Systemwide Accounting Kelly Cox Year-End Legal Training May 2010

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Transcript of Systemwide Accounting Kelly Cox Year-End Legal Training May 2010

  • Slide 1
  • Systemwide Accounting Kelly Cox Year-End Legal Training May 2010
  • Slide 2
  • Topics Covered Systemwide Investment Fund Trust (SWIFT) Year-End Reserve Entry General Fund Spend Down Centralized Payroll Adjustments (CPA) General Fund Appropriation Payroll SWAP General Fund and Trust Fund Tie Points ARRA CSURMA Accounting May 20102Year-End Legal Training
  • Slide 3
  • Systemwide Investment Fund Trust (SWIFT) CSU Banking 101 Bank of CSU Statement Reconciliation SWIFT Investments and Earnings Appropriate SWIFT Balances SWIFT Negative Balances Cash Posting Orders (CPO) May 2010Year-End Legal Training3
  • Slide 4
  • CSU Banking 101 The California State University Systemwide Investment Fund Trust (SWIFT) was established on July 2, 2007 for the purpose of pooling university cash and investments, providing centralized cash and investment management services. The campus cash management is centralized by using one bank, Wells Fargo Bank (WFB) The surplus cash at the bank is invested with US Bank, aka Systemwide Investment Fund Trust (SWIFT). May 2010Year-End Legal Training4
  • Slide 5
  • CSU Banking 101 Cash Management Office (CMO) analyzes the cash activity across the system to determine the CSU daily cash requirements. If there is a shortage, a redemption (wire transfer) from US Bank to WFB is needed. If there is a surplus, CMO transfers funds to US Bank from WFB. These transactions do not affect a campus over-all cash/investment balance. May 2010Year-End Legal Training5
  • Slide 6
  • CSU Banking 101 Monthly Statements for SWIFT are produced from the Bank of CSU database and distributed to each SWIFT participants. ZBA Monthly Statements for WFB are produced by WFB distributed to each account holder. FIRMS Object Code 101100 cash Short Term Investments is used to record transactions that flow through the WFB and SWIFT. May 2010Year-End Legal Training6
  • Slide 7
  • Bank of CSU Statement Reconciliation Deadline: Bank of CSU Statements will be distributed by July 7 Th Bank of CSU statement is used for CPO transaction and WFB balance verification. Campuses also receive statements from WFB to reconcile detail transactions. May 2010Year-End Legal Training7
  • Slide 8
  • Bank of CSU Statement Reconciliation Tips.. Discrepancies in monthly balances between the campus G/L and Bank of CSU statements are usually caused by bank adjustments ACH disbursements adjustments such as ACH rejects Paper/controlled disbursements adjustments due to fraud investigations or checks posted by Wells Fargo Bank as cash paid item May 2010Year-End Legal Training8
  • Slide 9
  • SWIFT Investments and Earnings Campuses will receive a pass-down entry no later than the July 26 th for their June net earnings and Changes in Unrealized Gain/Loss. There is no legal entry required for the Changes in Unrealized Gain/Loss. http://www.calstate.edu/sfsr/gaap/ May 2010Year-End Legal Training9
  • Slide 10
  • SWIFT Investments and Earnings Cont Record investment earnings in the Pooled Investment Fund (CSU Fund 541). SWIFT net investment earnings should be then allocated internally within campus funds according to that campus allocation policy. Net Income in the Pooled Investment Fund is zero (no fund balance) at end of fiscal year. See Chapter 2.2.4 for accounting entries May 2010Year-End Legal Training10
  • Slide 11
  • Appropriate SWIFT Balances The State University Trust Fund (SCO 0948) is the only fund for which cash can be held locally within SWIFT. Governmental funds (e.g.Capital Outlay) or other Enterprise SCO funds (0576, 0578, etc) must be held at the State and cannot be within SWIFT. Reconcile to ensure that no SWIFT cash is recorded in non-0948 funds. May 2010Year-End Legal Training11
  • Slide 12
  • Appropriate SWIFT Balances By 6/30/2009, campuses should no longer have activity in 108090: Investments - Other. The new SWIFT object code, 101100:Cash- Short Term Investment "SWIFT, must be implemented. May 2010Year-End Legal Training12 Campus balances as of 3/31/2010 in 108090.
