CSU GAAP Accounting & Reporting Manual · CSU GAAP Accounting & Reporting Manual ... • CHAPTER...

CSU GAAP Accounting & Reporting Manual

Financial Services 2013-14

www.calstate.edu

1 GAAPManual|TableofContents|June30,2014

TABLE OF CONTENTS CHAPTER 1 OVERVIEW

I. History

II. Converting from Legal Basis Accounting to GAAP

III. Business-Type Activities Reporting Model

CHAPTER 2 BEFORE YOU BEGIN CHAPTER 3 MAPPING LEGAL BASIS ACCOUNTS TO GAAP REPORTING MODEL

Overview

Conversion Matrices

Matrix 1: CSU Funds Net Position Classification Table

Matrix 2: Statement of Net Position Mapping Legal-Basis Object Codes to GAAP-Basis Object Codes

Matrix 3: Statement of Revenues, Expenses, and Changes in Net Position Mapping Legal-Basis Object Codes to GAAP-Basis Object Codes CHAPTER 4 GAAP ADJUSTMENTS AND RECLASSIFICATIONS

Overview

CHAPTER 4.1 -- Beginning Trial Balance

CHAPTER 4.2 -- Capital Assets Depreciation and Amortization

CHAPTER 4.3 -- Accounts Payable Obligations

CHAPTER 4.4 -- State/CO Receivables and State Appropriations

CHAPTER 4.5 -- Fund Balance Clearing Accounts

CHAPTER 4.6 -- Prepaid Expenses and Inventories

CHAPTER 4.7 -- Staff and Faculty Payroll Accruals

CHAPTER 4.8 -- Compensated Absences

CHAPTER 4.9 Unearned Revenues

CHAPTER 4.10 -- Capitalized Leases

CHAPTER 4.10A -- Capitalized Leases Auxiliary Organizations Passdown Entries


CHAPTER 4 GAAP ADJUSTMENTS AND RECLASSIFICATIONS (CONT.)

CHAPTER 4.11 -- Tuition Discounting

CHAPTER 4.11A -- Tuition Discounting Sample Worksheet

CHAPTER 4.12 -- Pollution Remediation Obligations (GASB No. 49)

CHAPTER 4.13 -- Other Accounting Issues

CHAPTER 4.14 -- Revenue Management Program

CHAPTER 4.15 -- Service Concession Arrangements (GASB No.60)

CHAPTER 4.16 -- Financial Reporting Entity (GASB No. 61)

CHAPTER 4.17 -- Deferred Outflows of Resources and Deferred Inflows of Resources and Net Position (GASB No. 63)

CHAPTER 4.18 -- Early Start Program Waiver Template

CHAPTER 5 ALLOCATIONS FROM THE OFFICE OF THE CHANCELLOR

Overview

CHAPTER 5.1 -- Construction Work in Progress (Non-Delegated)

CHAPTER 5.2 -- Completed Construction Projects (Non-Delegated)

CHAPTER 5.3 -- Revenue Bond Anticipation Notes (BAN) and Systemwide Revenue Bonds (SRB)

CHAPTER 5.4 -- Not Used

CHAPTER 5.5 -- Not Used

CHAPTER 5.6 -- Other Postemployment Benefits Obligation

CHAPTER 5.7 -- Capitalized Interest

CHAPTER 5.8 -- Passdown Entries and Schedules from the CO

CHAPTER 6 STATEMENT OF CASH FLOWS

Overview

A Step By Step Guide to Preparing a Direct Method Statement of Cash Flows

Sample Cash Flows Worksheets


CHAPTER 7 NEW GASB STANDARDS IMPLEMENTATION TOOLS

Overview

Tools Related to Pollution Remediation Obligations (GASB No. 49)

Tools Related to Service Concession Arrangements (GASB No.60) Tools Related to Financial Reporting Entity (GASB No. 61)

CHAPTER 8 DISCRETELY PRESENTED COMPONENTS UNITS

Overview

Attachments

CHAPTER 9 PREPARING FOR THE FINANCIAL STATEMENTS AUDIT

Overview

Comprehensive Analytical Review Scope

KPMG Engagement Team Phone List

Prepared by Client List for Campuses and CO

Prepared by Client List for Systemwide

Exhibits

Queries/Reports

Reporting Package Template

TM1 FAQs

CHAPTER 10 GAAP PREPARATION CHECKLIST CHAPTER 11 GAAP FINANCIAL REPORTING CHECKLIST

GAAP Financial Reporting Checklist

GAAP Data Integrity Form

CHAPTER 12 NCAA AUP Requirement CHAPTER 13 CAPITAL ASSETS GUIDE CHAPTER 14 GASB UPDATES AND OTHER INFORMATION


CHAPTER 15 PREPARING FOR THE A-133 SINGLE AUDIT

Overview /Scope

Prepared by Client List for Single Audit A-133

Exhibits

CHAPTER 16 SYSTEMWIDE REVENUE BONDS (SRB) AUDIT REQUIREMENTS

Overview

Prepared by Client List for SRB CHAPTER 17 IT AUDIT

Overview

IT Audit Timeline

Prepared by Client List for IT

KPMG IT Audit Contact List

Prior Year Deficiencies and Root Cause

CHAPTER 18 SCO GAAP SUBMISSION

Overview

Templates

1.01 GAAPManual|Overview|June30,2014

CHAPTER 1 OVERVIEW

I. HISTORY 1994 In 1994, a legislative mandate required that independent financial statement audits

be performed of five of the California State University (CSU) campuses. These audits represented the first ever financial statement audits performed at any CSU campus. The financial activities of the CSU are included in the special revenue funds of the State of Californias financial statements. Prior to the audits mentioned above, the CSUs financial statements were subjected only to audit procedures performed in conjunction with the States financial statement audit. The legislative mandate mentioned above required that five campuses be audited for the fiscal year ending June 30, 1994 and an additional five campuses for the fiscal year ending June 30, 1995 (a total of 10 in 1995).

1996 In September 1996, Assembly Bill No. 2613 (AB 2613) was passed requiring the financial statement audits be expanded to include an audit of the CSU system as a whole, as well as at least 10 campuses individually each year. Specifically, the campus audit requirements required that at least ten individual campus financial statements be audited on a stand-alone basis each year, with each campus being subjected to a stand-alone financial statement audit at least once every two years. This requirement became effective beginning in fiscal year 1996-97. The campuses of the CSU currently maintain their financial records on the legal basis of accounting required by the State of California. The legal basis of accounting is not consistent with U.S. generally accepted accounting principles (GAAP). AB 2613 requires that the audited financial statements be presented in accordance with GAAP. The CSU has successfully complied with the requirements of AB 2613 since its passage. This GAAP Manual has been developed to assist CSU personnel in the conversion of legal basis records to financial statements prepared in accordance with GAAP.

1999 In November 1999, the Governmental Accounting Standards Board issued Statements No. 34 (GASB No. 34), Basic Financial Statements and Managements Discussion and Analysis for State and Local Governments, and No. 35 (GASB No. 35), Basic Financial Statements and Management Discussion and Analysis for Public Colleges and Universities. These statements redefined many of the accounting and reporting requirements for public universities. The effect of these standards was significant, requiring sweeping changes in the format and content of GAAP financial statements.


2002 The CSU was required to implement the requirements of GASB No. 35 for the fiscal year ending June 30, 2002. The Financial Standards Advisory Committee (FSAC), made up of CSU campus and systemwide personnel, has examined the requirements of GASB No. 35 and subsequent GASB statements. In the Fall of 2000, the FSAC began taking steps to ensure the accurate interpretation and implementation of the new requirements at the CSU. Much of the guidance found in this GAAP Manual is the result of implementation decisions made by the FSAC.

2011 Government Code Section 12440.1(c) changed the financial reporting requirements for the CSU system and its universities beginning fiscal year 2011-2012. The new legislation eliminates the requirement for campus stand-alone financial statements. Instead, the statement of net assets, statement of revenues, expenses, changes in net assets, and statement of cash flows of each campus shall be included as an addendum to the annual Systemwide audit. Summary information on transactions with auxiliary organizations for each campus shall also be included in the addendum.

