Presented By Ashley Andersen, University Controller September 13, 2017 Financial services 101 Presented By Ashley Andersen, University Controller September 13, 2017

Who Are We? Procurement and Contract Services Financial Reporting & Accounting Operations Student Financial Services Lorrie Dineen-Thackeray, Director of Procurement and Contract Services Travis Fong, Buyer Jane Zacchia, Manager of Accounting Operations Sasha Bordokoff, Financial Analyst Jelayn Sansone, Accountant John Bang, Accountant Paige Johnson, Accounts Payable Gay Kvilhaug, Student Services Lead Michelle Carolan , Student Services La Tonya Edington, Cashier

View from Above Procure goods & services Pay for goods & services Procurement and Contract Services Pay for goods & services Accounts Payable Financial Statement Reporting Financial Reporting & Accounting Operations

Financial Statement Reporting Financial Reporting & Accounting Operations Accounting Overview State/Government Flow of Authority EO 1000 - Delegation of Fiscal Authority to Campus Funding Sources Chart of Accounts

State/Government Flow of Authority CSU is not for profit – we are a public entity

Authorities are very specific We are granted authority as to... what we can charge for what services where we deposit funds how to use these funds

Instructionally Related Activities – EC 89230 ASI Fee – EC 89301 Sample Authorities Instructionally Related Activities – EC 89230 ASI Fee – EC 89301 Parking – EC 89701 Health Centers – EC 89702 Student Housing – EC 89703 Continuing Education – EC 89704 Gifts – EC 89721 Lottery – GC 8880

Our Authority for how we use funds Sample Authority – Parking Fines and Forfeitures Education Code 89701.5 Gives us authority to give citations Authorizes the Use of Alternate Modes of Transportation Ex: Bus to BART Ex: Zip Cars Administration of Citations Tells us we can give the citation and what we can do the money Also tells us where we can deposit the funds This is a sample of the Education Code that was enacted for Parking Fines and Forfeitures. Note that it authorizes the collection of funds, the state fund it has to be deposited in AND the appropriate uses.

State University Trust Fund CSU has been authorized to deposit various activities into State University Trust Fund over the years Donations Housing Parking Continuing Ed And most recently Student Fees (FY 2006) All this activity is accounted for in unique CSU Funds within the State Controller’s Fund (SCO) 0948 All funds within SCO Fund 0948 are managed by the CSU Bank (Wells Fargo) as opposed to the State Treasurer

Meet the PeopleSoft Fund Chartfield Funding Hierarchy Meet the PeopleSoft Fund Chartfield He knows the State Controller’s Fund value He knows the CSU Fund Value He knows the Education Code or Budget Act that enabled the funds he is spending He knows how he will be reported to the CSU in FIRMS He knows how he will be reported in GAAP He ALWAYS knows these things He knows all this–the challenge is teaching it to you I’m really SMART!!! You need me!

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

EO 1000 – Delegation of Fiscal Authority to Campus

Executive Order 1000 – Delegation for Fiscal Authority Summary President shall ensure: Compliance Expenditures do not exceed available resources Internal controls Appropriate accounting processes Sufficient reserves for contingencies Timely year-end close GAAP Propriety of all expense & integrity of Auxiliary Org Cost incurred by the CSU Operating Fund are appropriately recovered This is a summary of all the delegations included in EO 1000. The following slides contain the actual language in EO 1000

Executive Order 1000 Delegation Authority delegated by this Executive Order may be revoked in whole or in part if in the judgment of the Chancellor the campus President has not complied substantially with provisions of this Executive Order.

EO 1000 – Table A Table A of EO 1000 defines funds established and regulated by the CSU (on deposit within SCO Fund 0948) These funds are managed by the CSU Bank These funds are accounted for by CSU Funds These CSU Funds are categorized by EO 1000 Proprietary -Enterprise Proprietary - Internal Service Fund Fiduciary - Investment Trust Fund Fiduciary - Private Purpose Fund Fiduciary - Agency Fund I know this stuff too!!!

EO 1000 – Table B Table B of EO 1000 defines categories for funds established and regulated by the State (on deposit with the State Treasurer) These funds also have CSU Fund values but they are maintained at the State Controller by the SCO Fund value These funds are categorized by EO 1000 Governmental – General Fund Governmental – Special Revenue Funds Governmental – State Capital Outlay Funds Proprietary – Enterprise Funds Fiduciary – Trust and Agency Funds

State University Trust – Split Personality The State of California classifies 0948 – State University Trust as a Fiduciary Trust and Other Agency Fund The CSU categorizes the activity within this fund by CSU Fund which are defined in Table A of EO 1000

Sample of how PeopleSoft Keeps Track of all this….. Remember, I know the SCO Fund, CSU Fund and GAAP NAC TO help us keep up with all of these codes, rules, funds etc, each fund within the PeopleSoft Finance application has many attributes assigned to it. In this sample – EB001 – you can see the Ed Code that enacted it and defines its purpose, the State Fund that it operates in and the CSU Fund that defines it. These attributes help us communicate with the State of California and the Chancellor’s office – and many times electronically. That’s a good thing.

