1. 1 FIRMS Overview and Update Sedong John, CSU Chancellor’s Office

2. June 8, 2004Year-End Financial Reporting2 Overall Assessment  Significant improvement in timeliness of submission for both FIRMS Data and SCO reporting requirements  Signs of improvement in the quality of data –Fewer errors detected by the C.O. –More Certificates of Excellence issued by the SCO

3. June 8, 2004Year-End Financial Reporting3 Origin of FIRMS  Executive Order 648-Delegation of Fiscal Authority and Responsibility (Jan 1, 1996) defines campus financial reporting requirements to the C.O.  BF 96-01 (March 20, 1996) officially announced creation of Financial Information Record Management System (FIRMS) as the mechanism to fulfill the reporting requirements under E.O. 648.

4. June 8, 2004Year-End Financial Reporting4 Uses of FIRMS Data  FIRMS data is collected to meet various systemwide reporting needs: –State Reports (SAM07, Schedule 10, Governor’s Budget, etc.) –Federal IPEDS report –To provide financial information to the Trustees, auditors, and other information users –Management analysis

5. June 8, 2004Year-End Financial Reporting5 Flow of Data  Campus Transaction Data FIRMS Data System- wide Reports

6. June 8, 2004Year-End Financial Reporting6 Components of FIRMS Database  Data Table –Contains data collected from campuses and the C.O. –Legal basis actuals data for University is collected quarterly –Budget data for the following year is collected annually –Auxiliary organization data collected in July and October (IPEDS) –GAAP basis actuals data will be collected annually  Reference Tables –Maintained centrally at the C.O. –Contain various attributes to be downloaded into campus PeopleSoft system –Used to derive meaningful information in systemwide reports

7. June 8, 2004Year-End Financial Reporting7 Things to Watch  Do not record encumbrances or accrued expenses in lump sum using a default program code, but record them where actual expenditures will occur  Do not report any balance in, or with respect to, Fund 0998  Distinguish between intra-fund and inter-fund transactions (105027/202027, 506026, 680026)  Balance Due Froms/Due Tos and Transfers In/Transfers Out  Record construction retention as accrued expense, not encumbrance  Include Lottery Project numbers for both budget and expenditures  Use object codes for specific expenditures rather than expenses- other (660090)  Notify the C.O. and resubmit FIRMS data if data is resubmitted to the SCO

8. June 8, 2004Year-End Financial Reporting8 What’s new this year?  New transfer object codes for inter-agency transactions (5061xx, 6801xx) that replaced 506040, 506041, 680040, 680041  Changes in auxiliary organization reporting template (Attachment IX)  Automation of additional validation edits  New capital outlay project codes (60702x, 60703x, 60704x)  Review of FIRMS submissions and communication to campuses regarding warnings/errors throughout the year  Rules Committee is continuing its effort to refine definition of Program Codes and Object Codes  Started CDIP implementation –Program derivation in PS 8.4 –Will start collecting GAAP data from PS 8.4 campuses

9. June 8, 2004Year-End Financial Reporting9 What’s ahead?  CDIP: –Program codes will be derived using the derivation method in 8.4. –Transition issues –In addition to the legal basis data being collected, GAAP data will also be collected into FIRMS database  New Program Codes added effective 7/1/04 based on FARM release 02-6  New Object Codes created for more precise classification: optional this year, required next year

10. June 8, 2004Year-End Financial Reporting10 Division of Responsibility at the C.O. for FIRMS  Systemwide Financial Operations/ Systemwide Financial Standards & Reporting (SFO/SFSR): George Ashkar/Sedong John –Functional: standards, policies & rules, submission requirements, data quality control coordination  Financial Management Services (FMS): Sean Boylan/Fyle Cagagnot –Technical: implementation of defined rules, maintenance of reference tables, data analysis for management information users  Corporate Information Management (CIM): Ron Basich/Rick Fletcher –Programming and database administration

11. June 8, 2004Year-End Financial Reporting11 Flow of Information  AVC- Financial Services SFO/SFSR FMS CIM FIRMS Database

12. June 8, 2004Year-End Financial Reporting12 Persons to Contact if you have questions  See the list on Attachment IV of the Year-End Reporting Instructions

13. June 8, 2004Year-End Financial Reporting13 Annual Expense Variance Analysis Part of the Data Integrity Initiative… Lenore Rozner/Glenn Ducat CSU Chancellor’s Office

14. June 8, 2004Year-End Financial Reporting14 Data Quality Objectives  Timely, accurate data for accountability reporting to CSU stakeholders  Consistency for year-to-year comparisons  Correct categorizations for comparison with other institutions

15. June 8, 2004Year-End Financial Reporting15 Enhancing Data Integrity Increased attention to expenditure categorizations (Program, Object Code) Expenditure analysis in 2002 Post-closing campus expenditure reviews, explanations and campus financial officer certifications in 2003

