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 2014Year-End Legal Training2

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 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 April 2014Year-End Legal Training3

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 April 2014Year-End Legal Training4

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 April 2014Year-End Legal Training5

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 transmittedOR  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 April 2014Year-End Legal Training6

FIRMS SUBMISSIONS (cont.) Manual edits – pre-closing file (cont.) Validation of the balance in , RMP Expenditure Offset Validation of type codes (G, F and P) used with governmental and nongovernmental AR object codes (G used with ; F and P used with ) Confirmation that control accounts are not used to record transactions (e.g., , Cash) Confirmation that the designations of fund balances in CSU funds 441 and 485 equal both the balance in , Offset for Reserves/Fund Balance, (except for sign) and the ending equity balance in those funds April 2014Year-End Legal Training7

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 April 2014Year-End Legal Training8

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 April 2014Year-End Legal Training9

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 April 2014Year-End Legal Training10

FIRMS SUBMISSIONS (cont.) Added following object codes:  , Designated for Maximum Carryforward Allowance  , Designated for CE/EE Campus Partners  , Local Contracts & Grants (non-capital) and , Local Grants & Contracts (capital)  , Cal State Online Tuition Fees  , CSURMA Dividend Revenue (reactivated code)  , NDI/IDL Claims Reimbursement (contra-expense) April 2014Year-End Legal Training11

FIRMS SUBMISSIONS (cont.) 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: April 2014Year-End Legal Training12

FIRMS SUBMISSIONS (cont.) 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 April 2014Year-End Legal Training13

SCO REPORTING Governmental 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 April 2014Year-End Legal Training14

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 April 2014Year-End Legal Training15

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 April 2014Year-End Legal Training16

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 April 2014Year-End Legal Training17

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 to State Treasurer’s Office (STO) --- transmittal to April 2014Year-End Legal Training18

SCO REPORTING (cont.) Report 14, Report of Accounts Outside the State Treasury (cont.) o Campus name and organization code o Two contact names, 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 April 2014Year-End Legal Training19

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 April 2014Year-End Legal Training20

SCO REPORTING (cont.) Report 14, Report of Accounts Outside the State Treasury (cont.) 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 April 2014Year-End Legal Training21

SCO REPORTING (cont.) Report 14, Report of Accounts Outside the State Treasury (cont.) 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 April 2014Year-End Legal Training22

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 April 2014Year-End Legal Training23

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 April 2014Year-End Legal Training24

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 Amount o 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 April 2014Year-End Legal Training25

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 April 2014Year-End Legal Training26

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 April 2014Year-End Legal Training27

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 April 2014Year-End Legal Training28

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 ( 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 April 2014Year-End Legal Training29

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