General Fund/Student Fee Revenue Main Operating Fund General Fund/Student Fee Revenue CSU Operating Fund The primary purpose of the CSU Operating Fund is to record revenues and expenditures for state- supported instruction. Used to record state tax revenue and student fees.  The state tax revenue portion, which is annually allocated by the California Legislature to the CSU, is the main source of funds for the University operating budget.  A secondary source of funds is student fees such as the CSU Tuition, Non-Resident Tuition, Application Fee, Health Services fee, and other fees.  CSU Fund 485 This is our main operating fund. All activities related to instruction of matriculated students are captured in this fund along with all the support activities such as IT, custodial, finance, counseling, financial aid, admissions, electricity, etc

IRA (Instructionally Related Activities) Funding source are fees collected for the mandatory IRA Fee and or revenue generated by the IRA program itself CSU Fund 463 Students pay a separate and distinct fee for IRA. It is restricted to its uses by Education Code 89230 – which are outlined here. At East Bay theses funds start with the letters “PM” I know this is CSU Fund 463 - I know ALL the CSU funds

Lottery Education Fund Funding source Cash generated from the sale of California State Lottery tickets, a portion of which is allocated to CSU campuses Departments are allocated Lottery Funds by an annual budget allocation CSU Fund 481 East Bay Fund values begin with “PU” for lottery funds

Lottery Guidelines CSU Systemwide Lottery Guidelines: https://csyou.calstate.edu/Divisions-Orgs/bus-fin/budget/lottery/Pages/Lotter-Policy-Procedures-Guidelines.aspx The Lottery was enacted via Government Code 8880.5. It also has defined restrictions. Note a. Must supplement – not supplant – state funding of instruction

Funding Source CSU Fund 531 Housing Operations Funding Source Revenues are generated from fees paid by dormitory residents and must be used exclusively for the self-supporting housing program CSU Fund 531

Parking Fines and Forfeitures – CSU Fund 471 Parking Operations Funding Source Parking revenue is generated from the sale of parking permits and fines paid for citations issued.  Parking Fines and Forfeitures – CSU Fund 471 Parking Fees – CSU Fund 472

Continuing Education Revenue Fund (CERF) Funding Source These sources are generated by student fees for enrollment in Continuing Education courses.  Funds must be used for self-supporting instruction in the Continuing Education program. CSU Fund 441 CSU Fund 444 Campus Option – denotes funds under the management of Academic Colleges. Purpose funds can be used for does not change.

Campus Union Operations Funding Source Revenues are generated from the mandatory University Union fee. Exclusively for the self-supporting Campus University Union facilities and related programs. CSU Fund 534

Associated Student Fee ASI is a separate legal entity Established by EC 89720- 89724 CSU Fund 461

Capital Outlay Funding Source There are two sources of funds for CSU capital outlay programs state tax revenues appropriated by the state legislature the proceeds from the sale of bonds. The funding must be used for the construction projects specified.

Fund – Tied to a specific purpose (Trial Balance) ChartField Overview Fund – Tied to a specific purpose (Trial Balance) DeptID – Campus Organization (Same in HR) Account – Assets, Liabilities, Equity, Revenue & Expense Project – Time specific Activity Class – Department level information (Minor) CSU uses 6 PeopleSoft Chartfields. This is a summary of each one

Fund identifies funding that has a specific defined purpose This is how all the funding sources and legislation are tracked Hi again!

Identifies Assets, Liabilities, Equity, Expense and Revenue Account Identifies Assets, Liabilities, Equity, Expense and Revenue Assets 1XXXXX Liabilities 2XXXXX Equity 3XXXXX Revenue 5XXXXX Expense 6XXXXX

Defines activity with a start and end date Project Defines activity with a start and end date Capital Outlay projects Continuing Education Faculty Support Grants

Defines minor on-going activity Class Defines minor on-going activity This activity is often related to a specific department – not a major activity

How the CSU uses PeopleSoft for Finance

PeopleSoft modules implemented in the campus business unit Business Unit MACMP CMA does all of it’s operational activity in the MACMP PeopleSoft Business Unit All transaction source documents originate in the “Campus” Business Unit PeopleSoft modules implemented in the campus business unit General Ledger Accounts payable AR/Billing Asset Management Purchasing

Business Unit MACSU At month end the summary data for the months activities is “derived” to a second business unit - MACSU The program chart field is replaced with the NACUBO program code The PeopleSoft modules implemented in the CSU Business Unit General Ledger

The Fund Chart Field is replaced with the Net Asset Category Business unit MAGAP At year end the MACSU summary data is copied to the a third business unit – MAGAP The Fund Chart Field is replaced with the Net Asset Category The Account Chart Field is replaced with the Natural Classification The NACUBO Program code is replaced with the Program Group The PeopleSoft Modules implemented in the GAP Business Unit: General Ledger

People Soft Transactions Types MACMP Business Unit MACSU Business Unit Actuals, Budgets and Encumbrances MACMP Business Unit Actuals, Budgets, & Encumbrances MACSU Business Unit Actuals, Budgets & Encumbrances MAGAP Business Unit Actuals only

Each Business Unit contains different levels of information

CSU Uses THREE Business Units to process Financial Information MACMP MACSU MAGAP I have a different purpose in each Business Unit

Transaction Types recorded in each Business Unit You have to choose the correct chart fields on the original transaction or LOTS of things can go wrong…I don’t like it.

PeopleSoft Chartfield Values used in each Business Unit My value stays the same in the CSU Business Unit but it changes to Net Asset Category in the GAAP Business Unit

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!

ICSUAM – CSU Administrative Manual Helpful Web Resorces ICSUAM – CSU Administrative Manual http://www.calstate.edu/icsuam/sections/index.sht ml California Law Reference http://www.leginfo.ca.gov/calaw.html

Questions