2012 In fiscal year 2012-2013, the CSU has implemented the requirements of the following GASB pronouncements. a) GASB Statement No. 60, Accounting and Financial Reporting for Service

Concession Arrangements, Issued November 2010. Effective for periods beginning December 15, 2011. The objective of this Statement is to improve financial reporting by addressing issues related to service concession arrangements (SCAs), which are a type of public-private or public-public partnership. As used in this Statement, an SCA is an arrangement between a transferor (a government) and an operator (governmental or nongovernmental entity) in which (1) the transferor conveys to an operator the right and related obligation to provide services through the use of infrastructure or another public asset (a "facility") in exchange for significant consideration and (2) the operator collects and is compensated by fees from third parties. Additional guidance can be found in Chapter 4.15 of this GAAP Manual.

b) GASB Statement No. 61, The Financial Reporting Entity: Omnibus, an amendment of GASB Statement No. 14 and 34, Issued November 2010. Effective for periods beginning after June 15, 2012. This Statement modifies certain requirements for inclusion of component units in the financial reporting entity. Additional guidance can be found on Chapter 4.16.


c) GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, Issued June 2011. Effective for periods beginning after December 15, 2011. This Statement provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources. Concepts Statement No. 4, Elements of Financial Statements, introduced and defined those elements as a consumption of net assets by the government that is applicable to a future reporting period, and an acquisition of net assets by the government that is applicable to a future reporting period, respectively. Concepts Statement 4 also identifies net position as the residual of all other elements presented in a statement of financial position. This Statement amends the net asset reporting requirements in Statement No. 34, Basic Financial Statementsand Management's Discussion and Analysisfor State and Local Governments, and other pronouncements by incorporating deferred outflows of resources and deferred inflows of resources into the definitions of the required components of the residual measure and by renaming that measure as net position, rather than net assets. Net position category net invested in capital assets, net of related debt will now be called net investment in capital assets. Much of the changes made on this GAAP Manual are a result of the implementation of this new GASB standard. Additional guidance can be found in Chapter 4.17.

d) GASB Statement No. 65, Items Previously Reported as Assets and Liabilities,

Issued March 2012. This is effective for periods beginning after December 15, 2012 (for CSU, effective for fiscal year 2014; CSU elected early implementation in fiscal year ended June 30, 2013). This Statement establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. This Statement also provides other financial reporting guidance related to the impact of the financial statement elements deferred outflows of resources and deferred inflows of resources, such as changes in the determination of the major fund calculations and limiting the use of the term deferred in financial statement presentations. Additional guidance can be found in Chapter 5.3 of this GAAP Manual.


II. CONVERTING FROM LEGAL BASIS ACCOUNTING TO GAAP AN OVERVIEW The State of California continues to require the CSU to report campus and system activities using the legal basis of accounting. In order to prepare financial statements in accordance with GAAP, a conversion process is necessary. This process is outlined under the following sub-sections and is explained in greater detail in the chapters that follow. This manual is designed to take the user methodically through the conversion process. Chapter Two Before You Begin Please refer to the Legal Manual at the Year-End Legal GAAP Reporting Workshop page on the Systemwide Financial Standards and Reporting website at http://www.calstate.edu/SFSR/Workshops/index.shtml for year-end legal basis closing instructions. They are not included in this manual. Chapter Three Account Mapping Legal Basis to GAAP Reporting Chapter Three describes the first step in the conversion process, which is the mapping of SCO funds, CSU fund (subfunds), object codes and program codes as reflected in the legal basis financial records to specific net position categories and line items in the GAAP basis financial statements. Chapter Four GAAP Adjustments and Reclassifications Chapter Four describes the timing and permanent adjustments necessary to complete the conversion from legal basis to GAAP. These adjustments include, among others, accruals for compensated absences and faculty salaries, accounting for capital leases, adjustments to fund balance clearing, accounts payable accruals, unearned revenues, depreciating or amortizing capital assets, discounting tuition, and accrual for pollution remediation obligation. In addition, this chapter addresses other accounting issues that are relevant to the preparation of the financial statements, including the classification of assets and liabilities as current and noncurrent. It also addresses accounting issues relate to the Revenue Management Program (RMP) and cost recovery transactions. Chapter Five Allocations from the Office of the Chancellor Chapter Five explains the adjustments that need to be made in order to reflect the activity that occurs at the Office of the Chancellor relating to the financial position of the campuses. These adjustments include but are not limited to the allocation of bond proceeds and related expenditures, activities related to bond anticipation notes, energy lease obligations, other postemployment benefits obligation, and capitalized interest.


Chapter Six Statement of Cash Flows GASB No. 35 introduced a new financial statement to public universities the Statement of Cash Flows (SCF). The SCF is prepared using the direct method. This chapter provides detailed instructions to assist in the preparation of the SCF as well as identifying source documents to obtain the necessary data for the statement. Chapter Seven GASB Standards Implementation Tools This chapter provides the implementation tools for new GASB standards. This includes relevant literatures, questionnaire, supplemental schedules, frequently asked questions, or any other resources made available to the campuses. Chapter Eight Discretely Presented Component Units Chapter Eight includes reporting instructions to discretely presented component units (mostly auxiliary organizations) and their external auditors. These instructions are presented in a memorandum to campus Presidents and Chief Financial Officers. These instructions identify the audit requirements of the component units, as well as, the supplementary information reporting requirements. Additionally, this chapter provides guidance on reconciling balances between the campus and the component units and coordinating the preparation and inclusion of the component unit financial statements within the reporting package. Additionally, this chapter also includes various other matters related to the component units (i.e. FIRMS/IPEDS reporting, accounting for underwater endowments, pledge reporting, fair value measurement and disclosure, and contributed services). Chapter Nine Preparing for the Financial Statements Audit Chapter Nine is designed to provide the user with an understanding of how to prepare for a successful financial statements audit. This chapter discusses the roles of the independent auditors and campus personnel in the audit process. It also lists various terminology specific to the audits as well as the CSU. Prepared by Client (PBC) listings, sample lead schedules, and the reporting package template are all presented in this chapter. Chapter Ten GAAP Preparation Checklist Chapter Ten includes a checklist that should be utilized as each of the conversion and preparation steps are completed. Each step in the checklist refers the user to the relevant chapter(s) in this manual where the item is addressed. The checklist is divided between Part A and Part B.


Chapter Eleven GAAP Financial Reporting Checklist Chapter Eleven provides a checklist to be used in the final stages of preparing financial statements for an audit. Each step in the GAAP financial reporting checklist is designed to identify common mistakes or to ensure that amounts are consistent among financial statements and footnotes. Each step refers the user to the relevant chapter(s) in this manual where the item is addressed. Chapter Twelve NCAA Financial Reporting Compliance Chapter Twelve summarizes the financial reporting requirements of the National Collegiate Athletics Association (NCAA) for the member campuses. Chapter Thirteen Capital Assets Guide Chapter Thirteen is devoted to the Capital Assets Guide, which summarizes the policies and guidelines of the CSU under GASB reporting standards. Chapter Fourteen - Updates and Other Information This Chapter is to be used to include updates received at future dates into the manual and to discuss new GASB pronouncements. Chapter Fifteen Preparing for the A-133 Audit Chapter Fifteen is designed to provide the user with an understanding of how to prepare for a successful A-133 audit. A-133 PBC listings and sample schedules are all presented in this chapter. Chapter Sixteen SRB Audit Requirements Chapter Sixteen is designed to provide the user with an understanding of what, when and why requirements are needed for a successful Systemwide Revenue Bond (SRB) audit. Special instructions for the SRB fluctuation analysis, SRB required lead schedules and the GAAP entries query are all presented in this chapter. Chapter Seventeen Preparing for the IT Audit Chapter Seventeen is designed to provide the user with an understanding of how to prepare for a successful IT Audit. IT Audit PBC listing is all presented in this chapter. Chapter Eighteen SCO_GAAP Submission Chapter Eighteen is designed to detail the SCOs GAAP submission requirements and to describe the supplemental information required from campuses in late September each year.


III. BUSINESS-TYPE ACTIVITIES (BTA) REPORTING MODEL As a public university, the California State University (CSU) has been directed, in GASB No. 35, paragraph 27, to follow guidance provided for special-purpose governments. Accordingly, under this guidance (GASB No. 34, paragraphs 134-141), public universities can report as one of the following: Special-purpose governments engaged only in business-type activities

(BTA); Special-purpose governments engaged only in governmental activities; or Special-purpose governments engaged in both governmental and business-

type activities The evaluating criterion for the use of one of these models depends on the universitys ability to levy taxes and its dependence on the adoption of detailed annual budgets by fund. If a universitys primary activities were financed through taxes, intergovernmental revenues, such as grants and contracts, and other nonexchange transactions, the university would likely adopt the model for special-purpose governments engaged in governmental activities. On the other hand, those universities that receive state appropriations and also cover a portion of their costs through external user charges for services may use the model for special-purpose governments engaged only in business-type activities. Finally, those universities that have the ability to levy taxes and also have activities that charge fees to external users could choose to use the model that combines both governmental and business-type activities. This model is the one utilized by general-purpose governments, such as states, cities, and counties. Consistent with the majority of public colleges and universities, the CSU chose to adopt the reporting model for special-purpose governments engaged in only BTA. For BTAs, the basic financial statements and required supplementary information consist of the following (GASB No. 34, paragraph 138):

A. Managements Discussion and Analysis (MD&A) B. Basic Financial Statements

a. Statement of Net Position b. Statement of Revenues, Expenses, and Changes in Net Position c. Statement of Cash Flows d. Notes to the Financial Statements

C. Required Supplementary Information on Modified Approach, if elected


A. MANAGEMENTS DISCUSSION AND ANALYSIS Managements Discussion and Analysis (MD&A) should introduce the basic financial statements and provide an analytical review of the universitys financial activities. A brief discussion of the basic financial statements and the information they provide as well as analysis of the universitys overall financial position, major debt and capital asset activities and currently known facts that are expected to affect the universitys future financial position are required in this section.

