Attachment 3.pdf

WINTHROP UNIVERSITY

INTERCOLLEGIATE ATHLETICS PROGRAM

ROCK HILL, SOUTH CAROLINA

Independent Accountants’ Report On Applying Agreed-Upon Procedures

June 30, 2023

INTERCOLLEGIATE ATHLETICS PROGRAM

For the Year Ended June 30, 2023

Table of Contents

Independent Accountants’ Report On Applying Agreed-Upon Procedures 1-10

Statement of Revenues, Expenditures, and Transfers 11

Notes to the Statement 12-13

Post Office Box 848, 1225 West Floyd Baker Boulevard, Gaffney, SC 29342-0848, (864) 489-7121 Fax (864) 489-7123 Post Office Box 161300, 145 Rogers Commerce Boulevard, Boiling Springs, SC 29316-1300, (864) 541-0218 Fax (864) 541-0221

Internet Address: www.cbkpa.com

Members Albert B. Cline, CPA (1923-2013) American Institute of CPAS Raymond H. Brandt, CPA

Private Companies Practice Section Ben D. Kochenower, CPA, CVA, CICA, CGMA Timothy S. Blake, CPA/PFS South Carolina Association of CPAS Brandon A. Blake, CPA Laura S. Arango, CPA Governmental Audit Quality Center

Independent Accountants’ Report On Applying Agreed-Upon Procedures

Dr. Edward A. Serna, President Winthrop University 114 Tillman Hall Rock Hill, South Carolina 29733

We have audited the financial statements of Winthrop University as of and for the year ended June 30, 2023, and have issued our unmodified opinion thereon under the date of September 30, 2023. At your request, we have also performed the procedures described below which were agreed to by the Board of Trustees and management of Winthrop University, solely to assist these users in evaluating whether the accompanying Statement of Revenues, Expenditures and Transfers of Winthrop University is in compliance with the National Collegiate Athletic Association (“NCAA”) Bylaw 20.2.4.17 for the fiscal year ended June 30, 2023. The Board of Trustees and management of Winthrop University has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The Statement of Revenues, Expenditures and Transfers of Winthrop University Intercollegiate Athletics Program and related note disclosures was not audited or reviewed by us. Management is responsible for Winthrop University's compliance with the requirements of NCAA Bylaw 20.2.4.17, the Intercollegiate Athletics Program's financial records, internal controls and compliance with applicable laws, rules and regulations. This engagement to apply agreed-upon procedures was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

The procedures and associated findings are as follows:

Procedures Related to the Statement of Revenues, Expenditures and Transfers

1. We obtained the Statement of Revenues, Expenditures and Transfers of Winthrop University

Intercollegiate Athletics Program and related note disclosures for the year ended June 30, 2023, as prepared by accounting management of the University and shown on page 11 in this report. We recalculated the mathematical accuracy of the amounts on the statement, traced the individual line item amounts from the statement to management’s worksheets and compared the amounts on management’s worksheets to the accounts in the University’s general ledger.

CLINE BRANDT KOCHENOWER

& CO., P.A.

Certified Public Accountants

Established 1950

Intercollegiate Athletics Program

2. We compared each major revenue and expense account in the Statement of Revenues, Expenditures and Transfers to prior period amounts. We obtained and documented our understanding of any significant variations. If a specific reporting category total (specific line items of revenues and expenses) is less than 4.0% of the total revenues or total expenses, no procedures were performed for that specific category.

• We compared each major revenue and expense account over 10% of the total revenues and total expenditures to prior period amounts. We obtained and documented our understanding of any variations over 10%. We obtained the following explanations from the University’s athletic management regarding the reasons for the variances.

2022 % Change Indirect Institutional Support $ 1,583,458 $ 1,269,174 24.76%

Indirect Institutional Support Increased (24.76%)

The increase was due to overall higher athletic expenses, facilities costs, and an increase in the athletics budget.

