NCAA

1
NCAA Agreed-Upon Procedures Update Common Fin
dings
2
Statement of Revenue and Expenses

• SREs are incomplete and do not capture all
  Athletic Department accounts
  
• Outside organizations (e.g., athletic club, camp
  and cheerleader activities)
  
• Gifts received by development
• Gifts-in-kind from corporate sponsors
• Interest earned on endowment funds

3
Statement of Revenue and Expenses, continued

• Incorrect presentation of revenues and expenses
  
  
• Presented in the wrong categories
• Recognized in the wrong period (e.g.,
  inconsistent recognition of receivables and
  payables)
  
• Recorded using the wrong object code (e.g., game
  guarantees)
  
• General ledger does not agree to support or
  subledger (e.g., ticket sales)

4
Internal Control

• Policies and procedures are not followed or are
  non-existent in certain areas
  
• Cash handling and receivables monitoring
• Travel (e.g., documentation of pre-approval for
  travel with spouse not obtained or retained)
  
• Non-cash sponsorship recognition
• Purchasing approval (should be in accordance with
  Regents Rules and Regulations)

5
Internal Control, continued

• Policies and procedures are not followed or are
  non-existent in certain areas, continued
  
• Camp records maintenance
• Ticket sales (should include all
  revenue-generating sports)
  
• Outside organization identification
• Indirect cost allocation methodology

6
Internal Control, continued

• Reconciliations are not performed or are not
  current
  
• Gifts recorded by Athletics and those recorded by
  Development
  
• Ticket sales recorded in the general ledger with
  those recorded in the subledger
  
• Cash advances with supporting documentation
• Inadequate segregation of duties (mail opened by
  one staff instead of two)

7
Other Considerations

• Other financial information submitted to NCAA
  (EADA) should be consistent with information
  reported on SRE. Variances should be
  documented.
• Disclosures should be made regarding capital
  expenditures and significant donations. Consider
  additional disclosures for significant
  estimates.
• Someone besides preparer of SRE and footnotes
  should review these prior to delivery to us.
  Consider having Business Office review.

8
NCAA Agreed-Upon Procedures Update Conclusion
and Takeaways
9
New NCAA procedures guide sets forth new
requirements

• Revised SRE and footnote disclosures - Outside
  organizations should be included
  
• - Indirect costs should be allocated
• - Capital expenditures should be disclosed

10
New NCAA procedures guide sets forth new
requirements, continued

• New audit procedures
• More Prepared by Client (PBC) requests
• Change in timing of our procedures
• Earlier submission of report to institution
  presidents
  

11
Going Forward. . . .

• Read the new NCAA procedures guide
• Coordinate timing of interim and year-end audit
  procedures with us
  
• Read PBC schedule request and determine how to
  obtain information requested (e.g., indirect cost
  allocations capital expenditures outside
  organizations)
• Compare new SRE with prior year and determine
  changes required and how information will be
  gathered
  

12
Going Forward. . . .

• Draft footnotes early and have our office review
  them at interim
  
• Review common pitfalls and ensure these are
  addressed
  
• At year-end, compare financial information
  submitted to NCAA to ensure consistency with SRE.
  Document reasons for variances
  
• Call us with questions and concerns

13
NCAA Agreed-Upon Procedures Update Questions o
r Concerns?