Miscellaneous Accounting Topics
Kelly Cox, Accounting
Chancellor’s Office
Year-End Legal Training
April 17, 2014
Topics• CSU 101 – General Accounting• Year End Check Points • SRB Legal Reporting prepare for GAAP• Interagency Transaction (ITT) Report• Year-End Deadlines
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CSU 101
CSU Accounting Basic
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Reporting Hierarchy
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CSU 101: Accounting
GAAP
Legal
Campus
Transaction Flow
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CSU 101: Accounting
Req Req
PO PO
Voucher Voucher Voucher Voucher Invoice/Bill
Claim Claim Cash Receipt Journal
Check Check Check Check
Receiving Receiving Receiving Receiving
Asset Asset Asset Asset
CO-FIRMS CO_FIRMS CO_FIRMS CO-FIRMS CO-FIRMS CO-FIRMS
SCO SCO SCO SCO SCO SCO
GAAP GAAP GAAP GAAP GAAP GAAP
Transaction Flow
GAAP
Legal
Campus
Reporting Chartfields
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CSU 101: Accounting
Campus Legal GAAP
Fund = Campus Fund =48501 Fund = Campus Fund =48501 Fund = Net Asset Category 881
DeptID = Campus Dept =1081 DeptID = Campus Dept = DeptID = Not applicable
Account = Campus Account = 660090
Account = Campus Account= 660090
Account = Natural Classification 722004
Program = Campus Program Program = Derived NACUBO = 0104
Program = Derived Prog Group =01
Project = Campus Project Project = Campus Project Project = Not applicable
Class = Campus Class = 08101
Class = Campus Class= 08101 Class = Derived CSU Fund 485
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CSU 101: Accounting
Assets and Liabilities are based on the GAAP
natural classification attributes on the CFS account chartfield the
campus BU
Assets and Liabilities are based on the GAAP
natural classification attributes on the CFS account chartfield the
campus BU
Net Position balances are based on the CFS fund chartfield from
the campus BU
Net Position balances are based on the CFS fund chartfield from
the campus BU
Statement of Net Position
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CSU 101: AccountingStmt of Revenue, Expense and Changes of Net Position
Revenues are based on the
natural classification on the CFS Account
Chartfield
Revenues are based on the
natural classification on the CFS Account
Chartfield
Expenses are based on the
NACUBO program group on the program
derivation or Dept ID
Expenses are based on the
NACUBO program group on the program
derivation or Dept ID
Transaction Flow
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CSU 101: Accounting
Req Req
PO PO
Voucher Voucher Voucher Voucher Invoice/Bill
Claim Claim Cash Receipt Journal
Check Check Check Check
Receiving Receiving Receiving Receiving
Asset Asset Asset Asset
CO-FIRMS CO_FIRMS CO_FIRMS CO-FIRMS CO-FIRMS CO-FIRMS
SCO SCO SCO SCO SCO SCO
GAAP GAAP GAAP GAAP GAAP GAAP
Transaction Flow
Legal
Campus
Accounts Receivable• Per ICSUAM 3130.01, campuses must centralize
their AR to ensure that monies owed to the University are accurately accounted for.• Therefore, all AR due to the university must be
recorded in the GL to comply with the collection efforts at least by year end. • For example, Debt 103004 Operating AR and
Credit Operating Revenue (580090)• Legal Manual Chapter 28: Accounts Receivable
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CSU 101: Accounting
AR Allowance• GASB 33 & 34, requires that the projected loss of
uncollectible AR be reported as contra-revenue rather than as expense • The only exception is when the receivable is
created through a non-revenue transaction.
