COASTAL CAROLINA UNIVERSITY INTERCOLLEGIATE ATHLETICS PROGRAM CONWAY, SOUTH CAROLINA Independent Accountants Report On Applying Agreed-Upon Procedures June 30, 2017
COASTAL CAROLINA UNIVERSITY INTERCOLLEGIATE ATHLETICS PROGRAM For the Year Ended June 30, 2017 Table of Contents Independent Accountants Report On Applying Agreed-Upon Procedures 1-9 Statement of Revenues, Expenditures, and Transfers 10 Notes to the Statement 11-14
Members Albert B. Cline, CPA (1923-2013) American Institute of CPAS Raymond H. Brandt, CPA Private Companies Practice Section South Carolina Association of CPAS Governmental Audit Quality Center CLINE BRANDT KOCHENOWER & CO., P.A. Certified Public Accountants Established 1950 Ben D. Kochenower, CPA, CFE, CVA, CICA, CGMA Timothy S. Blake, CPA, PFS Brandon A. Blake, CPA Independent Accountants Report On Applying Agreed-Upon Procedures Dr. David A. DeCenzo, President Coastal Carolina University P.O. Box 261954 Conway, South Carolina 29528-6059 We have audited the financial statements of Coastal Carolina University as of and for the year ended June 30, 2017, and have issued our unmodified opinion thereon under date of September 15, 2017. At your request, we have also performed the procedures described below which were agreed to by the Board of Trustees and management of Coastal Carolina University, solely to assist these users in evaluating whether the accompanying Statement of Revenues, Expenditures and Transfers of Coastal Carolina University is in compliance with the National Collegiate Athletic Association ( NCAA ) Bylaw 3.2.4.15 for the fiscal year ended June 30, 2017. The Statement of Revenues, Expenditures and Transfers of Coastal Carolina University Intercollegiate Athletics Program and related note disclosures was not audited or reviewed by us. Management is responsible for Coastal Carolina University's compliance with the requirements of NCAA Bylaw 3.2.4.15, the Intercollegiate Athletics Program's financial records, internal controls and compliance with applicable laws, rules and regulations. This engagement to apply agreed-upon procedures was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures and associated findings are as follows: Procedures Related to the Statement of Revenues, Expenditures and Transfers 1. We obtained the Statement of Revenues, Expenditures and Transfers of Coastal Carolina University Intercollegiate Athletics Program and related note disclosures for the year ended June 30, 2017, as prepared by accounting management of the University and shown on page 10 in this report. We recalculated the mathematical accuracy of the amounts on the statement, traced the individual line item amounts from the statement to management s worksheets and compared the amounts on management s worksheets to the accounts in the University s general ledger. 1 Post Office Box 848, 1225 West Floyd Baker Boulevard, Gaffney, SC 29342-0848, (864) 489-7121 Fax (864) 489-7123 Post Office Box 161300, 145 Rogers Commerce Boulevard, Boiling Springs, SC 29316-1300, (864) 541-0218 Fax (864) 541-0221 Internet Address: www.cbkpa.com
Intercollegiate Athletics Program 2. We compared each major revenue and expense accounts in the Statement of Revenues, Expenditures and Transfers to prior period amounts. We obtained and documented our understanding of any significant variations. If a specific reporting category total (specific line items of revenues and expenses) is less than 4.0% of the total revenues or total expenses, no procedures were performed for that specific category. We compared each major revenue and expense account over 10% of the total revenues and total expenditures to prior period amounts. We obtained and documented our understanding of any variations over 10%. We obtained the following explanations from the University s athletic management regarding the reasons for the variances. Direct Institutional Support increase (28.35%) University 10 fund support increased by over $3M. FY2017 was the first year for conference realignment and apparel provider change. Significant increases from these were team travel, officials and apparel. Abatements and small facilities projects increased by over $400K in total. Indirect Institutional Support