Request for Services for Agreed-Upon Procedures.pdf

To Managing Partner:

Please provide a proposal for engagement services to perform agreed-upon procedures of all revenues, expenses and capital expenditures and to prepare an agreed-upon procedures report for the year ended June 30, 2024 of the Intercollegiate Athletics’ Program at Binghamton

University, as defined and required by the National Collegiate Athletic Association (NCAA) for

Division I athletic programs under NCAA Bylaw 20.2.4.17. In addition, this contract will contain four one-year renewal options at the mutual written agreement of both parties.

All proposals should be in the form of a confidential email. All proposals must be received by

2:30 p.m. on July 12, 2024. They should be emailed to:

John Gallent

Associate Director of Purchasing

Purchasing Department

Binghamton University

PO Box 6000

Binghamton, NY 13902-6000

Email to: jgallent@binghamton.edu

Procurement Office

PO Box 6000

Binghamton, New York 13902-6000

607-777-2184, Fax: 607-777-2338

BACKGROUND INFORMATION

Binghamton University’s Intercollegiate Athletics program is a NCAA Division I program comprised of twenty-one (21) sports that compete in the America East Conference for all sports except golf, wrestling and men’s and women’s tennis. The golf, men’s and women’s tennis programs compete in the Northeast Conference (NEC), and the wrestling program competes in the Eastern Intercollegiate Wrestling Association (EIWA).

Men’s Teams:

Baseball, Basketball, Cross Country, Golf, Lacrosse, Soccer, Swimming & Diving, Tennis, Indoor

Track & Field, Outdoor Track & Field and Wrestling.

Women’s Teams:

Basketball, Cross, Country, Lacrosse, Soccer, Softball, Swimming & Diving, Tennis, Indoor Track

& Field, Outdoor Track & Field and Volleyball.

The Intercollegiate Athletics department prepares its financial statement utilizing consolidated revenues and expenses from the Intercollegiate Athletics accounts of the State University of

New York at Binghamton and the Binghamton University Foundation. The financial statement applies only to the State University of New York at Binghamton’s Intercollegiate Athletics program and does not represent the State University of New York at Binghamton as a whole reporting entity.

Utilizing NCAA reporting guidelines, the consolidated budget of Binghamton University’s

Intercollegiate Athletics Program was approximately $90 million for year ended June 30, 2023.

The University operates in compliance with Division I rules and regulations, which includes compliance with NCAA Bylaw 20.2.4.17 for annual financial reporting purposes. The NCAA regulations regarding financial reporting can be found in the 2024 NCAA Agreed-Upon

Procedures guidelines.

The performance of agreed-upon procedures and the preparation of an agreed-upon procedures report for Binghamton University’s Intercollegiate Athletics program as specified under NCAA Constitution 20.2.4.17 is the purpose of this request for a proposal of service. A copy of the most recent NCAA Agreed-Upon Procedures guidelines can be found at:

https://ncaaorg.s3.amazonaws.com/ncaa/finance/NCAAFIN_AgreedUponProcedures.pdf https://ncaaorg.s3.amazonaws.com/ncaa/finance/NCAAFIN_AgreedUponProcedures.pdf

GENERAL TERMS AND CONDITIONS

The successful firm must be prepared to commence work on or about November 4, 2024 for fiscal year ending June 30, 2024 and each fiscal year thereafter and provide a final draft of the agreed-upon procedures report for review by management on or before December 6, 2024.

The final agreed upon procedures report should be delivered on or about January 3, 2025 for fiscal year ending June 30, 2024 and on or about January 5th each fiscal year thereafter.

TERMS OF AGREEMENT

This contract is for the performance of agreed-upon procedures and the preparation of an agreed-upon procedures report in compliance with NCAA Division I Bylaw 20.2.4.17 for each of the five one year periods ending June 30, 2024 to 2028. The Binghamton University contact for this purpose will be John Gallent, Associate Director of Purchasing.

