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CHAPTER 36

ATHLETICS

1.0 OVERVIEW AND DEFINITIONS:

Athletic experiences are an integral part of college for thousands of student athletes across the
CSU. In addition to the on-the-field learning experiences, the games provide positive economic
impact to communities across the state. Hundreds of thousands of fans attend CSU athletic
games each year and many CSU campus teams are nationally ranked, with numerous national
championships to their credit. Major sporting facilities on CSU campuses include The Home
Depot Center at CSU Dominguez Hills, which is designated as an official U.S. Olympic Training
Site.

Twenty campuses in the CSU have intercollegiate athletics programs as members of the National
Collegiate Athletic Association (NCAA) and one campus (San Marcos) as a member of National
Association of Intercollegiate Athletics (NAIA). Two campuses (Channel Islands and Maritime
Academy) do not have athletic programs affiliated with either one.

This chapter provides guidance on the accounting for both self-supporting and non-self-
supporting athletic activities.

2.0 FUND SPECIFICS:


Not applicable.

3.0 FUND MANAGEMENT AND ACCOUNTING PRACTICES:

Two object codes are available in which to record revenue from athletics operations: object code
504012, Athletics (Self-Supporting), and 580021, Sales & Services of Educational Activities –
Athletics (Non-Self-Supporting). The former maps to Sales & Services of Auxiliary Enterprises
on the GAAP financial statements and the latter to Sales & Services of Educational Activities. It
is important to determine the nature of the athletics activity (self-supporting v. non-self-
supporting) from which revenue is derived so that the income can be reported properly on CSU’s
financial statements. The definitions of self-supporting and non-self-supporting are as follows:

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Self-Supporting
Revenue object code 504012, Athletics (Self-Supporting), should be used for those activities
where the revenue is derived from external sources, such as user fees and ticket sales. Those
sources should fully cover the costs incurred. The activity should not be subsidized by any state
funding sources, such as tuition and state appropriations.

Non-Self-Supporting
Revenue object code 580021, Sales & Services of Educational Activities - Athletics (Non-Self-
Supporting), should be used for those activities the costs of which are substantially funded or
subsidized by state sources (tuition and state appropriations).

In evaluating whether an activity is self-supporting or non-self-supporting, the totality of the


funding sources should be examined.

These object codes can be used in either CSU fund 463, Instructionally Related Activities, or
CSU fund 496, Miscellaneous Trust, though conceptually 580021 would have a better fit with
463, and 504012 with 496, respectively. The choice of fund is at the discretion of the campus
and depends on how the revenue is derived and ultimately used. However, it should be noted
that the expenses associated with these revenue streams should also be appropriately classified.
Therefore, if the revenue is from self-supporting athletic activities, the expenses should be
classified in the functional category Auxiliary Enterprise Expenses (program code 2001); if
flowing from non-self-supporting activities, a functional category other than Auxiliary Enterprise
Expenses (i.e., 0502 Student Services) should be used. No FIRMS program code has been
assigned to the FNAT key for these CSU funds since there may be more than one functional
category applicable, depending on how campuses use these funds. Therefore, it is recommended
that campuses derive the appropriate functional category (FIRMS program code) using Rule 3(b)
at the PeopleSoft fund level. Derivation via Rule 4 (department ID) may not produce valid
results as a single department could generate expenses requiring classification in more than one
functional category.

4.0 REPORTING REQUIREMENTS:

Not applicable.

5.0 FUND BALANCE:

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Not applicable.

6.0 GAAP IMPACT:

Sales and services of auxiliary enterprises (net of scholarship allowances and bad debt
allowances) – An auxiliary enterprise is an entity that exists to furnish goods or services to
students, faculty or staff and charges a fee directly related to, although not necessarily equal to,
the cost of the goods or services. The distinguishing characteristic of auxiliary enterprises is that
they are managed as essentially self-supporting activities. Examples include residence halls, food
services, intercollegiate athletics (if essentially self-supporting), college stores, faculty clubs,
faculty and staff parking and faculty housing. The general public may be served incidentally by
auxiliary enterprises. Activities, such as subsidized childcare centers, travel agencies, bowling
alleys and barbershops may not be self-supporting and should therefore not be included in this
category. This should be evaluated, to the extent considered significant, on a case-by-case basis.
Netted against these revenues should be any scholarship allowances. This is discussed in greater
detail in Chapter 4.5.1, Student Tuition and Fees, Net in the GAAP Manual.

Student services – This category should include funds expended for offices of admissions and
registrar and those activities whose primary purpose is to contribute to the student’s emotional
and physical well-being and to their intellectual, cultural, and social development outside the
context of the formal instruction program. It includes expenditures for student activities, cultural
events, student newspapers, intramural athletics, student organizations, intercollegiate athletics
(if the program is operated as an integral part of the department of physical education and
not as an essentially self-supporting activity), supplemental educational services to provide
matriculated students with supplemental instruction outside of the normal academic program
(e.g. remedial instruction), counseling and career guidance (excluding informal academic
counseling by the faculty), student aid administration, student health service (if not operated as
an essentially self-supporting activity), and enrollment management.

7.0 RESOURCES:

ICSUAM 1201.00 Intercollegiate Athletics Administration

Executive Order 967 – California Student Athlete Fair Opportunity Act of 2005

GAAP Manual:

Chapter 4.5.1 – Student Tuition and Fees, Net

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REVISION CONTROL

Document Title: CHAPTER 36 - ATHLETICS


Contributor: Roberta McNiel
Reviewer: Sedong John
CO Owner: Sherry Pickering
Issuance Date: April 23, 2014

Revision and Approval History


Section(s) Summary of Revisions Revised Reviewed Approved Revision
Revised By by by Date
7.0 Updated ICSUAM link. Michelle Kristina Roberta 3/23/15
Baker Randig McNiel
6.0 and 7.0 Updated chapter reference to Chapter Cinthia S. S. 2/27/18
4.5.1 Student Tuition and Fees, Net Santamaria Pickering Pickering

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