Miscellaneous Accounting Topics Kelly Cox, Accounting Chancellor’s Office Year-End Legal Training...

Miscellaneous Accounting Topics

Kelly Cox, Accounting

Chancellor’s Office

Year-End Legal Training

April 17, 2014

Topics• CSU 101 – General Accounting• Year End Check Points • SRB Legal Reporting prepare for GAAP• Interagency Transaction (ITT) Report• Year-End Deadlines

April 2014 Year-End Legal Training 2

CSU 101

CSU Accounting Basic


Reporting Hierarchy


CSU 101: Accounting

GAAP

Legal

Campus

Transaction Flow


CSU 101: Accounting

Req Req

PO PO

Voucher Voucher Voucher Voucher Invoice/Bill

Claim Claim Cash Receipt Journal

Check Check Check Check

Receiving Receiving Receiving Receiving

Asset Asset Asset Asset

CO-FIRMS CO_FIRMS CO_FIRMS CO-FIRMS CO-FIRMS CO-FIRMS

SCO SCO SCO SCO SCO SCO

GAAP GAAP GAAP GAAP GAAP GAAP

Transaction Flow

GAAP

Legal

Campus

Reporting Chartfields


CSU 101: Accounting

Campus Legal GAAP

Fund = Campus Fund =48501 Fund = Campus Fund =48501 Fund = Net Asset Category 881

DeptID = Campus Dept =1081 DeptID = Campus Dept = DeptID = Not applicable

Account = Campus Account = 660090

Account = Campus Account= 660090

Account = Natural Classification 722004

Program = Campus Program Program = Derived NACUBO = 0104

Program = Derived Prog Group =01

Project = Campus Project Project = Campus Project Project = Not applicable

Class = Campus Class = 08101

Class = Campus Class= 08101 Class = Derived CSU Fund 485


CSU 101: Accounting

Assets and Liabilities are based on the GAAP

natural classification attributes on the CFS account chartfield the

campus BU

Assets and Liabilities are based on the GAAP

natural classification attributes on the CFS account chartfield the

campus BU

Net Position balances are based on the CFS fund chartfield from

the campus BU

Net Position balances are based on the CFS fund chartfield from

the campus BU

Statement of Net Position


CSU 101: AccountingStmt of Revenue, Expense and Changes of Net Position

Revenues are based on the

natural classification on the CFS Account

Chartfield

Revenues are based on the

natural classification on the CFS Account

Chartfield

Expenses are based on the

NACUBO program group on the program

derivation or Dept ID

Expenses are based on the

NACUBO program group on the program

derivation or Dept ID

Transaction Flow


CSU 101: Accounting

Req Req

PO PO

Voucher Voucher Voucher Voucher Invoice/Bill

Claim Claim Cash Receipt Journal

Check Check Check Check

Receiving Receiving Receiving Receiving

Asset Asset Asset Asset

CO-FIRMS CO_FIRMS CO_FIRMS CO-FIRMS CO-FIRMS CO-FIRMS

SCO SCO SCO SCO SCO SCO

GAAP GAAP GAAP GAAP GAAP GAAP

Transaction Flow

Legal

Campus

Accounts Receivable• Per ICSUAM 3130.01, campuses must centralize

their AR to ensure that monies owed to the University are accurately accounted for.• Therefore, all AR due to the university must be

recorded in the GL to comply with the collection efforts at least by year end. • For example, Debt 103004 Operating AR and

Credit Operating Revenue (580090)• Legal Manual Chapter 28: Accounts Receivable


CSU 101: Accounting

AR Allowance• GASB 33 & 34, requires that the projected loss of

uncollectible AR be reported as contra-revenue rather than as expense • The only exception is when the receivable is

created through a non-revenue transaction.

• Legal Manual Chapter 28: Accounts Receivable


CSU 101: Accounting

AR Allowance• Contra Object Codes


CSU 101: Accounting

Object Code

Description

501400 Allowance for Doubtful Higher Education Tuition & Fees

502400 Allowance for Doubtful Continuing Education Fees

504400 Allowance for Doubtful Sales & Services of Auxiliary Enterprises

504401 Allowance for Doubtful Health Facilities/Campus Union Fees

580400 Allowance for Doubtful Sales & Services of Educational Activities

580410 Allowance for Doubtful Other Operating Revenues

Accounts Receivable Object Code Relationships


FOC Title Revenue Accounts ReceivableCollected in

Advance

Allowance Uncollectible

AccountsAbatement Expense 103001 205002 104001

Reimbursement 505110/505201 103002 205002 104002

Revenue-Other (Governmental Funds)

