Accounting. CSU 101 January 26-29, 2014 San Francisco. Kelly Cox Associate Director, Financial Services Chancellor s Office

Transcription

1 Accounting CSU 101 January 26-29, 2014 San Francisco Kelly Cox Associate Director, Financial Services Chancellor s Office Sherry Pickering Director, Fiscal Services CSU, East Bay

2 Reporting Hierarchy GAAP Legal Campus 2

3 Chartfields Campus Legal GAAP Fund = Campus Fund Fund = Campus Fund Fund = Net Asset Category DeptID = Campus Dept DeptID = Campus Dept DeptID = Not applicable Account = Campus Account Account = Campus Account Account = Natural Classification Program = Campus Program Program = Derived NACUBO Program = Derived Prog Group Project = Campus Project Project = Campus Project Project = Not applicable Class = Campus Class Class = Campus Class Class = Derived CSU Fund 3

4 Learning Objective Why GAAP Reporting? Reporting Package / Financial Statements Understanding GAAP Chartfields Where and How do the information get to GAAP? Hot Topics 4

5 Why GAAP? Campuses maintain their financial records on the legal basis of accounting required by the State of California. The legal basis of accounting is not consistent with U.S. generally accepted accounting principles (GAAP). AB (Assembly Bill) 2613 requires audited financial statements be presented in accordance with GAAP. 5

6 SOURCE, FLOW, AND SCOPE OF STATE GOVERNMENT AUTHORITY AND REGULATIONS (Exclusive of case law, local governments, and Federal law) September 2005 Our Operating Rules State Legislature State laws that govern CSU operations: Budget Act Business and Professions Code Code of Civil Procedure Corporations Code Elections Code Fish and Game Code Government Code Health and Safety Code Labor Code Penal Code Public Contract Code Public Utilities Code Streets and Highway Code Vehicle Code Welfare and Institutions Code Civil Code Commercial Code Education Code Evidence Code Financial Code Food and Agricultural Code Harbors and Navigation Code Insurance Code Military and Veterans Code Probate Code Public Resources Code Revenue and Taxation Code Unemployment Insurance Code Water Code THE CONSTITUTION OF CALIFORNIA ARTICLE IV THE CALIFORNIA LEGISLATURE STATE SENATE AND STATE ASSEMBLY STATUTES AND APPROPRIATIONS OF FUNDS DONOHOE ACT OF 1960 CREATES THE CSU BOARD OF TRUSTEES AND CAL STATE SYSTEM OF CAMPUSES (EDUCATION CODE) ACTIONS OF THE BOARD RESOLUTIONS AND ORDERS CHANCELLOR OF THE CSU RESOLUTIONS AND RULES Selected constitutional articles and sections that affect CSU: Article III: State of California Article IV: Legislative Article V: Executive Article VII: Public Officers and Employees Article XII: Public Utilities Article XIII: Taxation Article XIV: Labor Relations Article XVI: Public Finance Article XX, 3, 20, 23 Article XXI: Architectural and Engineering Services CALIFORNIA CODE OF REGULATIONS TITLE 5. Education Division 5. Board of Trustees of the California State University Chapter 1. California State University Subchapter 1. Definitions Subchapter 2. Educational Program Subchapter 3. Admission Requirements Subchapter 4. Student Affairs Subchapter 5. Administration Subchapter 6. Auxiliary Organizations Subchapter 7. Employees Subchapter 8. Environmental Quality Subchapter 9. Contracts and Purchases EXECUTIVE ORDERS, DELEGATIONS OF AUTHORITY, AND POLICIES CAMPUS PRESIDENT 6

7 Statements Three basic financial statements CSU Reporting Package Footnotes Disclosure for consolidated financial statements TM1 / YES (Year End System) 7

8 Financial Statements Provides audited financial information to users of such information for making economic decisions; demonstrates accountability and stewardship of management; and evaluates university performance. STATEMENT OF NET POSITION This statement reports the university s assets, liabilities and equity (net position) similar to the traditional balance sheet. Tells story of university s position at a point in time. STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION This statement is the operating statement of the university. It is used to show how resources are used. STATEMENT OF CASH FLOWS This statement classifies cash activities into four categories operating activities, noncapital financing activities, capital financing activities, and investing activities. It illustrates the strength of university s cash position. NOTES TO THE FINANCIAL STATEMENTS The notes to the financial statements provide additional information that is essential to the full understanding of the financial statements. 8

9 YES / TM1 Year End System (YES) is a separate application using the TM1 tool to facilitate the systemwide consolidation and issuance of published audited financial statements. GAAP financial statement data is collected, inclusive of footnote disclosures, in the format agreed upon annually with the external auditors. Data from PSoft GAAP ledger are entered manually by each campus and the Chancellor s Office. Reports from PSoft GAAP Ledger Entered into YES Reporting Package Published Financial Statements 9

