NCAA DIVISION III
FINANCIAL AID AUDIT TASK FORCE (ADDENDUM)
a. Audit Methodology. The task force reviewed an audit methodology proposal developed by the task force subcommittee and NCAA staff. The task force was generally supportive of the proposed methodology; however, several concerns were noted:
(1) A larger number of students and student-athletes may need to be included in the audit samples to more accurately examine financial aid packaging practices.
(2) Critical demographic information (e.g., race, test scores, grade-point averages) must be reported by institutions regarding their students and student-athletes.
(3) Current legislation may need to be amended to accommodate the impact of the proposed audit.
(4) The burden of annually auditing and responding to member institutions placed on the Division III Financial Aid and Awards Committee (FAAC) must be appropriate.
The task force agreed on additional areas of consensus:
· Every Division III institution should annually perform the audit (rather than just those randomly selected by the FAAC).
· All types of financial aid must be included in the audit, not just need-based institutional aid.
·
All freshman and transfer student-athletes on all teams
would be included in the audit sample with a cap of not more than 100
student-athletes per institution.
However, the task force agreed that such numerical limitations would not
be necessary if technology could be developed that would efficiently and
effectively allow institutions to transmit financial aid data to the NCAA
staff.
b. Reporting
Methodology. The task force
agreed that technology played a significant role in determining the way in
which the audit will be performed and reported. It agreed that the NCAA Compliance Assistant software (CAS)
should be explored as a mechanism to facilitate the collection and transfer of
financial aid data. The task force
noted the diverse financial aid data systems being used by the Division III
membership. However, the committee
noted that previously budgeted Division III funds may be accessed in the event
the CAS is unable to meet the needs of the audit. Given the time needed to develop and test such technology,
the task force began preliminary discussions about delaying the effective date
for the proposed audit until the 2004-05 academic year. Issues related to the submission of
legislation will be discussed during its July conference call.
c. Role
of the FAAC. The task force
noted that it is imperative that the FAAC be able to perform the audits and
respond to member institutions in a reasonable amount of time. Inasmuch as the FAAC may be confronted
with performing numerous audits in a given year, it may be necessary for the
FAAC to use its judgment in prioritizing its audit workload or increasing the
number of financial aid administrators on the committee. The FAAC would also be charged with
reevaluating the audit methodology after a predetermined period of time. The task force agreed that the FAAC
should review the proposed audit methodology at its June 10-11 meeting and
provide feedback to the task force at its next meeting.
d. Timeline. The task force agreed to continue
progressing according to its established timeline. However, the task force agreed to meet via conference call
in early July and to provide an update to the membership in the Division III
newsletter.
2002-03
February 20 In-person
meeting -- Indianapolis, Indiana.
April Conference call to discuss draft report for NCAA Division III Management and Presidents Council meetings.
April 15 Subcommittee conference call.
May 1-3 Regional Rules Seminar presentation -- Indianapolis, Indiana.
May 29-31 Regional
Rules Seminar presentation -- Atlanta, Georgia.
June 13-14 Division III commissioners meeting.
June 17-18 National Association of Collegiate Directors of Athletics discussion session.
July 9 Task force conference call.
July 22 National Association Student Financial Aid Administrators presentation.
July/August Task force report to Management Council and Presidents Council, including sponsorship of proposed legislation.
August through Work as necessary based on actions of Management
October Council/Presidents
Council.
November Amendments-to-amendments
drafted (as needed) chief executive officer communication.
January 2003 NCAA Convention discussion session and possible legislative vote.
Staff Liaisons: Dan Dutcher, Bridget Belgiovine, Mweni Ekpo, Eric Hartung, David Hill, Damani Leech