expense increase (22.38%) Indirect Inst. Support is a percentage of total salaries and fringe. In total salaries and fringe increased over $800k. This increase is primarily due to contractual commitments from the success of athletic performance. Additionally, the IDC percentage increased for a new term. This percentage increased 4.71% from FY2016 to FY2017. Scholarships including Out of State Abatements increase (13.3%) Football: scholarship awarded increased from 63 (15-16) to 76 (16-17); Baseball: scholarship recipients received Cost of Attendance (COA), no COA was awarded in 15-16; MBB/WBB: In 16-17 PELL was awarded over COA and in 15-16 COA included PELL; Beach Volleyball: scholarships were awarded in 16-17, none in 15-16; 5th year/ summer school: over $100k more was awarded for all sports in 16-17 mainly due to more football summer school scholarships. Coaching Salaries and Fringe Benefits increased (10.9%) Coaches salaries, bonuses and fringe increased in total primarily in football, baseball, men's basketball, volleyball and beach volleyball. Contractual commitments are the reason for increase in wage expense. Additional, a beach volleyball coach was hired for specific beach duties whereas in the previous year current coaches assumed dual responsibilities for both indoor and beach. 3. We inquired of management the specific elements of the University s internal control unique to the Intercollegiate Athletics Program s accounting system and financial reporting. 2
Intercollegiate Athletics Program Receipts We obtained from accounting management the general ledger activity for all cash receipts related to intercollegiate athletics. We selected a sample of individual receipts and compared the recorded cash receipt amount to the amount on the cashiers office deposit transmittal reports prepared by the athletic department and submitted along with the cash to the cashiers office to determine whether the amounts are the same. The sample of the individual receipts selected for comparison is as follows: Reference Number Date Received From/Description Amount C000753532 7/7/2016 Ccarlin Cell Phone 200.00 C000757188 8/1/2016 Jamarion L. McBride: Football Operating (360.00) C000757408 8/1/2016 CCU Athletic Ticket Office 836.00 C000757632 8/3/2016 Veronica L. Olszowy: Dance Team Operations (360.00) C000762720 8/11/2016 CCU Athletic Ticket Office 896.00 C000765838 8/26/2016 Aynslee Van Graan: Scholarship AR Payment (5,240.00) C000768104 9/9/2016 BS CBailey JCooley TravelCard 439.00 C000770932 9/21/2016 CCU Athletic Ticket Office 6,042.00 C000772456 10/9/2016 CCU Athletic Ticket Office 105.00 C000775184 10/25/2016 BS Hampinn West Spons 2,500.00 C000777496 11/7/2016 Orion CCU LLC 5,250.00 C000779633 11/19/2016 CCU Athletic Ticket Office 9,544.00 C000781440 12/5/2016 P. Gerad MBB/WBB/ACC/CAF 61.00 C000783797 12/19/2016 BS Stack Travel Card 2.00 C000789827 1/9/2017 Groupm 1,071.48 C000792045 1/18/2017 D.Thomas Cell Phone 200.00 C000796605 2/6/2017 Hesmari Coetzee: Scholarship AR Payment (4,695.00) C000799791 2/21/2017 BS Rider Univ Entry Fee 300.00 C000803435 3/12/2017 CCU Athletic Ticket Office 1,325.00 C000806385 3/23/2017 CCU Athletic Ticket Office 3,178.00 C000809690 4/12/2017 PG Baseball / ACC Tourn 87,560.00 C000815471 5/4/2017 PG Baseball, CWS, FB 1,621.00 C000817303 5/16/2017 Tatyana M. Forbes: Women's Softball Operating (70.00) C000817956 5/22/2017 PG Football/Baseball 929.00 C000821144 6/6/2017 CCU Athletic Ticket Office 387.00 3
Intercollegiate Athletics Program REVENUES Student Fees 1. We compared and agreed the student fees reported by the University in the statement for the reporting period to student enrollments during the same reporting period and recalculated the totals. 2. We obtained and documented our understanding of the University s methodology for allocating student fees to intercollegiate athletics programs. 3. We obtained the University s calculation of the student fee allocation and compared the calculation to the supporting documentation. Direct Institutional Support 1. We compared the direct institutional support recorded by the University during the reporting period with the institutional supporting budget transfers documentation and other corroborative supporting documentation and recalculated the totals. Indirect Institutional Support 1. We compared the indirect institutional support recorded by the University during the reporting period with the institutional supporting budget transfers documentation and other corroborative supporting documentation and recalculated the totals. NCAA Distribution 1. We compared the amounts recorded in the revenue and expense reporting to the general ledger detail for NCAA distributions and other corroborative supporting documents and recalculated the totals. 4