B. BASIC FINANCIAL STATEMENTS The following statements should be presented using the economic resources measurement focus and the accrual basis of accounting. a. STATEMENT OF NET POSITION

This statement reports the universitys assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net position. The statement of net position displays assets, plus deferred outflows of resources, less liabilities, less deferred inflows of resources, equals net position and should be displayed in three broad components net investment in capital assets; restricted; and unrestricted (As amended by GASB 63, paragraph 8). Assets and liabilities must be classified between current and noncurrent. For the purposes of distinguishing between current and noncurrent assets/ liabilities, current assets/liabilities are those that can be reasonably expected to either use or generate cash through liquidation thereof, as part of normal business operations, within one year of the financial statement date. Current portions of accrued compensated absences must be estimated based upon amounts used in the previous year. Other postemployment benefit obligation will be calculated and passed down from the Office of the Chancellor. In distinguishing between cash and cash equivalents and investments on the Statement of Net Position, investments that are used for current operations should be classified as short-term investments. The CSU determined that the following are generally classified as short-term investments: Local Agency Investment Funds (LAIF) Surplus Money Investment Funds (SMIF) Systemwide Investment Fund - Trust (SWIFT)


Investments (including those listed above) that are 1) restricted for withdrawal or use for other than current operations (i.e. endowments or Perkins loans), 2) designated or restricted for the acquisition or construction of noncurrent assets, 3) designated or restricted for the liquidation of the noncurrent portion of long-term debt, or 4) restricted as to the liquidity of the investments should be classified as other long-term investments. (ARB 43; chapter 3A) All demand deposits and highly liquid investments with an original maturity date of three months or less should be classified as cash and cash equivalents. Uninvested funds included in SWIFT and the Common Fund Short Term Fund should be classified as investments. Deferred outflows of resources include loss on refunding, which is part of the pass-down entries from the Office of the Chancellor. Deferred inflows of resources include deferred service concession arrangement receipts. Refer to GAAP Manual Chapter 4.15 and Chapter 5.2 for further details. Net Position should also be classified in the following categories: Net investment in capital assets Includes capital assets (capital assets include land, improvements to land, easements, buildings, building improvements, machinery, personal property, infrastructure, and all other tangible or intangible assets), net of accumulated depreciation or amortization, and reduced by the outstanding balances of any bonds, mortgages, notes, other borrowings or liabilities that are attributable to the acquisition, construction, or improvements of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt also should be included in this component of net position. If there are significant unspent related debt proceeds or deferred inflows of resources at the end of the reporting period, the portion of the debt or deferred inflows of resources attributable to the unspent amount should not be included in the calculation of net investment in capital assets. Instead, that portion of the debt or deferred inflows of resources should be included in the same net position component (restricted or unrestricted) as the unspent amount (GASB 63, paragraph 9).


Restricted This category should only include assets that have restrictions that are externally imposed reduced by liabilities and deferred inflows of resources related to those assets (GASB No. 63, paragraph 10). Externally imposed restriction may be by creditors, grantors, contributors, or laws and regulations of other governments, or imposed by constitutional provisions or enabling legislation (GASB No. 34, paragraph 34). Examples are reserve funds that are mandated by bond indentures to be set aside to pay debt service and contributions given by a donor that must be used for a particular purpose. Unrestricted This category includes the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position (GASB 63, paragraph 11). Designations of unrestricted net position should not be reported on the face of the statement of net position, but may be presented in the notes to the financial statements if desired by the university.

b. STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION This statement is the operating statement of the university. Revenues are required to be reported by major source (net of any discounts or allowances). This statement also must distinguish between operating and nonoperating revenues and expenses. The following are the categories of the CSUs operating and nonoperating revenues and expenses:

Operating Revenues Fees and tuition (net of scholarship allowances and bad debt allowances) Includes mandatory tuition fees paid by students, such as fees paid at the time of registration, lab fees and other fees for educational purposes by the student to attend the CSU or a particular class. Items, such as childcare fees, bowling alley fees and the like should not be included in this category. Scholarship allowances are discussed in greater detail in Chapter 4.11. Grants and contracts, non-capital Includes all amounts for which eligibility requirements were met on non-financial aid grants and contracts from federal, state, local or private agencies that will be used for non-capital purposes. Examples for the CSU include research and development grants and Head Start program grants.


Sales and services of educational activities (net of bad debt allowances) Includes revenues that are related incidentally to the conduct of instruction, research and public services and revenues of activities that exist to provide an instructional and laboratory experience for students and that incidentally create goods and services that may be sold to students, faculty, staff and the general public. Examples of revenues of educational activities are intercollegiate athletic revenues, film rentals, sales of scientific and literary publications, testing services, sales of products and services of dairy creameries, food technology divisions and poultry farms. If sales and services to students, faculty, or staff, rather than training or instruction, is the purpose of an activity, the revenue should be classified as sales and services of auxiliary enterprises, as described further below. 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 child-care 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 4.11. Other operating revenues This category should include all sources of revenues not included in other classifications that pertain to the current primary operations of the CSU. Examples would be subsidized childcare centers, travel agencies, bowling alleys and barber shops that are not considered self-supporting. Moreover, cost recovery between campuses and external parties including auxiliary organizations is also included in this category. Cost recovery between campuses is eliminated at the systemwide level. GASB No. 34, Paragraph 102 states that a consideration for defining operating revenues and expenses is how individual transactions would be categorized for purposes of preparing a Statement of Cash Flows using GASB Statement No. 9. Transactions for which cash flows are reported as capital and related financing activities, noncapital financing activities, or investing activities normally would not be reported as components of operating income.


Operating Expenses Instruction This category should include expenses for all activities that are part of an institutions instruction program, with the exception of expenses for remedial and tutorial instruction, which should be categorized as student services. Expenses for credit and non-credit courses, for academic, occupational, and vocational instruction, and for regular, special, and extension sessions should be included. Expenses for departmental research and public service that are not separately budgeted should be included in this classification. Expenses in an academic department which are primarily administrative in nature (e.g., academic deans) should not be included in this category but in academic support. Research This category should include all expenses for activities specifically organized to produce research outcomes. This category includes expenses for individual and/or project research as well as that of institutes and research centers. This category does not include all sponsored programs (for example, training grants should be included in public service) nor is it necessarily limited to sponsored research, since internally supported research programs, if separately budgeted, might be included in this category. Public service This category should include funds expended for activities that are established primarily to provide non-instructional services beneficial to individuals and groups external to the institution. These activities include community service programs (excluding instructional activities) and cooperative extension services. Examples of activities that belong to this category are conferences, institutes, general advisory services, reference bureaus, radio and television, consulting, and similar non-instructional services to particular sectors of the community. Academic support This category should include funds expended primarily to provide support services for the institutions primary missions instruction, research, and public service. It includes: (1) the retention, preservation, and display of educational materials (e.g., libraries, museums, and galleries); (2) the provision of services that directly assist the academic functions of the institution, such as demonstration schools associated with a department, school, or college; (3) media, such as audiovisual services, and technology(e.g., computing support); (4) academic administration (including academic deans, but not department chairperson(s),) and personnel development that provides administrative support and management direction to the three primary missions; and (5) separately budgeted support for course and curriculum development. For institutions that currently charge certain expenses (e.g., computing support) directly to the various operating units of the institution, these expenses are not reflected in this category.


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 students 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. Institutional support This category should include expenses for: (1) central executive-level activities concerned with management and long-range planning of the entire institution, such as the governing board, planning and programming, and legal services; (2) fiscal operations, including the investment office; (3) administrative data processing; (4) space management; (5) employee personnel and records; (6) logistical activities that provide procurement, storerooms, printing, and transportation services to the institution; (7) support services to faculty and staff that are not operated as auxiliary enterprises; and (8) activities concerned with community and alumni relations, including development and fund raising. Operation and maintenance of plant This category should include all expenses for the administration, supervision, operation, maintenance, preservation and protection of the physical plant. It includes all expenses for operations established to provide services and maintenance related to grounds and facilities, such as janitorial and utility services; repairs and ordinary or normal alterations of buildings, furniture, and equipment; care of grounds; maintenance and operations of buildings and other plant facilities; security, earthquake and disaster preparedness; fire protection, safety, hazardous waste disposal, pollution remediation, property, liability and all other insurance relating to property; space and capital leasing; facility planning and management, central receiving, and similar items. Interest expense on capital related debt and depreciation on capital assets should not be recorded in this category. Student grants and scholarships This category should include expenses for direct payments of grants and scholarships to students. It includes expenses for scholarships and fellowships from restricted or unrestricted funds in the form of grant to students, resulting from selection by the


institution or from an entitlement program. This category also includes trainee stipends, prizes, and awards. It should also include institutional loan cancellations. Auxiliary enterprises This category includes all expenses relating to the operation of auxiliary enterprises, including expenses for operation and maintenance of plant, and for institutional support related to the auxiliary enterprise revenues; also included are other direct and indirect costs, whether charged directly as expenditures or allocated as a proportionate share of costs of other departments or units. Depreciation and amortization This category includes depreciation and amortization on all capital assets, tangible and intangible, recorded by the university. Nonoperating Revenues (Expenses) State appropriations, non-capital This category includes amounts received from, or made available to, an institution by legislative acts to support operations. For the CSU, this would include appropriations received for the general funds. SWATs (Systemwide Allocation Transfers) to the campus to fund special programs as a result of RMP should also be included in this financial statement line item. Refer to Section 4.14 for more details about RMP changes. This category does not include governmental grants and contracts except the State University Grant (SUG) and State Educational Opportunity Program (SEOP). Financial aid grants, noncapital This category includes Federal, State, Local, and Nongovernmental financial aid grants that the CSU have administrative involvement and are nonexchange transactions. It includes all amounts for which eligibility requirements were met, such as Pell Grant, Cal Grant, Federal Supplemental Education Opportunity Grant (FSEOG), Work Study, and SMART grant, etc. Other Federal nonoperating grants, noncapital This category includes other Federal grants CSU has received that are nonexchange and nonfinancial aid related. The major program recorded in this line was the one time State Fiscal Stabilization Fund (SFSF) and federal subsidies which partially reimburse certain systemwide revenue bonds interest expenses provided by Build America Bonds program (BABs) under the American Recovery and Reinvestment Act (ARRA). Gifts, non-capital Includes contributions received for non-capital purposes, such as for research or to subsidize a particular program of the university. Investment income (loss), net Includes investment income or loss, dividends, realized gains or losses and changes in unrealized gains or