16. June 8, 2004Year-End Financial Reporting16 A Big “THANK YOU!” Expense coding is becoming more accurate Campus response has been positive & timely Looking Forward: Annual reviews/certifications will continue Changes in coding requirements will make variances a certainty Scope for data accuracy will expand

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18. June 8, 2004Year-End Financial Reporting18 Major Contributors To Change FY 2002/03 Versus FY 2001/02 Increases $ Millions Academic Salaries 64.1 All Other Employee Salaries 31.6 Employee Benefits 98.0 Insurance Expense 55.8 Decreases Expenses Other -31.4 Contractual Services -39.5 Supplies and Services -29.4 Scholarships /Fellowships -9.8 IT Hardware/Software -7.1 Other Decreases -28.2 TOTAL $104.1 Million

19. editsedits Activity Period Record Type Agency Code Sub Agency Code Organization State Legal Entity Approp Reference CSU Fund Year of Approp Year of Budget Project No. Program Code Object Code Amount FTE Positions Standards DOF Schedule 10 --- Governor’s Budget Financial Standards Advisory Committee SCO Legal/GAAP Reporting Federal IPEDS FRS Qtrly Management Reports Multi-year Variance Analysis --- Statistical Abstract Activity Period Record Type Agency Code Sub Agency Code Organization State Legal Entity Approp Reference CSU Fund Year of Approp Year of Budget Project No. Program Code Object Code Amount FTE Positions Financial Planning/ Resource Allocation Oracle Banner PeopleSoft Qtrly External Reporting Requirements: Legislature State Legal/GAAP NACUBO/FARMS GASB/FASB IPEDS CSU Trustees Employee Unions Public Campus Systems FMS SFO Budget Office BP&IM Ad Hoc AVC, Financial Services Office Systemwide Financial Operations

20. June 8, 2004Year-End Financial Reporting20 June 1Accounting Period Ends June 30 Close Accounting Period July 31 Corrections / Adjustments Management Reports Multi-Year Variance Analysis FIRMS Working Table Internal Data Review Process Pre-June 30 th Technical Adjustments Post-June 30 th Campus Financial System FIRMS Final Submittal Review 2-Year Expenditure Data, Explain Expenditure Changes > $100,000, E-mail Variance Report & Management Certification Submit Variance Report and Data Certification Mid-August EDIT Begun in 2003 Early August

21. June 8, 2004Year-End Financial Reporting21 June 1Accounting Period Ends June 30 Close Accounting Period July 31 Corrections / Adjustments Management Reports Multi-Year Variance Analysis FIRMS Working Table NEW EDIT 2004 Internal Data Review Process Pre-June 30 th Technical Adjustments Post-June 30 th Campus Financial System FIRMS Final Submittal Review 2-Year Expenditure Data, Explain Expenditure Changes > $100,000, E-mail Variance Report & Management Certification Submit Variance Report and Data Certification Mid-August EDIT Begun in 2003 Early August

22. 22 FIRMS Reporting Data Submission and Quality Review Corporate Information Management June 8, 2004

23. Year-End Financial Reporting23 FIRMS Documentation  URL: http://www.calstate.edu/cim/financialAssets/fmenu1.shtml http://www.calstate.edu/cim/financialAssets/fmenu1.shtml  Continuously updated reference tables  Revised Validation Rules  Contact Update

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25. June 8, 2004Year-End Financial Reporting25 Data Submissions  URL- http://orion.calstate.edu:7777/servlet/f60servlet?config=firms_runedit  Web form works with IE 5 and up (PC only)  Secure File Transfer –Application opener button on panel –Secure ftp application can be opened outside the FIRMS data submission panel  Files may be in tab-delimited or fixed-field format

26. June 8, 2004Year-End Financial Reporting26 Data Submissions- Notification  Campus Data are Processed in FIRMS Working Table  Once Data File is Error-Free, Campus Notifies Corporate Information Staff  Corporate Information Staff Copies Data to Final FIRMS Corporate Data Table

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28. June 8, 2004Year-End Financial Reporting28 Campus Variance Reports  Compare Working Table data with Last Year’s Final  Compare This Year’s Final (200406) with Last Year’s Final (200306)  Record Types 10 and 15 Broken Out  Brio OnDemand Reports  Excel Template for Final Comparison

29. June 8, 2004Year-End Financial Reporting29 Campus Variance Reports- URLs  OnDemand Reports- URL: http://gourdine.calstate.edu/ODSHTML/brio.html http://gourdine.calstate.edu/ODSHTML/brio.html  Variance Reports- URL: http://www.calstate.edu/cim/financialAssets/FIRMS/data_quality _review.shtml http://www.calstate.edu/cim/financialAssets/FIRMS/data_quality _review.shtml

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36. June 8, 2004Year-End Financial Reporting36 FIRMS Processing Contacts  Email: cim_mgr@calstate.educim_mgr@calstate.edu  Ron Basich- 562-951-4276  Rick Fletcher- 562-951-4299