop a scorecard and implementation timeline for presentation to the Administrative Subcommittee not later than February 2014.”

Page 13/86

NCAA Executive Committee Report January 17, 2014 Page No. 7 ________

Committee Chair: Lou Anna Simon, Michigan State University. Staff Liaisons: Donald Remy, Law, Policy and Governance Delise O’Meally, Law, Policy and Governance

Attendees Absentees Block, University of California, Bob Boerigter, Mid-America Intercollegiate Los Angeles Athletics Association Rita Cheng, Southern Illinois University at Carbondale Michael Drake (by phone), University of California, Irvine Mark Emmert, NCAA President Patrick Harker, University of Delaware Thomas Haas, Grand Valley State University Nathan Hatch, Wake Forest University Sharon Herzberger, Whittier College David Hopkins, Wright State University David Leebron, Rice University Noreen Morris, Northeast Conference Horace Mitchell, California State University, Bakersfield J. Patrick O’Brien, West Texas A&M University Jack Ohle, Gustavus Adolphus College Harris Pastides, University of South Carolina Terry Rupert, Wilmington College, Ohio E. Joseph Savoie, University of Louisiana at Lafayette Kirk Schultz, Kansas State University Lou Anna Simon, Michigan State University Gene

Other Participants David Berst, vice president of Division I Daniel Dutcher, vice president of Division III Jon Duncan, interim vice president of enforcement (external regulatory review discussion) Jim Isch, chief operating officer Jean Frankel, consultant Brian Hendrickson, director of strategic communications Cari Klecka, director of executive affairs Kevin Lennon, vice president of academic and membership affairs (external regulatory review discussion) Todd Leyden, vice president of NCAA Eligibility Center (external regulatory review discussion) Kathleen McNeely, vice president of administration and chief financial officer Delise O’Meally, director of governance and international affairs

Page 14/86

NCAA Executive Committee Report January 17, 2014 Page No. 8 ________

Donald Remy, executive vice president of law, policy & governance/chief legal officer/Executive Committee liaison Terri Steeb-Gronau, vice president of Division II governance

documentcenter.ncaa.org/msaa/gov/AssociationwideCommittees/NCAAExecutiveCommittee/ExecutiveCommittee/2014/January/01-14Executive Committee report (distribution draft).docx

Page 15/86

SUPPLEMENT NO. 2

Page 16/86

SUPPLEMENT NO. 2 Executive Comm. 4/14 REPORT OF THE NCAA EXECUTIVE COMMITTEE FEBRUARY 27, 2014

ACTION ITEMS. x

None.

INFORMATIONAL ITEMS. x

The NCAA office of legal affairs provided a confidential, privileged legal update and discussion about current litigation.

Committee Chair: Staff Liaisons:

Lou Anna Simon, Michigan State University, Big 10 Conference Donald Remy, Law, Policy and Governance Delise O’Meally, Law, Policy and Governance

February 27, 2014 Attendees Judith Bense, University of West Florida Gene D. Block. University of California, Los Angeles Rita Cheng, Southern Illinois University at Carbondale Alan Cureton, University of Northwestern Mark Emmert, NCAA Thomas J. Haas, Grand Valley State University Patrick Harker, University of Delaware Nathan O. Hatch, Wake Forest University Sharon Herzberger, Whittier College Horace Mitchell, California State University, Bakersfield Noreen Morris, Northeast Conference Harris Pastides, University of South Carolina, Columbia Terry A. Rupert, Wilmington College (Ohio) Joseph Savoie, University of Louisiana, Lafayette Karen Stromme, University of Minnesota Duluth Other Participants Scott Bearby, general counsel Cari Klecka, director of executive affairs

Absentees Michael Drake, University of California, Irvine David R. Hopkins, Wright State University David Leebron, Rice University Lou Anna Simon, Michigan State University Kirk Schulz, Kansas State University

Page 17/86

SUPPLEMENT NO. 14

Page 57/86

Page 58/86

April 24, 2014

Executive Committee Presentation

OVERVIEW OF ARBITER

33.3%

Rapid Investments, Inc.

Page 59/86

RefPay, LLC

33.33%

Advanced Business Technology, Inc.

