Aaron Rodriguez

December 3, 2019

CAU Case Analysis

Cohort 21S

1)      If you were advising the athletic director at CAU, what budgeting advice would you provide?

I would advise them athletic director to understand what cash is coming in for that year instead of just shifting the budget based on what happened the previous year. The new strategy should understand if they will receive more or less funding from the state or donors and using this information to provide enough funding for each program to run.

2)      What budgeting approach should the athletic department use if it intends to balance its budget in the 2015 fiscal year?

I would advise them to use the modified zero-based budgeting method because they need to reduce their spending which will be solved by this method by matching spending levels are with services to be performed. This will allow the CAU to make sure that all departments have proper funding to make sure that no department has too little amount of money to be successful or have excess money that will be wasted. This method would also be better because this method requires a very little amount of people which is helpful to CAU since they keep downsizing their staff.

3)      For an average athletic department, which budgeting method would most likely keep the program from running a deficit? Why?

They would use a program planning budgeting system because they have goals, they are trying to achieve through promotions to excite their fans and this can help them plan out their process over multiple years which athletic programs will need since they will not leave and know that they need to bring in fans every year. This allows athletic departments to connect their plans to the budget to make sure that the right programs are receiving proper funding while making sure that they don’t run out of money in the future.