1. CSU Operating Fund Reserves vs Budget Balance Available

2. CSU Fund 485 – Operating Fund Reserve Requirements  Entire fund balance in the CSU Operating Fund (485) will be reserved via a “pre-closing” year-end entry  FIRMS Object Codes:  304018 – Reserve for Encumbrance  Sam 6 Encumbrance Totals  304016 – Fund Balance Designated  304015 – Fund Balance Undesignated  304099 – Offset (all 304 accounts must net to zero, 304099 should equal Fund Equity) 2

3. Campus Unique Accounts  Campuses can establish multiple reserve/designation accounts for management purposes  Example:  Mapped to 304016 - Designated  304800 – Designated for Divisions  304801 – Designated for University  Mapped to 304015 - Undesignated  304802 – Unallocated Campus Designation 3

4. Transition Year - New Activities Within CSU Fund 485 – CSU Operating Fund  User Fees  Activity previously accounted for in CSU Fund 467 – Student Fees  Miscellaneous Course Fees  Health Services  Augmented Health Services  Investment Activity related to CSU Fund 485 4

5. CSU Fund 485 FNAT Keys 5

6. Using CSU Fund 485 FNAT keys  Separate FNAT Keys REQUIRE separate PeopleSoft Funds  SAM 6 will subtotal based on the FNAT Keys  SAM 6 will show the summarized net income by FNAT key  Can be used to determine reserve entry 6

7. Sample SAM 6 7 FIRM Project Value display in the Section Header SAM 6 Sub-totals based on the FIRMS Project Value (net income that will close to reserve)

8. Query to support SAM6 8

9. Fields 9

10. Criteria – Note the Groupings 10

11. Having Criteria 11

12. Output to Excel…. 12

13. How much money is left?  Budget reconciles to accounting data  Both Budget and Accounting should agree on the carry forward balance  Campus needs to develop its process for managing carry forward balances 13

14. Budget and Accounting Agree 14

15. Now you agree on the total…  Reserve entries are based on management’s plans for spending  Carry Forward to Divisions/Departments  Carry Forward for Centrally maintained budgets  Carry Forward for Encumbrances  Unallocated Funds  Etc  Budget Balance Available is used to determine the “owner” and/or classification of reserves 15

16. Revenue  Revenue Balances are usually centrally maintained by the campus  “Unscheduled” balances at year end will be part of the total equity amount that needs to be reserved  For ease of identification, all revenues could be fully allocated so that the budget balance available for all revenues is zero  By default, all funds will be identified based on the BBA within the expenditure budget 16

17. 17 Cal Poly Sam 6 @ June 30, 2007 – all revenues are fully scheduled

18. 18 Sample June 30, Sam 6 (P&L) and Trial Balance

19. Managing Reserve Balances thru the year 19

20. Sample entries PRIOR to June 30, 2008, Reserve entries 20

21. Budget and Accounting Agree 21

22. Sample Final Reserve Balances 22

23. Reserve in the non-operating funds  Could reserve all equity in 304016 Designated Balances  If this is your choice, you could create an allocation to do the reserve entry in these funds 23

24. www.calstate.edu