firms submissions & sco reporting roberta mcniel, sfsr chancellor’s office year-end legal...

FIRMS SUBMISSIONS & SCO REPORTING

Roberta McNiel, SFSR

Chancellor’s Office

Year-End Legal Training

April 17, 2014

FIRMS SUBMISSIONS

• Covered in Chapter 3 of the new Legal Manual (also Chapter 3 in the previous manual)

• Monthly submissions required for cash management functions performed by Treasury --- no formal acceptance by CO required

• Quarterly submissions required to fulfill system-wide financial reporting requirements --- formal acceptance by CO required

April 2014 Year-End Legal Training 2

FIRMS SUBMISSIONS (cont.)• Quarterly submissions subjected to automated edits; errors must be

cleared by campus to obtain CO’s acceptance of data• Occasionally, campuses will request acceptance of file with

uncleared errors --- see Sec. 4.3 of Chapter 3 Via email to Roberta McNiel and Su Chen explaining reason(s)

for errors and why correction cannot be made Attach copy of FIRMS validation report with relevant errors

highlighted If same error repeated multiple quarters, also attach copy of CO

approval for override of first occurrence


FIRMS SUBMISSIONS (cont.)• Year-End Submissions

Pre-closing file Financial data prior to the closure of revenue and expenses to

equity Must be submitted no later than noon on July 11, 2014

Post-closing file Financial data after the closure of revenue and expenses to

equity Must be submitted no later than noon July 15, 2014


FIRMS SUBMISSIONS (cont.)Year-End Submissions (cont.)

Auxiliary organization file Limited key pre-closing financial data of auxiliaries in FIRMS

format Must be submitted to CO no later than July 31, 2014


FIRMS SUBMISSIONS (cont.)• Automated edits --- no significant changes• Manual edits – pre-closing file --- same as prior year

Review of abnormal balances Complete Abnormal Balance Explanation Template (Appendix

20) and submit at same time the pre-close FIRMS file is transmitted OR

Transmit the pre-close FIRMS file to the CO and await return of the template for completion by the campus

Information provided by the campus should be in enough detail to allow the Chancellor’s Office to evaluate the propriety of the balance


FIRMS SUBMISSIONS (cont.)Manual edits – pre-closing file (cont.) Validation of the balance in 690003, RMP Expenditure Offset Validation of type codes (G, F and P) used with governmental

and nongovernmental AR object codes (G used with 103003; F and P used with 103004)

Confirmation that control accounts are not used to record transactions (e.g., 101000, Cash)

Confirmation that the designations of fund balances in CSU funds 441 and 485 equal both the balance in 304099, Offset for Reserves/Fund Balance, (except for sign) and the ending equity balance in those funds


FIRMS SUBMISSIONS (cont.)Manual edits – pre-closing file (cont.)

Confirmation that balances in cash and investment object codes are zero in capital outlay funds

Confirmation that fund balances for deactivated funds are zero


FIRMS SUBMISSIONS (cont.)• Manual edits – post-closing file --- same as prior year

Confirmation that the change in the asset and liability balances from the pre-closing file is zero

Confirmation that the sum of the changes in revenue and expense accounts is equal to the sum of the changes in equity accounts

Confirmation that the revenue and expense activity is closed to the appropriate equity object code (see Appendix 1 for guidance)

Confirmation that the activity in CSU funds pending deactivation after July 1 net to zero


FIRMS SUBMISSIONS (cont.)