Intercollegiate Athletics Program EXPENSES Athletic Student Aid 1. We obtained a listing from the University detailing institutional student aid recipients for the year. We selected a sample of 40 students. 2. We obtained the individual student account detail for each selection and compared the total aid allocated from the related aid award letter to the student's account. 3. We performed a check of each student selected to ensure their information was reported accurately in the NCAA's Compliance Assistant (CA) software using the following criteria: a. The equivalency value for each student-athlete in all sports, including head-count sports, needs to be converted to a full-time equivalency value. The full-time equivalency value is calculated using the athletic grant amount reported on the squad list as the numerator and the full grant amount which is the total cost for tuition, fees, books, room and board for an academic year as the denominator. b. A student-athlete can only be included in one sport. c. All equivalency calculations should be rounded to two decimal places. d. The full grant amount should always be the full cost of tuition for an academic year, not semester. e. If a sport is discontinued and the athletic grant(s) are still being honored by the University, the grant(s) are included in student-athlete aid for revenue distribution purposes. f. Student-athletes receiving athletic aid who have exhausted their athletic eligibility or are inactive due to medical reasons should be included in the student-athlete aid total and correctly noted on the Squad List. g. Only athletic aid awarded in sports in which the NCAA conducts championship competitions, emerging sports for women and FBS football should be included in the calculations. h. If a selected student received a PELL Grant, we verified that the student s grant was not included in the calculation of equivalencies or the total dollar amount of student athletic and expense for the institution i. If a selected student received a PELL Grant, we verified that the student s grant was included in the total number of and total value of Pell Grants reported for Revenue Distribution purposes in the NCAA Membership Financial Reporting System. 4. We recalculated the totals for each sport and overall. We found no exceptions as a result of these procedures. 5
Intercollegiate Athletics Program Coaching Salaries, Benefits, and Bonuses Paid by the University and Related Entities 1. We obtained and inspected a listing of coaches employed by the University and related entities during the reporting period. We selected a sample of coaches' contracts from the listing. We ensured that our sample includes coaches from football, and men's and women's basketball. 2. We compared and agreed the financial terms and conditions of each selection to the related coaching salaries, benefits, and bonuses recorded by the University and related entities in the statement during the reporting period. 3. We obtained and inspected payroll summary registers for the reporting year for each selection. We compared and agreed payroll summary registers from the reporting period to the related coaching salaries, benefits and bonuses paid by the University and related entities expense recorded by the University in the statement during the reporting period. 4. We compared and agreed the totals recorded to any employment contracts executed for the sample selected and recalculated the totals. We found no exceptions as a result of these procedures. Support Staff/Administrative Salaries, Benefits, and Bonuses Paid by the University and Related Entities 1. We obtained a listing of support staff/administrative salaries, benefits and bonuses paid by the University and related entities for the year ended. From the listing, we selected a sample of support staff/administrative personnel. 