7 Key Issues to Watch For in NCAA and EADA Reporting

The NCAA and the Equity in Athletics Disclosure Act (EADA) require institutions to submit detailed annual reports on their athletics programs finances and operations.

But these reports are often plagued by errors and inconsistencies. This can have significant implications on the funding athletics programs receive and impact public perception and media scrutiny of the programs finances. By understanding the key issues to monitor to remain compliant, organizations can minimize the chances their university submits erroneous reports that could result in significant financial consequences.

In this overview, we’ll explore how these issues typically present themselves and highlight the key factors your team should watch for when working to prepare annual NCAA and EADA filings. We’ll also discuss how embracing a technologically-driven approach — led by experienced advisors such as the James Moore Collegiate Athletics team — can put your organization on a path toward automating the reporting process and reducing the potential for errors.

Issue 1: Scholarship Reporting Errors

Throughout the NCAA and EADA reporting processes, one of the most common areas for errors to appear is in the reporting of athletic scholarships. Universities must report scholarship equivalency data for each student-athlete, reporting these as percentages of total financial aid. The NCAA report also requires a unique calculation of “revenue distribution equivalencies,” which are directly utilized to calculate a portion of each program’s annual distribution from the NCAA.

Errors frequently occur here because of differences in the calculation methods used for compliance reporting and NCAA financial reporting systems. If left unchecked, these errors may affect the program's revenue distribution from the NCAA.

Issue 2: Contribution Recognition and Classification

Capital contributions from donors can be a significant source of revenue for athletic programs. However, errors can arise in timing when contributions are recognized and how they are classified.

According to NCAA guidelines, only contributions received by the athletics program and used in the same fiscal year should be reported. So let’s say an athletics program receives a major contribution but does not utilize the funds until the following year. That contribution would need to be reported as revenue in the year it was used, not the year it was received.

Inconsistencies in classifying certain revenue sources, such as sweepstakes tickets or per-seat contributions, can also lead to reporting discrepancies. For instance, if a school classifies per-seat contributions as ticket sales revenue rather than contributions, it could result in an underreporting of contribution revenue for both the NCAA and EADA reports.

Issue 3: Non-Cash and In-Kind Revenue

Reporting non-cash and in-kind revenue (such as equipment provided by sponsors) can be challenging. Institutions must ensure that both the revenue and corresponding expenses are accurately captured in all reporting.

For example, if a school receives a significant amount of equipment from a sponsor but fails to record the value as both revenue and expense, the NCAA report might understate the organization’s size.

Similarly, the EADA requires reporting revenues from in-kind services included in the athletics budget. So any discrepancies in this area could impact EADA compliance.

Issue 4: Student Fee Allocation

Student fees collected on a per-credit or per-semester basis are often a significant source of revenue for athletics programs. The university calculates these fees and distributes portions to various university programs, including the athletics department.

Athletics departments are not typically involved in this process. They only oversee the use of the funds once they receive them. As such, staff often aren’t familiar with the specific methodology used in calculation and distribution.

During the agreed-upon-procedures process, auditors are required to reconcile the student fee allocation by recalculating it based on the university’s enrollment and credit hour statistics and fee structure from the previous year. If discrepancies are discovered, they must be corrected.

If the university incorrectly allocates funding, it has implications not only at the institution level — for example, the athletics program being underfunded — but also could result in significant revenue discrepancies on the NCAA and EADA reports.

Proactively understanding the calculation methodologies and reconciling funding can help prevent such issues.

Issue 5: Personnel Allocation and FTE Calculations

When allocating personnel costs across multiple sports, errors can occur in the calculation of full-time equivalents (FTEs). Double-counting or miscalculating FTEs can lead to inaccurate financial reports for both the NCAA and EADA.

For example, if a head coach oversees both the men's and women's tennis programs, the institution must properly calculate and report the FTE allocation for this position across the two sports. If they miscalculate and incorrectly report the head coach as two separate FTEs, they risk noncompliance.

The EADA, in particular, requires reporting personnel FTEs for each sport as well as for the entire athletics program, making accurate calculations essential for compliance.

Issue 6: Variance Analysis and Narrative Explanations

If there are significant variances in revenue and expense categories compared to previous years, universities must provide the NCAA narrative explanations for them. (While not explicitly required for the EADA, large variances in data may still prompt questions during reviews.)

Proactively monitoring and analyzing these variances can help identify and correct issues early. This prevents reporting errors and helps maintain compliance with both reporting systems.

Issue 7: Affiliated Organization Activity

The NCAA requires institutions to capture any payments or transactions made by affiliated organizations on behalf of the athletics department (for example, a booster club that uses its funds to supplement the salary of a coach).

These "on behalf" activities must be included in the institution's financial reports. But because they can easily be missed or reported inconsistently, they can lead to errors in the NCAA reports.

University athletics departments must have robust processes in place to identify, track and accurately report any such payments or transactions made on their behalf. Coordination between the department and its affiliated organizations is crucial to ensure completeness and consistency in NCAA reporting.

The EADA reporting requirements do not explicitly call out affiliated organization activities. However, any discrepancies in this area could still impact the overall financial data reported to EADA if significant transactions are missed.

Streamline Your NCAA and EADA Reporting Process with James Moore

From scholarship miscalculations to mishandled affiliated organization activities, even minor discrepancies can significantly impact revenue distribution, compliance standing and public transparency in NCAA and EADA reporting.

Don't allow preventable mistakes to undermine your athletics program's financial integrity. Proactively addressing these issues will streamline reporting while promoting NCAA and EADA compliance.

James Moore’s Collegiate Athletics Advisory Services can guide you through these reporting challenges. An experienced advisor can assess your current processes, identify risks, and implement tailored automation solutions to improve data collection and reporting.

To learn more about how James Moore’s automation solutions can improve your reporting process and help avoid reporting errors, contact an advisor today.

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a James Moore professional. James Moore will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.