We found no exceptions as a result of this procedure.

3. We inquired of management the specific elements of the University’s internal control unique to the Intercollegiate Athletics Program’s accounting system and financial reporting.

Receipts

• We compared and agreed a sample of operating revenue receipts obtained from the revenues general ledger to adequate supporting documentation. The sample of the individual receipts selected for comparison is as follows:

Ref. No. Descriptions Date Amount F0025106 MP UE Athletics 7/12/2022 1,000.00 DP001332 sponsorship Tim Sturgis 9/13/2022 1,000.00 DP001335 Baseball Game Tickets Sold in Febru 9/23/2022 2,777.00 DP001335 Baseball Season Tickets Sold in Jan 9/23/2022 520.00 DP001336 WBB Season Tickets 9/28/2022 50.00 DP001339 MBB Season Tickets 10/11/2022 1,905.00 DP001340 VB vs Gardner Webb 10/14/2022 424.00 DP001344 Follett Sept 2022 Royalty pymt 10/31/2022 182.74 DP001345 MBB Season Tickets 11/3/2022 230.00 DP001345 WBB Season Tickets 11/3/2022 100.00 DP001350 USC game guarantee Aug 27 2022 11/22/2022 7,500.00 DP001354 MBB vs SC State 12/8/2022 30.00 DP001360 WBB vs Campbell 1/19/2023 185.00 DP001360 Sponsorship from Penn Station EFP S 1/19/2023 2,500.00 DP001368 Baseball season tickets 2/10/2023 140.00 DP001369 MBB vs Campbell early sales 2/15/2023 66.00 DP001373 King of Fire Disc Golf Sodexo Ck163 2/28/2023 645.70 DP001379 baseball indv 3/22/2023 690.00 DP001380 Entry fees for WU Adidas Invitation 3/28/2023 4,470.00 DP001393 Big South 5/24/2023 810.00

DP001395 MBA ASHEVILLE 6/1/2023 62.00

DP001396 GIK Comporium 1 of 2 6/6/2023 18,000.00 DP001399 golf 6/15/2023 2,100.00 DP001401 Womens Track 6/22/2023 6,000.00 J0042300 KT EOY 23 GIK Lees Famous Chicken 6/30/2023 4,000.00

REVENUES

Student Fees

1. We compared and agreed the student fees reported by the University in the statement for the reporting period to student enrollments during the same reporting period and recalculate the totals.

2. We obtained and documented our understanding of the University’s methodology for allocating student fees to intercollegiate athletics programs.

3. We recalculated the totals of the University’s methodology for supporting that they are able to count each sport. We tied the calculation to supporting documentation

Direct Institutional Support

1. We compared the direct institutional support recorded by the University during the reporting period with the institutional supporting budget transfers documentation and other corroborative supporting documentation and recalculated the totals.

Indirect Institutional Support

1. We compared the indirect institutional support recorded by the University during the reporting period with expense payments, cost allocation detail and other corroborative supporting documentation and recalculated the totals.

Distribution

1. We compared the amounts recorded in the revenue and expense reported to general ledger detail for NCAA distributions and other corroborative supporting documents and recalculated totals.

EXPENSES

Athletic Student Aid

1. We obtained a listing from the University detailing institutional student aid recipients for the year.

We selected a sample of 30 students (10% of the total student-athletes).

2. We obtained the individual student account detail for each selection and compared the total aid allocated from the related aid award letter to the student’s account detail.

