SCO Capital Assets/Accumulated Depreciation Template: Training on New Enhancement Roberta McNiel, Sr. Manager Nathanael Bryant, Financial Systems & Reporting Analyst Systemwide Financial Standards & Reporting June 15, 2015

Learning Objectives: Familiarize campuses with the new enhancement, how it functions, and what the numbers ties to Explain how the data is populated Demonstrate how to test Discuss validation of the beginning balances Discuss completion of the data in August Provide deadlines for completing test, validating beginning balances and making final entries June 2015SCO CA/AD Template Training on New Form2

Introduction Beginning FYE 6/30/15, SCO requirement to provide capital asset/accumulated depreciation data by state fund on a GAAP basis will be fulfilled through entries made by campuses in Asset Management (AM) module. Consolidated schedule will be pulled by CO from AM. Changes expected to streamline the year-end process and make it easier for both the campuses and the CO to meet the SCO requirement. June 2015SCO CA/AD Template Training on New Form3

Introduction (cont.) Although Reports 18/19 are no longer required to be prepared by the CSU, the AM process remains in place to facilitate review of activity by campuses. The pages used for Reports 18/19 have been enhanced so that the SCO requirement to provide capital asset/accumulated depreciation data by state fund on a GAAP basis can be met. Crystal reports for 18/19 will remain the same. New BI reports have been created for SCO GAAP-basis reporting. June 2015SCO CA/AD Template Training on New Form4

First Step Campuses must run the Load Capital Asset process for the fiscal year Failure to do this will cause the campuses to not see any data San Diego will have to run the upload process June 2015SCO CA/AD Template Training on New Form5

Navigation From the Main Menu in CFS, the navigation to the new form is as follows: CSU State & SW Reporting Capital Asset Reporting Prior Period Adjustments June 2015SCO CA/AD Template Training on New Form6

Navigation (cont.) At the Prior Period Adjustments screen: Enter your business unit The SCO Fund The fiscal year (i.e. 2014) June 2015SCO CA/AD Template Training on New Form7

June 2015SCO CA/AD Template Training on New Form8

Overview of Enhancement Beginning Balance – imported from AM database Prior Period Adj, Additions and Deductions – campus entries to adjust AM beginning balances to GAAP Adjusted Beg Balance – GAAP balances at 6/30/14 Additions, Deductions – imported from AM database GAAP Adj, Additions and Deductions – campus entries of current year adjustments to restate additions and deductions to GAAP June 2015SCO CA/AD Template Training on New Form9

Overview of Enhancement (cont.) Transfers In and Transfers Out – campus entries for transfers included in AM data Net Transfers – calculated by program GAAP Adj, Net Transfers - campus entries of current year adjustments to restate transfers to GAAP Ending Balance – calculated by program, representing ending balance before adjustment to GAAP Adjusted GAAP Ending Balance – calculated by program, representing ending balance after adjustment to GAAP June 2015SCO CA/AD Template Training on New Form10

CWIP & PWIP Asset categories Construction Work-in- Progress (CWIP) and Internally Generated Assets in Progress (PWIP) are entered on separate screens. PWIP & CWIP screens generally contain the same elements as the screen displayed at Slide 8. Note that there is only one column for Prior Period Adjustments and one column for Transfers, but that the GAAP Adjustments columns are the same. June 2015SCO CA/AD Template Training on New Form 11

Testing the Enhancement Select a minimum of one state fund and confirm the calculations in the computed fields are accurate Entries in Prior Period Adj (PPA) – Additions fields reduce the balances in the Additions fields by an equal amount Entries in Prior Period Adj (PPA) – Deductions fields reduce balances in the Deductions fields Adjusted Beg. Balance fields are the sum of the Beginning Balance, PPA – Additions and PPA – Deductions fields June 2015SCO CA/AD Template Training on New Form12

Testing the Enhancement (cont.) Adjusted GAAP End Bal fields sum the Adjusted Beg Balance, Additions, GAAP Adj Additions, Deductions, GAAP Adj Deductions, Net Transfers and GAAP Adj Net Transfers fields Entries in the Transfers In and Transfers Out fields adjust the Additions and Deductions fields Net Transfers fields are the net of the Transfers In and Transfers Out fields June 2015SCO CA/AD Template Training on New Form13

