Legal Basis Reporting Systemwide Accounting May 2009 Kelly Cox Manager, Systemwide Accounting (562)...

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Transcript of Legal Basis Reporting Systemwide Accounting May 2009 Kelly Cox Manager, Systemwide Accounting (562)...

  • Slide 1
  • Legal Basis Reporting Systemwide Accounting May 2009 Kelly Cox Manager, Systemwide Accounting (562) 951 4611 kcox@calstate.edu http://www.calstate.edu/acct/
  • Slide 2
  • Topics Cash Posting Orders (CPOs) Bank of CSU Website Accounting for SWIFT Investments Interagency Payments California State University, Risk Management Authority (CSURMA) Accounting Accounting for Campus Loans Prior Year Payroll Reimbursed Activities Systemwide Revenue Bond Accounting Legal Basis Reporting Systemwide Accounting
  • Slide 3
  • Cash Posting Order (CPO) Mechanism to move SWIFT dollars between campuses and the CO Examples: Redemption/Investment in SWIFT (Cash Positioning) Charge for a product or service Reimbursement of expenditures Systemwide Allocation Transfer (SWAT) Request for Cash Transfer Order (RCTO) CPO should be recorded exactly as indicated on memo This will reduce the number of GAAP elimination entries needed. Notify the CO contact listed on the CPO memo if you are unable to comply with the posting instructions 3 Cash Posting Orders
  • Slide 4
  • Systemwide Allocation Transfer (SWAT) Supplemental campus funding from the Priority Fund SWATs may only be used for Operating Funds (CSU Fund 485) The campus will always record as a SWAT in 506100 Request for Cash Transfer Order (RCTO) CO department (e.g. Academic Senate) transfers funds to a campus for additional support or reimbursement RCTO may only be used for Lottery Funds (CSU Funds 481) and Operating Funds (CSU Fund 485) Operating Funds will be recorded as a SWAT in 506100 Lottery Funds will be recorded as a transfer in 571000 Cash Posting Orders
  • Slide 5
  • Bank of CSU If you need copies of CPOs, visit the Bank of CSU website www.calstate.edu/bank www.calstate.edu/bank This site list all the CPOs related to your campus by month with a brief description of the transaction. Questions on CPOs can be directed to: cmo@calstate.edu cmo@calstate.edu Lilian Audet laudet@calstate.edu 562.951.4209laudet@calstate.edu Kelly Cox kcox@calstate.edu 562.951.4611kcox@calstate.edu Sean Boylan sboylan@calstate.edu 562.951.4619sboylan@calstate.edu Cash Posting Orders
  • Slide 6
  • Accounting for Investment Earnings Investment Earnings are allocated to the SWIFT campus accounts Allocated on quarterly basis Campus records allocation in Pooled Investment Fund (CSU Fund 541) based on the CPO instructions Income is allocated internally within campus funds according to that campus allocation policy Net Income in the Pooled Investment Fund is zero at end of fiscal year no fund balance GAAP entry will be made to record June earnings and classify appropriately Investment Earnings
  • Slide 7
  • Accounting for Investment Earnings Quarters are: First Quarter = Jun, Jul, Aug Second Quarter = Sep, Oct, Nov Third Quarter = Dec, Jan, Feb Fourth Quarter = Mar, Apr, May Note: Campuses will receive an ADNOAT to record June earnings for GAAP adjustment purposes. Benefits: To record all investment earnings consistently across all campuses To record in a timely manner for legal basis close Investment Earnings
  • Slide 8
  • Accounting for Investment Earnings Campus investment earnings allocation are net of charges Allowable Charges in the Pooled Investment Fund (CSU Fund 541) Wells Fargo Bank charges Investment Services Chancellors Office Indirect support Investment Earnings
  • Slide 9
  • Accounting for Investment Earnings Campus Quarterly Earnings Accounting Entries 1)SWIFT allocation to Campus of $1,500,000 Debit Fund 541, Acct 108090, Investments $1,500,000 Credit Fund 541, Acct 508001, Income from External Investments $1,500,000 2)Wells Fargo Bank (WFB) charges to campus of $2,500 Debit Fund 541, Acct 660046, WFB Charges $2,500 Credit Fund 541, Acct 108090, Investments $2,500 3)CO Indirect Support charges to campus of $2,500 Debit Fund 541, Acct 660047, CO Indirect Support$2,500 Credit Fund 541, Acct 108090, Investments $2,500 4)Investment Services charges to campus of $10,000 Debit Fund 541, Acct 660049, Investment Services $10,000 Credit Fund 541, Acct 108090, Investments $10,000 Investment Earnings
  • Slide 10
  • Accounting for Investment Earnings Accounting Entries for campus allocation of interest to other funds 5)Campus investment earnings allocation to other funds $1,500,000 - $2,500 - $2,500-$10,000 = $1,485,000 Debit Fund 541, Acct 508001, Income from External Investments $1,485,000 Credit Fund 541, Acct 108090, Investments$1,485,000 Important! Fund Balance in CSU Fund 541 should be zero at year end Credit balance in 508001 will equal the combined balance in 660046, 660047 & 660049 so fund balance will net zero. No due to or due from entries are allowed Investment Earnings