losses on non-endowment assets. Investment expenses, such as investment service charges and interest payback to the State from no longer remitting the student fees to the State are netted against this revenue. Endowment income (loss) This category includes investment income or loss and any realized gains or losses and changes in unrealized gains or losses on endowment assets. Interest expense This category includes all interest expense related to both noncapital and capital related debts. Other nonoperating revenues (expenses) Any revenues or expenses that do not directly relate to the CSUs current primary operation should be recorded here. This category includes items that do not fit into one of the operating revenue (expense) categories above. Examples include lottery income, gain (loss) on sales or disposal of assets, CSURMA dividends, revenue from legal settlements and construction administration, prior period corrections and other miscellaneous revenues or expenses. Other Line Items State appropriations, capital This category includes amounts received from, or made available to an institution by legislative acts for capital purposes. For the CSU, this would include capital outlay appropriations. Grants and gifts, capital This category would include federal, state, or private grants, contracts, and gifts that are for the purchase of equipment or the construction of a building or facility. Examples of such items are grant funds received from the Federal Emergency Management Agency (FEMA) to reconstruct buildings, or private contributions to purchase computers or buy library books. This category would also include any donated assets received by the university, such as computer equipment, software, etc. Additions (reductions) to permanent endowments This category would include any private contributions received by the university to increase or establish a permanent endowment fund and losses resulting from underwater endowments. For most CSU campuses, campus foundations, not the university, receive contributions for endowments.

c. STATEMENT OF CASH FLOWS This statement classifies cash activities into four categories operating activities, noncapital financing activities, capital financing activities, and investing activities. Under GASB No. 34, the direct method of cash flows is required. For the statement of cash flows preparation process and requirements, please refer to Chapter 6.


d. NOTES TO THE FINANCIAL STATEMENTS The notes to the financial statements provide additional information that is essential to the full understanding of the financial statements. For footnote disclosure requirements, please refer to the campus reporting package template in Chapter 9.


REVISION CONTROL

DOCUMENT TITLE: CHAPTER 1.0 OVERVIEW ISSUANCE DATE: April 30, 2014

REVISION AND APPROVAL HISTORY

SECTION(S) REVISED

SUMMARY OF REVISIONS REVISION DATE

Section II

Removed reference to Year-End Instructions in the Legal manual in Chapter Two Before You Begin

Added descriptions for Chapter Seven GASB Standards Implementation Tools and Chapter Twelve NCAA Compliance as these are new chapters this year.

April 30, 2014

2.0-1 GAAP Manual | Before You Begin | June 30, 2014

CHAPTER 2 BEFORE YOU BEGIN

Please refer to the Legal Manual at the Year-End Legal & GAAP Reporting Workshop page on the Systemwide Financial Standards and Reporting website at http://www.calstate.edu/SFSR/Workshops/index.shtml for year-end legal basis closing instructions. They are not included in this manual.

http://www.calstate.edu/SFSR/Workshops/index.shtml

2.02 GAAPManual|BeforeYouBegin|June30,2014

REVISION CONTROL

DOCUMENT TITLE: CHAPTER 2.0 BEFORE YOU BEGIN

ISSUANCE DATE: April 30, 2014


SECTION(S) REVISED


Removed reference to Year-End Instructions. April 30, 2014

3.01 GAAPManual|MappingLegalBasisAccountstoGAAPReportingModel|June30,2014

CHAPTER 3 MAPPING LEGAL BASIS ACCOUNTS TO GAAP REPORTING MODEL

OVERVIEW Once all legal basis year-end closing entries have been recorded in the financial records of the campus and year-end procedures have been performed, the GAAP derivation process can begin. The first step of the GAAP derivation process is the classification or mapping of all campus CSU funds and accounts, as reflected in the legal basis financial records, to specific net position groups and financial statement line items for two of the three required financial statements. The GAAP derivation process was further enhanced by adding a step to read the program code override on the AAT key first before using the program code posted to the campus CSU business unit (BU). This mapping process will be done in accordance with the following classification matrices: MATRIX 1 CSU Funds Net Position Classification

MATRIX 2 Statement of Net Position, Mapping Legal Basis Accounts to GAAP Line Items

MATRIX 3 Statement of Revenues, Expenses and Changes in Net Position, Mapping Legal Basis Accounts to GAAP Line Items

Prior to the fiscal year ending June 30, 2014, two additional matrices also described the mapping process: Statement of Net Position by CSU Fund and Statement of Revenues, Expenses and Changes in Net Position by CSU Fund. These matrices were merged and automated effective July 1, 2014; the merged table is referred to as the GAAP Edits Table. This table resides in its electronic form in the Central Financial System (CFS) and in FIRMS and is used by these systems to validate the combinations of CSU fund, the GAAP natural classification code, the program code and net position group. The table is also available as an Excel worksheet at the Systemwide Financial Standards & Reporting (SFSR) website at http://www.calstate.edu/SFSR/Workshops/index.shtml for reference. It should be noted that the GAAP Edits Table operates slightly differently in CFS and in FIRMS. In CFS, certain combinations are allowed solely to facilitate the posting of GAAP adjusting entries. The combinations established for this purpose are identified within the Excel version of the table. Such combinations are invalid in FIRMS as the balances reported in that system must represent the final values shown in the campus reporting packages (values ultimately flowing to the consolidated financial statements) and will generate FIRMS errors if used. Instructions for preparing the Statement of Cash Flows, the third required statement, are presented in Chapter 6.

http://www.calstate.edu/SFSR/standards_and_rules/2014/GAAP_Edits_Table.xlshttp://www.calstate.edu/SFSR/standards_and_rules/2014/GAAP_Edits_Table.xlshttp://www.calstate.edu/SFSR/Workshops/index.shtml


The following chart shows the flow of information from transactions recorded in the campus accounting records to the SCO reports and the GAAP financial statements.

GAAP DERIVATION TEMPLATES For GAAP derivation purposes, the campus will prepare legal to GAAP derivation templates/trial balances for each of the following net position groups and for agency funds by CSU fund:

Net Investment in Capital Assets Restricted, Unexpendable Endowments Restricted, Expendable Scholarships and Fellowships Restricted, Expendable Research Restricted, Expendable Loans Restricted, Expendable Capital Projects Restricted, Expendable Debt Service Restricted, Expendable Other Unrestricted Agency Funds Depository Accounts Agency Funds Grants Refundable The GAAP derivation templates are used to map legal basis net activity account balances during the year to the GAP BU by net position category, by CSU fund, and to record GAAP adjustments and reclassifications (see Chapters 4 and 5). After all the necessary adjusting entries are posted, the GAP BU ledger trial balance will reflect the adjusted GAAP year-end account balances by net position category, by CSU fund. The adjusted GAAP balances on the GAP BU


trial balance by net position category, by CSU fund (the totals column), will be reported on the GAAP financial statement line items. For CSU audit purposes, the legal to GAAP derivation is included as delivered reports in PeopleSoft 9.2. A list of the delivered reports is provided in Chapter 9. ACCOUNT MAPPING OF LEGAL BASIS ACCOUNTS Use Matrix 1, CSU Funds Net Position Classification Table, for classification of CSU funds from the campus SAM07 report to the proper net position derivation template. Matrix 2, Statement of Net Position (SNP) should be used for mapping of balance sheet accounts on the SAM07 report to the Statement of Net Position line items. Use Matrix 2 for mapping of State general ledger (GL) accounts and FIRMS object code account balances to GAAP financial statement line items (e.g. cash and cash equivalents, investments, accounts receivable, etc.) on the SNP. A column for GAAP financial statement line items is also provided in Matrix 2 for the GAAP ledger. Matrix 3, Statement of Revenues, Expenses and Changes in Net Position, should be used for mapping of revenues, expenses and transfer accounts on the SAM07 report to the Statement of Revenues, Expenses, and Changes in Net Position line items. Matrix 3 illustrates FIRMS program codes and FIRMS object codes that map to specific GAAP revenue and transfer line items on the financial statements. A column for GAAP accounts is also provided in Matrix 3 for the GAAP ledger. A query report can be developed locally by the campus to map State GL revenue, expense and transfer accounts by FIRMS object codes or FIRMS program codes to GAAP financial statement line items. Because of their custodial nature, agency funds should never have net position on the post-closing trial balance or revenue and expense activity on the pre-closing trial balance. Therefore, the State GL fund balance and the revenue and expense accounts for agency funds, except for funds 0948-403, 0948-406, and 0948-407 (Perkins and Nursing loans), should be mapped to depository accounts during the derivation process. Funds 0948-403, 0948-406 and 0948-407 should be mapped to grants refundable. ANALYSIS OF CERTAIN CSU FUNDS AND ACCOUNTS Most CSU funds at the campus level can be mapped to the proper net position group directly by reference to Matrix 1, CSU Funds Net Position Classifications. However, certain CSU funds, as reflected in Matrix 1, must be analyzed at the campus level to determine the proper net position classification based on the type of activity flowing through the accounts. It may be necessary to classify activity in a CSU fund into more than one net position group. Campuses can change the default net position classification of a CSU fund to a more appropriate category, if necessary, using the GAAP Override feature in PeopleSoft.