To ensure compliance with NCAA requirements and deadlines, the agreed-upon procedures shall be completed by early December and a final draft of the agreed-upon procedures report should be submitted for management review on or before December 6th, following the end of the fiscal year. For example, agreed-upon procedures should be completed on or about

December 1, 2024 and a final draft of the agreed-upon procedures report should be submitted for management review on or before December 6, 2024 for fiscal year ended June 30, 2024 and on or before December 6th for each fiscal year thereafter. The University President must receive the final agreed-upon procedures report on or about January 3, 2025 for fiscal year ending June 30, 2024 and on or about January 5th for each fiscal year thereafter.

SERVICES TO BE PROVIDED

Performance of agreed-upon procedures and the preparation of an agreed-upon procedures report for Binghamton University’s Intercollegiate Athletics program are required in compliance with NCAA Bylaw 20.2.4.17. The most current NCAA information regarding NCAA Bylaw

20.2.4.17 is as follows:

Division I Manual 2023-24 NCAA

Constitution, Article 20

Division Membership

20.2.4.17 Operating and Capital Financial Data Report. An active member institution shall submit financial data detailing operating revenues, expenses and capital related to its intercollegiate athletics program to the NCAA on an annual basis in accordance with the financial reporting policies and procedures. The required data shall include, but is not limited to, the following: (Adopted: 1/17/09 effective 8/1/09, Revised: 1/20/22)

(a) All expenses and revenues for or on behalf of an institution's intercollegiate athletics program, including those by any affiliated or outside organization, agency or group of individuals;

(b) Salary and benefits data for all athletics positions. The data shall include base salary, bonuses, endorsements, media fees, camp or clinic income, deferred income and other income contractually guaranteed by the institution;

(c) Capital expenditures (to be reported in aggregate for athletics facilities), including capitalized additions and deletions to facilities during the reporting period, total estimated book value of athletically related plant and equipment net of depreciation, total annual debt service on athletics and university facilities and total debt outstanding on athletics and university facilities;

(d) Value of endowments at fiscal year-end that are dedicated to the sole support of athletics;

(e) Value of all pledges at fiscal year-end that support athletics; and

(f) The athletics department fiscal year-end fund balance.

20.2.4.17.1 Verification and Certification. The report shall be subject to annual agreed-on verification procedures approved by the membership (in addition to any regular financial reporting policies and procedures of the institution) and conducted by a qualified independent accountant who is not a staff member of the institution and who is selected by the institution's chancellor or president or by an institutional administrator from outside the athletics department designated by the chancellor or president. The independent accountant shall verify the accuracy and completeness of the data prior to submission to the institution's chancellor or president and the NCAA. The institution's chancellor or president shall certify the financial report prior to submission to the NCAA. (Adopted: 1/17/09 effective 8/1/09, Revised: 1/20/22)

Objectives of Agreed-Upon Procedures & Agreed-Upon Report

The NCAA has developed the agreed-upon procedures with the assistance of the National

Association of College and University Business Officers (NACUBO) and the Association of

College and University Auditors (ACUA). The procedures seek to provide flexibility in complying with the provision of Bylaw 20.2.4.17.

The financial information and the existence and appropriateness of the institution’s internal controls are the responsibility of the institution. The application of the required agreed-upon procedures should not provide an opinion or assurance on the reliability of financial information generated by the institution and the existence and functioning of appropriate internal controls. The agreed-upon procedures report presents the findings of the agreed-upon procedures performed by the independent accountant.

The agreed-upon procedures scope of work shall include the reporting of revenue, expenses and capital improvements required in the EADA and NCAA financial reporting information.

Other information that will prove useful to the University in evaluating the level of institutional control, and is therefore to be provided to the chief executive officer of the University as a part of this engagement, includes the following:

1. A comparison of actual revenues and expenses related to the intercollegiate athletics program (from both internal and external sources) to amounts budgeted;

2. The nature of institutional internal controls that affect operations of the intercollegiate athletics program, and

3. The relationship of expense for or on behalf of intercollegiate athletics by affiliated and by outside organizations (e.g., booster groups, alumni organizations, auxiliary service corporations, independent or affiliated foundations, etc.) to institutional expenses for similar purposes and the nature of internal controls in place to monitor the financial activities of such affiliated and outside organizations.