10 Statement of Net Position Assets and Liabilities are based on the GAAP natural classification attribute on the PeopleSoft Account Chartfield Deferred Outflows and Inflows of Resources are new this year! Net Position fund balances are based on the GAAP net position category attribute on the PeopleSoft Fund Code Chartfield 10

11 Statement of Revenues, Expenses and Changes in Net Position Revenues are based on the GAAP natural classification attribute on the PeopleSoft Account Chartfield Expenses are based on the NACUBO program group on the NACUBO program derivation 11

12 Cash Flows 12

13 Footnotes 13

14 GAAP (CAFR) at State 14

15 GAAP Attributes 15

16 Transaction Flow I m on every transaction along with some other Chart Fields They need me! 16

17 Transaction Types recorded in each Business Unit You have to choose the correct value on the original transaction or LOTS of things can go wrong I don t like it. 17

18 Reporting Generated from each Business Unit I use the State Controller s fund value and the CSU fund value and the Net Asset Category for all this reporting I know a lot! 18

19 GAAP Manual 19

20 Hot Topics Systemwide issuance by October 15 Preparation schedule compressed Auxiliary Audits must complete earlier by 9/20 GAAP Edit Adds a dimension to routine entries Tuition Discounting Agency Transaction GASB 60 Ongoing review of Contracts for Service Concession Agreements 20

21 Reporting Hierarchy GAAP Legal Campus 21

22 Chartfields Campus Legal GAAP Fund = Campus Fund Fund = Campus Fund Fund = Net Asset Category DeptID = Campus Dept DeptID = Campus Dept DeptID = Not applicable Account = Campus Account Account = Campus Account Account = Natural Classification Program = Campus Program Program = Derived NACUBO Program = Derived Prog Group Project = Campus Project Project = Campus Project Project = Not applicable Class = Campus Class Class = Campus Class Class = Derived CSU Fund 22

23 Learning Objective Campus Legal Reporting Requirements SCO Chancellor s Office How the CSU meets the state reporting requirements Relationship between the legal and GAAP data 23

24 State Controller s Office (SCO) Budgetary/Legal Reporting Transaction Processing SCO GAAP Reporting Comprehensive Annual Financial Report (CAFR) 24

25 Agency Recon. Report [Tab Run] 25

26 SAM99 26

27 Hard Copy Reports 27

28 Legal Manual 28

29 Legal Fund Type = G 29

30 Legal Fund Type <> G 30

31 FIRMS F I R M S 31

32 CO Legal Hard Copy Reports + Submitted through SharePoint Identical set of reports sent to the SCO FIRMS Data Integrity Certification Form 32

33 Other Required Data Submissions 33

34 Reporting Requirements Is the data the same for Legal and GAAP? 34

35 Legal vs GAAP Legal Components: GAAP Components: Budget Actuals - Dollars & FTE Actuals - Dollars Encumbrances Attribute Level : State Fund Basis: Modified Accrual Audience: State Attribute Level : Net Assets Basis: Full Accrual Audience: External 35

36 Legal vs GAAP Permanent Differences Temporary Accruals 36

37 Designated Fund Balance Legal vs. GAAP Restricted Fund Equity 37

38 SCO GAAP Reporting State CAFR is reported on a GAAP basis Governmental Fund Financial Statements Campus Data Provided GAAP Reporting Packages GAAP FIRMS Submission Supplemental Schedules 38

39 What is the role of Accounting? GAAP Legal Campus 39

40 Chartfields Campus Legal GAAP Fund = Campus Fund Fund = Campus Fund Fund = Net Asset Category DeptID = Campus Dept DeptID = Campus Dept DeptID = Not applicable Account = Campus Account Account = Campus Account Account = Natural Classification Program = Campus Program Program = Derived NACUBO Program = Derived Prog Group Project = Campus Project Project = Campus Project Project = Not applicable Class = Campus Class Class = Campus Class Class = Derived CSU Fund 40

41 Learning Objective Discover YOUR importance in the Accounting Equation Understand the CSU and your campus Chart of Accounts Understand the Importance of Campus Reporting Reconciling Why it Matters Learn the current Hot Topics 41

42 Why YOU Matter Many roles are represented in this room and in Financial and Support Services; including Accounting Staff Auxiliary Accounting Staff Buyer Collector Manager Receiving Clerk Accounts Payable Technician Budget Staff Cashier Student Financial Services Payroll Technician Supervisor 42

