By DOUG IRELAND, Journal Sports
GRAMBLING – A state audit released this week cited a series of discrepancies in how Grambling State University’s athletic department operated its fiscal year 2025 budget, and found a multi-million dollar deficit.
The state Legislative Auditor’s office reported Monday it discovered a $5 million deficit for the 2025 fiscal year in Grambling’s athletics department. The finding was the result of a routine audit that in part provides information for NCAA rules compliance, and chiefly assesses how state financial policies are being followed.
Grambling’s Statement of Revenues and Expenses indicated total expenses for athletics were $14,314,410 for the 2025 fiscal year, compared to revenue of $9,234,936, resulting in a deficit of $5,079,474.
Auditors found the number of student-athletes who got a Pell Grant and the total dollar amount reported in the Financial Reporting System was different than the school’s financial aid records. The finding showed 62 students and $383,493 more than the school’s records.
Among other significant findings, the audit revealed Grambling understated severance payments to athletic employes by $105,022, overstated coaching salaries by over $96,000, and reported $36,555 more than the actual amount of ticket sales.
The University of Louisiana System Board of Supervisors, the governing body for Grambling, Louisiana Tech, ULM, Northwestern State and five more state universities, is expected to address the situation in its regular monthly meeting next week in Baton Rouge. Former Grambling president Dr. Rick Gallot is the ULS System president.
Dr. Martin Lemelle Jr. was named president at Grambling in February 2024. Dr. Trayvean Scott was hired July 1, 2021 as Vice President for Intercollegiate Athletics.
Grambling said it was aware of the deficit and some of the other issues before the legislative audit was released, and had begun addressing the problem areas.
Grambling’s university news bureau issued a statement Tuesday addressing the situation. The full text:
“Grambling State University recently completed its FY2025 annual NCAA agreed-upon procedures review for athletics, a standard annual review required for Division I athletics programs. According to the NCAA’s 2024 Division I revenue and expense analysis, only one of 129 FCS athletics programs reported generated revenue greater than expenses, underscoring that athletics financial pressure is a national issue and not unique to Grambling State.
“The review showed three important things:
“First, Grambling Athletics reported $9.2 million in operating revenue and $14.3 million in operating expenses for FY2025, creating a revenue and expense gap of approximately $5.1 million.
“Second, the review identified accounting adjustments related to items such as salaries, severance payments, ticket sales, student-athlete aid, facilities rental fees, and other operating expenses. These types of adjustments are common during annual financial reviews. Grambling State made the necessary corrections as part of the process.
“Third, the review found no exceptions in several tested areas, including selected cash receipt procedures, major athletics disbursements, ticket safeguarding procedures, and procedures related to affiliated and outside organizations.
“College athletics is evolving rapidly. Across the country, universities are working to manage rising costs, NIL, revenue sharing, student-athlete support, and the imperative to remain competitive.
“Grambling State began addressing these realities before this annual review was completed. In 2025, the University engaged College Sports Solutions to conduct an external operational review of Athletics. That review found that Grambling Athletics was already generating revenue at a strong comparative level, with 42.7 percent of athletics expenses supported by departmental revenue. That placed Grambling at the 75th percentile of the SWAC, above the SWAC median of 30 percent, and seven percentage points above the 75th percentile of the peer group.
“The University has already started making improvements, including zero-based budgeting in Athletics, closer review of revenue opportunities, and continued evaluation of ticketing, sponsorships, multimedia rights, staffing, student-athlete support and operational controls.
“For generations, Grambling State Athletics has been a source of pride, possibility and national distinction. From championship teams to legendary coaches and student-athletes who carry the Grambling name around the world, athletics is deeply connected to the University’s identity and legacy. The University’s responsibility is to honor that legacy while building the financial model required to sustain it.
“Grambling State remains committed to fielding competitive programs, supporting student-athletes, engaging alumni and fans, and strengthening the business operations that allow athletics to thrive.”
Contact Doug at sbjdoug@gmail.com