580013 103003 205001 104003

Operating Revenue 580090 103004 205090 104004

Cost Recovery 580X94/95/96 103004 205090 104004

Student Fees 501XXX 103004 205090 104004

Dishonored Checks - 103005 - 104005

Cash Shortages - 103006 - 104006

Revenue (Non-Operating) 580093 103007 205090 104007

Interfund Interest Revenue 580X12 103008 250004 104008

Loans - Current 103009 - 104009

Student Loans Receivable507002

(interest Only)109001 - 104015

Construction Loans - 109002 - 104004

Loans - NonCurrent - 109004 - 104009

Interfund Const Loans Receivable

- 109006 - 104017

Inter-fund Loan - 109009 - 104004

Due from Other Funds 5XXXXX 13XXXX 205090 104004

Allocation Order vs. Cash Posting Order

• Allocation Orders (AO) are used to provide BUDGET to appropriated funds (General Fund and Higher Education Capital Outlay funds)• Recorded only in the BUDGET ledger• Issued by Systemwide Budget office

• Cash Posting Orders (CPO) are used to provide CASH to Trust funds. • Recorded only in the ACTUALs ledger• Issued by Systemwide Accounting Office


CSU 101: Accounting

Allocation Order vs. Cash Posting Order• To request a CPO access the CSYOU.calstate.edu website

or https://csyou.calstate.edu/Tools/Financial/cpo


CSU 101: Accounting

https://csyou.calstate.edu/Tools/Financial/cpo

Cash Posting Order• To request a CPO access the CSYOU.calstate.edu website

or https://csyou.calstate.edu/Tools/Financial/cpo • For question contact Terri Porter at [email protected] or

• (562) 951-4596

• Process Guide is located on the website


CSU 101: Accounting

https://csyou.calstate.edu/Tools/Financial/cpo

mailto:[email protected]

CSYOU Coded Memos

• Accounting Department Notice of Accounting Transaction (ADNOAT): https://csyou.calstate.edu/Divisions-Orgs/bus-fin/Financial-Services/accounting/Coded-Memos/codedmemosaccounting/Forms/adnoat.aspx

• Transaction Oriented Documents

• Accounting Department Coded Memos : https://csyou.calstate.edu/Policies/Coded%20Memos/Forms/accounting-department.aspx

• Accounting Instruction Documents


CSU 101: Accounting

https://csyou.calstate.edu/Divisions-Orgs/bus-fin/Financial-Services/accounting/Coded-Memos/codedmemosaccounting/Forms/adnoat.aspx

https://csyou.calstate.edu/Divisions-Orgs/bus-fin/Financial-Services/accounting/Coded-Memos/codedmemosaccounting/Forms/adnoat.aspx

https://csyou.calstate.edu/Policies/Coded%20Memos/Forms/accounting-department.aspx



Scholarships Awards

• A number of Scholarship CPOs have been issued this year which require other campuses to be involved in the disbursement process.

1. Awardee is determined by the receiving campus, then the cost is also associate with the campus• BUT if the…

2. Awardee is determined by the remitting campus, then the cost is associate with the remitting campus and it must be accounted and reported on the following slide.


Scholarship Award

• Scenario #1 – The receiving campus determined the beneficiary; therefore the receiving campus also records the scholarship expense. • The campus is to record it to 431: Campus

Scholarships and Grants-Restricted as a revenue • Dr. 101100- 431& Cr.503XXX- 431

• Upon Issuing the Scholarship• Dr. 609005-431 & Cr. 101100-431

• **Remitting campus GAAP elimination is need at the campus not systemwide**


Scholarship Award

• Scenario #2: Remitting campus determines the beneficiary then the receiving campus is acting as an agent. • Receiving campus is to record it to CSU Fund

436: Agency Fund-Miscellaneous Financial Aid and Other Agency• Dr. 101100-436 & Cr.206701-436

• Upon Issuing the Scholarship• Dr. 206701-436 & Cr. 101100-436

• **No campus nor Systemwide GAAP elimination is need**April 2014 Year-End Legal Training 20

FIRMS Object CodesObject Code Object Name

REVISED DEFINITIONS

624001 SP-Scholarships-w/F&A

To record scholarship expenditures subject to the Facilities and Administrative (F&A) or indirect cost calculation when the recipient has been determined by the remitting entity. The receiving entity is acting as an agent and is to record the scholarship as an agency transaction in CSU fund 436 to issue to the beneficiary.