Although State GL accounts have been mapped on Matrix 2, Statement of Net Position, to a specific asset or liability line item, certain account balances must be analyzed at the campus level to determine if the account balance contains a current or noncurrent portion. Current can reasonably be expected to either use or generate cash as part of normal business operations within 12 months of the financial statement date. Accounts should be analyzed and a portion of the balance reclassified to current or noncurrent, if applicable. For derivation purposes, financial line items for Due to Other Funds, Due from Other Funds, and Transfers among funds can be added to the derivation template. However, Due to Other Funds and Due from Other Funds accounts for intra-agency transactions should always agree in total at the campus level and balances should be eliminated on a GAAP basis. Due to Other Funds and Due from Other Funds accounts for inter-agency transactions do not net to zero at the campus level. The campus should 1) analyze the accounts for purposes of reclassification to accounts receivable or accounts payable in the campus reporting package and 2) reconcile with the corresponding balances at the Chancellors Office so that they can be properly eliminated in the CSU consolidated financial statements. Transfers among CSU funds should also net to zero in total. Since transfers within the campus should net to zero at the campus level, the only balances that should remain in the transfer line item after mapping are inter-agency transfers. These inter-agency transfers should be eliminated or reclassified in the campus reporting package, as described in Chapter 4.13 and Chapter 5.3, and reconciled with the corresponding balances at the


Office of the Chancellor so that they can be properly eliminated in the CSU consolidated financial statements. The adjusted GAAP balance for these derivation template line items must net to zero. CONCLUSION It is imperative that each campus follow the mapping matrices in order to achieve accuracy and consistency in financial reporting on a systemwide basis. If accounting personnel at the campus level are unsure how to classify a specific CSU fund or legal basis account, inquiries should be directed to the Office of the Chancellor for clarification and guidance. Mapping of CSU funds to the proper net position group and mapping of legal basis net account activity balances to the GAP BU ledger should be performed before recording any GAAP adjustments and reclassifications. FIRMS GAAP SUBMISSION In addition to submitting the campus reporting package in YES (TM1) from the web, each campus is also required to submit the final version of the GAAP reporting package in FIRMS format as soon as the final version of the reporting package is submitted in YES. Please refer to the timeline at the SFSR website for the submission deadline. The FIRMS GAAP data must agree with the final version of the reporting package. Since campus stand-alone financial statements are no longer issued, there should be no adjustments to the GAAP ledger after the reporting package is finalized. However, if campuses make adjustments to the GAAP ledger at a level that does not affect their reporting package but affects the FIRMS GAAP data, then campuses need to resubmit the FIRMS GAAP data. The submission procedure for FIRMS GAAP data is the same as for other FIRMS submissions (see campus data submission procedures at the SFSR website). The FIRMS GAAP submission requires submission of three files, each as a separate submission: 1) pre-closing (Activity Period 201216), 2) closing (Activity Period 201217), and 3) post-closing (Activity Period 201218). Assets, liabilities, revenues, and expenses in the pre-closing file (Activity Period 201116) must agree with the amounts in the reporting package for corresponding line items in both the GAAP object code and program group code when applicable. Assets, Liabilities, and Net Position in the post-closing file (Activity Period 201218) must agree with the amounts in the reporting package for corresponding line items in both the GAAP object code and program group code when applicable. All FIRMS GAAP data (201216, 201217 and 201218) must have the appropriate and accurate CSU fund number, which provides additional details required for MD&A and management reports beyond the basic financial statements.

http://www.calstate.edu/es/intranet/applications/fob/firms/documents/new_firms_submissions.pdfhttp://www.calstate.edu/es/intranet/applications/fob/firms/documents/new_firms_submissions.pdf


REVISION CONTROL

DOCUMENT TITLE: CHAPTER 3.0 MAPPING LEGAL BASIS ACCOUNTS TO GAAP REPORTING MODEL



SECTION(S) REVISED


Matrix 1 1. New funds: State Fund 0948/CSU Fund 560 (Cal State Online

Program)State Fund 0948/CSU Fund 561 (Cal State Online Program Reinvestment)

2. Funds applicable to more than one net position category: In addition to the default net position category in black, the following combinations of fund and net position category have been added to the matrix in blue. CSU fund 461 (TF Associated Student Body Trust)

o 891 - Agency Funds-Depository Accounts (default)

o 881 Unrestricted (for use by Monterey Bay only)

CSU fund 465 (TF Contracts and Grant Trust) o 832 Restricted: Expendable - Research o 836 Restricted: Expendable Other

(default) CSU fund 496 (TF Miscellaneous Trust)

o 881 Unrestricted (default) o 831 Restricted: Expendable Scholarships

and Fellowships (for use by Chico only) o 891 Agency Funds-Depository Accounts

(for use by Chancellors Office only) 3. Obsolete funds: CSU fund 017 (General Fund

Capital Outlay) CSU fund 085 (Higher Education Fees and Income-

CSU) CSU fund 181 (CERF-Extended Education) CSU fund 497 (TF State Pro Rata Charge

Distribution)

April 30, 2014


CSU fund 547 (TF CSU Risk Management) Matrix 2 1. New FIRMS object codes:

711104 Due from other funds (conversion template only) 105044 (Due from Public Building Construction

Fund Subaccount) 711301 Deferred outflows of resources

191001 Unamortized loss on refundings 712102 Due to other funds (coversion template only)

202037 Due to Public Building Construction Fund Subaccount

712301 Deferred inflows from SCA, grants, and others 291001 (Deferred inflows from SCA, grants, and

others) 2. Obsolete FIRMS object codes:711101 Cash and cash equivalents

101002 (Agency Trust Fund Cash) 101003 (Revolving Fund Cash) 101007 (Cash in Agency Accounts with U.S.

Treasury) 101010 (General Cash-Remittance In Transit)

711102 Short-term investments 102002 (Repurchase Agreements) 102003 (Investment in Time Deposits) 102004 (Investment in Subscription Deposits)

711103 Accounts receivable, net 103011 (Postponed Property Tax-Principal) 103012 (Postponed Property Tax-Interest) 103013 (Retirement Contributions Receivable) 103014 (Contingent Receivables) 104010 (Allowance Uncollectible Accounts-A/R

Audit Exception) 104011 (Allowance Uncollectible Accounts-A/R

Postponed Property Tax-Principal) 104012 (Allowance Uncollectible Accounts-

Retirement Contributions) 104013 (Allowance Uncollectible Accounts-

Contingent Receivables) 104016 (Allowance Uncollectible Accounts-

Postponed Property Tax-Interest) 106010 (Provision Deferred Receivables-A/R Audit

April 30, 2014


Exceptions) 106011 (Provision Deferred Receivables-Postponed

Property Tax Principal) 106012 (Provision Deferred Receivables-Retirement

Contributions) 106013 (Provision Deferred Receivables-Contingent

Receivables) 106016 (Provision Deferred Receivables-Postponed

Property Tax-Interest) 131547 (Due from CSU 547 - TF CSU Risk Mgmt

(Inter-agency)) 711104 Due from other funds (conversion template only)

130547 (Due from CSU 547 - TF CSU Risk Management)

712101 Accounts payable 231547 (Due to CSU 547 - TF CSU Risk Mgmt

(Inter-agency)) 712102 Due to other funds (conversion template only)

230547 (Due to CSU 547 - TF CSU Risk Management)

3. Description of GAAP account:712301 Deferred inflows from SCA, grants, and others (was Deferred service concession arrangement receipts)

Matrix 3 1. Account mapping change: Mapping of 660015 (Bond Issuance Costs) has changed to 723005 (Interest Expense) from 722004 (Supplies and Other Services)

2. New FIRMS object Codes 722001 Salaries

601061 (Vice Chancellor, Chief Audit Officer) 722002 Benefits

603100 (NDI/IDL Claims Reimbursement (contra-expense))

723003 Investment income(loss), net 508091 (Auxiliary Loan Interest Payment) 508092 (Auxiliary Lease Interest Payment)

723006 Other nonoperating revenues (expenses) 580099 (Auxiliary Loan Principal Payment)

724002 Grants and gifts, capital 503303 (Local Contracts and Grants (capital))

724004 Transfers to/from other CSU campuses, net

April 30, 2014


506035 (Transfers In from Public Building Construction Fund Subaccount))

506226 (Transfers In from within the Same State Fund (Interagency-outside CSU))

680032 (Transfers Out to Public Building Construction Fund Subaccount)

680226 (Transfers Out within the Same State Fund (Interagency-outside CSU))

3. Obsolete FIRMS object codes: 723004 Endowment income (loss)

510001 (Endowment Money Market) 510002 (Endowment Stocks and Bonds) 510003 (Endowment Real Estate) 510004 (Endowment Enterprise Ownership) 510005 (Endowment Copyrights, Patents and

Licenses) 510006 (Endowment Royalty)

723006 Other nonoperating revenues (expenses) 580014 (Copyrights, Patents and Licenses) 690004 (GF Expenditure Transfers Between

Appropriations) 690005 (RMP Supplemental GF Allocation)

722004 Supplies and Other Services 614002 (Energy Bond Payment) 614003 (Deferred Maintenance Bond Payment) 690106 (RMP Payroll Offset from GF)

724004 Transfers to/from other CSU campuses, net 570547 (Tr in from CSU 547 - TF CSURMA) 670547 (Tr Out to CSU 547 - TF CSURMA)

4. Reactivated FIRMS object codes: 723006 Other nonoperating revenues (expenses)

580092 (CSURMA dividend revenue) 722004 Supplies and Other Services

660018 (Annuities (Aux use only)) General Deleted references to matrices 2.2 and 3.2 as these tables

have been replaced by the GAAP Edits Table, which is separately described in the chapter.