• Information on current year changes to object codes and CSU funds now located in Appendix 19, CSU Fund and Object Code Definitions Added CSU funds 560 and 561 for Cal State Online Deactivated CSU fund 547, CSURMA CSU fund 411, ACG/SMART Grants, will be deactivated July 1,

2014



Added following object codes: 304022, Designated for Maximum Carryforward Allowance 304023, Designated for CE/EE Campus Partners 503301, Local Contracts & Grants (non-capital) and 503303,

Local Grants & Contracts (capital) 504020, Cal State Online Tuition Fees 580092, CSURMA Dividend Revenue (reactivated code) 603100, NDI/IDL Claims Reimbursement (contra-expense)



• Information on current year changes to legal combination edits now located in Legal Edits Table at the SFSR website

• Appendix 19 will be eliminated from the Legal Manual effective January 1, 2015 and will be replaced by the Tables of CSU Fund and Object Code Definitions at the Standard & Rules page of the SFSR website

• SFSR website: http://www.calstate.edu/sfsr/


http://www.calstate.edu/sfsr/


• Financial Data Integrity Form (Appendix 9) – language added to ensure:

FIRMS data complies with CSU policies and procedures Integrity of data at the CSU fund level is maintained


SCO REPORTINGGovernmental v. Nongovernmental Funds• Governmental funds: used to record state operating and capital

outlay appropriations, and the expenses paid from them• Proprietary funds: used to record fees for services and related

expenses Internal service funds – services provided to other funds or

governmental departments on a cost-reimbursement basis Enterprise funds – services provided to the public for a user

charge• Fiduciary funds – used to record assets held in trust for the benefit of

others


SCO REPORTING (cont.)Governmental v. Nongovernmental Funds (cont.)• Appendix 23, State Fund Table, added to Legal Manual listing all

state funds that are or have been used by the CSU and indicating their type (G, P or F)

• State funds 0660/0668, Public Building Construction Funds Used to record construction costs funded through issue of bonds

by Public Works Board (PWB) PWB holds the debt, CSU enters into long-term facilities leases

whereby lease payments equal PWB’s debt service; lease payments funded through separate state appropriation


SCO REPORTING (cont.)Governmental v. Nongovernmental Funds (cont.)

State funds 0660/0668, Public Building Construction Funds (cont.)

CO records the long-term lease liabilities, campuses record the assets in GAAP

0660/0668 are type “P” (proprietary) Neither reported in SAM 99 nor by the CO --- reporting is the

responsibility of the PWB; however, campuses still required to do a SAM 99 reconciliation internally throughout the year to ensure campus records agree with SCO records


SCO REPORTING (cont.)

• Covered in Chapter 5 of the new Legal Manual (previously Chapter 4)

• Includes: Instructions for the submission of the SAM 99 file Description of each report included in the hard copy reporting

package Hard copy reporting package submission instructions


SCO REPORTING (cont.)Report 14, Report of Accounts Outside the State Treasury (Appendix 14)• New requirements as a result of a recent state-wide audit of this

report (also noted in red text at the Instructions tab of the template) Taxpayer identification number(s) (TINs) under which accounts

were or could be established --- block added on the top right of the form; annual reporting requirement only

Submission of bank statements for all accounts requiring collateralization; this is a semiannual reporting requirement December 31 statements due February 1 via email to State

Treasurer’s Office (STO) --- [email protected]; transmittal to include:


mailto:[email protected]

SCO REPORTING (cont.)Report 14, Report of Accounts Outside the State Treasury (cont.)

o Campus name and organization codeo Two contact names, email addresses and direct phone

numbers June 30 statements due with submission of Report 14

• Do not report: Cash-on-hand Amounts deposited with non-financial institutions Accounts closed in prior years


SCO REPORTING (cont.)Report 14, Report of Accounts Outside the State Treasury (cont.)• But, be sure to include:

Specific statutory authority allowing external account or cite Department of Finance approval; authority must relate directly to the CSU and not another state agency

Book balance as of June 30; if account closed during the reporting period, write “N/A” and the date of closure

Collateralization of account --- “Yes” it is, “No” it’s not, or “Not Required”

Cash held on behalf of an auxiliary Signature of the campus VP of Admin & Finance or higher official



• Signatory certifies the following: Banks holding campus deposits have been notified of security and

collateral requirements At the time an account is opened That where collateralization of an account is required, bank

must deposit collateral with the STO --- deposit with local agency investment funds do not meet the requirements of state agency collateralization



