I am an accountant, and one for an institution of higher learning to boot.
I will not comment on UMTC's practices, as anything I could say about the
matter would doubtlessly be misinterpreted.  I will clarify some
misconceptions.

Mount Ida College is an independent (aka private) college while Minnesota is
a public university.  By extension that makes them part of the state
government.  There are some distinct differences in accounting principles,
but accounting developments in recent years have put the financial reporting
of not-for-profits and the rest of the world on a more level playing field.
Universities do not report on the cash basis.  They report on accrual just
like most other businesses.  The fiscal year ended 06/30/01 was the first
year where govenrnmental agencies were required to record depreciation; all
other not-for-profits have been doing this since the 1980's.  Overhead costs
must now be allocated in a reasonable manner to all functional areas, which
is something all other not-for-profits have been doing since the 1990's.

And all this time the rest of you thought accounting was boring.

Edward N. Moller
Controller
Mount Ida College
777 Dedham Street
Newton Centre, MA  02459-3323
Tel (617) 928-4515
Fax (617) 928-4746
[log in to unmask]


-----Original Message-----
From: Mike Stock [mailto:[log in to unmask]]
Sent: Saturday, December 15, 2001 11:14 AM
To: [log in to unmask]
Subject: Re: University of Minnesota Sports Revenue


>

Bob,
    I was under the impression that universities, like the
government, were on a cash basis.  So no
depreciation, just repairs and perhaps financing expense
(bonds) for something built in the past.  All
that might wind up charged to the Grounds Department instead
of the Athletic Department anyway.
    As someone else mentioned the revenue is likely a pretty
good number.  I think you are correct that
the expenses might be suspect.  For example: how do they
handle the salary of a coach who teaches a
class?  Is it prorated between an academic department and
athletics?  On what method?
Mike