The purpose of this study is to determine whether the financial reporting standards used in Division I college athletics are comparable, consistent, and complete. Additionally, the two reporting standards will be compared to the generally accepted accounting principles (GAAP) conceptual framework. Through surveys of Division I athletic departments across the country, interviews and financial databases, the study aims to identify problems with the EADA report and the NCAA report while providing a solution that complements the conceptual framework of GAAP.
INTRODUCTION
One respondent stated that the purpose is "to meet reporting requirements" while another respondent stated that the purpose of financial statements is "for budgetary purposes". Fifty percent of respondents stated that the financial statements of the athletic departments for which he or she works are available online (Appendix A). The next level of the conceptual framework "provides conceptual building blocks that explain the qualitative characteristics of accounting information and define the elements of financial statements" (FASB 2010).
When information is incomplete, users of financial statements are unable to make accurate assessments of the data. When information is comparable, users and preparers of financial statements are able to do more. The following four chapters will provide an analysis of the financial standards along with the views of athletic departments and journalists from around the country.
Selected results and analysis of the survey sent to 103 athletic departments in the Division I Football Subdivision are contained in Chapter 4. The chapter will contain the financial reporting guidelines and standards of the EADA report and the NCAA report along with comparisons and analysis of the results obtained from the.
HYPOTHESIS
METHODOLOGY
According to Question 6, athletic departments differ in how each reports athletics donations and expenses. In the first reading, the financial statements of the alma mater and the rival were comparable and complete. However, financial status does not necessarily reflect the performance of athletic teams on the field.
The Department of Education also requires that the total revenues of the athletic department must be greater than or equal to the total expenditures of the athletic department (Department of Education 2012b). In question 12 of the survey (Appendix A), one respondent claims that the EADA report does not provide “meaningful information.” Critics are not alone in facing the EADA report; Several critics of the NCAA report also exist.
In question 11 of the survey (Appendix A), one respondent states that the information in the NCAA report "couldn't be more useless." According to question 11 of the survey (Appendix A), one respondent states that the NCAA report "is an accurate reporting of departmental revenues and expenditures." Therefore, the EADA report is not comparable as it leaves out crucial data that affects the financial position of the athletic department.
Furthermore, the lack of indirect support and revenue from the athletics foundation creates an even greater gap between the EADA report and the actual financial position of the athletics department. Next, the EADA report and the NCAA report do not faithfully reflect the current financial situation of athletic departments. The handling of matters such as donations from athletic foundations and reporting of electricity costs is at the discretion of the athletic department.
Therefore, the EADA report and the NCAA report are inconsistent with the conceptual framework of GAAP. The NCAA report is not comparable, consistent and complete, and both reports are inconsistent with the conceptual framework of GAAP. The findings may support the intent of the EADA report, or the findings may provide another reason to consolidate the EADA report and the NCAA report.
Next, one can do a study of the grants given to the athletic department and create a formula based on the actual need in the athletic department. None of the non-cash transactions are reflected in data entered on the NCAA's EADA website. Shell of the information is the same, but the benefits are included in the NCAA study and not the DOE.
Use consolidated subledger in Oracle with all athletic accounts mapped to match NCAA AUP definitions.
SURVEY RESULTS AND ANALYSIS
REPORTS SUBMITTED BY ATHLETICS DEPARTMENTS
In addition to the EADA report, each institution must submit financial data to the National Collegiate Athletic Association in accordance with Constitution 3.2.4.16 of. Additionally, an independent auditor must use agreed-upon procedures to verify the athletic department's financial records, and the president or chancellor must review the records prior to an online submission to the NCAA on January 15 of each year ( NCAA Academic Affairs and Membership Staff 2012; National Collegiate Athletic Association 2010). The EADA report defines income and expenditure as any money "attributable to the institution's intercollegiate sporting activities" (Department of Education 2012b).
While the EADA report takes a limited approach to financial data, the NCAA report takes a broad approach. The Department of Education notes that the financial data, although similar, do not produce similar results as the calculations and definitions differ between the NCAA report and the EADA report (Department of Education 2012b). In addition to both of these stipulations, the athletic department is not allowed to have an athletic foundation, as the EADA report essentially wants the revenue and expenses of the athletic department only.
Next, the study determines whether the EADA report is consistent between each financial year for one school. However, in fiscal year 2011, School B began reporting all contributions from the athletic foundation, which significantly increased the athletic department's income. School D, in contrast to School A, School B and School C, reported all of the athletic foundation contributions.
In addition, the study compares the guidelines used in the EADA report and the NCAA report with the GAAP conceptual framework. First, both the EADA report and the NCAA report omit important aspects of the financial statements. According to the NCAA report, schools can report all athletic foundation support, some, or none.
Furthermore, the EADA report is not without errors, as Upton and Brady (2005) have shown. As shown in Figure 1 and Figure 2, the EADA report and the NCAA report do not provide comparability between schools. 18 of the survey (Appendix A), the athletic department wants "more specific guidance." Additionally, one respondent states that "reporting should be well defined and should include apples-to-apples comparisons in accordance with generally accepted accounting principles." The consensus from the survey responses is that the standardized guidelines combine the needs of the EADA report and the NCAA report and create a new report that can offer comparisons between schools.
CONCLUSION
First, the study does not touch on the general fund spending line of the NCAA report. To provide a complete financial picture of the Athletics Division at any given time. Present fairly, in all material respects, the entity's financial position in accordance with US GAAP.
To assure stakeholders (donors, lenders, the NCAA, etc.) that the statements are accurate. To provide an accurate snapshot of the financial position of our athletics department. NCAA has agreed upon procedures as a starting point with adjustments based on university and state needs. They are part of the university system and are therefore not included as 'operations', but are included in the annual EADA report.
We rely on university accounts to handle all facility depreciation expenses, as these expenses are not recorded on the books of the Division of Athletics. Explain the process you use to create and submit financial information for the NCAA investigation. From these methods and reports.. we take our financial information and put it into the format requested by the NCAA/Department of.
The financial data is taken from our accounting software and the information is compiled according to the NCAA survey. A detailed review of all accounts and transactions and their classification into the appropriate category as determined by the NCAA. Categorize income and expenses according to NCAA definitions and enter them on the NCAA website for reporting.
A set of Excel worksheets provided by the NCAA has EADA tabs with formulas that send the NCAA information to the EADA format. I also need to remove income and expenses related to debt payments since the EADA instructions say to exclude but the NCAA wants us to include those expenses in the facilities category. None of the non-cash transactions are reflected on data entered on the DOE's EADA website.
Again, NCAA and EADA reports are generally not used internally to manage our business. The NCAA financial statement and the EADA Department of Education must be the same!~!!!. and at the same time, which is the 15th of January, so that the external audits required by AKKSH can be completed.
