Spurred in part by the success of the Warriors football program in 2006, the University of Hawai'i athletic department finished the 2006-2007 fiscal year with a $68,325 surplus — the second consecutive time the department has finished in the black under recently fired Athletics Director Herman Frazier.

The department also completed payments on $1 million in loans from the university, incurred in fiscal years 2002 through 2005.

The Warriors finished 11-3 in 2006.

Frazier, who was fired Tuesday, will receive a $15,000 bonus for achieving the financial benchmarks.

According to the report, "The Department's financial performance has improved in line with the Department's five-year fiscal plan, however, it's financial condition is still fragile."

The department still has an unrestricted net deficit of $4.3 million.

"As I've looked at (the report), clearly the athletic department has made strides, as our auditors noted, in improving the balance between revenues and expenditures," UH President David McClain said. "But, as we know in intercollegiate athletics, it's always a struggle. Very few programs are self-sustaining. Three-quarters of college athletics programs need some help from the institutions that they serve."

The report, audited by Accuity LLC, was submitted to the UH Board of Regents for approval. At its meeting yesterday, the board elected to defer approval until its audit committee can review the report.

After a net loss of $2,475,000 in 2003, Frazier's first year as athletics director, the department's financial condition has steadily improved. Last year, the department reported its first surplus ($7,483) in five years.

As in most athletic departments, the football program generated the most revenue for UH, clearing $403,773 after expenses.

The report only provided individual financial information for the football, men's basketball (-$660,867) and women's basketball (-$785,117) programs. All other sports programs were combined for a loss of $3,941,716.

During the executive session of yesterday's BOR meeting, regents discussed salary ranges for the head football coach and other coaching positions.

Last July, the regents approved an expanded salary range of $329,142 to $935,544 for the head football coach position. McClain is authorized to exceed the upper limit by 25 percent, inclusive of any bonuses or incentives.

McClain said he hopes to have a replacement for football head coach June Jones by next week, which would allow the program to host recruits as early as next weekend. Jones resigned Monday to become Southern Methodist head coach.

To expedite the process, McClain said UH will scrap the rigid formula of funding the new coach's salary with a 50-50 split of public and private monies in favor of "an indeterminate mix of university general funds, athletic department revolving funds, and private donations."

McClain acknowledged the new coach will likely be hired before the BOR has a chance to finalize Frazier's termination and the appointment of Carl Clapp as acting athletic director.

Reach Michael Tsai at mtsai@honoluluadvertiser.com.