  • Slide 13
  • SWIFT Negative Balances At Year end, the Cash Short Term Investments SWIFT accounts within each CSU fund should not be negative. For non swap campuses, a year-end entry to exchange 305022 Fund balance clearing (FBC) with101100 Cash Short Term Investments SWIFT to correct negative balances is required. See Chapter 2.2.6 for suggested process May 2010Year-End Legal Training13
  • Slide 14
  • Cash Posting Orders (CPO) Preferred method to collect and disburse funds between campuses and the CO To avoid year-end scramble request a CPO rather than issuing invoices. Contact Lilian Audet at laudet@calstate.edu to request a CPO to be executed.laudet@calstate.edu See chapter 2.2.7 for more information. May 2010Year-End Legal Training14
  • Slide 15
  • Cash Posting Orders (CPO) Two Contacts: CPO Contact: Address questions regarding the purpose of the CPO to the Cash Posting Order contact listed at the bottom of the CPO memo page. Accounting Contact: Address accounting related questions (FIRMS object codes or the journal entries) to the Accounting Entries contact listed at the bottom of the CPO memo page. May 2010Year-End Legal Training15
  • Slide 16
  • Year-End Reserve Entry The entire fund balance in the CSU Operating Fund (485) and CERF (441) must be reserved via a pre-closing year-end memo entry in the ACTUALS ledger. The Systemwide budget office uses the campus entries to know how you plan to use the excess funds. May 2010Year-End Legal Training16
  • Slide 17
  • Year-End Reserve Entry At a minimum campus should use: Fund Balance Undesignated (304015): used for support operations within the next fiscal year. Fund Balance Designated (304016): used for campus or departmental commitments which are not encumbrances. Reserve for Encumbrance (304018): used to record outstanding Encumbrances. Offset for Reserves/Fund Balance (304099): used to record the offset to the previously recorded 304XXX activity. 304099 should equal Fund Equity. The sum of all the 304XXX codes must net to zero. May 2010Year-End Legal Training17
  • Slide 18
  • Year-End Reserve Entry Other Object Codes that can be used: 304010 Reserve for Capital Improvement 304011 Reserve for Equipment Acquisition 304012 Reserve for Program Development 304013 Reserve for Future Debt Service 304014 Reserve for Facilities, Maintenance and Repairs 304017 Reserve for Catastrophic Events 304021 Fund Balance Designated for Financial Aid May 2010Year-End Legal Training18
  • Slide 19
  • General Fund Spend Down The primary objective of RMP was to define the State University Trust Fund (SCO 0948) as their primary operating fund. All payroll was then directed to State Fund 0948. Plan of Financial Action (PFA) is submitted to move payroll expenditures from Trust to General Fund in order to spend down the general fund. This process is called the Centralized Payroll Adjustments (CPA). May 2010Year-End Legal Training19
  • Slide 20
  • Centralized Payroll Adjustments (CPA) CMO determines campus draw down of state support to fund payroll. Campus are to record this PFA as: Credit to 690003 in the CSU Operating Fund, CSU Fund 485 and a debit to 305022 Debit the same account, 690003, in the General Fund SCO Fund 0001 and a credit to 305022 May 2010Year-End Legal Training20
  • Slide 21
  • Centralized Payroll Adjustments (CPA) Cont CMO then determines campus draw down of remaining non-state funded payroll Campus are to record this CPO as: Credit to 101100 Cash Short Term Investments SWIFT debit to 305022 Fund Balance Clearing By the 3 rd quarter, the remaining months will totally be funded by the campuses SWIFT funds May 2010Year-End Legal Training21
  • Slide 22
  • General Fund Appropriation Payroll SWAP To accomplish the goal of spending down the General Fund, some campuses need to exchange General Fund appropriation with SWIFT dollars. During the 3 rd quarter of each fiscal year the SWAP will occur. May 2010Year-End Legal Training22
  • Slide 23
  • General Fund Appropriation Payroll SWAP Record the CPO in the CSU Operating Fund 690003 RMP Expenditure Offset 101100 Cash Short term Investments SWIFT Record the AO in General Fund 690003 RMP Expenditure Offset May 2010Year-End Legal Training23
  • Slide 24
  • General Fund and Trust Fund Tie Point RMP Expenditure Offset from GF (690003) 690003 in the CSU Fund 485, will equal your original based budget allocation from Systemwide Budget Office (aka Rodneys Letter) MINUS AO 09-060 & AO 09-106. However, 690003 in the General Fund will NOT be equal to 485. The difference between General Fund and 485 will be the SWAP transaction AND AO 09-060 & AO 09-106. May 2010Year-End Legal Training24
  • Slide 25
  • General Fund and Trust Fund Tie Point ARRA grants expenditure offset Federal Stimulus grant under the Federal American Recovery and Reinvestment Act (ARRA) of 2009 At year-end transactions between CSU funds 001 and 485 in FIRMS Object Code 690006 must net to zero. May 2010Year-End Legal Training25
  • Slide 26
  • General Fund and Trust Fund Tie Point GF Appropriation Refund to the State At year end transactions between CSU funds 001 and 485 in FIRMS Object Code 690007 must net to zero. SAM99 i ssue: Due to the year-end adjustment by