2. We obtained and inspected reporting period payroll summary registers for each selection. We compared and agreed the related payroll summary registers to the related support staff administrative other compensation and benefits expense recorded by the University in the statement during the reporting period and recalculated the totals. We found no exceptions as a result of these procedures. Disbursements 1. We obtained the general ledger accounts for recruiting expense, team travel expense, equipment, uniform and supplies, game expense, spirit group expense, direct overhead and administrative expense, medical expense, medical insurance, and other operating expenses. We compared the total expenditures reported to the statement. 2. We selected a sample of transactions (see below) to validate the existence of the transactions and the accuracy of recording and recalculated the totals. 3. We obtained and documented our understanding of the University s team travel policies. We compared the existing University and NCAA related policies to determine if they were in agreement 4. For the selected expenses, we obtained the related disbursement package to determine the items required by University s procurement policy were included and that the expense had been authorized in accordance with the University s policy. 6
Intercollegiate Athletics Program Disbursements, continued Voucher Date Vendor/Description Amount V0708108 8/4/2016 Short's Travel Management Inc 51,684.75 V0709358 8/18/2016 Courtyard Management Corporation 160,230.60 PC072716 8/25/2016 PC-Amazon.com - Purchase 64.17 V0710165 8/29/2016 LDG Corporation 690.15 TE072016 8/30/2016 TE-SPIRIT AI 48701328569100 336.18 V0716978 9/16/2016 Terrill T. Stanley 15.00 PC082616 9/22/2016 PC-DMI DELL HIGHER EDUC - 96.29 TE081916 9/26/2016 TE-NATIONAL CAR TOLLS - Pur 3.55 V0718740 9/30/2016 University of North Carolina 400.00 V0720428 10/26/2016 Land-O-Sun Dairies LLC dba Pet Dairy 80.25 PC092716 10/28/2016 PC-MF ATHLETIC & PERFORM BE 54.51 TE092016 10/31/2016 TE-AMERICAN 00178262877435 649.70 TE092016 10/31/2016 TE-DELTA 00678279580963 519.74 V0721909 11/9/2016 Catherine C. Williams 150.00 V0722971 11/17/2016 Cumulus Florence 1,800.00 V0708270 11/28/2016 Artur T. Labinowicz 376.80 V0724099 12/2/2016 Best Golf Cars 121.40 TE102016 12/9/2016 TE-DELTA 00623591073722 369.20 TE102016 12/9/2016 TE-SAMSCLUB #6353 - Purchas 67.22 TE102016 12/9/2016 TE-COURTYARD BY MARRIOTT- - 3,104.08 V0725298 12/16/2016 ARAMARK INC 31.00 TE111816 12/21/2016 TE-CHICK-FIL-A #01762 - Pur 1,015.61 TE111816 12/21/2016 TE-MURPHY EXPRESS 8585 - Pu 27.00 TE111816 12/21/2016 TE-ASIAN CHAO CONCOURSE B - 247.50 V0725802 1/4/2017 CBS Interactive Inc 3,886.99 V0727155 1/18/2017 Enoch E. Davis 150.00 V0708224 1/28/2017 Demario S. Beck 1,083.20 TE122016 2/7/2017 TE-MARRIOTT MYTRLE BEACH - 126.56 TE122016 2/7/2017 TE-ALAMO RENT ACAR TOLLS - 12.00 TE122016 2/7/2017 TE-AMERICAN 0010265884142 25.00 V0734643 2/10/2017 Patrick A. Covington 208.00 PC012717 2/21/2017 PC-AMAZON MKTPLACE PMTS - P 44.98 TE012017 3/1/2017 TE-DELTA 00679139567805 463.52 TE012017 3/1/2017 TE-AMERICAN 0010269756577 25.00 V0736130 3/2/2017 Conway Fence Co., Inc. 9,898.00 V0737510 3/20/2017 ARAMARK INC 220.75 V0708122 3/28/2017 Sophie M. Crowther 170.00 V0739322 4/7/2017 Boulineaus Outdoor Advertising 399.00 TE022017 4/13/2017 TE-SPRINGHILL SUITES MOBI - 112.86 TE022017 4/13/2017 TE-MACADOS 2 - Purchase 295.20 TE022017 4/13/2017 TE-AMERICAN 00179144691843 345.10 PC032717 4/25/2017 PC-COLLEGE ATHLECTIC TRAINE 25.00 V0741678 5/4/2017 BSN Sports, LLC 136.40 TE032017 5/5/2017 TE-DELTA 00679179214836 518.75 TE032017 5/5/2017 TE-MARRIOTT MOBILE - Credit (7,512.70) V0741558 5/10/2017 The Trophy Place 342.40 PC042717 5/30/2017 PC-WM SUPERCENTER #4664 - P 33.98 V0744533 6/7/2017 Barry J. Lippman 12.70 TE042017 6/13/2017 TE-COURTYARD BY MARRIOTT - 514.05 TE042017 6/13/2017 TE-DELTA 00679179246572 193.86 TE042017 6/13/2017 TE-FOOD LION #1384 - Purcha 27.20 TE042017 6/13/2017 TE-DELTA 0068237040074 25.00 V0746001 6/19/2017 Intellistrand LLC 860.00 TE051917 6/23/2017 TE-PUBLIX #885 - Purchase 11.44 TE051917 6/23/2017 TE-DOMINO'S 6564 - Purchase 57.34 TE051917 6/23/2017 TE-BP#2370781KITE SURFQPS - 41.22 TE051917 6/23/2017 TE-WINN-DIXIE GROCERY #14-39.88 TE062017 6/30/2017 TE-PILOT 00000620-23.28 TE062017 6/30/2017 TE-HAMPTON INN CLINTON - Pu 302.40 V0748780 6/30/2017 Ticket Return 204.00 We found no exceptions as a result of these procedures. 7
