The National Collegiate Athletic Association (NCAA) has issued its 2020 Agreed-Upon Procedures guide, and it remains relatively intact compared to the 2019 version. However, we have noticed more changes this year compared to the past few years. While some changes are clarifications and other minor modifications, there are some new items you should know about.
Changes to Category Definitions
The NCAA added clarity to the definitions for certain categories:
- Guarantees: – Categories 7 and 21 for guarantees should include payments received or made due to game cancellations.
- Bowls – Categories 13A, 19, 41, and 41A related to bowl revenues or expenses have been clarified to only be applicable for football.
- Compensation and Benefits – Categories 22-25 for coaching and support staff/admin salaries, benefits and bonuses should include non-taxable benefits given to employees. Additionally, categories 22 and 24 should include tuition exemptions given to employees.
Changes to Procedures
- Athletic Student Aid – Procedure 31 clarifies that equivalences may include other expenses related to attendance (other cost of attendance). However, these expenses are not allowed to be included for revenue distribution purposes. This clarity should address errors we find in systems that understate their revenue distribution equivalency.
- Sport Sponsorship – The additional minimum procedures (for 2019-2020 only) clarify that sports an institution expected to sponsor in Spring 2020, but could not due to the COVID-19 global pandemic, still qualify as a sponsored sport for revenue distribution purposes. This single-year exception is consistent with the intent of the Division I Council Coordination Committee’s decision on March 25, 2020, to grant an extraordinary blanket waiver in light of the impact of COVID-19.
All other edits to the additional minimum procedures section of the agreed-upon procedures apply only to wording. The procedures themselves remain unchanged.
It’s best to contact your collegiate athletics CPA to make sure you fully understand (and are compliant with) this year’s changes. You can also download the NCAA’s complete 2020 agreed-upon procedures guide here and learn more about James Moore’s NCAA AUP services and experience.
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