3. We performed a check of each student selected to ensure their information was reported accurately in the NCAA's Compliance Assistant (CA) software using the following criteria:

a. The equivalency value for each student-athlete in all sports, including head-count sports, needs to be converted to a full-time equivalency value. The full-time equivalency value is calculated using the athletic grant amount reported on the Calculation of Revenue Distribution Equivalencies Report (CRDE) from CA as the numerator and the full grant amount which is the total cost for tuition, fees, books, room and board for an academic year as the denominator.

b. Grants-in-aid is calculated by using the revenue distribution equivalencies by sport and in aggregate.

c. Other expenses related to attendance should not be included in the grants-in-aid revenue distribution equivalencies.

d. Full grant amount should be entered as full year of tuition, not a semester or quarter.

e. Student-athletes are to be counted once and should not receive a revenue distribution equivalency greater than 1.00.

f. Athletic grants are valid for revenue distribution purposes only in sports in which the NCAA conducts championship competition, emerging sports for women and bowl subdivision football.

g. Grants-in-aid are valid for revenue distribution purposes in NCAA sports that do not meet the minimum contest and participants’ requirement of Bylaw 20.10.6.3.

h. Institutions providing grants to student-athletes listed on the CRDE as “Exhausted Eligibility

(fifth year) or “Medical” receive credit in the grants-in-aid component.

i. The athletic aid equivalency cannot exceed maximum equivalency limits. However, the total revenue distribution equivalency can exceed minimum equivalency limits due to exhausted eligibility and medical equivalencies (Bylaw 15.5.3.1).

j. If a sport is discontinued and the athletic grant(s) are still being honored by the institution, the grant(s) are included in student athlete aid for revenue distribution purposes.

k. All equivalency calculations should be rounded to two decimal places.

l. If a selected student received a PELL Grant, we verified that the student’s grant was not included in the calculation of equivalencies or the total dollar amount of student athletic and expense for the institution.

m. If a selected student received a PELL Grant, we verified that the student’s grant was included in the total number of and total value of Pell Grants reported for Revenue Distribution purposes in the NCAA Membership Financial Reporting System.

EXPENSES, continued

4. We recalculated the totals for each sport and overall.

We found no exceptions as a result of these procedures.

Coaching Salaries, Benefits, and Bonuses Paid by the University and Related Entities

1. We obtained and inspected a listing of coaches employed by the University and related entities during the reporting period. We selected a sample of coaches' contracts from the listing. We ensured that our sample includes coaches’ from men's and women's basketball.

2. We compared and agreed the financial terms and conditions of each selection to the related coaching salaries, benefits, and bonuses recorded by the University and related entities in the statement during the reporting period.

3. We obtained and inspected payroll summary registers for the reporting year for each selection. We compared and agreed payroll summary registers from the reporting period to the related coaching salaries, benefits and bonuses paid by the University and related entities expense recorded by the University in the statement during the reporting period.

4. We compared and agreed the totals recorded to any employment contracts executed for the sample selected and we recalculated the totals.

Support Staff/Administrative Salaries, Benefits, and Bonuses Paid by the University and Related Entities

1. We obtained a listing of support staff/administrative salaries, benefits and bonuses paid by the

University and related entities for the reporting period. From the listing, we selected a sample of support staff/administrative personnel.

2. We obtained and inspected reporting period payroll summary registers for each selection. We compared and agreed the related payroll summary registers to the related support staff administrative other compensation and benefits expense recorded by the University in the statement during the reporting period and we recalculated the totals.

Disbursements

1. We obtained the general ledger accounts for recruiting expense, team travel expense, equipment, uniform and supplies, game expense, spirit group expense, direct overhead and administrative expenses, medical expense, medical insurance, and other operating expense. We compared the total expense reported to the statement.

2. We selected a sample of transactions (see below) to validate the existence of the transactions and the accuracy of recording and recalculated the totals.

3. We obtained and documented our understanding of the University’s team travel policies. We compared the existing University and NCAA related policies to determine if they were in agreement

4. For the selected expenses, we obtained the related disbursement package to determine the items required by University’s procurement policy were included and that the expense had been authorized in accordance with the University’s policy.

