1. Legal Basis Reporting Workshop CO Accounting May 19, 2008 Systemwide Accounting Issues

2. Chancellor’s Office Accounting  Prior Year General Fund  SCO Charges in the Current year 0001  CSURMA Payments /Accruals  CPO research - Bank of CSU  Revised CPOs for New Transfer Object Code

3. The CO and Prior Year General Fund  SCO and PFAs in PY 0001 –In 2007/08, the State Controller’s Office (SCO) will no longer accept a Plan of Financial Adjustment (PFA) to move prior year payroll from State fund 0001 to State Fund 0948.  This is due to their interpretation of the definition of a Primary Operating Fund.

4. Prior Year General Fund Ledger vs. SCO Postings  SCO posted expense 0001  LCD posted to 0948 - Debit to Salaries and Credit to FBC

5. Prior Year General Fund Recommended Entry  0001 – Books the expense – SAM99 –Dr. 690002 –Cr. 305002  0948 – Books the expense – SAM99 –Dr. 305002 –Cr. 690002 This is not real accounting!

6. Prior Year General Fund If PY or PPY 0001 Lacked Funds?  In 2007/08, the CO began working directly with the SCO to ensure that adequate funds are available for all CSU agencies.  If 0001 2004 (PPY) or 0001 2005 (PY) was short of funds, an allocation order (AO)/CPO has been processed –Frequently, this amount exceeded the actual amount needed for the transaction

7. Prior Year General Fund Why did the CO process an AO and a CPO?  The AO is the most efficient way to increase the campus authority to spend in the amount of time given by the SCO.  The CPO reflects the shift of the campus resources from SWIFT to State $, in this case, a supplemental allocation

8. Prior Year General Fund Post Supplemental Budget  The AO increases the campus spending authority

9. Prior Year General Fund CPO for Exchange  The CPO is the exact amount of the AO (in our example $10,000) which reduces your SWIFT $

10. Prior Year General Fund  Year End and Reverting Funds –To eliminate any remaining spending authority in 0001 2004, the CO will de-allocate and post a CPO to the campus SWIFT

11. Prior Year General Fund Reverting General Fund Process – Step 1  $4,886 BBA needs to be reduces

12. Prior Year General Fund Record De-allocation & CPO – Step 2  AO de-allocates the spending authority  CPO increase your SWIFT balance in the exact amount

13. Prior Year General Fund Reverting General Fund Process Result Zero!!

14. SCO Charges in the Current year 0001  Throughout the year, the SCO has posted various journal entries to the current year 2007 General Fund. –PIA –Payroll –VCS Surplus Charge  Other than the Payroll PFA entries submitted by the Chancellor’s Office, NO other charges should be processed against the CY.

15. SCO Charges in the Current year 0001 Charges from Other State Agencies  As part of the 2006/07 RMP implementation, all campus customer codes on file with other state agencies outside of the CSU were re-directed to charge 0948.  Any on-going expenses from another state agency should be posted to campus 0948.

16. SCO Charges in the Current year 0001 CO Monitor and Correct SCO Errors  The CO will be monitoring the charges posted to the current year general fund, contacting the other state agencies that submitted the charges and submitting corrections to the SCO.

17. CSURMA Payments /Accruals CSURMA Invoices AP to the Campuses AR to CSURMA  When paying CSURMA outstanding invoices, CSURMA Accounting requests that the campuses mail checks out by Tuesday, 6/24 to be received by Monday, 6/30. –If payment is made after this date, please email CSURMA accounting (mwong@calstate.edu) to verify that we have received the payment. If not, what entries are needed so we all pass the manual FIRMS edit.mwong@calstate.edu  Wire transfers or ACH payments are even better!!!  If payment is not made and assuming these transactions are booked in 0948, the campus entry would be 231547, Due to CSU 547 - TF CSU Risk Mgmt (inter- agency). Otherwise, 202029 A/P to Chancellor’s Office.  CSURMA Accounting will follow this same practice when paying campus outstanding invoices.

18. CSURMA Payments /Accruals 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 mwong@calstate.edu by 7/1/2008.mwong@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. –A confirmation of these accruals will be included on the CO Interagency Receivables, Payables and Transfers ADNOAT published July 7 th.

