ANN ARBOR—The University of Michigan Athletic Department released today (Sept. 15) its audited financial statements for the 1998-99 fiscal year. Athletic Director Tom Goss said the total budget of $46 million reflects an operating deficit for the year of approximately $2.8 million—$756,000 more than was announced in June.

The deficit will be covered by the department’s reserves, which totaled more than $20 million as of June 30, said Goss.

“This deficit will not affect our proposed budget for 1999-2000,” added Goss. “We have put together a conservative budget and implemented new budget monitoring and control procedures for the coming year. I am confident we will be able to meet it.”

Goss explained the figures released in June for last year’s financial results were forecasts, and not on actual audited results, which are not finalized until after the books are closed in August each year. “Forecasting is not an exact science,” he noted. “Our projections were based on a number of assumptions about revenue and expenses, some of which turned out to be inaccurate.”

Projections differed from final results for a number of specific expenses and revenues, including:

“It’s important to note the long-term financial health of our department,” said Goss. “Despite the volatility of the business, we are one of the few major college athletic programs to be financially self-sufficient and we are committed to living up to these expectations in the future.”

For fiscal year 1997-98, the U-M Athletic Department achieved an operating surplus of $5.9 million, resulting in a $3.1 million operating surplus over a two-year period.