• Legal Manual Chapter 28: Accounts Receivable
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CSU 101: Accounting
AR Allowance• Contra Object Codes
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CSU 101: Accounting
Object Code
Description
501400 Allowance for Doubtful Higher Education Tuition & Fees
502400 Allowance for Doubtful Continuing Education Fees
504400 Allowance for Doubtful Sales & Services of Auxiliary Enterprises
504401 Allowance for Doubtful Health Facilities/Campus Union Fees
580400 Allowance for Doubtful Sales & Services of Educational Activities
580410 Allowance for Doubtful Other Operating Revenues
Accounts Receivable Object Code Relationships
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FOC Title Revenue Accounts ReceivableCollected in
Advance
Allowance Uncollectible
AccountsAbatement Expense 103001 205002 104001
Reimbursement 505110/505201 103002 205002 104002
Revenue-Other (Governmental Funds)
580013 103003 205001 104003
Operating Revenue 580090 103004 205090 104004
Cost Recovery 580X94/95/96 103004 205090 104004
Student Fees 501XXX 103004 205090 104004
Dishonored Checks - 103005 - 104005
Cash Shortages - 103006 - 104006
Revenue (Non-Operating) 580093 103007 205090 104007
Interfund Interest Revenue 580X12 103008 250004 104008
Loans - Current 103009 - 104009
Student Loans Receivable507002
(interest Only)109001 - 104015
Construction Loans - 109002 - 104004
Loans - NonCurrent - 109004 - 104009
Interfund Const Loans Receivable
- 109006 - 104017
Inter-fund Loan - 109009 - 104004
Due from Other Funds 5XXXXX 13XXXX 205090 104004
Allocation Order vs. Cash Posting Order
• Allocation Orders (AO) are used to provide BUDGET to appropriated funds (General Fund and Higher Education Capital Outlay funds)• Recorded only in the BUDGET ledger• Issued by Systemwide Budget office
• Cash Posting Orders (CPO) are used to provide CASH to Trust funds. • Recorded only in the ACTUALs ledger• Issued by Systemwide Accounting Office
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CSU 101: Accounting
Allocation Order vs. Cash Posting Order• To request a CPO access the CSYOU.calstate.edu website
or https://csyou.calstate.edu/Tools/Financial/cpo
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CSU 101: Accounting
Cash Posting Order• To request a CPO access the CSYOU.calstate.edu website
or https://csyou.calstate.edu/Tools/Financial/cpo • For question contact Terri Porter at [email protected] or
• (562) 951-4596
• Process Guide is located on the website
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CSU 101: Accounting
CSYOU Coded Memos
• Accounting Department Notice of Accounting Transaction (ADNOAT): https://csyou.calstate.edu/Divisions-Orgs/bus-fin/Financial-Services/accounting/Coded-Memos/codedmemosaccounting/Forms/adnoat.aspx
• Transaction Oriented Documents
• Accounting Department Coded Memos : https://csyou.calstate.edu/Policies/Coded%20Memos/Forms/accounting-department.aspx
• Accounting Instruction Documents
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CSU 101: Accounting
Scholarships Awards
• A number of Scholarship CPOs have been issued this year which require other campuses to be involved in the disbursement process.
1. Awardee is determined by the receiving campus, then the cost is also associate with the campus• BUT if the…
2. Awardee is determined by the remitting campus, then the cost is associate with the remitting campus and it must be accounted and reported on the following slide.
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Scholarship Award
• Scenario #1 – The receiving campus determined the beneficiary; therefore the receiving campus also records the scholarship expense. • The campus is to record it to 431: Campus
Scholarships and Grants-Restricted as a revenue • Dr. 101100- 431& Cr.503XXX- 431
• Upon Issuing the Scholarship• Dr. 609005-431 & Cr. 101100-431
• **Remitting campus GAAP elimination is need at the campus not systemwide**
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Scholarship Award
• Scenario #2: Remitting campus determines the beneficiary then the receiving campus is acting as an agent. • Receiving campus is to record it to CSU Fund
436: Agency Fund-Miscellaneous Financial Aid and Other Agency• Dr. 101100-436 & Cr.206701-436
• Upon Issuing the Scholarship• Dr. 206701-436 & Cr. 101100-436
• **No campus nor Systemwide GAAP elimination is need**April 2014 Year-End Legal Training 20
FIRMS Object CodesObject Code Object Name
REVISED DEFINITIONS
624001 SP-Scholarships-w/F&A
To record scholarship expenditures subject to the Facilities and Administrative (F&A) or indirect cost calculation when the recipient has been determined by the remitting entity. The receiving entity is acting as an agent and is to record the scholarship as an agency transaction in CSU fund 436 to issue to the beneficiary.
624002 SP-Scholarships-NO/F&A
Same definition as 624001 except it is for “…scholarship expenditures excluded from the Facilities and Administrative (F&A) or indirect cost calculation.”
624101 SP-Interagency-Scholarships-w/F&A
To record interagency sponsored programs expenditures subject to the Facilities and Administrative (F&A) or indirect cost calculation ONLY when the recipient will be determined by the receiving campus. The receiving campus is to record the scholarship to 609005 in CSU fund 431 when issuing the scholarship to beneficiary. The remitting campus' grant revenue (503XXX) and scholarship (624101) is to be eliminated in GAAP.