Independent accountants will not review or include in their report’s information concerning the institution’s compliance with NCAA legislation. Responsibility for assuring compliance with

NCAA legislation is the ultimate responsibility of the institution’s chief executive, and the information provided as part of the agreed-upon procedures report is intended to assist the chief executive in efforts to assure institutional compliance.

While the detection of improper application of NCAA legislation is not the primary function of the agreed-upon procedures, the independent accountants should be alert nonetheless for situations or transactions that may indicate the existence of such conditions. If during the course of the engagement, the independent accountant becomes aware of acts that may indicate a violation of NCAA legislation; the independent accountant shall report the potential violation to the institution.

The institution’s agreed-upon procedures report shall be presented to the chief executive by the independent accountant. The report’s primary purpose is to ensure that the chief executive is made aware of all financial activity (both internal and external) for athletics purpose and to assist the institution in exercising control over financial activity made by or on behalf of the intercollegiate athletics program. The report should not be filed with the NCAA national office.

The Financial Statement and related notes will be prepared by the Senior Associate Athletic

Director for Financial Operations. Therefore, preparation of these items should be excluded from the proposed fee. However, modifications are expected to be communicated by the independent accountant if deemed necessary.

RESPONSE FORMAT

Responses should include ALL of the following information in preparing the proposal response:

A. Qualifications

Please provide detailed information indicating that the firm has performed satisfactory service of a similar magnitude and nature in the past, and that they are qualified and capable of executing this engagement. Higher education and NCAA Division I engagement experience is a preferred qualification. Client references, including contact names, titles, and telephone numbers should be provided.

B. Staffing

Please identify the specific staff that will be assigned to the engagement, their professional level within the organization, their prior expertise and experience and the intended amount of time each individual will be assigned to the engagement in total;

broken down by hours spent in the field and hours at the office.

C. Pricing

i. Agreed-Upon Procedures and Agreed-Upon Procedures Report

The total amount must be all inclusive of profit, overhead, meals, lodging, travel, and any other associated costs. All related travel costs i.e.

mileage, meals, lodging, etc. shall be billed at the appropriate state rates as established by the Office of the New York State Comptroller

(http://www.osc.state.ny.us/agencies/travel/manual.pdf). Since the scope of the work and the exact amount of consulting assistance required is estimated and maybe subject to change, firms are requested to provide hourly rates for each level of personnel assigned to the engagement. The first fiscal period should be priced separately based upon the scope requested. The fee for the subsequent four one-year renewals will be based upon mutual written agreement. In this case, the firm will submit a proposal outlining the scope of work and pricing 90 days prior to the fiscal year-end date (ex: March 31, 2025, for fiscal year ended June 30, 2025). Details documenting changes in scope and pricing must be attached.

ii. Additional Procedures and Services

If the University requires additional procedures or services beyond the original scope of the engagement in order to comply with NCAA or New York State rules, then an hourly rate should be established for each level of personnel. Please quote an hourly rate for special services for the first fiscal period. The hourly rates for the subsequent four fiscal one-year renewals must be submitted 90 days in advance of the fiscal year-end date and mutually agreed upon in writing.

Details explaining changes in the hourly rate must be attached.

http://www.osc.state.ny.us/agencies/travel/manual.pdf

D. Commencement

Firms should acknowledge if they are able to start the agreed upon procedures on or about November 4, 2024 for fiscal year ended June 30, 2024 and each fiscal year thereafter.

E. Estimated Number of Days from Commencement to Completion

Firms should acknowledge if they are able to complete the agreed-upon procedures by early December and submit a final draft of the agreed-upon procedures report for management review on or before December 6, 2024 for fiscal year ending June 30, 2024 and each fiscal year thereafter.

Firms should also acknowledge if they are able to submit the final agreed-upon procedures report to the University on or about January 3, 2025 for the fiscal year ended June 30, 2024 and on or about January 5, each fiscal year thereafter.

F. Location

Geographic proximity to the University is a preferred qualification. The firm’s office location, with applicable phone numbers and contact names, should be disclosed.

G. Other

Any additional information that the firm wishes to include in support of their proposal is encouraged.