NCHSAA ON LIFE SUPPORT?
- Thread starter TheMule
- Start date
Using that same logic, states with more schools than NC should have more assets. But clearly that’s not the case as the numbers have shown.
What’s the reason for this? Are other states distributing more money back to their member schools? Is NCHSAA just that much better when it comes to asset management?
I don’t know the answer, but I get why questions are being asked.
** I just re-read part of that. You’re saying we were the first to start an endowment fund? If so, that would certainly go a long way in explaining the wide $ gap between us and the rest of the country. Did Commissioner Tucker make light of this in the general assembly hearings?
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Here is a link to the NCHSAA's assets broken down into categories. Of note from the linked article: "As of June 2020, the total value of the general endowment fund was $23,048,553, which is included in the NCHSAA's net worth. Of that, $14,967,246 were perpetuity restricted funds, which means it can never be spent. Perpetuity restricted funds remain in place provide interest revenue at all times, allowing the board of directors to use the funds for programs and other priorities" (Stevens, 2021). The article does a great job itemizing the balance sheet which I will not attempt to do here.
The data above indicates only $8,081,307 (or 0.64937) can be spent. Another way to read this would be to say the NCHSAA has assets at $41 million but an operating budget of $8 million, or .195 of their total assets (even though the operating budget is more than $8 million, I only used this figure as a representative example to demonstrate the endowment fund is not equal to a spending fund. People need to understand the ways endowments work!). Another example could be that someone has a home valued at $100,000 but in a given year they can only spend $20,000. This makes a tremendous difference when attempting to understanding the $41 million in assets. Lastly, if the NCHSAA began the endowment in 1993 as the first state association to do so, then it makes rational sense that they would be ahead of other states in terms of endowment fund total much like the individual that begins investing at 25 will have more than the person that begins at 40 when both individuals reach 50 years of age.
In no way is this an attempt to defend the NCHSAA. As I have stated previously, they have issues they need to address and correct, but to dissolve them as a result of personal conflict because a senator did not get his way is childish at best.
www.highschoolot.com
The data above indicates only $8,081,307 (or 0.64937) can be spent. Another way to read this would be to say the NCHSAA has assets at $41 million but an operating budget of $8 million, or .195 of their total assets (even though the operating budget is more than $8 million, I only used this figure as a representative example to demonstrate the endowment fund is not equal to a spending fund. People need to understand the ways endowments work!). Another example could be that someone has a home valued at $100,000 but in a given year they can only spend $20,000. This makes a tremendous difference when attempting to understanding the $41 million in assets. Lastly, if the NCHSAA began the endowment in 1993 as the first state association to do so, then it makes rational sense that they would be ahead of other states in terms of endowment fund total much like the individual that begins investing at 25 will have more than the person that begins at 40 when both individuals reach 50 years of age.
In no way is this an attempt to defend the NCHSAA. As I have stated previously, they have issues they need to address and correct, but to dissolve them as a result of personal conflict because a senator did not get his way is childish at best.
Breaking down the NCHSAA's $40 million in assets
The total of $40 million is thrown around often. It is true, the NCHSAA has a total net worth of $40,371,590, as of the end of the fiscal year ending June 30, 2020, according to financial documentation the NCHSAA shared with member schools on Friday.
www.highschoolot.com
Here is a link to the NCHSAA's assets broken down into categories. Of note from the linked article: "As of June 2020, the total value of the general endowment fund was $23,048,553, which is included in the NCHSAA's net worth. Of that, $14,967,246 were perpetuity restricted funds, which means it can never be spent. Perpetuity restricted funds remain in place provide interest revenue at all times, allowing the board of directors to use the funds for programs and other priorities" (Stevens, 2021). The article does a great job itemizing the balance sheet which I will not attempt to do here.
The data above indicates only $8,081,307 (or 0.64937) can be spent. Another way to read this would be to say the NCHSAA has assets at $41 million but an operating budget of $8 million, or .195 of their total assets (even though the operating budget is more than $8 million, I only used this figure as a representative example to demonstrate the endowment fund is not equal to a spending fund. People need to understand the ways endowments work!). Another example could be that someone has a home valued at $100,000 but in a given year they can only spend $20,000. This makes a tremendous difference when attempting to understanding the $41 million in assets. Lastly, if the NCHSAA began the endowment in 1993 as the first state association to do so, then it makes rational sense that they would be ahead of other states in terms of endowment fund total much like the individual that begins investing at 25 will have more than the person that begins at 40 when both individuals reach 50 years of age.
In no way is this an attempt to defend the NCHSAA. As I have stated previously, they have issues they need to address and correct, but to dissolve them as a result of personal conflict because a senator did not get his way is childish at best.
Breaking down the NCHSAA's $40 million in assets
The total of $40 million is thrown around often. It is true, the NCHSAA has a total net worth of $40,371,590, as of the end of the fiscal year ending June 30, 2020, according to financial documentation the NCHSAA shared with member schools on Friday.
For example, during the coronavirus pandemic, the board distributed $4,000,144.38 from that fund to help schools cope with the loss of revenue during the pandemic.
LOL i’m curious what the $144.38 is all about? It doesn’t really matter. It’s just kind of funny.
IF the other state started an endowment fund or something similar years later then they most likely would not have more.
Also, the amount of money being brought in and the amount being spent, whether on salaries or operating costs such as rent. The NCHSAA owns a building so they pay property taxes, insurances, and upkeep. A state association that rents is not going to have that asset and most likely more operating costs.
Haywood County lets there feelings be known about the High School Mafia in charge now. https://www.themountaineer.com/news...cle_0e34aae8-f006-11eb-807d-4fed88cb18e3.html
Whoever wrote that article is either ignorant or wants to distort the facts to achieve their own goals.
The endowment is not $40 million but more like $25 million. The $40 million represents total assets of the Association. Endowments are intended to fund not just current needs but future needs as well.
Normally endowments need to grow by about the average annual inflation rate in order for future beneficiaries to receive the same benefits as current ones. This means that not all of the annual increases in income generated can be spent each year.
Changes most certainly need to be made but the "I want it all now" approach is self defeating and a poorly thought out process. Mature adults need to reflect on these matters and keep those upset because they did not get there way on conference alignments or such under control.
Haywood County did not get their way. For the superintendent to state there is no process (in classifications) is way off. The one thing I will say about the NCHSAA is they do everything by a set of regulations and part of the complaint by many is they adhere strictly to them and do not bend even when it seems to be sensible to some. Seems the complaint here is they did not bend to what Haywood County and Tuscola wanted.
They may regret going public if the NCHSAA stays as it is. You want hear many schools or coaches speak against it for that reason.