624002 SP-Scholarships-NO/F&A

Same definition as 624001 except it is for “…scholarship expenditures excluded from the Facilities and Administrative (F&A) or indirect cost calculation.”

624101 SP-Interagency-Scholarships-w/F&A

To record interagency sponsored programs expenditures subject to the Facilities and Administrative (F&A) or indirect cost calculation ONLY when the recipient will be determined by the receiving campus. The receiving campus is to record the scholarship to 609005 in CSU fund 431 when issuing the scholarship to beneficiary. The remitting campus' grant revenue (503XXX) and scholarship (624101) is to be eliminated in GAAP.

624102 SP-Interagency-Scholarships-NO/F&A

Same definition as 624101 except it is for “…scholarship expenditures excluded from the Facilities and Administrative (F&A) or indirect cost calculation.”


Sponsored Programs

Special Initiative Grants in 485

• Campuses must record Special Initiative grants consistently across the CSU• Special Initiative Grants include:

1. CSU Program for Educational and Research in Biotechnology

2. Council on Ocean Affairs, Science and Technology

3. Agricultural Research Initiative

4. Water Resources and Policy Initiative

• Funding comes via SWAT



• Chapter 14: CSU Fund 485 in the 2014 Legal Manual


FNAT Key

Project Code

Program

130357 COAST Council on Ocean Affairs, Science and Technology

130358 00ARI Agricultural Research Initiative

130359 WR&PI Water Resources and Policy Initiative

130361 CPERB CSU Program for Educational and Research in Biotechnology


• Processing Special Initiative grant expenditures:• For student grants, utilization of the CFS Student

Financials System item types should be set up to use CSU fund 485.

• For all other Special Initiative grant expenditures, campuses should utilize the appropriate object code for the expense.


YEAR END CHECK POINTS

CSU Accounting


General Fund “Spend Down”• Centralized Payroll Adjustments (CPA) • 1/12 of the total GF appropriation

• General Fund SWAP with SWIFT Dollars• CPO= Actuals ledger CSU fund 485 • AO = Budget ledger in State fund 0001• Both to 690003: GF Payroll Allocation/Expenditure

• Full expended by 6/30, if not contact the CO!


Year End Check Point

Activity Period 20XX07 Adjustment

Record the revenue in the proper CSU fund instead of 485 to minimize the need for activity period 20XX07 adjustment at year-end.

• Legal Manual: Chapter 14: 485 CSU Operating Fund


Operating Fund

Capital Project Mgmt

Cost recovery Campus

Cost recovery

Aux or 3rd party

485 542 543 544GF Payroll Adjustment/Exp <690003>Student Tuition and Fee <501xxx>

Mgmt Fee from Aux <580095>Mgmt Fee from 0948 <580094>Mgmt Fee from non-0948 <580096>

Cost Recovery from 0948 <580094>Cost Recovery from non-0948 <580096>Cost Recovery from Aux Org <580095>Cost Recovery from 3rd Party <580090>


CSU Consolidated Investments• Appropriate balances are in 0948 funds only.• Bank Statements can be picked up by the 5th

business day. Check the “Vincent” server.• Accrue Q4 Investments in GAAP not Legal• There is never a Legal entry for Unrealized

Gains/losses; not even in Q1

Chapter 34: Banking and Investments



Early Start Program Reimbursement• The Early Start Program was developed to better

prepare students in math and English• Campuses are to waive student tuition fee based

on financial need and set up AR in 131481• See chapter 6 for Item Type set up

• IMPORTANT! Email Demetrice Hall at [email protected] with the amounts by CSU Fund by noon on 7/2/2014.• Note: For the CO only, record the campus’ payable to

• dr. 107090: Other prepaid expenses & cr. 231XXX




Early Start Program Reimbursement• Prior to reimbursement, campus must reconcile the GL to

enrollment reports. • Reimbursement is not based on the GL balance in

131481. • Reimbursement is based on the enrollment reports

submitted to Director for Student Financial Aid Services and Programs• Contact Dean Kulju, Director for Student Financial Aid

Services and Programs, at (562) 951-4737.

• Legal Manual Chapter 6: 44X CE Funds



Interagency Year-End Accruals

• Every attempt should be made to request a CPO to collect reimbursements, allocate funds, etc. by June 18th.

• However, if needed Interagency Transactions are due to the CO by end of business day on Tuesday, July 1st and will be included in the FIRMS edit in the appropriate due to/from object codes and CSU Funds.