43 You touch many of the Accounting Transactions The items you process/review make up the Campus accounting records that feed the Legal and GAAP reporting required of the CSU. Accounting Staff - Journal Entries, Reconciling, Financial Reporting Auxiliary Accounting Staff - Grants and Student Fees Buyers - Requisitions, Contracts Collectors - Outstanding Fees and Invoices Managers - Support and Provide Necessary Resources Receiving Clerks Receipt and Delivery of Goods, Asset ID AP Techs - Invoices, Direct Payments, Travel Claims Budget Staff - Baseline Budget, Transfers, Special Allocations, Position Management and Labor Cost Distribution Cashiers - Student Fees, 3 rd Party Invoices Student Financial Services Student Accounts, Loans and State Awards Payroll Techs - Absence Reports and Labor Cost Distribution Supervisors - Verification and Review 43

44 Transaction Flow Do you see your transactions here? 44

45 Transaction Types recorded by Unit You have to choose the correct value on the original transaction or LOTS of things can go wrong I don t like it. 45

46 Campus ChartField Review Fund Tied to a specific purpose (Trial Balance) DeptID Campus Organization (Same in HR) Account Type of Expenditure Program On Going Revenue & Expense Project Time specific Revenue & Expense Class Dept level information Rev & Expense 46

47 Required Campus Chartfields Attributes/Coding needs to be correct to report correctly to the Campus, CO, SCO and on GAAP Fund Lowest Level to generate a Trial Balance Department ID Represents the Campus Organization Structure Important to derive correct NACUBO Program Code Account Classifies Assets, Liabilities, Fund Equities, Revenues and Expenses 47

48 A Few Questions What is the largest expense for the CSU? Where do the next largest expense items come from for the CSU? Why does correct recording of transactions matter? Who cares? How do they know? When do they know? 48

49 CSU Finance Data Warehouse Campus Reporting CFS Delivered Reports Queries Ad Hoc Reporting needs. 49

50 Campus Reporting Campus End User Financial Reporting is based on the Organizational Structure of the Campus represented by the Department (DeptID) 50

51 Management Considerations Cash vs Budget Fiduciary Funds vs Governmental Funds Spending Authority vs Delegation of Authority Program Code Effects Funding 51

52 Management Considerations Good data produces good reporting Is the transaction correct in all of its dimensions? Abnormal balances Legal Edit Campus Combo Edits 52

53 Reconciliation is our Friend Bank Reconciliation Negative Cash HR Pay Tape to LCD Fee Reconciliations SAM99 Reconciliation AM Reconciliation AR Aging and Collections Follow Up Open Purchase Order Review Outstanding Check Lists and Escheat 53

54 Sample Check List Reconciliation is our Friend Reconciliations Check List FY Note: Some columns may be hidden Reconciliation Month - Note 1 Description Preparer Reviewer Jul Aug Sept Oct Nov Dec Jan Monthly SAM99 - Campus to SCO Jennifer LaVerne 8/30/11 9/14/11 10/11/11 11/21/11 12/12/11 Fund Balance Clearing - Campus to CO Theo Kendal 8/26/11 FBC Rpt until Sep11 10/10/11 11/9/11 12/12/11 WFB Bank Reconciliation Theo/Jennifer Kendal 8/29/11 9/22/11 10/26/11 11/18/11 12/15/11 Uncleared Collections Theo Kendal 8/11/11 9/9/11 10/12/11 11/9/11 12/12/11 Open Item / Revolving Fund Darnell/Hai LaVerne 8/1/11 9/2/11 10/3/11 11/1/11 12/1/11 Accounts Receivable -SF (Student Financials) Robyn LaVerne 8/12/11 9/13/11 10/12/11 11/9/11 12/14/11 Accounts Receivable - AR/BI Nicole LaVerne 8/15/11 9/15/11 10/13/11 11/10/11 12/9/11 Gift Reconciliation - Advance to CMS Theo Kendal 8/11/11 9/9/11 10/12/11 11/14/11 12/12/11 Asset Management to GL Nicole LaVerne 8/3/11 9/6/11 10/14/11 11/14/11 12/2/11 Travel Advance Follow-Up Darnell Susan/ Kendal/ LaVerne 8/12/11 9/7/11 10/3/11 11/2/11 12/2/11 Reconciliation Check List AS & AP Kendal 8/30/11 9/28/11 10/28/11 11/28/11 12/22/11 Semester Application Fees - Semi Annual Hai LaVerne Student Registration Fees Fall due Jan/Spring due June/Summer due Sep Robyn LaVerne 10/28/11 CCE Fees - Open University - Sum/Fall/Spr Darnell LaVerne 9/12/11 CCE Fees - Summer/Fall/Spring Darnell LaVerne 9/12/11 NOTES 1) To be completed within one month. Months listed are ending dates for that particular reconciliation and it must be completed within 30 days of the preceeding month. (e.g. October 2011 Bank Statement must be reconciled by November 30,

55 Hot Topics 9.2 Upgrade Trust Fund Policy Legal Manual 55

56 Q & A Questions? 56

57 Contact Info Kelly Cox Sherry Pickering