Kansas Athletics Audit Report Overview

Feb 25, 2025

Kansas Athletics, Incorporated and Subsidiary: Audit Report and Financial Statements

Overview

  • Entity: Kansas Athletics, Incorporated and Subsidiary
  • Purpose: Operates varsity intercollegiate athletic program under University of Kansas
  • Date of Audit Report: June 30, 2023 and 2022

Audit Report Highlights

Opinion

  • The consolidated financial statements of Kansas Athletics, Incorporated and Subsidiary present fairly in all material respects.
  • Complies with accounting principles generally accepted in the United States.

Basis for Opinion

  • Audits conducted in accordance with U.S. GAAS.
  • Auditor independence and ethical compliance maintained.

Emphasis of Matter

  • 2022 financial statements restated to correct misstatement (Note 16).

Management Responsibilities

  • Responsible for financial statements preparation and fair presentation.
  • Evaluation of going concern for Kansas Athletics within one year.

Auditors Responsibilities

  • Obtain reasonable assurance about the financial statements being free from material misstatement.
  • Communication with governance on audit scope, findings, and internal control matters.

Consolidated Financial Statements

Financial Position (as of June 30)

  • 2023 vs. 2022
    • Assets increased: $364,955,050 (2023) from $293,373,081 (2022)
    • Liabilities increased: $110,624,176 (2023) from $105,040,871 (2022)
    • Net assets increased to $254,330,874 (2023) from $188,332,210 (2022)

Statement of Activities

  • Operating Revenue: $127,844,213 (2023)
  • Operating Expenses: $126,774,714 (2023)
  • Operating Income: $1,069,499 (2023)
  • Other Income/Expense: $64,929,165 (2023)
  • Net Change in Assets: $65,998,664 (2023)

Detailed Financial Notes

Key Figures

  • Assets:
    • Cash and cash equivalents: $23,338,105 (2023)
    • Investments: $131,426,421 (2023)

Liabilities

  • Accounts payable: $12,957,964 (2023)
  • Long-term debt: $30,908,884 (2023)

Net Assets

  • Without donor restrictions: $81,627,567 (2023)
  • With donor restrictions: $172,703,307 (2023)

Cash Flows

  • Net cash from operations: $11,800,259 (2023)
  • Investing activities: Net cash used $(15,046,489)
  • Financing activities: Net cash provided $49,214,477

Audit Adjustments

  • Restatement in 2022 due to computational error; corrected accumulated depreciation.

Accounting Policies

Revenue Recognition

  • Ticket sales recognized when events occur.
  • Sponsorship and media contracts recognized on a straight-line basis over contract life.

Investments

  • Managed by Kansas University Endowment Association.
  • Fair value hierarchy used for valuation determination.

Contributions

  • Recorded based on donor restrictions and time frame.

Lease Accounting

  • Right-of-use assets and liabilities recognized for leases.

Significant Accounting Estimates and Contingencies

Estimates

  • Involves contributions receivable, investments, and property valuations.

Commitments

  • Football stadium renovation commitments noted.

Legal and Financial Contingencies

  • Possible claims related to University activities evaluated.

Endowment Management

  • Operates under Kansas UPMIFA principles.
  • Managed to balance current spending and maintaining value.

Related Party Transactions

  • Significant transactions with the University of Kansas.
  • Payments for student athlete tuition, meals, and housing recorded.

Subsequent Events

  • Evaluated through September 22, 2023.

This summary provides an overview of Kansas Athletics’ financial health and accounting practices as of the fiscal year ending June 30, 2023, focusing on compliance with GAAP and significant financial activities including revenue streams and liabilities.