Financial policies

							         Linda D. Robertson
Associate Executive Director for Business
              What’s New - Policy 9.10.7
               State Series Entry Fees
 Permitted for Tennis & Golf – No Financial Reports


 Allowed under certain conditions with PRIOR WRITTEN
  permission:
   Cross Country – when venue won’t allow ticket sales
   Swimming/Diving – when pool is rented
   Must include fees as revenue on financial report
   Must attach proof of permission (copy of letter or email giving
    PRIOR approval)
           What’s New - Policy 9.10.7
State Series Sharing of Losses with Participants
New language formally approves a current practice

DISTRICT LEVEL Only:
 May prorate loss with participating schools
 Must be authorized in District Planning
 Financial Report must include copy of District
  Planning Minutes showing approval to prorate loss
      What’s New - Policy 9.5.1.3
            Tournaments
    ALL are Sanction Fee - No Financial Reports
Boys WL, Track & Field, Cross Country, Swimming &
 Diving
   NO FEE, no sanction needed up to 4 teams
   $50 (up to 16 teams); + more if additional teams
       What’s New - Policy 7.2.4
               Classics
Now permitted for– Tennis, Golf, Bowling, Flag FB,
 Water Polo, Boys VB, Lacrosse, Girls WL

No Fees, No Financial Reports, No Sanction Process
         What’s New – Policies 9.7 & 9.8
         State Series Ticketing & Re-entry
 Armbands permitted in place of tickets
 If use tickets, hand stamps allowed for re-entry (host
 determines policy)
            What’s New – Policy 9.10.6
       State Series Hosting at Multiple Sites
 Submit ONE combined Financial Report
 Profit/Loss is sum total, not each site standing alone
 District Events – District Planning Meeting can specify
  splits and how to share loss
 Region Events – Primary host is responsible for losses
  and how to split profits to sites
Recommend: Host specify to satellite sites to send FN2
  form and ALL profit to Host; Host then can
  consolidate and redistribute profits or pay for loss to
  satellite sites
                   REMINDER
       To Waive Ticket Price for State Series

 Must get PRIOR WRITTEN permission
 Must attached copy of permission letter to Financials
 Event is not eligible for loss reimbursement
 Must submit Financial Report even if admission is free
                    REMINDER
       Prior Written Permission Needed for:
 Claiming facility rental as host expense on State Series


 Charging less than $4 for a FB Classic


 Charging district trophies as Host Expense
                  REMINDER
      Trophies – when to claim as expense
Policy 9.10.8 – formalizes in one place (current practice)
 DISTRICT LEVEL
   May claim expense – If approved at District Planning,
    and Host must attach copy of invoice to FN2 Report
   Football Only – FHSAA provides
 REGION LEVEL
    Can NOT be claimed as host expense (schools purchase)
    Football Only – May be claimed as host expense
 The Trophy Shop is exclusive provider
     Events That Do Not Pay Fees to FHSAA
 Any event including Classics, Tournaments, and State
 Series in the following sports:
   Tennis, Golf, Bowling, Flag FB, Water Polo, Boys VB,
    Lacrosse, Girls WL
 State Series in sport of Boys WL
 Regular season competitions (unless holding a
 tournament – see Policy 7.1.2 for definition)
                     Member Fees
Member Fees DUE September 30

Fee has three parts:
  1. Membership Fees – REDUCED 50% for 2012-13
     High Schools:    $165 Min - $550 Max ($0.275 per grade 9-11)
     Middle Schools : $110
  2. Legal Fees:     $167 High School
                     $25 Middle School
  3. FIAAA membership = $25 collected by FHSAA
          Financial Forms
Use for Events Requiring % of Gate to FHSAA
    On FHSAA Website, Not C2C
  Forms must be mailed, not submitted on C2C
            FB 3 – Football Bowl Game
             FB 4 – Football Classics
            FB 5 – Football State Series
      FN 2 – Sanctioned Sports State Series
   FN3P – Financial Report – 3rd Party Promoted
          Most Common Penalties & Fines
        2,800+ fines issued in 2011-12 = $332,135
                            10-11   11-12 Cost Per
Missing Rules Clinics        830     823 $50

Late State Entry Lists       689     800   $50 +

Conduct Fines                477     539   $100 +

Missing Dist Planning Mtg    191     279   $50 - 100

Recruiting & Eligibility     220     217   $100 +

Failed to report scores      131     185   $50
                   Prevent Fines
         75% of all fines are PROCEDURAL


 29% of all fines were missed Coaches Clinics
 28% of all fines were for missing deadline on
  State Series Entry Lists
 10% of fines were for missed Planning meetings
 8% of fines for not Reporting Scores on time
   History of Fines
 to Member Schools

 FY 2008   $521,475
 FY 2009    $321,635
 FY 2010   $339,919
 FY 2011   $497,800
 FY 2012    $332,135
2012-13 Projected Revenue
    $5,141,640
2012-2013 Projected Expenses
       $5,141,640
                   Did You Know?
Team Payouts for State Finals have increased
   $94,000 (38%) over last 2 years?
A Few Examples:
Girls VB was $9,734; Now $33,854
Boys Soccer was $16,761; Now $26,255
Softball was $13,317; Now $24,761
                   Did You Know?
Over the past 2 years, FHSAA has redirected
   significant funds to schools
A Few Examples:
Football Classics pay FHSAA $54,000 Less
Membership Dues are $215,000 Less
FHSAA share of District & Region is $20,000 Less
                   Did You Know?
Over the past 2 years, FHSAA has significantly
   increased revenue from State Championships to
   give financial improvements to members?
A Few Examples:
Competitively bid EVERY Venue Contract
Set goal of retaining 100% of gate
Was successful in changing business “mind set” of
  Championships
                     Did You Know?
State Championships can bring in MILLIONS to a
   community?
 Hosts eligible for tourism grants, local sponsorships,
  concession sales, parking, hotel royalties & grants

                          Estimated Community $ Impact
                          Football      $3,362,000
                          Soccer        $ 907,000
                          Track         $ 893,000
           Financial Goal


“Fund the organization with 100%
 ticket sales from State Finals,
 Sponsorships, Media contracts, and
 Royalties so there is No Financial
 Burden to our Schools”
                Financial Goal - Strategies
1. Use Profit Sharing Model with Members – return or
   reduce fees when profits occur
2. Fund the Organization through:
          Corporate Sponsors
          State Series Events
          Merchandizing
          Media Contracts
          Fees for Services (i.e. Officials Training)
          Minimal Membership Dues ($10+FIAAA+Legal)
3. Decrease reliance on revenue sharing from school
         events during regular season
           Financial Goal - Strategies
4. Pay full formula on team travel for state finals
5. Issue fines for most serious violations of “fair and
   equitable play” and use fines to offset cost of
   enforcement
6. Use conduct fines for scholarships and recognition
7. Seek alternate methods of enforcement when fines
   do not result in compliance
8. Maintain a 1 year operating reserve for financial
   stability