NCAA Agreed-Upon Procedures: What’s New in 2022?

NCAA Agreed-Upon Procedures: What’s New in 2022?

The National Collegiate Athletic Association (NCAA) has issued its 2022 Agreed-Upon Procedures guide, revised as of March 10, 2022. The guide continues to remain consistent with versions from previous years. There are some clarifications added and other minor modifications you should know about.

Changes to Category Definitions

• Category 1 – Added registration fees to the definition of ticket sales.
• Category 8 – Several sentences were added to the definition of contributions to reinforce that only contributions used in the reporting year should be reported.
• Category 12 – The category definition for NCAA distributions clarified that members should consult with conference offices on the amount of distributions to report in this category.
• Category 20 – Added (e.g., stipend) to types of other expenses related to attendance in the definition of athletic student aid.

Updated Introduction Section

A new NCAA constitution article (effective Aug. 1, 2022) requires all members to submit financial data annually through the Membership Financial Reporting System (FRS). Division II members now must submit data annually, though they still only need an agreed-upon procedures performed every three years. Division III members must also submit data annually but are now allowed two options: (1) submit annually with an agreed-upon procedures, or (2) submit EADA data into the FRS system with no additional procedures required.

Lack of Response to Changing Landscape

The procedures themselves remain unchanged again. All other modifications to the 2022 Agreed-Upon Procedures guide were grammatical corrections.

We find the consistency of this document over the past few years surprising given all of the changes occurring in the collegiate athletics landscape. Absent from the 2022 document:

• COVID-related expenditures are still not captured in new categories or additional procedures. This is unexpected, as many schools have had to intentionally track these expenses separately to comply with federal reporting guidelines attached to the stimulus funds received.
• Specific mention of other education-related benefits allowed under the Alston decision is not included in the definition of athletic student aid. It is unclear whether the addition of “stipends” to this definition was intended to point out that Alston payments are cost of attendance (and therefore should be excluded from revenue distribution equivalencies).

We anticipate the NCAA will add more clarity through their FAQs in response to these items. The James Moore Collegiate Athletics team will continue to perform inquiries of the NCAA regarding accounting treatment of any unusual issues you face. Sign up for our insights to stay informed.

You can download the NCAA’s complete 2022 Agreed-Upon Procedures guide here and learn more about James Moore’s NCAA AUP services and the team behind your team.

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