624102 SP-Interagency-Scholarships-NO/F&A
Same definition as 624101 except it is for “…scholarship expenditures excluded from the Facilities and Administrative (F&A) or indirect cost calculation.”
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Sponsored Programs
Special Initiative Grants in 485
• Campuses must record Special Initiative grants consistently across the CSU• Special Initiative Grants include:
1. CSU Program for Educational and Research in Biotechnology
2. Council on Ocean Affairs, Science and Technology
3. Agricultural Research Initiative
4. Water Resources and Policy Initiative
• Funding comes via SWAT
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Special Initiative Grants in 485
• Chapter 14: CSU Fund 485 in the 2014 Legal Manual
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FNAT Key
Project Code
Program
130357 COAST Council on Ocean Affairs, Science and Technology
130358 00ARI Agricultural Research Initiative
130359 WR&PI Water Resources and Policy Initiative
130361 CPERB CSU Program for Educational and Research in Biotechnology
Special Initiative Grants in 485
• Processing Special Initiative grant expenditures:• For student grants, utilization of the CFS Student
Financials System item types should be set up to use CSU fund 485.
• For all other Special Initiative grant expenditures, campuses should utilize the appropriate object code for the expense.
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YEAR END CHECK POINTS
CSU Accounting
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General Fund “Spend Down”• Centralized Payroll Adjustments (CPA) • 1/12 of the total GF appropriation
• General Fund SWAP with SWIFT Dollars• CPO= Actuals ledger CSU fund 485 • AO = Budget ledger in State fund 0001• Both to 690003: GF Payroll Allocation/Expenditure
• Full expended by 6/30, if not contact the CO!
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Year End Check Point
Activity Period 20XX07 Adjustment
Record the revenue in the proper CSU fund instead of 485 to minimize the need for activity period 20XX07 adjustment at year-end.
• Legal Manual: Chapter 14: 485 CSU Operating Fund
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Operating Fund
Capital Project Mgmt
Cost recovery Campus
Cost recovery
Aux or 3rd party
485 542 543 544GF Payroll Adjustment/Exp <690003>Student Tuition and Fee <501xxx>
Mgmt Fee from Aux <580095>Mgmt Fee from 0948 <580094>Mgmt Fee from non-0948 <580096>
Cost Recovery from 0948 <580094>Cost Recovery from non-0948 <580096>Cost Recovery from Aux Org <580095>Cost Recovery from 3rd Party <580090>
Year End Check Point
CSU Consolidated Investments• Appropriate balances are in 0948 funds only.• Bank Statements can be picked up by the 5th
business day. Check the “Vincent” server.• Accrue Q4 Investments in GAAP not Legal• There is never a Legal entry for Unrealized
Gains/losses; not even in Q1
Chapter 34: Banking and Investments
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Year End Check Point
Early Start Program Reimbursement• The Early Start Program was developed to better
prepare students in math and English• Campuses are to waive student tuition fee based
on financial need and set up AR in 131481• See chapter 6 for Item Type set up
• IMPORTANT! Email Demetrice Hall at [email protected] with the amounts by CSU Fund by noon on 7/2/2014.• Note: For the CO only, record the campus’ payable to
• dr. 107090: Other prepaid expenses & cr. 231XXX
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Year End Check Point
Early Start Program Reimbursement• Prior to reimbursement, campus must reconcile the GL to
enrollment reports. • Reimbursement is not based on the GL balance in
131481. • Reimbursement is based on the enrollment reports
submitted to Director for Student Financial Aid Services and Programs• Contact Dean Kulju, Director for Student Financial Aid
Services and Programs, at (562) 951-4737.
• Legal Manual Chapter 6: 44X CE Funds
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Year End Check Point
Interagency Year-End Accruals
• Every attempt should be made to request a CPO to collect reimbursements, allocate funds, etc. by June 18th.
• However, if needed Interagency Transactions are due to the CO by end of business day on Tuesday, July 1st and will be included in the FIRMS edit in the appropriate due to/from object codes and CSU Funds.
Legal Manual Chapter 29 – Misc. Accounting
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Year End Check Point
Interagency Year-End Accruals• Transactions received on July 2nd until Legal submission
are to be recorded as follows:• The campus issuing the AR is to record 103004: AR-Operating
Revenue and the remitting campus is to record 201001: AP –Other• Issuing campus MUST email the related campus or CO
• IMPORTANT! It will not be included within the FIRMS edit. • Systemwide legal and GAAP adjustments are required for these
entries. Therefore, the campus issuing the AR must email [email protected] Systemwide Financial Reporting the back up and accounting entries by July 15th.