Use of all listed accounts is consistent with Department of Finance approval or as authorized by law

Deposited funds will be adequately collateralized throughout the year in accordance with law

• New this year: SWIFT confirmation Breakdown of each campus’ share of SWIFT investment pool as

of June 30 (without campus-specific in-transit items) Will show any portion held within the state treasury, which needs

to be excluded from Report 14


SCO REPORTING (cont.)Due To/From Other Funds/Appropriations Supplemental Form• Purpose: to report the organization codes of the state agencies with

which the CSU has receivable/payable transactions• Campuses should make every effort to identify and record these

transactions prior to closure of the legal-basis financial records • Template provided at Appendix 17

Added an Instructions tab Submission required for all funds reported in the SAM 99

(governmental funds) in which due to/from transactions have been recorded --- includes transactions occurring within the campus


SCO REPORTING (cont.)Due To/From Other Funds/Appropriations Supplemental Form (cont.)

Forms reporting recorded transactions relating to nongovernmental funds submitted to the Chancellor’s Office

Added tab labeled “Unrecorded Transactions” Used to report to the Chancellor’s Office receivable/payable

transactions not recorded in nongovernmental funds prior to closure of the legal-basis financial records

Worksheet requires the provision of:o Fund number in which the campus would have recorded the

transaction


SCO REPORTING (cont.)Due To/From Other Funds/Appropriations Supplemental Form (cont.)

o Name and organization code of the state agency with which the campus had the transaction

o State general ledger account number in which the other state agency recorded the transaction

o Amounto Other state agency’s contact information

• Chancellor’s Office will continue to coordinate with the Department of Justice (DOJ) on behalf of the CSU in determining the interagency receivables/payables; campuses should not accrue transactions with DOJ


SCO REPORTING (cont.)Material Variance Explanation Form (Appendix 21)

Submission to Chancellor’s Office for nongovernmental funds no longer a requirement --- still a mandatory submission to the SCO for every governmental fund included in the SAM 99 file and for funds 0890 and 0942, if applicable

Sample Table of Contents (Appendix 5)• Added information on the first page explaining what the hard copy

reporting package should include• Updated content to reflect new forms• Changed section names


SCO REPORTING (cont.)Appendix 13, Legal Reports Submission Checklist NEW• Lists all deliverables to the SCO, the State Treasurer’s Office, the

Department of Finance and the Chancellor’s Office• Indicates number of document copies to be submitted if more than

one• Shows which documents must be filed, even when there is nothing to

report, and which are submitted only if applicable• Provides addresses (both electronic and street) for the delivery of

documents


SCO REPORTING (cont.)Appendix 13, Legal Reports Submission Checklist (cont.) • For the 3 nongovernmental funds’ supporting schedules to be

submitted to the Chancellor’s Office, cross-references to the appendices are provided Nongovernmental Fixed Assets Template (Appendix 11) Report 22, Statement of Contingent Liabilities (Appendix 16) Due To/From Other Funds/Appropriations Supplemental Form

(Appendix 17)

Submission of Hard Copy Reporting Package to Chancellor’s Office

State Reporting SharePoint site in .pdf format


SCO REPORTING (cont.)Appendix 19, Tables of Object Code and CSU Fund Definitions• To be eliminated January 1, 2015; Legal Manual version will not be

updated• Excel workbook relocated to SFSR website under Standards & Rules

(http://www.calstate.edu/sfsr/)• Revised to include:

Data from document FIRMS Object Category Description; this document removed from SFSR website

Current year change information: status (active or obsolete); effective date; FIRMS update date; reason(s) for change

Note: Legal Edits Table incorporates change information




www.calstate.edu


http://www.calstate.edu/

firms submissions & sco reporting roberta mcniel, sfsr chancellor’s office year-end legal...

Documents