Education

Student-Athlete Stipend (Cost of Attendance)

Recording a cash payment to a scholarship athlete for living expenses.

Account NameTypeDebit ($)Credit ($)
Student Aid Expense: StipendsExpense (+)1,200.00-
Cash in BankAsset (-)-1,200.00

💡 Accountant's Note

Beyond free tuition, some student-athletes receive a 'Cost of Attendance' stipend to cover personal expenses. This is an operating expense for the athletic department.

Practitioner & Systems Framework

💻 ERP Architecture

Cost of Attendance (COA) stipends are calculated by the financial aid office based on the NCAA/governing body approved COA budget for each student-athlete. The stipend amount equals the difference between the full COA budget and other grant-in-aid already received (tuition, room, board). Stipends are paid monthly via direct deposit through the payroll or AP module, coded to the athletic department student aid expense account. The athletic department tracks stipend expenditure against its aid budget.

⚠️ Audit Flags

Auditors confirm that stipend amounts are within the NCAA/governing body approved COA limits — excess payments are an eligibility violation. Verify that stipends are paid only to enrolled, eligible student-athletes maintaining satisfactory academic progress. Test that the COA calculation is based on the approved budget figures filed with the governing body. Confirm that stipends are classified as student aid expense (not compensation) — incorrect classification could create employment tax obligations.

📄 Required Documentation

NCAA (or governing body) COA budget approval, student-athlete eligibility confirmation, financial aid award package showing aid and stipend components, monthly stipend payment records, athletic department aid budget vs. actual report, and satisfactory academic progress records.

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Expert Analysis by Qusai Ahmad

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