April 30, 2014

Page 3.0-1 Added information regarding GAAP Edits Table. April 30, 2014

Page 3.0-6 Deleted section GAAP Combination Edits Table since the April 30,


information is now on pg. 3.0-1. 2014 Matrix 2.2 and 3.2

Deleted replaced by GAAP Edits Table residing in CFS and FIRMS.

April 30, 2014

Matrix 1 Deleted reference SRB from CSU 461 as the fund is not a SRB fund.

May 23, 2014

MATRIX 1: CSU FUNDS NET POSITION CLASSIFICATION TABLE

NET POSITION

GROUP CODE NET POSITION GROUP

STATE FUND

CSU FUND CSU FUND NAME NOTES

811 Net investment in capital assets 0996 500 General Long Term Debt

811 Net investment in capital assets 0997 501 CALSTARS Gen Fix Assets Acct Gr Rep

821 Restricted: nonexpendable endowments 0948 466 TF-Endowment Trust

831 Restricted: expendable, scholarships and fellowships 0948 401 TF-Supplemental Educ Opportunity Grants

831 Restricted: expendable, scholarships and fellowships 0948 408 TF-PELL Grant Program

831 Restricted: expendable, scholarships and fellowships 0948 409 TF-College Works Study Program (4)

831 Restricted: expendable, scholarships and fellowships 0948 411 TF-ACG/SMART Grants

831 Restricted: expendable, scholarships and fellowships 0948 412 TF-Federal TEACH Education Assistance Grant

831 Restricted: expendable, scholarships and fellowships 0948 413 TF-Miscellaneous Federal Financial Aid Grants

831 Restricted: expendable, scholarships and fellowships 0948 424 TF-California Grants Programs

831 Restricted: expendable, scholarships and fellowships 0948 431 TF-Campus Scholarships and Grants-Restricted

831 Restricted: expendable, scholarships and fellowships 0948 496* TF-Miscellaneous Trust (1), (8)

832 Restricted: expendable, research 0948 465* TF-Contracts and Grant Trust (1)

833 Restricted: expendable, loans 0948 433 TF-Campus Student Loans Trust

833 Restricted: expendable, loans 0948 434 TF-Campus Student Long Term Loan

834 Restricted: expendable, capital projects 0574 318 1998 Higher Ed Capital Outlay Bond Fund

834 Restricted: expendable, capital projects 0576 221 DCF-Housing SRB

834 Restricted: expendable, capital projects 0576 222 DCF-Parking SRB

834 Restricted: expendable, capital projects 0576 223 DCF-Auxiliary Facilities SRB

834 Restricted: expendable, capital projects 0576 224 DCF-Campus Unions SRB

834 Restricted: expendable, capital projects 0576 225 DCF-Outside Sources

834 Restricted: expendable, capital projects 0576 226 DCF-Headquarters Bldg Authority (2), SRB

834 Restricted: expendable, capital projects 0576 227 DCF-Bond Anticipation Note (BAN) (2), SRB

834 Restricted: expendable, capital projects 0576 228 DCF-Auxiliary Organizations (6), SRB

834 Restricted: expendable, capital projects 0576 229 DCF-CERF (6), SRB


834 Restricted: expendable, capital projects 0660 310 Public Building Construction Fund

834 Restricted: expendable, capital projects 0668 322 Public Building Construction Fund Subaccount

834 Restricted: expendable, capital projects 0785 338 1988 Higher Education Capital Outlay Bond Fund

834 Restricted: expendable, capital projects 0948 442 TF CERF-Construction SRB

834 Restricted: expendable, capital projects 0948 453 TF FRF-Construction SRB

834 Restricted: expendable, capital projects 0948 473 TF PRF-Construction SRB

834 Restricted: expendable, capital projects 0948 533 TF Housing-Construction SRB

834 Restricted: expendable, capital projects 0948 536 TF Campus Union-Construction SRB

834 Restricted: expendable, capital projects 0948 539 TF Aux Org-Construction SRB

834 Restricted: expendable, capital projects 0948 550 TF-Restricted Capital projects




835 Restricted: expendable, debt service 0578 241 DIRF-Housing (2), SRB

835 Restricted: expendable, debt service 0578 242 DIRF-Parking (2), SRB

835 Restricted: expendable, debt service 0578 243 DIRF-Auxiliary Facilities (2), SRB

835 Restricted: expendable, debt service 0578 244 DIRF-Campus Unions (2), SRB

835 Restricted: expendable, debt service 0578 245 DIRF-Headquarters Building Authority (2), SRB

835 Restricted: expendable, debt service 0578 246 DIRF-Auxiliary Organizations (2), SRB

835 Restricted: expendable, debt service 0578 247 DIRF-Systemwide Debt Reserve

836 Restricted: expendable, others 0948 465 TF-Contracts and Grants Trust (1)

836 Restricted: expendable, others 0948 491* TF SPF-Special Projects (1)

881 Unrestricted 0001 001 General Fund General Support

881 Unrestricted 0001 007 General Fund Systemwide Costs

881 Unrestricted 0001 020 General Fund Unappropriated

881 Unrestricted 0505 200 Affordable Student Housing-Revolving Fund (2)

881 Unrestricted 0575 201 DBMERF-Housing SRB

881 Unrestricted 0575 202 DBMERF-Parking SRB

881 Unrestricted 0575 203 DBMERF-Auxiliary Facilities SRB

881 Unrestricted 0575 204 DBMERF-Campus Unions SRB

881 Unrestricted 0575 205 DBMERF-Headquarters Building Authority (2), SRB

881 Unrestricted 0580 261 DRF-Housing SRB


NET POSITION


STATE FUND


881 Unrestricted 0580 262 DRF-Parking SRB

881 Unrestricted 0580 263 DRF-Auxiliary Facilities SRB

881 Unrestricted 0580 264 DRF-Headquarters Building Authority (2), SRB

881 Unrestricted 0580 265 DRF-Campus Union Net Revenue Account SRB

881 Unrestricted 0580 266 DRF-Fresno Union Bookstore (6), SRB

881 Unrestricted 0580 267 DRF-CERF (6), SRB

881 Unrestricted 0580 268 DRF-Auxiliary Organizations (6), SRB

881 Unrestricted 0581 281 FRF-Health Services Fee

881 Unrestricted 0581 282 FRF-Health Facilities Fee SRB

881 Unrestricted 0581 283 FRF-Construction SRB

881 Unrestricted 0581 284 FRF-Maintenance and Equipment SRB

881 Unrestricted 0583 301 PRF-University Parking Revenue Fund, State

881 Unrestricted 0583 302 PRF-Parking Fees SRB

881 Unrestricted 0583 303 PRF-Construction SRB

881 Unrestricted 0583 304 PRF-Maintenance and Equipment SRB

881 Unrestricted 0839 341 Cal State University Lottery Education Fund

881 Unrestricted 0948 423 TF-CSU Forgivable/Doctoral Loan Program

881 Unrestricted 0948 435 TF-Miscellaneous Financial Aid - Unrestricted

881 Unrestricted 0948 441 TF CERF-Extended Education SRB

881 Unrestricted 0948 443 TF CERF-Maintenance & Equipment SRB

881 Unrestricted 0948 444 TF CERF-Campus Partners SRB

881 Unrestricted 0948 452 TF FRF-Health Facilities Fees SRB

881 Unrestricted 0948 454 TF FRF-Maintenance & Equipment SRB

881 Unrestricted 0948 461* TF-Associated Student Body Trust (3), (7)

881 Unrestricted 0948 463 TF-Instructionally Related Activities Trust

881 Unrestricted 0948 464 TF-International Program Trust

881 Unrestricted 0948 471 TF PRF-Fines & Forfeitures

881 Unrestricted 0948 472 TF PRF-Parking Fees SRB

881 Unrestricted 0948 474 TF PRF-Maintenance & Equipment SRB

881 Unrestricted 0948 481 TF Lottery Education Fund

881 Unrestricted 0948 485 TF-CSU Operating Fund

881 Unrestricted 0948 491* TF SPF-Special Projects (1)

881 Unrestricted 0948 492 TF SPF-Dependent Care (1), (2)

881 Unrestricted 0948 496 TF-Miscellaneous Trust (1)

881 Unrestricted 0948 497 TF-State Pro Rata Charge Distribution (2)

881 Unrestricted 0948 499 TF-Revolving Fund

881 Unrestricted 0948 531 TF Housing-Operations & Revenue SRB

881 Unrestricted 0948 532 TF Housing-Maintenance & Repair SRB

881 Unrestricted 0948 534* TF Campus Union-Operations & Revenue (1), SRB

881 Unrestricted 0948 535 TF Campus Union-Maintenance & Repair SRB

881 Unrestricted 0948 537* TF Aux Org-Operations & Revenue (1), SRB

881 Unrestricted 0948 538 TF Aux Org-Maintenance & Repair SRB

881 Unrestricted 0948 541 TF Pooled Investment Fund

881 Unrestricted 0948 542 TF Capital Project Management

881 Unrestricted 0948 543 TF-Cost Recovery/Reciprocal and Nonreciprocal Campus

881 Unrestricted 0948 544 TF-Cost Recovery/Exchange and Nonexchange Aux Orgs/3rd Party

881 Unrestricted 0948 546 TF Stockton Site Authority (2)

881 Unrestricted 0948 547 TF CSU Risk Management (2)

881 Unrestricted 0948 560 TF Cal State Online

881 Unrestricted 0948 561 TF Cal State Online Program Reinvestment

891 Agency funds (depository accounts) 0890 351 Trust Fund, Federal (3)

891 Agency funds (depository accounts) 0942 371 Special Deposits Fund (3)