The sample of the individual disbursement selected for testing is as follows:

Ref. No. Description Date Amount I2300330 Gearhart, Heather Jannee'. 7/26/2022 85.76 I2300394 Rack, Anthony James. 8/1/2022 91.14 I2300446 Agile Sports Technologies 8/2/2022 4,815.00 I2300465 Ridenhour, Daniel P. 8/2/2022 340.00 I2301113 Adidas America Inc 8/29/2022 206.71 I2301583 Henry Schein Inc 9/15/2022 303.18 I2301661 Adidas America Inc 9/19/2022 125.92 I2301777 Porterfield, Ashley Symone. 9/22/2022 750.00 I2301990 Adidas America Inc 9/29/2022 862.94

I2302743 STI LLC 11/2/2022 1,000.00

I2302964 Southpaw Screenprint & Embroidery 11/10/2022 32.50 I2303269 DVSport Inc 11/18/2022 5,644.45 I2303754 Academy Bus LLC 12/5/2022 874.00 I2304079 Adidas America Inc 12/18/2022 0.01 I2304519 Barnes, Zane Christian. 1/12/2023 100.42 J0041211 JTB Post Auto Comp Col Liab InsFY23 1/31/2023 667.38 J0041270 JS Print Service Charges Jan 2023 2/7/2023 2.03 I2305204 Hill, William Austin. 2/8/2023 263.19 I2305363 Oliver Eye Associates 2/14/2023 584.00 I2305411 Adidas America Inc 2/15/2023 605.37 I2305529 A Plus Officials LLC 2/22/2023 24,875.00 I2305809 McGinnis, Keith D. 3/4/2023 36.00 I2305918 Ridenhour, Daniel P. 3/9/2023 441.81 I2307189 Hill, Mitchell Kaleb. 4/21/2023 300.00 I2307355 Duthie, Jessica K. 4/27/2023 12.00

Team Travel

1. We obtained documentation of the University’s team travel policies.

2. We compared and agreed the existing institutional- and NCAA-related policies.

3. We obtained the general ledger detail and compared to the total expenses reported and recalculated the totals.

Sports Equipment, Uniforms and Supplies

1. We obtained the general ledger detail and compared it to the expenses reports. We selected a sample of transactions to validate the existence of transactions and the accuracy of recording, and recalculated totals.

Direct Overhead and Administrative Expense

1. We obtained the general ledger detail and compared it to the total expense reported. We selected a sample of transactions to validate existence of transactions and accuracy of recording and recalculated totals.

Indirect Institutional Support

1. We performed the procedures related to the Indirect Institutional Support with the revenue section- Indirect Institutional Support.

Outside Organizations

1. We obtained from management a list of all outside organizations not under the University’s accounting control that have as its principal or one of its principal purposes, as generating resources for or on behalf of the University’s Intercollegiate Athletics Program or the promotion of the program. We obtained confirmation from the outside organization.

2. We compared the amount received from this outside organization to the amount recorded in the general ledger and on the statement.

ADDITIONAL MINIMUM AGREED-UPON PROCEDURES

In order for NCAA to place reliance on the financial reporting for NCAA distribution purposes, we performed the following procedures:

1. For Grants-in-Aid: We compared the sports sponsored reported in the NCAA membership Financial Reporting System to the Calculation of Revenue Distribution Equivalencies Report (CRDE) from Compliance Assistance (CA) or equivalent supporting equivalency calculation from the institution.

The NCAA membership Financial Reporting System populated the sports from the NCAA Membership Database as they are reported by the institution. If there is a discrepancy in the sports sponsored between the NCAA Membership Financial Reporting System and the CRDE or equivalent supporting equivalency calculation, we would inquire about the discrepancy and report the justification on the report. No discrepancies were noted.

We compared current year Grant-in-Aid revenue distribution equivalencies to prior year reported equivalencies per the Membership Financial Report submission. We inquired and documented an explanation for any variance greater than +/- 4%.

