New Legal Manual & Content Highlights April 17, 2014 Roberta McNiel, SFSR and Kristina Randig, MAPO Chancellor’s Office Year-End Legal Training April 17, 2014

Overview History Enhancements How the topics of chapters were determined Where to find the new manual What is the Legal Manual, where does it fit? Chapter templates Are we there yet???? April 2014Year-End Legal Training2

History - The evolution of the Legal Manual April 2014Year-End Legal Training3

Enhancements include: Breakdown of longer chapters into more manageable sections Standardization of chapter formats Consolidation of information (e.g., RMP documents, various guidelines, s) into a single repository Amplification of procedure not appropriate for inclusion in the ICSUAM Real time (as opposed to annual) updates April 2014Year-End Legal Training4

How were Legal Manual chapters determined? Chapter topics either relate to the operation of a CSU fund or to a particular topic (“subject matter” chapter), such as SCO reporting Text was reorganized so that all information relating to a CSU fund or subject reside in a single chapter Information from other sources (e.g., RMP documents, Cost Recovery Guidelines, Executive Orders, Memos, websites) integrated into the chapters April 2014Year-End Legal Training5

How were Legal Manual chapters drafted? CO-prepared drafts were sent to designated contributors (including campus subject matter experts) to add information and draft a more complete and cohesive document Revised documents sent to a designated reviewer for further refinement of text April 2014Year-End Legal Training6

How were Legal Manual chapters drafted? (cont.) Completed drafts were sent to Systemwide Financial Standards and Reporting (SFSR) for the addition of GAAP information and for final review and approval Chapter posted to the SFSR website, under Year- End Legal & Reporting Workshops April 2014Year-End Legal Training7

Where to find the “New” Legal Manual /LegalManual/index.shtml April 2014Year-End Legal Training8

Where to find the “New” Legal Manual April 2014Year-End Legal Training9

What the Legal Manual is intended to be: A single integrated resource for information regarding legal-basis (transactional) accounting (NOTE: GAAP-basis reporting is the topic of a separate manual located at the same web page described on the preceding slide; select the current year’s drop-down box for “GAAP”) A guide to state reporting April 2014Year-End Legal Training10

What the Legal Manual is intended to be (cont.): The manual is always a work in progress and is a collaborative effort between the CO and campuses where everyone is a contributor and reviewer. April 2014Year-End Legal Training11

What the Legal Manual is not: A beginner’s guide to accounting. The purpose of this manual is to bridge the knowledge gap between accounting as taught in a traditional classroom and accounting as practiced by the CSU. The underlying presumption is that the reader has completed formal instruction as part of obtaining his/her business degree. The intent is not to provide a full discourse on each and every topic, but instead to point out selected aspects of accounting which are unique to CSU. April 2014Year-End Legal Training12

Where does the Legal Manual fit in? CSU’s written directives hierarchy (Proposed): April 2014Year-End Legal Training13 Written Directive Action or DefinitionWhere document lives Executive OrderBoard Resolution, high level critical requirements or to delegate authority to high-level staff (presidents) PolicyICSUAM – Integrated California State University Administrative Manual ICSUAM website and Legal Manual Chapter Section Fund Specifics ProcedureRoadmap to put policy in actionLegal Manual GuidelineRecommendation based upon sound business judgment Inserted as a resource within the Legal Manual

Two New Chapter Templates Chapters by Fund (CSU Program Group) Continuing Education/Extended Education Parking Housing Capital Project Debt April 2014Year-End Legal Training14

Two New Chapter Templates Chapters by Subject Matter Escheat Banking and Investments Fees CSURMA Fixed Assets April 2014Year-End Legal Training15

Standard Chapter Template includes: AUTHORITY: The authority that allows this fund to be established and regulatory requirements (various California State Act, Education Code, Government Code, etc.) See also Appendix 19 – Table of Object Code and CSU Fund Definitions. April 2014Year-End Legal Training16

Standard Chapter Template includes: OVERVIEW: A brief description of the types of activities generating the source of funds being categorized into the specified CSU fund or background information on the specified topic such as CSURMA. April 2014Year-End Legal Training17

Standard Chapter Template includes: FUND SPECIFICS: (POLICY Section) Rules for the fund based upon the Authority for the fund. Campus policies and procedures may be more restrictive, but must be in compliance with the information in this section only. April 2014Year-End Legal Training18

Standard Chapter Template includes: FUND MANAGEMENT AND ACCOUNTING: CSU accounting requirements, including object codes, accounting entries, how transfers are handled, etc. REPORTING REQUIREMENTS: Includes reports that must be submitted to the CO, State or outside agencies, including reporting frequency. April 2014Year-End Legal Training19

Standard Chapter Template includes: FUND BALANCE: This section includes the rules for the ending balance in the fund. Indicates if there are carryover balance thresholds and reserve designations. April 2014Year-End Legal Training20

Standard Chapter Template includes: GAAP IMPACT: This section is used to identify if there is a process that needs to occur in legal to ensure that the information will derive to GAAP properly. This section can also include a reference to the GAAP Manual as to how to handle the subject matter in GAAP, i.e. Summer Session revenue and faculty payroll. April 2014Year-End Legal Training21

Standard Chapter Template includes: RESOURCES: Systemwide Guidelines Document links Spreadsheets Executive Orders Other helpful reference material April 2014Year-End Legal Training22

Standard Chapter Template includes: April 2014Year-End Legal Training23

Are we there yet? April 2014Year-End Legal Training24

April 2014Year-End Legal Training25