891 Agency funds (depository accounts) 0948 410 TF-William D. Ford Direct Loan Program (3)

891 Agency funds (depository accounts) 0948 436 TF-Misc. Financial Aid & Other

891 Agency funds (depository accounts) 0948 461* TF-Associated Student Body Trust (3)

891 Agency funds (depository accounts) 0948 492* TF SPF-Dependent Care (1), (2)

891 Agency funds (depository accounts) 0948 496* TF-Miscellaneous Trust (1), (9)

891 Agency funds (depository accounts) 0948 534* TF Campus Union-Operations & Revenue (1), (3)


NET POSITION


STATE FUND


891 Agency funds (depository accounts) 0948 537* TF Aux Org-Operations & Revenue (1), (3)

892 Agency funds (grants refundable) 0948 403 TF-Perkins Loans (5)

892 Agency funds (grants refundable) 0948 406 TF-Nursing Student Loans-Graduate (5)

892 Agency funds (grants refundable) 0948 407 TF-Nursing Student Loans-Undergraduate (5)

Note: DATA IN BLUE ADDED IN FY 2013/14.

(1) Must be analyzed at the campus to determine proper net position classification. CSU fund may need to beclassified in more than one net position group. Funds labeled with an asterisk are associated in the table with all allowable net position classifications.

(2) CSU fund used only by Chancellor's Office.

(3) Funds held by CSU as custodian or fiscal agent for others. Fund balance, revenue and expense accounts should bereclassified to depository accounts.

(4) This CSU fund should have a zero net postion balance. If balance is not zero at year-end, account should be analyzed.

(5) Funds held by CSU as custodian or fiscal agent for others. Fund balance, revenue and expense accounts should bereclassified to grants refundable.

(6) These CSU funds are applicable only to those campuses that have any activity in these funds.

(7) Net position category of 881, Unrestricted, in CSU fund 461 is available to Monterey Bay only.

(8) Net position category of 831, Restricted: Expendable, Scholarships and Fellowships, in CSU fund 496 is available to Chico only.

(9) Net position category of 891, Agency Funds (depository accounts), in CSU fund 496 is available to the Chancellor's Office only.

Last revised May 10, 2013

State GL Account Number Series (Source: Pre-Closing SAM07) GAAP Object Code

CURRENT ASSETS For Auxiliary Use Only

Cash and cash equivalents 1110, 1140 - 1160, 1180 - 1190 101001, 101004 - 101006, 101008, 101009 711101

Short-term investments 1210 - 1240, 2010 - 2090102001, 101100, 108001 - 108018, 108090 102600 711102

Accounts receivable, net 1310 - 1340, 1390XXXX, 1410XXXX, 1420, 1510 - 1590, 1600XXXX

103001 - 103010, 104001 - 104009, 105030 - 105033, 1051XX, 131XXX, 106001 - 106009, 106014, 112001 - 112002

711103

Due from other funds (conversion template only) 1410XXXX, 1420 105001 - 105027, 105034 - 105038, 105042 - 105044, 130XXX

711104

Leases receivable, current portion GAAP Adjustment only GAAP Adjustment only 109008 711105Notes Receivable, current portion GAAP Adjustment only GAAP Adjustment only 109010 711110Pledges receivable, net 1319, GAAP Adjustment only GAAP Adjustment only 103015, 104115 711106

Prepaid expenses and other assets 1710, 1712, 1714, 1720, 1730XXX, 1750, 2740

107001 - 107003, 107005 - 107008, 107090, 111001 711107

NONCURRENT ASSETSRestricted cash and cash equivalents Note 1 Note 1 101700 711201Accounts receivable, net Note 1 Note 1 103700 711202Leases receivable, net of current portion GAAP Adjustment only GAAP Adjustment only 109708 711209Notes receivable, net of current portion GAAP Adjustment only GAAP Adjustment only 109710 711210Student loans receivable, net (Note 2) 13902112, 16002112, 2112 104015, 106015, 109001 711203Pledges receivable, net GAAP Adjustment only GAAP Adjustment only 103715, 104715 711204Endowment investments Note 1 Note 1 108790 711205Other long-term investments 2090 108091 711206

Capital assets, net 2310, 23XX, 2410 - 2414, 2422 - 2424, 2430, 2490 - 2494

110001 - 110012, 110021 - 110035, 190014, 190020 - 190021, 190030 - 190031

711207

Other assets

13902130, 16002130, 2113 - 2114, 2119 - 2120, 2130, 2149, 2170, 2500, 2600, 2710 - 2740, 2772 - 2776, 2780 , 2790, 2800, 2910, 2920

104017, 106017, 109002 - 109007, 109009, 113001 - 113005, 190002 - 190013, 190015, 190090

711208

DEFERRED OUTFLOWS OF RESOURCESUnamortized loss on refunding(s) GAAP Adjustment only 191001, GAAP Adjustment only 711301

CURRENT LIABILITIES

Accounts payable 3010 - 3030, 3114XXXX, 3115 201001 - 201004, 201007, 2021XX, 231XXX

712101

Due to other funds (conversion template only) 3114XXXX, 3115 202001 - 202003, 202005 - 202027, 202031 - 202037, 230XXX

712102

Accrued salaries and benefits payable 3790 208001 712103Accrued compensated absences, current portion 3760, GAAP Adjustment only 208002, GAAP Adjustment only 712104Unearned revenue - current 3410 - 3430 205001 - 205002, 205090 712105Capitalized lease obligations - current portion GAAP Adjustment only GAAP Adjustment only 260602 712106Long-term debt obligations - current portion 3040, 3050, 9842 201005, GAAP Adjustment only 201006, 263690 712107Self-insurance claims liability - current portion 3790, GAAP Adjustment only GAAP Adjustment only 250007 712108

Depository Accounts - Current Funds 0890-351, 0942-371, 0948-410, 0948-436, 0948-461 - State GL's 3790

206701, Funds 0890-351, 0942-371, 0948-410, 0948-436, 0948-461 - All net position, revenue, and expense object codes

712110

Other liabilities-current3010, 3120, 3130, 3210, 3215, 3220, 3290, 3310 - 3320, 3510 - 3520, 3710 - 3790, 4010 - 4020

201008, 202030, 203001 - 203005, 204001 - 204002, 206001 - 206002, 250001 - 250006, 250008 - 250009

712109

NONCURRENT LIABILITIESAccrued compensated absences, net of current portion GAAP Adjustment only GAAP Adjustment only 208702 712201Unearned revenue - noncurrent 4700, Note 1 Note 1 205700 712202

Grants refundableFunds 0948-403, 0948-406, 0948-407 - State GL's 5520-5540, 8020, 8040, 9000, 9811, 9812

Funds 0948-403, 0948-406, 0948-407 - All net position, revenue, and expense object codes 263701

712203

Capitalized lease obligations, net of current portion 4210, 4220, GAAP Adjustment only 260001 - 260002, GAAP Adjustment only712204

Long-term debt obligations, net of current portion 4310 - 4330, 4410 - 4430 261001 - 261003 712205GAAP Adjustment only GAAP Adjustment only

Self-insurance claims liability, net of current portion GAAP Adjustment only GAAP Adjustment only 250707 712206

Depository accountsFunds 0890-351, 0942-371, 0948-410, 0948-436, 0948-461 - State GL's 4700, 8020, 9000

206700, 503106, 610002, Funds 0890-351, 0942-371, 0948-410, 0948-436, 0948-461 - All netposition, revenue, and expense object codes

712207

Other post-employment benefits obligations (GAAP) GAAP Adjustment only GAAP Adjustment only 263081 712209

Other liabilities - noncurrent 3610, 3690, 4050, 4700207001 - 207002, 263001, 263080, 263090 263690 712208

FIRMS Object Codes

ALL CSU FUNDS

Matrix 2: Statement of Net PositionMapping Legal-Basis Object Codes to GAAP-Basis Object Codes

Last revised May 10, 2013

State GL Account Number Series (Source: Pre-Closing SAM07) GAAP Object Code

FIRMS Object Codes

ALL CSU FUNDS

Matrix 2: Statement of Net PositionMapping Legal-Basis Object Codes to GAAP-Basis Object Codes

DEFERRED INFLOWS OF RESOURCESDeferred inflows from SCA, grants, and others GAAP Adjustment only 291001, GAAP Adjustment only 712301

NET POSITIONNet Investment in Capital Assets 5200XXXX 302001 - 302050 302700 713811Restricted: nonexpendable, endowments 5520 - 5540 305001 - 305021 303790 713821Restricted: expendable, scholarships and fellowships 5520 - 5540 305001 - 305021 303791 713831Restricted: expendable, research 5520 - 5540 305001 - 305021 303796 713832Restricted: expendable, loans 5520 - 5540 305001 - 305021 303792 713833Restricted: expendable, capital projects 5110, 5520 - 5540 301001, 305001 - 305021 303793 713834Restricted: expendable, debt service 5410 304001 303794 713835Restricted: expendable, other 5520 - 5540 305001 - 305021 303795 713836Unrestricted 5520 - 5540 305001 - 305021 305700 713881Fund balance clearing (must be zero) 5570, 5311 305022, 303055 713899

DATA IN BLUE ADDED IN FY 2013/14.