Intercollegiate Athletics Program Athletic Facility Debt Service 1. We obtained the debt service schedule for athletic facilities for the reporting period. Compared the amount on the schedule to the amount on the statement. We compared the debt service schedule to the University s audited financial statements. Outside Organizations 1. We obtained from management a list of all outside organizations not under the University s accounting control that have as its principal or one of its principal purposes is generating resources for or on behalf of the University s Intercollegiate Athletics Program or the promotion of the program. We obtained a copy of the outside organization s audited financial statements. 2. We compared the amount received from this outside organization to the amount recorded in the general ledger and on the statement. We found no exceptions as a result of these procedures. ADDITIONAL MINIMUM AGREED-UPON PROCEDURES In order for NCAA to place reliance on the financial reporting for NCAA distribution purposes, we performed the following procedures: 1. We compared and agreed the sports sponsored as reported in the NCAA Membership Financial Reporting System to the Squad Lists of the University. 2. We obtained the University s Sports Sponsorship and Demographics Forms Report for the reporting year. We compared the number of contests and the number of participants reported by the University to the minimum contests and participants requirements for sports sponsorship set forth in Bylaw 20.9.6.3. 3. We agreed the total number of Division I student-athletes who, during the academic year, received a Pell Grant award and the total value of these Pell Grants reported in NCAA Membership Financial Reporting System to a report, generated out of the institution s financial aid records. We found no exceptions as a result of these procedures. 8
Intercollegiate Athletics Program We were not engaged to, and did not conduct an audit, the objective of which would be the expression of an opinion on compliance with NCAA Bylaw 3.2.4.15 or the expression of an opinion on The Statement of Revenues, Expenditures and Transfers of the Intercollegiate Athletics Program of Coastal Carolina University for the year ended June 30, 2017, and, furthermore, we were not engaged to express an opinion on the effectiveness of the internal controls over compliance with the laws, rules and regulations. Therefore, we express no opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the Board of Trustees and management of Coastal Carolina University and is not intended to be and should not be used by anyone other than these specified parties. January 3, 2018 Gaffney, SC 9
InterCollegiate Athletics Program Statement of Revenues, Expenditures, and Transfers For the Year Ended June 30, 2017 (Unaudited) Men's Women's Men's Women's Other Non-Sport Football Baseball Basketball Basketball Soccer Soccer Sports Specific Total Operating Revenues: Ticket Sales $ 494,506 173,320 118,540 6,225 - - - - $ 792,591 Gifts - - - - - - - - - Student Activity Fees 1,703,587 244,815 313,043 357,566 209,825 236,727 1,654,602-4,720,165 Guarantees - - 130,000 15,000 4,000-4,000-153,000 Chanticleer Athletic Foundation Contributions 342,678 105,730 41,911 16,957 14,371 20,007 141,667 277,493 960,814 Inkind Gifts - - - - - - 78,384 1,513 79,897 Direct institutional support 5,044,352 2,263,575 1,590,180 1,109,003 697,602 713,197 4,483,027 862,173 16,763,109 Indirect Institutional Support 1,016,065 414,574 372,997 229,089 123,305 79,920 691,738 1,260,779 4,188,467 Indirect Institutional Support-Athletic Debt Service 892,240 50,699 134,192 134,192 7,203 7,203 1,047,131 306,691 2,579,551 Media Rights (not calculated in NCAA or Big ) - - - - - - - - - NCAA Program for Academic