Chapter 15 – Capital Projects Matrix YEAR-END LEGAL TRAINING APRIL 2017 Chapter 15 – Capital Projects Matrix Kelly Cox, Associate Director, Chancellor’s Office

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 Purpose To guide campuses on which CSU fund to record: “Recurring" maintenance and repair expenditures “Non-recurring" maintenance and repair (NRMR) expenditures from internally funded sources Capital improvement project (CIMP) expenditures Long & Short Term financing NRMR & CIMP projects “Non-recurring" maintenance and repair (NRMR) from externally funded sources Capital improvement project (CIMP) expenditures from donations

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 Layout Capital project Matrix breaks down the “Funding Source” into two program categories down the left column; Non-Enterprise funds and Enterprise funds Non-enterprise funds include: CSU fund 001, 463, 485, 496, 537, 542, 543, and 544. Enterprise funds include: Auxiliary Enterprise, Housing, Parking, Health Center, Student Union and Extended Education.

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 Layout Net asset categories, unrestricted and restricted. The unrestricted category has three (3) types of funds to be used when monies are from internal sources: operating, non-recurring maintenance and repairs, capital improvements.

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 Layout Net asset categories, unrestricted and restricted (cont.): The restricted category also has three (3) types of funds to used when monies are from external sources (i.e. SRB proceeds or donations). financed activities, non-recurring maintenance and repairs, capital improvements.

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 Matrix Layout The “Operating CSU Fund” are use to record “Recurring” maintenance and repair expenditures. Use the new FIRMS Object codes: 660061, Building Maintenance (prog code 0702) 660062, Custodial Services (prog code 0703) 660063, Utilities (prog code 0704)  CO-GENERATION PLANTS ONLY 660064, Landscape and Grounds Maintenance (prog code 0705) Use program code derivation Rule 4 However, Health, Parking, Housing, Auxiliary Enterprise the program code will default to program 2001, via Rule 3.

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 Footnotes Footnote 4- The default net asset category (NAC) of CSU fund 550 is 834 Restricted Expendable-Capital Projects. Unique to the enterprise programs, the same CSU fund is to be used for unrestricted and restricted activity, Enterprise Funds default NAC is 881 Unrestricted A GAAP override for the restricted portion is required to NAC 834 Restricted Expendable-Capital Projects.

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 Footnotes CSU Fund 538 Auxiliary Org Footnote 2 – “Use only when the Auxiliary is benefiting from the project.” Fund is use as a chargeback fund to pass project costs to the Auxiliary. “Auxiliary donations should be recorded to the enterprise fund benefitting from the donation or non-enterprise projects are to be recorded to CSU fund 550.” Example, Extended Education received a donation for a CIMP project through an Auxiliary, monies should be recorded to CSU Fund 442 with a GAAP override to NAC 834. Example, the University received a donation for a CIMP project monies should be recorded to CSU Fund 550 (no override required).

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 Footnotes CSU Fund 463 – IRA Footnote 5- Fee must be approved for the this specific purpose.

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 How to Navigate #1 A Campus has CSU Fund 496 monies for an unrestricted NRMR project. Which CSU Fund should be used to record the project?

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 How to Navigate #2 A Campus has an Approved IRA fee in CSU Fund 463 for an unrestricted CIMP project. Which CSU Fund should be used to record the project?

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 How to Navigate #3a A Campus is reimbursed by the City of San Jose for a NRMR project owned by the City. In what CSU fund should the project be recorded in? Is there any further action required? What is the proper accounting entries?

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 How to Navigate #3a CSU Fund 550 No GAAP override required Abate expenditures against original expense. The city owns the property and there is nothing to capitalize for the university nor revenue to be recognized by the university.

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 How to Navigate #3b Campus is reimbursed by the City of San Jose for a NRMR project owned by CSU San Jose. In what CSU fund should the project be recorded in? Is there any further action required? What is the proper accounting entries?

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 How to Navigate #3b CSU Fund 550 No, GAAP override required Revenue in 503303 -Local Contracts and Grants, Capital Construction expenses in 607xxx.  The construction expenses should be capitalized for GAAP.

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 How to Navigate #4 A campus receives a capital donation for a Housing NRMR project, in what CSU fund should it be recorded? Is there any further action required?

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 How to Navigate #4 CSU fund 532 GAAP override to NAC 834

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 How to Navigate #5 A campus Housing department uses rental revenue to supplement a CIMP project, in what CSU fund should it be recorded? Is there any further action required?

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2017 How to Navigate #5 CSU Fund 533 No GAAP Override Required

YEAR-END LEGAL TRAINING APRIL 2017 YEAR-END LEGAL TRAINING APRIL 2016 Questions and Answers