Note 1 - Accounts should be analyzed at the campus level to determine if account balances should be reclassified into current or noncurrent.

Note 2 - State GL account numbers 1410/1420 (Due from Other Funds) and 3114/3115 (Due to Other Funds) may also be associated with accounts receivable and accounts payable (respectively) object codes. If the due to/due from amounts do not net to zero, they should be reclassified to accounts receivable/accounts payable as appropriate on the campus' accounting records, but will retain their original classification for state purposes.

Last revised May 10, 2013 1 of 1

Matrix 3 - Statement of Revenues, Expenses, and Changes in Net PositionMapping Legal-Basis Object Codes to GAAP-Basis Object Codes

FIRMS Program Codes (Note 3) FIRMS Object CodesGAAP Object Code

OPERATING REVENUES

Student tuition and fees 5000

501001 - 501002, 501004 - 501005, 501101 - 501102, 501110 - 501112, 501201, 501301, 501400, 502101 - 502106, 502201 - 502203, 502301 - 502304, 502400, 504007, 504008, 504020, 504401

721001

Grants and contracts, noncapital: Federal 5000 503107-503108, 503110 721002Grants and contracts, noncapital: State 5000 503203, 503206, 503210, 503290 721003Grants and contracts, noncapital: Local 5000 503301, 503310 721008Grants and contracts, noncapital: Non-governmental 5000 503402, 503410, 503500 721004

Sales and services of educational activities 5000 580020, 580021, 580400 721005

Sales and services of auxiliary enterprises 5000 504001 - 504006, 504009 - 504013, 504090, 504400 721006

Other operating revenues 5000 507002, 580004 - 580009, 580011, 580013, 580016, 580090, 580094 - 580096, 580194, 580196, 580410

721007

OPERATING EXPENSESInstruction 0101 -0106 (0103 discontinued) 601010 - 660090, 662001 variousResearch 0201 - 0203 601010 - 660090, 662001 variousPublic service 0301 - 0304 601010 - 660090, 662001 variousAcademic support 0401 - 0409 (0404 discontinued) 601010 - 660090, 662001 variousStudent services 0501 - 0510 (0505 discontinued) 601010 - 660090, 662001 various

Institutional support 0601 - 0607 (0603, 0604 discontinued) 601010 - 660090, 662001 various

Operation and maintenance of plant 0701 - 0709 601010 - 660090, 662001 variousStudent grants and scholarships 0801 - 0802 601010 - 660090, 662001 variousAuxiliary enterprise expenses 2001 (2002 - 2008 discontinued) 601010 - 660090, 662001 variousDepreciation 1200 (GAAP Adjustment only) GAAP Adjustment only 722005Reimbursable Activities (Derivation template only) 505110, 505201 722006

NONOPERATING REVENUES (EXPENSES)

State appropriations, noncapital GAAP Adjustment only 506100, 680100, 690003, 690007, GAAP Adjustment only 723001

Federal financial aid grants 5000 503101 - 503105, 503111, 580097 723007State financial aid grants 5000 503204 - 503205, 503207 723008Non-Governmental financial aid grants 5000 503403 723009Local financial aid grants 5000 503302 723010Other Federal nonoperating grants, noncapital 5000 503112, 690006 723011Gifts, noncapital 5000 503401 723002

Investment income (loss), net 5000 507001, 508001 - 508005, 508090, 508091, 508092, 580112, 660048, 660049 723003

Endowment income (loss) 5000 510090 723004Interest expense 1400 580012, 660004, 660006, 660104, 660008 723005

Other nonoperating revenues (expenses) 1500

511001 - 511002, 580001 - 580003, 580015, 580092, 580093, 580098, 580099, 590001 - 590002, 590005 - 590006, 660013, 660089*, 690001 - 690002

723006

State appropriations, capital GAAP Adjustment only GAAP Adjustment only 724001

Grants and gifts, capital 5000 503109, 503293, 503303, 503411, 503412 , 503491* 724002

Additions (reductions) to permanent endowments 5000 510100 724003Gain (loss) on disposal of assets (Note 1) GAAP Adjustment only GAAP Adjustment only 723006Transfers to/fr other funds (derivation template only) (Note 2) 1300-1305

506XXX (except 506100), 57XXXX, 67XXXX, 680XXX (except 680100) 724004

DATA IN BLUE ADDED IN FY 2013/14.

Note 1 - Not to be shown as a separate line item on the financial statements, but to be included in Other Nonoperating Revenues (Expenses).

Note 2 - Theoretically, the only balances that should remain in transfers after mapping are inter-agency transfers, whichshould be eliminated or reclassified as described in Chapter 4.13 and Chapter 5.3.

Note 3 - Program code 9000 should not be used for any line in the Statement of Revenues, Expenses, and Changesin Net Position. However, all lines in the Statement of Net Position (balance sheet) should use program code 9000.

(*) These object codes are mainly for auxiliary organization use.

4.0-1 GAAP Manual | GAAP Adjustments and Reclassifications | June 30, 2014

CHAPTER 4 GAAP ADJUSTMENTS AND RECLASSIFICATIONS

OVERVIEW Once the derivation process from the legal basis of accounting to the line items of the Business-Type Activities Model has been completed, the next step in the process is to convert the account balances from legal (modified accrual) to GAAP (full accrual) basis. This step is accomplished by a series of adjustments, only a few of which require information that is provided by the Office of the Chancellor (described in Chapter 5). The types of GAAP adjustments that can be prepared solely based upon information available at the campus are detailed in the sections of this chapter below. Keep in mind that these adjustments may not be all inclusive. Each campus needs to analyze its balances to see if there are any other campus specific adjustments. CHAPTER 4.1 BEGINNING TRIAL BALANCE

4.2 CAPITAL ASSETS, DEPRECIATION AND AMORTIZATION 4.3 ACCOUNTS PAYABLE OBLIGATIONS 4.4 STATE AND CO RECEIVABLES AND STATE APPROPRIATIONS 4.5 FUND BALANCE CLEARING ACCOUNTS

4.6 PREPAID EXPENSES AND INVENTORIES 4.7 STAFF AND FACULTY PAYROLL ACCRUALS

4.8 COMPENSATED ABSENCES 4.9 UNEARNED REVENUES

4.10 CAPITALIZED LEASES 4.11 TUITION DISCOUNTING

4.12 POLLUTION REMEDIATION OBLIGATIONS 4.13 OTHER ACCOUNTING ISSUES 4.14 REVENUE MANAGEMENT PROGRAM 4.15 SERVICE CONCESSION ARRANGEMENTS (GASB 60) 4.16 FINANCIAL REPORTING ENTITY (GASB 61) 4.17 DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES AND NET

POSITION (GASB 63) 4.18 EARLY START PROGRAM WAIVER TEMPLATE

4.0-2 GAAP Manual | GAAP Adjustments and Reclassifications | June 30, 2014

No GAAP adjustments should be recorded until the mapping step of the derivation process has been completed as discussed in Chapter 3. There are two major types of GAAP adjustments:

1. Permanent adjustments: Required to reflect for GAAP reporting purposes accounting activity that is always recorded differently, not at all, or only under the legal basis of accounting. Such adjustments may result in a change to net position. An example of a permanent adjustment is depreciation. The following are different types of permanent adjustments: a. Reclassifications: Required for accounting activity that is recorded under the legal

basis of accounting as well as under GAAP basis, for the same dollar amounts, in the same fiscal year, but in different financial statement categories. Such adjustments occasionally result in a change in net position between legal and GAAP basis. (Recurring reclassifications may be automated by using the CDIP GAAP_OVERRIDE Account Attribute feature.)

b. GAAP Only: Required to reflect for GAAP reporting purposes accounting activity that is never recorded under the legal basis of accounting. Such adjustments may result in a change to net position.

c. Eliminations (Legal Only): Required for accounting activity that is recorded under the legal basis of accounting, but is not reported under GAAP. Such adjustments occasionally result in a change in net position between legal and GAAP basis. (Recurring eliminations may be automated by using the CDIP GAAP_OVERRIDE Account or Fund Attribute feature.)

2. Timing adjustments: Required for accounting activity that is recorded under the legal basis of accounting as well as under GAAP basis, but at different times. Such adjustments typically result in the creation of an accrued asset and/or liability and probably a change in net position. Their effect must be reversed next year in the process of deriving legal activity to GAAP basis activity.

4.03 GAAPManual|GAAPAdjustmentsandReclassifications|June30,2014

REVISION CONTROL

DOCUMENT TITLE: CHAPTER 4.0 GAAP ADJUSTMENTS AND RECLASSIFICATIONS



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