Legal Manual Chapter 29 – Misc. Accounting



Interagency Year-End Accruals• Transactions received on July 2nd until Legal submission

are to be recorded as follows:• The campus issuing the AR is to record 103004: AR-Operating

Revenue and the remitting campus is to record 201001: AP –Other• Issuing campus MUST email the related campus or CO

• IMPORTANT! It will not be included within the FIRMS edit. • Systemwide legal and GAAP adjustments are required for these

entries. Therefore, the campus issuing the AR must email [email protected] Systemwide Financial Reporting the back up and accounting entries by July 15th.

• These transactions will NOT be included in TM1 Footnote 4.1: AR from CO nor Footnote 17: AP to CO




Year-End Reserve Entry

• The entire fund balance of the CSU Operating Fund (CSU Fund 485) and Continuing Education (CSU Fund 44X) must be reserved at year end.

• Must reconcile its reserve entries with the CSU Fund equity.



Year-End Reserve Entry (CSU Fund 485)At a minimum campus should use:

1. Fund Balance-Undesignated/Unallocated: 304015

2. Designated for Outstanding Commitments: 304016

3. Designated for Encumbrance: 304018

4. Offset for Reserves/Fund Balance: 304099



Year-End Reserve Entry (CSU Fund 441)

CSU Fund 441: TF – CERF - Operations1. Designated for Maximum Carryforward Allowance (304022)

2. Designated for CE/EE Campus Partners (304023):

3. Designated for Outstanding Commitments (304016)

4. Designated for Encumbrances (304018): POs

5. Designated for Equipment Acquisition (304011):

6. Designated for Program Development (304012):

7. Designated for Future Debt Service (304013):

8. Designated for Facilities Maintenance and Repairs (304014): minor facilities maintenance and repair costs



Year End Reserve Entry (CSU Fund 442)CSU Fund 442: CE- Construction- Restricted, External

Sources1. Capital Improvement/Construction (304010):

2. Equipment Acquisition (304011):

3. Facilities Maintenance and Repairs (304014):

4. Outstanding Commitments (304016):

5. Encumbrance (304018):



Year End Reserve Entry (CSU Fund 443)CSU Fund 443: CE - Maintenance & Repair/ Internally

Designated Capital Project 1. Reserve for Capital Improvement/Construction

(304010):


3. Facilities Maintenance and Repairs (304014): major facilities maintenance and repair costs.

4. Outstanding Commitments (304016):




Year-End Reserve Entry (CSU Fund 444) These can be recorded in CSU Fund 444. -only if your campus has implemented CSU Fund 444.1. Designated for Maximum Carryforward Allowance (304022)

2. Designated for CE/EE Campus Partners (304023):


4. Program Development (304012):


6. Outstanding Commitments (304016).

7. Campus Partners (304023):



Legal Preparation for GAAP SRB Financials


SRB Legal Preparing for GAAP• CSU Fund Integrity is critical!!• Make sure your data is properly recorded by CSU

Fund. • Shared costs should be record as an expense,

not as transfers.• Example, CSU Fund A & B build a lab. Fund A and

B should both be on the PO as split funding. • CSU Fund B SHOULD NOT transfer cash to Fund

A to reimburse them. • Why? Fund B (SRB Fund) would be masked by a

transfer April 2014 Year-End Legal Training 40

SRB Legal Preparing for GAAP


CSU Fund 537 requires a you review few entries before you close: 1. If the fund is in cash deficit, record a Due to/from

(230XXX) loan with another CSU fund to clear the deficit. 2. If there are pending centrally paid direct and indirect

costs that haven’t been passed on to the Auxiliary, process AR/BI to establish an AR (103001) before you close.

Legal Manual: Chapter 10 Auxiliary Organization

Capital Leases Activity

• Upon receipt of lease payments from the auxiliary organization, record the principal and interest to:• 580098- Auxiliary Program Lease Principal

Payment • 508092- Auxiliary Program Lease Interest

Payment • Both in CSU Fund 537 only. (FNAT #128893

project code SRB00)


Capital Leases and Loan Activity

• Upon receipt of loan payments from the auxiliary organization, record the principal and interest to:• 250002- Uncleared Collections• Both in CSU Fund 537 only.


