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Discussion Topic: NCAA D1 - Funding by the numbers
Leo Zimmer added to this discussion on April 6, 2014
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I would think a more accurate picture of program funding would be to look at a 3 and 5 year average. It's possible that Iowa State tops the list this year because the university made updates to their facilities or some other large expense.
I'm no accountant, but if I know that shifting expenses from one business unit to another, and or amortizing large capital expenses over a number of years can sometimes be beneficial.
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Discussion Topic: NCAA D1 - Funding by the numbers
Pat Costilow added to this discussion on April 6, 2014
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Governmental entities wouldn't use off balance sheet financing, though. Governments use straight-line depreciation, so the type of cost benefit that you are talking about is kind of irrelevant. Also, governments have a lot of discretion in whether or not they depreciate fixed assets at all. They typically expense all capital investments such as repair, update and maintinence. Normal businesses would capitalize and depreciate these, but government entities expense them in that year. I'm not an expert on government accounting, but that's my once over. Based on their treatment of fixed assets, I agree that an average would be more telling.
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Discussion Topic: NCAA D1 - Funding by the numbers
Bob Preusse added to this discussion on April 6, 2014
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Quote from Pat Costilow's post:
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"Governmental entities wouldn't use off balance sheet financing, though. Governments use straight-line depreciation, so the type of cost benefit that you are talking about is kind of irrelevant. Also, governments have a lot of discretion in whether or not they depreciate fixed assets at all. They typically expense all capital investments such as repair, update and maintinence. Normal businesses would capitalize and depreciate these, but government entities expense them in that year."
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Pat,
i'm glad u brought the fascinating subject of cost accounting to ow.netters -- i have long thought something was needed to spice things up on here. i think youve discovered it (though the best i could do in the old days at ohio states Hagerty Hall was a C in this course). ...s/BobP
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Discussion Topic: NCAA D1 - Funding by the numbers
Pat Costilow added to this discussion on April 6, 2014
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Haha, I do what I can, Bob.
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Discussion Topic: NCAA D1 - Funding by the numbers
Dan Ransick added to this discussion on April 7, 2014
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Straight-line depreciation what a concept. Sometimes for the fun of it I like to use the double-declining depreciation just to see the difference in value over the assets life.
Yes I'm an accountant too. So I got a chuckle out of that.
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Discussion Topic: NCAA D1 - Funding by the numbers
Pat Costilow added to this discussion on April 7, 2014
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