19. CSURMA Payments /Accruals Insurance Claim NDI/IDL 660011 & Unemployment Compensation 603010 261DRF-Housing 262DRF-Parking 267DRF-Continuing Education Revenue Fund 441TF CERF Extended Education 461TF-Associated Student Body Trust 463TF-Instructionally Related Activities Trust 465TF-Contracts and Grant Trust 472TF Parking Revenue Fund-Parking Fees 481TF Lottery Education Fund 485TF CSU Operating Fund 491TF Special Projects Fund-Special Projects 496TF Miscellaneous Trust 499TF Revolving Fund 531TF Housing-Operations and Revenue IDL/NDI/UI Accruals AR to the Campuses AP to CSURMA Assuming these transactions are booked in 0948, the campus entry would be 131547, Due from CSU 547 - TF CSU Risk Mgmt (inter-agency). Otherwise, 105029 Due from CO. Again, the campuses MUST email mwong@calstate.edu by 7/1/2008 including what CSU fund they will record this accrual and the amount. mwong@calstate.edu Q3 FIRMS data shows that the campuses booked these expenses to MANY CSU funds, therefore confirmation is needed so that we all pass the manual FIRMS edit. Note: reimbursement is recorded as a credit to these expense object codes

20. Insurance Claim Deductible - 660012 CHANNEL Islands485TF CSU Operating Fund$30,278 CHICO485TF CSU Operating Fund$3,186 FRESNO485TF CSU Operating Fund$51,856 HAYWARD485TF CSU Operating Fund$913 HUMBOLDT 485TF CSU Operating Fund($2,195) 531 TF Housing-Operations and Revenue$313 LONG BEACH485TF CSU Operating Fund$188,479 LOS ANGELES485TF CSU Operating Fund$6,511 MARITIME ACADEMY485TF CSU Operating Fund$11,156 MONTEREY BAY485TF CSU Operating Fund$513 NORTHRIDGE485TF CSU Operating Fund($23,253) POMONA485TF CSU Operating Fund$54,371 SAN BERNARDINO485TF CSU Operating Fund$51,864 SAN DIEGO485TF CSU Operating Fund$177,379 SAN FRANCISCO485TF CSU Operating Fund($195,570) SAN JOSE485TF CSU Operating Fund$58,874 SAN LUIS OBISPO 262DRF-Parking$198 485TF CSU Operating Fund$11,600 531 TF Housing-Operations and Revenue$114 SAN MARCOS485TF CSU Operating Fund($259,273) SONOMA485TF CSU Operating Fund$1,024 SYSTEM OFFICES485TF CSU Operating Fund$3,189 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 7th. The campus entry will be 231547, Due to CSU 547 - TF CSU Risk Mgmt (inter- agency) The CO will require the campuses to email (mwong@calstate.edu) what CSU fund they will record this accrual.mwong@calstate.edu Q3 FIRMS data shows that the campuses booked mostly in 485 so our assumption will be that you recorded this entry in 485. This must tie so we all pass the manual FIRMS edit. CSURMA Payments /Accruals

21. CPO Research – Bank of CSU  If you need copies of CPOs, visit the Bank of CSU website –www.calstate.edu/bankwww.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 me or Lilian Audet –Lilian Audet laudet@calstate.edu 562.951.4209laudet@calstate.edu –Kelly Cox kcox@calstate.edu 562.951.4611kcox@calstate.edu

22. Revised CPOs for New Transfer Object Code  New object codes have been set-up to identify due to/from and transfer in/out transactions within CSU Fund 0948.  Various CPO transactions using the object codes 506126/680126 were issued during Q1 & Q2 using the old objects, these should now be reclassified to 571000/671000.  Revised CPOs have been issued. If you still have transactions within 506126/680126, go the Bank of CSU to obtain the revised CPO.  The final implementation memo outlining the new codes can be found at: http://www.calstate.edu/bf/rmp/documents/ 13-New-Due-To-From-_-Transfer-In-Out-Document.dochttp://www.calstate.edu/bf/rmp/documents/ 13-New-Due-To-From-_-Transfer-In-Out-Document.doc

23. Q & A  Questions