2014 Change in SRB Lease Interest Income• Reclassify Auxiliary Lease earnings previously recorded

to 508090… • To 508092: Auxiliary Program Lease Interest Payment

**PLEASE RECLASSIFY** BY 6/30/2014

Legal Manual: Chapter 10 Auxiliary Organization


ITT

(INTERAGENCY

TRANSACTION TABLE)


ITT (INTERAGENCY TRANSACTION TABLE)• Interagency Transactions involving two or more

campuses• Each Transactions needs to be recorded accurately

to ensure proper elimination for the purposes of State Legal and GAAP reporting• The CSU has developed the Interagency transaction

report (aka AP/AR Report) to assist in the review of these transactions• It is published on or before the 1st workday of each

month.April 2014 Year-End Legal Training 46

ITT (INTERAGENCY TRANSACTION TABLE)• The “Report”• SCO/CSU Fund, Object Code, Date, Reference,

Description, CO Contact and Amount.• Distributed via ADNOAT • Location: http://www.calstate.edu/sfo/cp2/campus.shtml


http://www.calstate.edu/sfo/cp2/campus.shtml

ITT (INTERAGENCY TRANSACTION TABLE)• The “Edit” – A FIRMS edits exists to assist in the

validation• Balance sheet Object Codes are “warnings”

during the 1st, 2nd and 3rd quarters but errors during the 4th quarter • Income statement Object Codes are “errors” for

all quarters • “Errors” must be resolved by the campus before

the CO can accept the FIRMS submission


ITT (INTERAGENCY TRANSACTION TABLE)

• Missing record from the FIRMS Table• Email Lan Luong [email protected] or

• (562)951-4142

• Missing record in the Campus GL• Access the “Report” to identify the missing

transaction



ITT (INTERAGENCY TRANSACTION TABLE)• Why do we have problems? • Timing: The CO must be recorded by the 4th

business day• How do we know if it is…

• Between two Campus but not the CO?• the campus CSU fund? Please help…

• What can we do?• Email Lan Luong [email protected] or

• (562) 951-4142

• Email “CO Contact” on the transaction report



DeadlinesCampus Deliverables: • Last day for requesting CPOs June 18 – Contact Demetrice

Hall• Last day to Request Interagency Transactions July 1 – Contact Alice Kim

• Email [email protected] • Includes Early Start Program AR

• SCO Pay tape to be posted to the GL July 2 – Contact Alice Kim• Required for IDL/NDI Reimbursement

CO Deliverables: • Last day for the CO to issue CPOs July 3 – Contact Demetrice Hall• Interagency Transaction Report July 3 – Contact Lan Luong• Bank of CSU Statement July 7 – Contact Colleen Zenger• Fund Balance Clearing (FBC) ADNOAT Issued July 7 – Contact Lan Luong



CHANCELLOR'S OFFICE ACCOUNTING

CONTACTS


Capital Projects/ SRB Accounting

CO Contact SCO / CSU Fund

Terri Williams, Manager (562) 951-4386 [email protected]

Bill Pittman (562) [email protected]

Higher Education & Dorm Construction Fund

Angie Renaud (562) [email protected]

Dorm Construction Fund

Alyssa Kanzaki (562) [email protected]

SRB Financial Reporting and Special Projects

Dago Escobedo (562) [email protected]

SRB Debt Service - Systemwide Revenue Bond Funds (State Univ Trust)







CO General AccountingCO Contact Contact Info Responsibilities

Demetrice Hall, Manager (562) [email protected]

June Cacho (562) [email protected]

Trust, General Fund, Monthly Payroll PFA & Refunds to Reverted Appropriation

Abigail Herrera (562) 951-4536 [email protected]

CO Accounts Receivable

Terri Porter (562) [email protected]

Cash Posting Orders

Alice Burton (562) [email protected]

CO Cashier & Chancellor’s Doc Incentive Program (CDIP Loan Program)

Silvia Aguilar (562) [email protected]

Systemwide Lottery and Cont Education








CSU Risk Mgmt Authority Accounting

CO Contact Contact Info Responsibilities

Alice Kim, Manager (562) [email protected]

Raquel Fabian (562) 951-4621 Accounts Receivable, CPO and Accounts Payable

Mandy Wong (562) [email protected]

Financial Reporting




CO Financial Reporting

CO Contact Contact Info Responsibilities

Alice Kim, Manager (562) [email protected]

Cindy Gong (562) [email protected]

CSU InstituteCO Fixed Assets

Rima Tan (562) [email protected]

CO Financial Analyst

Lan Luong (562) 951- [email protected]

Interagency Transaction Table & FBC publications






www.calstate.edu

April 2014 57Year-End Legal Training

http://www.calstate.edu/

Miscellaneous Accounting Topics Kelly Cox, Accounting Chancellor’s Office Year-End Legal Training...

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