Current Structure

66.6%

The Arbiter, LLC

61.67%

5%

NCAA

7.5%

Richard Alderson

eOfficials, LLC

92.5%

Arbiter Company Ownership Structure

Arbiter Sport, LLC

5.46%

67.38%

Advanced Business Technology, Inc. 20.97%

Richard Alderson

NCAA

Page 60/86

Rapid Investments, Inc. 6.19%

Proposed Structure

Arbiter Company Ownership Structure

SUPPLEMENT NO. 5

Page 61/86

SUPPLEMENT NO. 5 Executive Comm. 4/14 RECOMMENDED CHANGES TO THE ACCELERATING ACADEMIC SUCCESS PROGRAM August 2012, the NCAA Executive Committee approved the NCAA Accelerating Academic Success Program (AASP) pilot. The purpose of the AASP pilot program was to provide threeyear grants to institutions for the development of systems and enhancements that assist institutions in meeting the requirements of the NCAA Division I Academic Performance Program (APP), including increasing the graduation rates and academic success of studentathletes. A total pool of $4.3 million was available for the grant program. Institutions were eligible to receive up to a maximum of $300,000 per year for three years (subject to a yearly renewal assessment). Six grant recipients were selected by a committee made up of representatives from the NCAA membership and staff. The group considered several criteria including presidential oversight, involvement of key staff, goals identified by the institution, the institution's ability to match grant funds, the demonstrated sustainability of the initiative, the institution's history in APP, and institution's infractions history. The AASP pilot funds have been used to support new programming and expand existing programs through initiatives such as summer bridge programs; summer financial aid; and mentoring and tutoring. Institutions also used the funds to add additional academic staff and technology. In 2014, a review was conducted of the impact of the NCAA Division I Academic Performance Program Supplemental Support Fund (SSF). The SSF was established, in 2007, to award grants for innovative solutions to barriers preventing student-athlete retention and progress-towarddegree completion with success to be measured by team NCAA Division I Academic Progress Rate and Graduation Success Rate improvement. It is a single year grant which provides funds in smaller amounts than the AASP program – grants were between $2,000 and $40,000 per institution. Given the initial outcomes from the AASP and the desire to strengthen the impact of the SSF, it is recommended that the programs be combined into one program, AASP, with two tiers of funding. Those tiers are: (1) the initiative grant (single year) with a maximum of $100,000 a year; and (2) the comprehensive grant (multiyear) with a maximum of $300,000 per year for three years.

Page 62/86

SUPPLEMENT NO. 6

Page 63/86

SUPPLEMENT NO. 6 Executive Comm. 4/14 Proposal to the NCAA from the Black Coaches and Administrators (BCA)

A proposal has been submitted to the NCAA for its consideration regarding the restructuring of the BCA. The BCA Board of Directors has unanimously endorsed this proposal and greatly appreciates the NCAA’s consideration of it. The proposal identifies a funding request from the NCAA over the next one to three years as the organization reorganizes and repositions itself to best serve its target constituent, NCAA coaches of color. The BCA is committed to asserting a key role on behalf of NCAA coaches of color, to the professional development needs of these coaches and to ensuring these coaches enjoy fair and equal opportunities for advancement within their chosen profession. Summary of Request Based upon due diligence performed by the BCA Board and discussions with outside consultants, BCA respectfully requests a three-year commitment from the NCAA to assist in its restructuring efforts. The BCA believes that a commitment could best be structured as a reduced financial commitment going forward based upon projected targets and fund matching by BCA along with targeted members and donors. herefore, the BCA requests a commitment from the NCAA as follows: Year 1--$450,000 Year 2--$300,000 Year 3--$200,000

Page 64/86

SUPPLEMENT NO. 7

Page 65/86

Page 66/86

SUPPLEMENT NO. 5 ECFAC 4/14 Page No. 2 _________

Assumptions of NCAA 10-Year Financial Plan Model x

FY 2015 is based on a forecast and not on the previously approved triennial budget.

x

Television revenues are based on actual amounts in the current media contracts.

x

Annual distributions from the Quasi-Endowment are forecasted beginning in FY 2016 and are shown in both revenue and distribution (for the Student Assistance Fund). These are based on a contemplated four percent spending policy.

x

Championships revenues in FY 2015 are forecasted based on trends from the previous two fiscal years. Thereafter they increase at 1.5% annually.

x

Division I distributions grow at the same rate as the current media contracts. The QuasiEndowment distribution for the Student Assistance Fund is incremental to these amounts.

x

Division I championships assumptions vary according to the expense type. The three expense types are transportation, per diem, and game operations. o Transportation assumes a 6% annual increase. o Per diem assumes no increase as any increase requires a change to the Bylaws. o Game operations assume a one-time 10% decrease in FY 2016 and a 3% annual increase thereafter.

x

Division II and Division III allocation assumptions remain a 4.37% and 3.18% share, respectively, of allocation-based revenue (primarily media and championships).

x

Association-wide expenses are driven by headcount and compensation. There is a large amount in fixed expenses such as catastrophic insurance and interest and depreciation.

x

Compensation: Salaries increase at 3% merit and 1% equity annually. Medical benefits increase at 10% annually. Headcount overall increases by 1% annually. Enforcement headcount increases by 10% in FY 2015 and then by 1% annually thereafter. o Academic and Membership Affairs headcount decreases by 5% in FY 2016 (upon the expiration of the Transforming Intercollegiate Athletics positions) and increases 0% thereafter. o Membership Services headcount remains flat throughout the forecast. o o o o

Page 67/86

SUPPLEMENT NO. 5 ECFAC 4/14 Page No. 3 _________

x

Legal and insurance increases 10% annually after a one-time funding of an additional $3 million in FY 2015. This reflects the net asset allocation already approved.

x

There is a one-time infusion of $11.5 million in FY 2015 for the Sport Science Institute. It increases 3% annually thereafter with base programming of $1.5 million beginning in FY 2016. In FY 2018, another $1 million is added to fund student-athlete research.

x

All other Association-wide expenses are forecasted to increase 3% annually.

x

Reserves and contingencies are forecasted to increase at 3% annually.

