introduction to csu reporting roberta mcniel, sfsr and lily wang, mapo chancellor’s office...

Introduction to CSU Reporting

Roberta McNiel, SFSR and Lily Wang, MAPO

Chancellor’s Office

Year-End Legal Training

April 17, 2014

Agenda

• Legal vs. GAAP Reporting• Application Software• Reporting Rollup• Chart of Accounts• Fund and Account Attributes• NACUBO Program Derivation Rules

April 2014 Year-End Legal Training 2

April 2014 Year-End Legal Training

• Legal (modified accrual) Basis• Revenues recognized in the

accounting period in which they become “available and measurable.”

• Expenditures should be recognized in the accounting period in which the liability is incurred.

• GAAP (full accrual) Basis• Revenues recognized in the

accounting period in which they are earned.

• Expenses are recognized in the accounting period in which they are incurred.

• CSU maintains its financial records on a legal basis or modified accrual basis of accounting as required by the State of California.

• Legal basis of accounting is not consistent with U.S. generally accepted accounting principles (GAAP). Must convert to full accrual basis of accounting as Assembly Bill (AB) 2613 requires CSU to issue annual audited financial statements in accordance with GAAP.

3

Application Software

• CFS (Common Financial System). PeopleSoft financial accounting software used by CSU.• FIRMS (Financial Information Record Management

System). Database where each campus extracts the appropriate data from CFS and submits the information electronically to FIRMS.• TM1 or YES (Year-End System). Consolidation software.

Each campus enters the audited financial statements information known as reporting package into YES. The system consolidates the figures to issue the CSU financial statements. April 2014 Year-End Legal Training 4

Reporting Rollup

State Controller’s Office

Legal Reporting

Some submitted at system level using

FIRMS

and

Some submitted at campus level using

campus data

GAAP Reporting

Consolidated financial statements submitted

at system level

Chancellor’s Office

FIRMS DB

For Legal consolidation

Extract from xxCSU

TM1 DB

For GAAP financial statements

consolidation

Entered from xxGAP

CampusLegal records from CFS

xxCMP and xxCSU

GAAP records from CFS

xxGAP


Chart of Accounts Overview


Campus CSU SCO GAAP Attribute

Fund CSU Fund (3

digits)

State Fund (4

digits)

Net Asset

Category

FNAT

Account FIRMS Object Code

General Ledger Account Number (GLAN)

Natural Classification AAT

Program NACUBO Program Code

NACUBO Program Group Rules

Class CSU Fund

DeptID

Project

Funds

• The highest level of accounting is the state fund level. Fund accounting is the convention by which resources for various purposes are recorded and summarized in accordance with state laws and regulations. A fund is an accounting entity with a self-balancing set of accounts for recording assets, liabilities and fund equity. Separate accounts are maintained for each fund to ensure observance of limitations and restrictions placed on the use of resources.

• The next level at which reporting is done at the CSU is the CSU fund level. The CSU has management and external reporting requirements beyond those mandated by the state. For each state fund, the CSU has established one or more CSU funds to provide further detail concerning its operations.

• Within PeopleSoft, campuses establish and maintain PeopleSoft funds to manage unique campus activities. The purpose of the FNAT is to connect the campus PeopleSoft funds to a range of attributes as defined on the FNAT Data Table maintained by the Chancellor’s Office.


Fund Attributes (FNAT)


Accounts

• Object codes are the individual FIRMS accounts which capture detailed accounting information concerning each CSU fund’s assets, liabilities, fund equity, revenue and expenses. They are the equivalent of general ledger account codes found in any other organization’s chart of accounts.

• Within PeopleSoft, campuses establish and maintain PeopleSoft accounts to track unique campus activities. The purpose of the AAT is to connect the campus PeopleSoft accounts to a set of attributes as defined on the AAT Data Table maintained by the Chancellor’s Office. Rather than assigning a random number as the key value, like the FNAT, the object code is equal to the AAT.