• These transactions will NOT be included in TM1 Footnote 4.1: AR from CO nor Footnote 17: AP to CO
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Year End Check Point
Year-End Reserve Entry
• The entire fund balance of the CSU Operating Fund (CSU Fund 485) and Continuing Education (CSU Fund 44X) must be reserved at year end.
• Must reconcile its reserve entries with the CSU Fund equity.
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Year End Check Point
Year-End Reserve Entry (CSU Fund 485)At a minimum campus should use:
1. Fund Balance-Undesignated/Unallocated: 304015
2. Designated for Outstanding Commitments: 304016
3. Designated for Encumbrance: 304018
4. Offset for Reserves/Fund Balance: 304099
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Year End Check Point
Year-End Reserve Entry (CSU Fund 441)
CSU Fund 441: TF – CERF - Operations1. Designated for Maximum Carryforward Allowance (304022)
2. Designated for CE/EE Campus Partners (304023):
3. Designated for Outstanding Commitments (304016)
4. Designated for Encumbrances (304018): POs
5. Designated for Equipment Acquisition (304011):
6. Designated for Program Development (304012):
7. Designated for Future Debt Service (304013):
8. Designated for Facilities Maintenance and Repairs (304014): minor facilities maintenance and repair costs
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Year End Check Point
Year End Reserve Entry (CSU Fund 442)CSU Fund 442: CE- Construction- Restricted, External
Sources1. Capital Improvement/Construction (304010):
2. Equipment Acquisition (304011):
3. Facilities Maintenance and Repairs (304014):
4. Outstanding Commitments (304016):
5. Encumbrance (304018):
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Year End Check Point
Year End Reserve Entry (CSU Fund 443)CSU Fund 443: CE - Maintenance & Repair/ Internally
Designated Capital Project 1. Reserve for Capital Improvement/Construction
(304010):
2. Equipment Acquisition (304011):
3. Facilities Maintenance and Repairs (304014): major facilities maintenance and repair costs.
4. Outstanding Commitments (304016):
5. Encumbrance (304018):
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Year End Check Point
Year-End Reserve Entry (CSU Fund 444) These can be recorded in CSU Fund 444. -only if your campus has implemented CSU Fund 444.1. Designated for Maximum Carryforward Allowance (304022)
2. Designated for CE/EE Campus Partners (304023):
3. Equipment Acquisition (304011):
4. Program Development (304012):
5. Encumbrance (304018):
6. Outstanding Commitments (304016).
7. Campus Partners (304023):
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Year End Check Point
Legal Preparation for GAAP SRB Financials
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SRB Legal Preparing for GAAP• CSU Fund Integrity is critical!!• Make sure your data is properly recorded by CSU
Fund. • Shared costs should be record as an expense,
not as transfers.• Example, CSU Fund A & B build a lab. Fund A and
B should both be on the PO as split funding. • CSU Fund B SHOULD NOT transfer cash to Fund
A to reimburse them. • Why? Fund B (SRB Fund) would be masked by a
transfer April 2014 Year-End Legal Training 40
SRB Legal Preparing for GAAP
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CSU Fund 537 requires a you review few entries before you close: 1. If the fund is in cash deficit, record a Due to/from
(230XXX) loan with another CSU fund to clear the deficit. 2. If there are pending centrally paid direct and indirect
costs that haven’t been passed on to the Auxiliary, process AR/BI to establish an AR (103001) before you close.
Legal Manual: Chapter 10 Auxiliary Organization
Capital Leases Activity
• Upon receipt of lease payments from the auxiliary organization, record the principal and interest to:• 580098- Auxiliary Program Lease Principal
Payment • 508092- Auxiliary Program Lease Interest
Payment • Both in CSU Fund 537 only. (FNAT #128893
project code SRB00)
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Capital Leases and Loan Activity
• Upon receipt of loan payments from the auxiliary organization, record the principal and interest to:• 250002- Uncleared Collections• Both in CSU Fund 537 only.