Enhancement - - - - - - - 76,705 76,705 NCAA Distributions - - - - 10,840-4,556 1,704,702 1,720,098 SunBelt Distributions - - - - - - - 292,531 292,531 Program and Novelty Sales/Concessions 5,601 - - - - - - - 5,601 Royalties, Licensing/Sponsorships 3,816 4,258 109,070 2,134 2,501 1,690 25,572 1,022,338 1,171,379 Sport Camp Field Rentals - - - - - - - 31,366 31,366 Athletic Restricted Endowment-CEF 1,485 3,271 1,581 - - - 23,136 2,841 32,314 Tournament Revenue and Entry fees, Services 39-11,380-1,267-10,582 113,137 136,405 Total Revenues $ 9,504,369 3,260,242 2,822,894 1,870,166 1,070,914 1,058,744 8,164,395 5,952,269 $ 33,703,993 Expenditures: Scholarships including Out of State Abatements $ 2,926,637 501,224 554,022 572,369 359,733 495,459 3,188,238 24,136 $ 8,621,818 Guarantees 782,826 32,826 109,105 5,570 - - 6,760-937,087 Coaching Salaries and Fringe Benefits 1,718,546 842,708 687,260 412,264 272,238 176,541 1,444,206-5,553,763 Severance Payments - - - - - - - - - Administrative Salaries and Fringe Benefits 525,910 73,073 136,678 93,786 139-83,822 2,785,022 3,698,430 Recruiting 207,233 56,063 90,186 53,298 30,731 16,839 110,770-565,120 Team Travel 384,681 367,970 370,105 194,547 138,686 143,257 845,699-2,444,945 Equipment, Uniforms and Supplies 280,615 170,521 37,465 14,551 47,152 51,725 233,170-835,199 Game Expenses 340,771 267,772 167,842 99,410 33,795 36,591 204,027-1,150,208 Marketing and Promotions - - - - - - - 224,535 224,535 Spirit Groups - - - - - - - 218,374 218,374 Athletic Debt Service 892,240 50,699 134,192 134,192 7,203 7,203 1,047,131 306,691 2,579,551 Direct Overhead and Administrative Expenses 225,581 459,683 45,459 46,934 50,560 36,923 243,693 540,980 1,649,813 Student-Athlete Meals (non-travel) 139,748 9,799 17,356 5,788 4,744 13,739 26,455-217,629 Indirect Institutional Support 1,016,065 414,574 372,997 229,089 123,305 79,920 691,738 1,260,779 4,188,467 Medical Expenses and Insurance - - - - - - - 122,883 122,883 Memberships and Dues 220 390 225 800 484 475 10,429 95,533 108,556 Other Operating Expenses 57,750 12,940 14,079 7,568 669 72 27,057 336,487 456,622 Visiting Team/Tournament Expenses 5,546-85,923-1,475-1,200 37,338 131,482 Total Expenditures $ 9,504,369 3,260,242 2,822,894 1,870,166 1,070,914 1,058,744 8,164,395 5,952,758 $ 33,704,482 Excess (Deficiency) of Operating Revenues Over (Under) Expenses $ - - - - - - - (489) $ (489)
COASTAL CAROLINA UNIVERSITY INTERCOLLEGIATE ATHLETICS PROGRAM Notes to the Statement of Revenues, Expenditures and Transfers June 30, 2017 (Unaudited) NOTE 1-CONTRIBUTIONS Contributions and gifts to Coastal Carolina University s Intercollegiate Athletics Program totaled $1,073,025. This amount is reported in Attachment A at the following captions: Chanticleer Athletic Foundation Contributions $ 960,814 Athletic Restricted Endowment- CEF (Coastal Education Foundation) 32,314 Inkind Gifts 79,897 $ 1,073,025 Individual contributions which exceeded 10 percent of the total contributions and the related donors included in the above amounts are as follows: Chanticleer Athletic Foundation $ 960,814 $ 960,814 NOTE 2-INTERCOLLEGIATE ATHLETICS - RELATED ASSETS Capital assets are recorded at cost at the date of acquisition or fair market value at the date of donation in the case of gifts. The asset capitalization policy refers to guidelines set by the State of South Carolina to determine the useful life of an asset. All land is capitalized regardless of cost. Qualifying improvements that rest in or on the land itself are recorded as depreciable land improvements. Major additions and renovations and other improvements that add to the usable space, prepare existing buildings for new uses or extend the useful life of an existing building costing in excess of $100,000 are capitalized. Permanent improvement projects and routine maintenance that do not fall within the defined parameters for capitalization will be expensed in the year they occur according to Generally Accepted Accounting Principles. (GAAP) As a rule, if the work is of a replacement nature and does not materially lengthen the useful life of a structure, it will not be capitalized. Interest cost incurred during the construction phase of capital assets is