1. Other Manual Highlights and Reminders Sheralin Klinthong and Evajoy Tito, SFSR Chancellor’s Office Year-End GAAP Training April 18, 2014

2. GAAP Manual  Where to find the GAAP Manual? -Available in the SFSR website http://www.calstate.edu/SFSR/Workshops/index.shtml http://www.calstate.edu/SFSR/Workshops/index.shtml GAAP drop down menu April 2014Year-End GAAP Training2

3. GAAP Manual Highlights New Look – similar to the new Legal Manual April 2014Year-End GAAP Training3 OLD LOOK NEW LOOK 1. Change in “header” 2. No longer called “Section”. Now, called “Chapter”.

4. GAAP Manual Highlights (cont.) New Look – similar to the new Legal Manual April 2014Year-End GAAP Training4 OLD LOOK NEW LOOK 3. Change in “footer”

5. GAAP Manual Highlights (cont.) Revision Control – replaced the “Major Changes” document April 2014Year-End GAAP Training5

6. GAAP Manual Highlights (cont.) Removed Matrix 2.2 “SNP by CSU Fund” Removed Matrix 3.2 “SRECNP by CSU Fund” Merged and automated the above matrices effective 7/1/14 as GAAP Edits Table Chapter 3 Legal Basis to GAAP Reporting Added more guidelines for SCF preparation New and improved SCF worksheet template Chapter 6 Statement of Cash Flows Repository of all implementation tools i.e. questionnaire, literature, FAQs, charts, etc. Includes GASB 49, 60 and 61 Chapter 7 GASB Standards Implementation Tools April 2014Year-End GAAP Training6

7. GAAP Manual Highlights (cont.) Changes in PBC exhibits Updated PBC list New TM1 FAQ’s Chapter 9 Preparing for Financial Statement Audit Added new items on the checklist (download the latest checklist) Chapter 10 GAAP Preparation Checklist Added new items on the checklist (download the latest checklist) GAAP Data Integrity Form Chapter 11 GAAP Financial Reporting Checklist April 2014Year-End GAAP Training7

8. GAAP Manual Highlights (cont.) NCAA Requirement Annual deliverables to SFSR Reporting to the BOT Chapter 12 NCAA Financial Reporting Requirements Changes every year for new technical guidance Chapter 14 Technical Updates New discussion on reporting of findings by KPMG Changes to Federal Grant Policies and Single Audits (Uniform Guidance) Chapter 15 Preparing for A-133 Audit April 2014Year-End GAAP Training8

9. Statement of Cash Flows (Chapter 6) April 2014Year-End GAAP Training9 Current Year Improvements More More examples of non-cash transactions Easily account for CF activities Added the relevant GASB CIG for reference Achieve consistency in SCF preparation Guidelines on SCF line items

10. Statement of Cash Flows (cont.) Added relevant GASB implementation Guide Q&A in relevant sections April 2014Year-End GAAP Training10

11. Statement of Cash Flows (cont.) Provided more common non-cash transaction examples April 2014Year-End GAAP Training11

12. Statement of Cash Flows (cont.) April 2014Year-End GAAP Training12 Increase (decrease) in the account Increase (decrease) in cash

13. Statement of Cash Flows (cont.) April 2014Year-End GAAP Training13

14. Statement of Cash Flows (cont.) Example 1: During the year, the campus had the following transactions: Purchased capital assets of $250,000, of which $80,000 is unpaid at fiscal year-end A capital asset was donated amounting to $350,000 Depreciation for the year is $75,000 Sold capital assets amounting to $50,000 April 2014Year-End GAAP Training14

15. Statement of Cash Flows (cont.) April 2014Year-End GAAP Training15

16. Statement of Cash Flows (cont.) Example 2: Advance Refunding April 2014Year-End GAAP Training16

17. Statement of Cash Flows (cont.) April 2014Year-End GAAP Training17

18. Statement of Cash Flows (cont.) REMINDERS: No decimals Use the template as guide. Update as necessary. Analyze accounts that typically have noncash transactions (e.g. capital assets, other assets, deferred outflows of resources) Disregard current and long-term portion of account balances “Transfer to Escrow Agent” amount in the SCF will be provided to the campus rather than CO entering directly in TM1 April 2014Year-End GAAP Training18

19. GAAP Reminders Error in PBC # 2 Campus/Legal/GAAP Ledger Comparison  Report picked up Asset Management (AM) entries. Did not change AM periods from 1-12 to 901-912 during the AM journal generate process in xxGAP. Auditor Qualification Questionnaire – due on April 30 th April 2014Year-End GAAP Training19

20. GAAP Reminders (cont.) Reconcile SNP and SRECNP – TM1 vs. GAAP ledger Any adjustment made on TM1 should be booked in GAAP ledger as well. Properly classify investments in “Footnote 2.1 Auxiliary Note” in TM1. Revisit investments classified as “Others” and reclassify them if necessary. April 2014Year-End GAAP Training20

21. GAAP Reminders (cont.) PBC SharePoint Site All documents should be “checked-in”. Look for this icon. April 2014Year-End GAAP Training21

22. GAAP Reminders (cont.) To check in documents: April 2014Year-End GAAP Training22 “Right click” “Click”

23. April 2014Year-End GAAP Training23 Sheralin Klinthong Associate Director Financial Reporting & Review (Tel) 562-951-4548 (Email) sklinthong@calstate.edusklinthong@calstate.edu Thank you Evajoy Tito Manager Financial Reporting (Tel) 562-951-4531 (Email) etito@calstate.eduetito@calstate.edu

24. April 2014 Year-End GAAP Training24