  • Slide 11
  • Accounting for Investment Earnings Accounting Entries for campus allocation of interest to other funds cont 6)In CSU Fund 485, CSU Operating Fund Debit Fund 485, Acct 108090, Investments$700,000 Credit Fund 485, Acct 508001, Income from External Investments$ 700,000 7)Other CSU Funds in 0948 Debit to CSU funds, Acct 108090, Investments $ 785,000 Credit to CSU funds, Acct 508001, Income from Ext Investments $ 785,000 Important! For CSU Fund 485, Earnings must record in FNAT Key 127942 which uses FIRMS Project: INTAC RMP-Interest Income Activity Investment Earnings
  • Slide 12
  • Accounting for Investment Earnings Campuses receive an ADNOAT July 27 th for their June net earnings "Changes in Unrealized Gain/Loss" are no longer included in the monthly investment earnings calculation effective 7/1/2008. The unrealized activity will be held in the SWIFT pool clearing account for tracking purposes and then passed down to campuses for GAAP reporting. no legal entry required Investment Earnings
  • Slide 13
  • Interagency Payments When paying outstanding invoices, use wire transfers or ACH payments!!! If a check must be cut, please mail checks out by Tuesday, 6/23 to be received by Tuesday, 6/30. If payment is made after this date, please email Accounting to verify that we have received the payment. If not, entries are needed so we all pass the manual FIRMS edit. mwong@calstate.edu for payments to CSURMA mwong@calstate.edu solivas@calstate.edu for all other payments solivas@calstate.edu The CO will follow this same practice when paying campus outstanding invoices. Interagency Payments
  • Slide 14
  • How to Record CSURMA Expenses/Reimbursements CSURMA expenditures need to be consistently recorded across the CSU Non-Industrial Disability Leave (NDI) / Industrial Disability Leave (IDL) payments should be recorded to 603009:Non-Industrial Disability & 603008:Industrial Disability BUT the reimbursement (& YE Accrual) from CSURMA should be credited to 660011:Insurance Claim NDI/IDL. Note: At year-end the sum of these accounts should net zero. Unemployment Insurance (UI) payments to EDD should be coded to 603010: Unemployment Compensation AND the reimbursement (& YE Accrual) from CSURMA should be a credited to 603010. Note: At year-end, 603010 should net zero California State University, Risk Management Authority (CSURMA)
  • Slide 15
  • How to Record CSURMA Expenses/Reimbursements Payments to CSURMA for deductible amounts should be recorded to 660012: Insurance Claim Deductible. Should only be used for Deductible payments. Account should tie back to all 4 quarter deductible amounts plus any property deductible entries made. Dividends should be credited against the original premium expense in 660010: Insurance Premium Expense California State University, Risk Management Authority (CSURMA)
  • Slide 16
  • IDL/NDI/UI Accruals AR to the Campuses & AP to CSURMA Due to the interagency transactions between CSURMA and the campus, the recording of the IDL/NDI/UI activity needs to be properly communicated between both groups Actual invoices or estimated accruals from the campuses should be emailed to Mandy (mwong@calstate.edu) by 7/1mwong@calstate.edu) Either a pdf of the actual invoice or an email listing the amounts Campus MUST indicate what CSU fund that will record the accrual on their Legal books When recording in 0948, the campus entry would be 131547, Due from CSU 547 - TF CSU Risk Mgmt A confirmation of these accruals will be included on the CO Interagency Receivables, Payables and Transfers ADNOAT published on or before July 7 th California State University, Risk Management Authority (CSURMA)
  • Slide 17
  • Deductible Recovery AP to the Campuses & AR to CSURMA The CSURMA Deductible Recovery ADNOATs will be posted no later than end of business on July 7 th The campus entry will be 231547, Due to CSU 547 - TF CSU Risk Mgmt Our assumption is that the campuses will record this entry in 485. If not, email Mandy Wong (mwong@calstate.edu) indicating in which CSU fund it will be recordedmwong@calstate.edu This must tie so we all pass the manual FIRMS edit!!! California State University, Risk Management Authority (CSURMA)
  • Slide 18
  • Campus Loans In a year where a Trust fund has no reserve balance and expenditures exceed revenues, the result is an overall deficit balance. In this case, a loan must be made from another self-supporting activity on the campus. The loan will not affect the fund balance, but will increase cash and create a liability. A loan document should be created to specify the terms of the loan including the interest rate and repayment terms. To book the entry initial loan: D