Q: Does an independent group or organization that does not constitute a booster organization by name only (e.g., alumni association, foundation) need to have its athletically related financial activities included in the institution’s financial audit (i.e., tested by the auditor and reported to the institutional auditor)?

A: Any agency or group of individuals (two or more) that has as its principal purpose the generation of moneys, goods or services for or on behalf of an intercollegiate athletics program should be included in the annual agreed-upon procedures.

Q: Once affiliated and outside organizations (e.g., independent groups, affiliated foundations), such as those that do not fall under the purview of direct institutional oversight, are identified, how is their financial data to be included in the agreed-upon procedures?

A: Either the organization’s statements of revenues and expenses should be procured or, if audited independently of the institution, agreed-upon procedures and any reports to management related to the internal control structure need to be obtained and reviewed. Also, a schedule of expenses by the affiliated and/or outside organization for or on behalf of the institution’s athletics program should be obtained and reconciled with the revenues recorded in the athletics program’s accounting records.

Q: What are the criteria used in compiling the total dollars generated for or on behalf of an athletics program?

A: An institution must disclose in a footnote to the statement of athletics department revenues and expenses contributions from any outside source (not included as an agency, organization or group as indicated in the NCAA agreed-upon procedures in the section entitled “organization of intercollegiate athletics programs”) that constitutes more than 10 percent of all contributions received (e.g., contributions by corporate sponsors). The source from which such funds are received also shall be disclosed in a footnote to the statement of revenues and expenses.

Q: For an institution with a fiscal year-end which would preclude a timely report, how can an exception be granted to report on the most recent fiscal year that is completed?

A: The institution should contact the NCAA Administrative Services group for guidance.

For a complete list of Common Questions and Answers, please reference the FAQ document located on the NCAA Membership Financial Reporting System webpage within ncaa.org.

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