Industry Insights

NCAA Changes to Division I Revenue Distribution

November 2016
Author:  Daniel Waninger

Daniel Waninger

Director

Audit

Not-for-Profit & Government

201 N. Illinois Street, Suite 700
P.O. Box 44998
Indianapolis, IN 46244-0998 (46204)

Indianapolis
317.383.4000

On September 15, 2016, the NCAA issued two updates for Division I institutions on cost of attendance and grants-in-aid revenue distribution calculation and a change in the submission process of revenue distribution data.

The cost of attendance and grants-in-aid revenue distribution calculation update clarifies how member institutions should determine the number of athletic scholarship equivalencies to report for grants-in-aid revenue distribution. Although member institutions may provide aid up to a student’s cost of attendance, only tuition, fees, room and board and required course-related books should be included in determining the number of athletic scholarship equivalencies provided.

Not Included in Revenue Distribution:

  • Books that aren’t course-related
  • Stipend for cost of attendance
  • Laptop and computer equipment
  • Supplies
  • Transportation
  • Miscellaneous personal expenses
  • Support provided through Student Assistance Fund distribution dollars

Included in Revenue Distribution:

  • Tuition
  • Fees
  • Room and board
  • Required course-related books

Recent NCAA legislation, effective for the 2015 through 2016 academic year, allows aid up to the student athlete’s cost of attendance. It’s important that member institutions and independent accountants understand the types of aid eligible for the revenue distribution calculation to help with accurate reporting to the NCAA. Any aid that isn’t characterized as tuition, fees, room and board or required course-related books would be considered other expenses related to attendance and is specifically excluded from revenue distribution calculations. Further details on this update can be found here.

The other update notifies member institutions that the grants-in-aid revenue distribution equivalency and sports sponsorship data submissions are now included in the NCAA Membership Financial Reporting System (FRS) and will be due January 17, 2017, at 5 p.m. Eastern time. Therefore, information entered into FRS will drive revenue distributions to member institutions for the first time. Historically, this information was submitted through the NCAA Revenue Distribution System and due May 31. In addition, this information is now subject to verification from independent accountants through the 2016 minimum agreed-upon procedures requirements. Further details on this update can be found within the instructions and help screens in FRS. The 2016 Agreed-Upon Procedures manual can be found here.

Contact your BKD advisor for more information.

BKD LinkedIn BKD Twitter BKD Youtube BKD Google Plus