Testing the CWIP & PWIP Screens Only the Ending Balance and Adjusted GAAP Ending Balance fields are calculated fields. Campuses are required to enter data in the remaining fields. June 2015SCO CA/AD Template Training on New Form 14 REVISED 6/24/15

Validating the Adjusted Beginning Balances Update the PPA – Additions and PPA - Deductions fields with actual data for every state fund in which capital assets reside Tie the Adj Beg. Balance fields to the ending balances reported on the campus’ 2014 SCO GAAP Capital Assets/Accumulated Depreciation Worksheet Validated Adj Beg. Balance fields will be loaded into Production so campuses don’t need to re-enter data for the September submission June 2015SCO CA/AD Template Training on New Form15

Validating the Adjusted Beginning Balances (cont.) Prior period adjustments columns on CWIP and PWIP screens will also need to be updated with actual data for every state fund in which these asset categories reside. Tie adjusted beginning balances for these asset categories to last year’s ending balances. Validated balances will be loaded into Production. June 2015SCO CA/AD Template Training on New Form 16

Reporting Results to CO Test Results Via to Nathanael Bryant, copy to Roberta McNiel, but only on an exception basis. No communication required if no problems noted. Due no later than June 23. June 2015SCO CA/AD Template Training on New Form17

Reporting Results to CO (cont.) Validation of Adjusted Beginning Balances Notify Nathanael Bryant and Roberta McNiel via when entry of the adjustments has been completed and the adjusted beginning balances fields have been tied to last year’s ending balances. Due no later than June 23. June 2015SCO CA/AD Template Training on New Form18

Completing the Enhancement To convert the capital assets/accumulated depreciation data residing in AM to GAAP, for every state fund where capital assets have been recorded, populate appropriate cells in the GAAP Adj – Additions and GAAP Adj – Deductions fields Enter data for Transfers In and Transfers Out Enter GAAP Adj – Net Transfers ***Tie the Adjusted GAAP End Bal on the AM form to TM1 and the net capital assets in GAAP FIRMS*** June 2015SCO CA/AD Template Training on New Form19

For CWIP/PWIP, populate the GAAP Adj.- Additions, GAAP Adj. – Deductions, Transfers and GAAP Adj. – Transfers fields as appropriate. ***Tie the Adjusted GAAP End Bal to TM1 and the net capital assets in GAAP FIRMS*** June 2015SCO CA/AD Template Training on New Form 20 Completing the Enhancement (cont.)

CAUTION No balances for 0997 should be included on schedule!!! June 2015SCO CA/AD Template Training on New Form21

Submitting Depreciation Expense Data NO CHANGE!!! Use the same Excel worksheet as provided last year The total depreciation expense must tie to the amount reported in TM1 Form is at 18.3b in the GAAP manual June 2015SCO CA/AD Template Training on New Form22

Final Deadline All entries for capital assets and accumulated depreciation must be completed in AM no later than September 10 The completed depreciation expense worksheet must be uploaded to the State Reporting SharePoint site no later than September 10 June 2015SCO CA/AD Template Training on New Form23

Contacts Regarding technical issues in connection with AM: Carmen Arreguin, or (562) Regarding use of the form: Nathanael Bryant, or (562) Submit notifications of test results and completion of update to Adj Beg Balance to Nathanael and Roberta McNiel June 2015SCO CA/AD Template Training on New Form24

Wrap Up Chapter 18 will be updated to reflect change to submission of capital asset/accumulated depreciation data; revision will be available shortly. After this year, campuses will not need to update the PPA fields as these will be brought forward by the program. June 2015SCO CA/AD Template Training on New Form25

Wrap Up (cont.) IMPORTANT REMINDER: The new enhancement is a reporting mechanism only and any entries made in the cells DO NOT adjust the data in the AM database. Remember to use the proper signs when entering data in cells (e.g. additions carry a positive sign; deductions carry a negative sign). June 2015SCO CA/AD Template Training on New Form26

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