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2014 Change in SRB Lease Interest Income• Reclassify Auxiliary Lease earnings previously recorded
to 508090… • To 508092: Auxiliary Program Lease Interest Payment
**PLEASE RECLASSIFY** BY 6/30/2014
Legal Manual: Chapter 10 Auxiliary Organization
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ITT
(INTERAGENCY
TRANSACTION TABLE)
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ITT (INTERAGENCY TRANSACTION TABLE)• Interagency Transactions involving two or more
campuses• Each Transactions needs to be recorded accurately
to ensure proper elimination for the purposes of State Legal and GAAP reporting• The CSU has developed the Interagency transaction
report (aka AP/AR Report) to assist in the review of these transactions• It is published on or before the 1st workday of each
month.April 2014 Year-End Legal Training 46
ITT (INTERAGENCY TRANSACTION TABLE)• The “Report”• SCO/CSU Fund, Object Code, Date, Reference,
Description, CO Contact and Amount.• Distributed via ADNOAT • Location: http://www.calstate.edu/sfo/cp2/campus.shtml
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ITT (INTERAGENCY TRANSACTION TABLE)• The “Edit” – A FIRMS edits exists to assist in the
validation• Balance sheet Object Codes are “warnings”
during the 1st, 2nd and 3rd quarters but errors during the 4th quarter • Income statement Object Codes are “errors” for
all quarters • “Errors” must be resolved by the campus before
the CO can accept the FIRMS submission
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ITT (INTERAGENCY TRANSACTION TABLE)
• Missing record from the FIRMS Table• Email Lan Luong [email protected] or
• (562)951-4142
• Missing record in the Campus GL• Access the “Report” to identify the missing
transaction
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ITT (INTERAGENCY TRANSACTION TABLE)• Why do we have problems? • Timing: The CO must be recorded by the 4th
business day• How do we know if it is…
• Between two Campus but not the CO?• the campus CSU fund? Please help…
• What can we do?• Email Lan Luong [email protected] or
• (562) 951-4142
• Email “CO Contact” on the transaction report
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DeadlinesCampus Deliverables: • Last day for requesting CPOs June 18 – Contact Demetrice
Hall• Last day to Request Interagency Transactions July 1 – Contact Alice Kim
• Email [email protected] • Includes Early Start Program AR
• SCO Pay tape to be posted to the GL July 2 – Contact Alice Kim• Required for IDL/NDI Reimbursement
CO Deliverables: • Last day for the CO to issue CPOs July 3 – Contact Demetrice Hall• Interagency Transaction Report July 3 – Contact Lan Luong• Bank of CSU Statement July 7 – Contact Colleen Zenger• Fund Balance Clearing (FBC) ADNOAT Issued July 7 – Contact Lan Luong
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CHANCELLOR'S OFFICE ACCOUNTING
CONTACTS
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Capital Projects/ SRB Accounting
CO Contact SCO / CSU Fund
Terri Williams, Manager (562) 951-4386 [email protected]
Bill Pittman (562) [email protected]
Higher Education & Dorm Construction Fund
Angie Renaud (562) [email protected]
Dorm Construction Fund
Alyssa Kanzaki (562) [email protected]
SRB Financial Reporting and Special Projects
Dago Escobedo (562) [email protected]
SRB Debt Service - Systemwide Revenue Bond Funds (State Univ Trust)
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CO General AccountingCO Contact Contact Info Responsibilities
Demetrice Hall, Manager (562) [email protected]
June Cacho (562) [email protected]
Trust, General Fund, Monthly Payroll PFA & Refunds to Reverted Appropriation
Abigail Herrera (562) 951-4536 [email protected]
CO Accounts Receivable
Terri Porter (562) [email protected]
Cash Posting Orders
Alice Burton (562) [email protected]
CO Cashier & Chancellor’s Doc Incentive Program (CDIP Loan Program)
Silvia Aguilar (562) [email protected]
Systemwide Lottery and Cont Education
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CSU Risk Mgmt Authority Accounting
CO Contact Contact Info Responsibilities
Alice Kim, Manager (562) [email protected]
Raquel Fabian (562) 951-4621 Accounts Receivable, CPO and Accounts Payable
Mandy Wong (562) [email protected]
Financial Reporting
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CO Financial Reporting
CO Contact Contact Info Responsibilities
Alice Kim, Manager (562) [email protected]
Cindy Gong (562) [email protected]
CSU InstituteCO Fixed Assets
Rima Tan (562) [email protected]
CO Financial Analyst
Lan Luong (562) 951- [email protected]
Interagency Transaction Table & FBC publications
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