2. For Sport Sponsorship: We obtained the Institution’s Sport Sponsorship and Demographics Form Report for the reporting year. We validated that the countable sports reported by the institution meet the minimum requirements set forth by Law 20.10.6.3 for the number of contests and the number of participants in each contest that is counted toward meeting the minimum contest requirement. Post season contests are not countable toward the contest requirements. Once countable sports were validated, we ensured that the institution has properly reported these sports as countable for revenue distribution purposes within the NCAA Membership Reporting System. If applicable, any discrepancies were resolved within the NCAA Membership Financial Reporting System prior to the report being submitted to the NCAA.

We compared current year number of Sports Sponsored to prior year reported total per the Membership Financial Report submission. No variances were noted.

3. For Pell Grants: We agreed the total number of Division I student-athletes who, during the academic year, received a Pell Grant award and the total value of these Pell Grants reported in the NCAA Membership Financial Reporting System to a report, generated out of the institutions financial aid records, of all student-athletes Pell Grants.

We compared current year Pell Grants total to prior year reported total per the Membership Financial Report submission. There were no variances greater than +/- 20 grants.

We were engaged by Winthrop University to perform this agreed-upon procedures (“AUP”) engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants.

We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion on compliance with NCAA Bylaw 20.2.4.17 or the expression of an opinion on The Statement of Revenues, Expenditures and Transfers of the Intercollegiate Athletics Program of Winthrop University for the year ended June 30, 2023, and, furthermore, we were not engaged to express an opinion on the effectiveness of the internal controls over compliance with the laws, rules and regulations.

Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures;

other matters might have come to our attention that would have been reported to you.

We are required to be independent of Winthrop University and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the Board of Trustees and management of Winthrop University and is not intended to be and should not be used by anyone other than these specified parties.

January 15, 2024 Gaffney, SC

Women's Other Nonprogram REVENUES Basketball Sports Specific

Ticket Sales $ 69,161 3,212 38,158 3,332 $ 113,863 Direct State or Other Government Support - - - - - Student Fees 1,086,825 656,617 2,753,028 1,983,646 6,480,115 Direct Institutional Support 307,424 275,798 1,418,124 137,583 2,138,928 Less-Transfers to Institution - - - - - Indirect Institutional Support 259,298 141,586 590,825 591,749 1,583,458 Guarantees 244,000 44,000 26,310 - 314,310 Contributions 43,617 4,174 112,413 89,677 249,880 In-Kind - - - 309,000 309,000 Compensation and Benefits Provided by a Third Party - - - - - Media Rights - - - - - NCAA Distributions - - - 536,713 536,713 Conference Distributions - - - - -

Program, Novelty, Parking, and Concession Sales - - - 8,350 8,350 Royalties, Licensing, Advertisements and Sponsorships - - - 280,985 280,985 Sports Camp Revenues - - - - - Athletics Restricted Endowment and Investment Income - - - - - Other Operating Revenue - - 18,396 30,894 49,290 Bowl Revenues - - - - -

Total Revenues $ 2,010,325 1,125,386 4,957,253 3,971,929 $ 12,064,892

Women's Other Nonprogram EXPENDITURES Basketball Sports Specific

Athletic Student Aid $ 504,325 496,155 2,197,486 147,685 3,345,651 Guarantees 37,500 1,500 - - 39,000 Coaching Salaries, Benefits, and Bonuses Paid by the University and Related Entities 754,950 476,696 1,614,312 - 2,845,958 Coaching Other Compensation and Benefits Paid by a Third Party - - - - - Support Staff/Administrative Other Compensation and Benefits Paid by the University and Related Entities - - - 1,599,848 1,599,848 Support Staff/Administrative Other Compensation and Benefits Paid by a Third Party - - - - - Severance Payments - - - - - Recruiting 41,416 23,798 90,743 2,508 158,465 Team Travel 275,072 95,843 596,825 2,044 969,784 Sports Equipment, Uniforms and Supplies 45,479 31,547 245,991 194,792 517,809 Game Expenses 55,175 30,170 91,400 77,632 254,377 Fund Raising, Marketing and Promotion - - - 111,629 111,629 Sports Camp Expenses - - - - - Spirit Groups - - - - - Athletic Facilities Debt Services, Lease and Rental Fee - - - - - Direct Overhead and Administrative Expenses 49,046 20,060 197,244 364,396 630,746 Indirect Institutional Support 259,298 141,586 1,138,418 44,156 1,583,458 Medical Expenses and Medical Insurance 166 786 168 256,739 257,859 Membership and Dues 4,196 720 17,581 35,630 58,127 Student-Athlete Meals (non-travel) 16,082 25,074 28,018 6,575 75,749 Other Operating Expenses (573) (33,595) (110,212) 334,219 189,839 Other Operating Expenses - - - - -