Account Attributes (AAT)


Program• The National Association of College and University Business Officers (NACUBO) is the “industry”

organization for higher education and as such sets accounting standards for its constituents. Traditionally, colleges and universities have described their operating expenses for external reporting purposes by functional categories. NACUBO has standardized those categories to ensure the comparability of higher education financial statements and defines them in their Financial Accounting and Reporting Manual for Higher Education (FARM). They are:

• 01xx - Instruction• 02xx - Research• 03xx - Public Service• 04xx - Academic Support• 05xx - Student Services• 06xx - Institutional Support• 07xx - Operation & Maintenance of Plant• 08xx - Scholarships & Fellowships• 2001 - Auxiliary Enterprises


• The NACUBO Program Code is assigned to campus financial activity based on one of following: • The source of funds• The type of expenditure• The department spending the funds

• CSU has created a set of rules that assign the appropriate NACUBO program code during the CSU Business Unit Derivation.• This program code is later used to assign the Program

Group during the GAAP Derivation.


NACUBO Program

Derivation

The NACUBO Program Code derivation rules are processed in a

specific order for each account type


FIRMS Derivation Rules and Order of Process


Rule 1

• This is based on PeopleSoft’s Account Type. The Account Type indicates whether an account is an asset, liability, equity, revenue or expense. The Account Type associated with each PeopleSoft account chartfield is used to look up the associated NACUBO program code. Balance sheet accounts always use the program code associated with this rule.


Rule 1 Illustration


Rule 2• This determines the program code based on the combination of Fund Processing Type

and Object Code (also known as the AAT key). The Fund Processing Type defines a group of funds for which the same object codes are valid. Rule 2 looks up the Fund Processing Type and Object Code associated with the fund and account chartfields. If the program defines the combination, the related NACUBO program code will be used.

• Revenue accounts are associated with program codes through application of this rule. However, if a program code cannot be found using Rule 2, a program code will be applied using Rule 1.

• To illustrate the application of this rule, the object code 609001 is described as State

E.O.P. Grant Program. The Program Code associated with this object code is 0801, Scholarships, which will be derived through the Rule 2 definition. Therefore, any balance in the object code 609001 will be categorized as Scholarships on the financial statements.


Rule 2 Illustration


Rule 3 (also known as 3a)• This rule uses the FNAT to define the NACUBO program code when

all expenses of certain funds need to be classified in a particular way. When the program code is defined on the FNAT all expense accounts where the program code was not determined via Rule 2 receive the defined code. For example, the program code 2001, Auxiliary Enterprises – Student, includes all expenses for auxiliary enterprise activities primarily intended to furnish self-supporting services to students. Expenses recorded in student auxiliary enterprise programs will receive the program code at the FNAT key level.


Rule 3b

• Rule 3 can also operate where the NACUBO program code has been specified on the PeopleSoft fund chartfield by individual campuses rather than on the FNAT.• Campus controlled equivalent to Rule 3• Should only be used when all remaining expenses should be coded to

one program code


Rule 4

• This rule determines the NACUBO program code for operating expenses based on the department identification (deptID) chartfield. If the code was not derived through operation of Rules 2 and 3, Rule 4 determines the code to be applied. The distribution of expense to program codes is expressed as a percentage. For example, the Computing Support Department might be distributed 50% Academic Support and 50% Institutional Support. The percentage may also be, and often is, 100% for any given department.


Rule 4 Illustration


Resource

• Legal Manual• Chapters 1, 2 and 3


http://www.calstate.edu/SFSR/Workshops/index.shtml

www.calstate.edu


http://www.calstate.edu/

introduction to csu reporting roberta mcniel, sfsr and lily wang, mapo chancellor’s office...

Documents

fund accounting

legal basis of accounting

csu fund level

state fund level

csu financial statements

accounting period

agenda legal

yearend legal training5