1. Auxiliary Organizations Presented by Mark Thomas Partner - KPMG LLP KPMG LLP

2. GAAP Reporting Workshop 2 GAAP Workshop Teleconference for Auxiliary Organizations To be held June 1 and June 7, 2005 For auxiliary organization personnel and their auditors Agenda In-depth review of Chapter 8 More detailed discussion of topics to be covered today in this presentation

3. GAAP Reporting Workshop 3 Key Deadlines 4th Quarter FIRMS data submission – July 31, 2005 Audited financial statements, including supplementary information schedules – September 30, 2005 FIRMS detail IPEDS reporting – October 31, 2005 (see Chapter 7) Campus President’s review of auxiliary organizations’ audited financial statements – December 1, 2005 (sample letter provided – see Chapter 8)

4. GAAP Reporting Workshop 4 Supplementary Information – Highlights of Significant Changes Note 16 of the Reporting Package (“Other Information”) Depreciation and amortization expense Breakout of portion related to capital assets and other assets Long-term liabilities activity schedule Breakout of bonds between revenue bonds and all other bonds Capital lease obligations Future minimum lease payments schedule

5. GAAP Reporting Workshop 5 Supplementary Information – Highlights of Significant Changes (cont’d) Note 16 of the Reporting Package (“Other Information”) (cont’d) Future debt payment schedule Breakout of portion related to revenue bonds Net assets component – invested in capital assets, net of related debt Detailed calculation schedule of amount

6. GAAP Reporting Workshop 6 Key Deadlines 4th Quarter FIRMS data submission – July 31, 2005 Audited financial statements, including supplementary information schedules – September 30, 2005 FIRMS detail IPEDS reporting – October 31, 2005 (see Chapter 7) Campus President’s review of auxiliary organizations’ audited financial statements – December 1, 2005 (sample letter provided – see Chapter 8)

7. GAAP Reporting Workshop 7 Statements of Net Assets and Revenues, Expenses, and Changes in Net Assets Reconciliation of inter-entity account balances and activity with campus and other auxiliary organizations Elimination column – identification of nonexchange transactions between auxiliary organizations and campus Classified balance sheet Net assets categories Invested in capital assets, net of related debt - Debt related to unspent bond proceeds should not be included in this category but rather in the same net assets category as the unspent bond proceeds (e.g. restricted for capital projects) Restricted

8. GAAP Reporting Workshop 8 Top 10 Most Common Errors See Chapter 8 for complete list of top 10 Top 3 Other information was not included as either a supplementary schedule or as part of notes to the financial statements (42) Supplemental schedules, while included, did not accurately follow the CSU format (26) The net assets category: invested in capital assets, net of related debt was not included (14) Troubleshooting checklist – to be submitted to campus with audited financial statements (refer to Chapter 8)

9. GAAP Reporting Workshop 9 Questions?