Total Operating Expenses $ 2,042,132 1,310,340 6,107,974 3,177,853 $ 12,638,297

Excess (Deficiencies) of Revenue Over (Under) Expenses $ (31,807) (184,954) (1,150,721) 794,075 $ (573,405)

SEE ACCOMPANYING NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND TRANSFERS

(Unaudited)

Attachment A

WINTHROP UNIVERSITY

INTERCOLLEGIATE ATHLETICS PROGRAM

Statement of Revenues, Expenditures and Transfers

For the Year Ended June 30, 2023

Men's Basketball Total

Men's Basketball Total

Attached A

INTERCOLLEGIATE ATHLETICS PROGRAM

Notes to the Statement of Revenues, Expenditures and Transfers

(Unaudited)

NOTE 1-CONTRIBUTIONS

Contributions and gifts to Winthrop University’s Intercollegiate Athletics Program totaled $558,880. This amount is reported in the Statement of Revenues, Expenses and Transfers with the following captions:

Contributions $ 249,880 In-Kind Gifts 309,000

$ 558,880

Individual contributions which exceeded 10 percent of the total contributions and the related donors included in the above amounts are as follows:

Winthrop Foundation $ 249,880

Atrium Health 130,000

Adidas 164,000 $ 543,880

NOTE 2-INTERCOLLEGIATE ATHLETICS - RELATED ASSETS

Capital assets are recorded at cost at the date of acquisition or fair market value at the date of donation in the case of gifts. Winthrop University follows capitalization guidelines established by the State of South Carolina. All land is capitalized, regardless of cost. Qualifying improvements that rest in or on the land itself are recorded as depreciable land improvements. Major additions and renovations and other improvements that add to the usable space, prepare existing buildings for new uses or extend the useful life of an existing building are capitalized. The University capitalizes movable personal property with a unit value in excess of $5,000 and a useful life in excess of two years and depreciable land improvements, buildings and improvements and intangible assets costing in excess of $100,000. Routine repairs and maintenance and library materials, except individual items costing in excess of $5,000, are charged to operating expense in the year in which the expense was incurred. The total estimated book value of plant and equipment, net of depreciation, for Athletics is $6,524,892 compared to the institution total of $80,079,627.

Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The University has selected a useful life of 25 to 50 years for buildings, renovations and land improvements.

The useful life for machinery, equipment and vehicles varies between 2 and 25 years depending on the asset. A full year of depreciation is taken the year the asset is placed in service and no depreciation is taken in the year of disposition.

INTERCOLLEGIATE ATHLETICS PROGRAM

Notes to the Statement of Revenues, Expenditures and Transfers

(Unaudited)

NOTE 2-INTERCOLLEGIATE ATHLETICS - RELATED ASSETS, Continued

Interest cost incurred during the construction phase of capital assets is reflected in the capitalized value of the asset constructed net of interest earned on the invested proceeds over the same period. During the year ended June 30, 2023, there were no material capitalized interest costs incurred.

Fiscal Year 2023 Additions by Sport:

Athletic Facilities Other Total

Additions $ 5,644 13,797 19,441 Deletions - - -

Basketball