reflected in the capitalized value of the asset constructed net of interest earned on the invested proceeds over the same period. In Fiscal Year 2017 no capitalized interest was appropriated to athletic-related assets. In FY 2017 the Athletic capital assets, net of depreciation is reported to be $51.9 million. This is a $1.9 million dollar increase from last year s net athletic capital assets of $50 million. The major contributing factors to the increase include the addition of turf to both the softball and baseball fields, and the construction of a sand volleyball court on the east side of campus. The FY 2017 athletic capital assets, net of $51.9 million is 11.2 percent of the total amount of capital assets net of depreciation, $462.8 million, which is reported on the University Financial Statements in FY 2017. 11
COASTAL CAROLINA UNIVERSITY INTERCOLLEGIATE ATHLETICS PROGRAM Notes to the Statement of Revenues, Expenditures and Transfers, Continued June 30, 2017 (Unaudited) NOTE 2-INTERCOLLEGIATE ATHLETICS - RELATED ASSETS, Continued The total amount of assets placed into service, includes both additions and transfers from Construction in Progress. Fiscal Year 2017 Additions by Sport: Women's Lacrosse $ 6,415 Softball 186,011 Baseball 434,686 Basketball 7,289 General Sports 29,488 Sand Volleyball 462,043 Football 5,666 Total Additions $ 1,131,598 Estimated capital asset activity for athletics for the year ended June 30, 2017 is summarized as follows: Beginning Balance Ending Additions Retirements Transfers Balance Capital Assets Not Being Depreciated Construction in Progress $ 376,447 4,418,525 - (1,069,261) 3,725,711 Capital Assets Being Depreciated Buildings and Improvements 52,091,202 - - - 52,091,202 Land Improvements 7,240,827 - - 1,069,261 8,310,088 Equipment 2,819,488 62,337 - - 2,881,825 62,151,517 62,337-1,069,261 63,283,115 Less Accumulated Depreciation Buildings and Improvements (9,848,061) (1,396,057) - - (11,244,118) Land Improvements (1,127,306) (731,404) - - (1,858,710) Equipment (1,552,417) (416,581) - - (1,968,998) (12,527,784) (2,544,042) - - (15,071,826) Capital Assets Being Depreciated, Net 49,623,733 (2,481,705) - 1,069,261 48,211,289 Athletic Capital Assets, Net $ 50,000,180 1,936,820 - - 51,937,000 12
COASTAL CAROLINA UNIVERSITY INTERCOLLEGIATE ATHLETICS PROGRAM Notes to the Statement of Revenues, Expenditures and Transfers, Continued June 30, 2017 (Unaudited) NOTE 3- INTERCOLLEGIATE ATHLETICS - RELATED DEBT State Institution Obligation Bonds Interest Maturity Balance Rates Dates 6/30/2017 General Obligation 2010A 3.52% 4/1/2030 9,392,657 General Obligation 2016E 4.00% to 4.63% 4/1/2027 2,340,035 Total State Institutional Bonds $ 11,732,692 Revenue Bonds Series 2016 3.0% to 5.0% 6/1/2041 21,555,000 Total Revenue Bonds $ 21,555,000 Total Bonds Payable $ 33,287,692 Maturities of debt related to intercollegiate athletics at June 30, 2017 were as follows: General Obligation Bonds Due in Fiscal Year Principal Interest Payments 2018 $ 750,305 $ 475,372 $ 1,225,677 2019 778,004 443,517 1,221,521 2020 806,909 406,077 1,212,986 2021 841,835 371,777 1,213,612 2022 876,760 335,960 1,212,720 2023-2027 5,023,307 1,071,767 6,095,074 2028-2030 2,655,572 147,520 2,803,092 $ 11,732,692 $ 3,251,990 $ 14,984,682 Revenue Bonds Due in Fiscal Year Principal Interest Payments 2018 $ 565,000 $ 752,031 $ 1,317,031 2019 585,000 729,431 1,314,431 2020 610,000 706,031 1,316,031 2021 635,000 681,631 1,316,631 2022 660,000 656,231 1,316,231 2023-2027 3,785,000 2,797,756 6,582,756 2028-2032 4,555,000 2,025,956 6,580,956 2033-2037 5,295,000 1,289,344 6,584,344 2038-2041 4,865,000 401,538 5,266,538 $ 21,555,000 $ 10,039,949 $ 31,594,949 13
COASTAL CAROLINA UNIVERSITY INTERCOLLEGIATE ATHLETICS PROGRAM Notes to the Statement of Revenues, Expenditures and Transfers, Continued June 30, 2017 (Unaudited) NOTE 3- INTERCOLLEGIATE ATHLETICS - RELATED DEBT, Continued Athletically related debt service and total debt year ended June 30, 2017. Athletically Related University Total Total Annual Debt Service $ 2,579,552 $ 18,809,361 Total Debt Outstanding: Institution Bonds 11,732,692 48,710,000 Revenue Bonds 21,555,000 202,886,591 Internal Debt 684,279 - $ 33,971,971 $ 251,596,591 14