Page 68/86

SUPPLEMENT NO. 10

Page 69/86

Page 70/86

• • • •

Page 71/86 NCAA | ECFAC Meeting | REVISED PLAN | April 18, 2014 | Page 2

• WellPoint Corporate. • WellPoint’s Federal Business. NCAA Internal Auditor

REITs. OEMs. Indiana Sports Corp. Olympic Sports (USA Gymnastics, Track & Field, Diving).

Active Duty Marine Corps 1993 – 97. Undergrad at SDSU (Finance). MSA at Notre Dame. Ernst & Young.

ʊ Conseco – Internal Audit. ʊ WellPoint – Internal Audit.

ʊ ʊ ʊ ʊ

Background

Page 72/86 NCAA | ECFAC Meeting | REVISED PLAN | April 18, 2014 | Page 2

*Scorecard ratings are rounded.

Financial, Reputational

Subsidiary Management 10

2 1 3 4 3

4 5 3 2 2

2

2

1

2

5

4

4

5

2.0

2.5

2.7

2.8

2.9

2.9

3.0

3.4

4.3

4.4

• Purchasing Processes • Succession Planning • Congressional Gift Policy Compliance • Contracts Management

NCAA Internal Auditor

• Social Media • Business Continuity Management • Policy Management • Trademark Infringement

Other Risk Areas Outside Top Ten

Reputational

Fraud Risk

9

5

4

Risk *Impact *Likelihood Rating

Top Ten Risks

Risk Risk Description Risk Type Information Reputation, 1 Security Financial Business Financial, 2 Relationships Operational Championships Security 3 Security Financial, 4 Travel Process Operational 5 Youth Clinics Safety Ticketing 6 Financial Operations Grants Financial, 7 Management Reputational Financial 8 Financial Controls

Risk Assessment Results (FY 2012–13)

378 0 378

Internal Auditor

Internal Auditor Intern

Total

825

447

378

FY Q4

1203

447

756

Total

Page 73/86 NCAA | ECFAC Meeting | REVISED PLAN | April 18, 2014 | Page 2

FY Q3

Job Title

Internal Audit Available Hours

ERP Implementation Revenue Distributions

2 3

$67.6k

$20K

NCAA Internal Auditor

Total

$13.6k

Research Information Security Review

1

$34k

Budget

Project

External Consultant Budget

FY2014 – Available Audit Hours / Budget

Include in scope of an Organizational “Purchasing” review once ERP is implemented. Not rated as high risk; re-evaluate after 2014 risk assessment. Not rated as high risk; re-evaluate after 2014 risk assessment.

Sport Graphics Audit

FCS Championship Host Audit

Event One Merchandise Sales Audit

NCAA Internal Auditor

Finance has not implemented new policy yet. Defer until policy has been implemented.

Delegation of Authority Policy Compliance Audit

Page 75/86 NCAA | ECFAC Meeting | REVISED PLAN | April 18, 2014 | Page 2

Comment

Projects

FY 2013-14 Audit Plan – Deferred

SUPPLEMENT NO. 11

Page 77/86

SUPPLEMENT NO. 11 Executive Comm. 4/14 EXCERPT FROM THE REPORT OF THE NCAA MINORITY OPPORTUNITIES AND INTERESTS COMMITTEE FEBRUARY 18, 2014 MEETING

INFORMATIONAL ITEMS. Association wide. 3. Confederate Flag Policy Update. The committee reviewed the recommendation concerning the flag policy submitted in September 2013 and the desire for the policy to be more stringent and to be applied to predetermined and non-predetermined championships. The recommendation has not been reviewed by the Executive Committee to date, but the committee is currently requesting a conference call with the chair of the Executive Committee to express their concerns and encourage the Executive Committee to take up the issue.

Page 78/86

SUPPLEMENT NO. 11 Executive Comm. 4/14 Page No. 2 _________

EXCERPT FROM THE REPORT OF THE NCAA MINORITY OPPORTUNITIES AND INTERESTS COMMITTEE SEPTEMBER 25-26, 2013, MEETING

ACTION ITEMS. 1. Nonlegislative Items. x

NCAA Confederate Flag Policy. (1)

Recommendation. Request that the NCAA Executive Committee review and amend the NCAA confederate flag policy to have the same application as the Native American mascot and sports wagering policies regarding predetermined and non-predetermined championships.

(2)

Effective Date. Immediate.

(3)

Rationale. The committee questioned the integrity of the confederate flag policy as it currently stands. Specifically, the committee does not see the difference between predetermined and non-predetermined championship sites. Ultimately, if the policy is designed to protect student-athlete well-being, there should not be any differentiation between predetermined and non-predetermined championship sites, as the principle issue remains the same for both––the well-being of student athletes. Similar to the policy that an NCAA championship may not be held in a state that legalizes gambling on college sports, a state that prominently displays a symbol that is offensive in nature should not be permitted to host a championship, regardless of how the site is determined.

(4)

Estimated Budget Impact. None.

(5)

Student-Athlete Impact. The development of this policy was an effort to protect the well-being of student-athletes; the amendment to the policy would further this effort.

Page 79/86