A/B/C Campus Scope Presented by: Kathy Lai, KPMG LLP AUDIT

© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved ORA 2 A/B/C Campus Scope Assembly Bill No (AB 2613) Effective beginning fiscal year Requirements – Financial statement of the CSU system as a whole, as well as at least 10 campuses individually each year. – Each campus must being subjected to a stand-alone financial statement audit at least once every two years. May 2010Year-End GAAP Training

© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved ORA A/B/C Campus Scope (continue) Financial Statement Audit (FSA) Three Tiered Approach (A, B, or C) Effective FY A Campus – Full Scope FSA on campus with Stand Alone Reporting B Campus – Limited Scope FSA on campus with “no” stand alone report issued C Campus – Limited Scope FSA centrally audited at the Chancellor’s Office with “no” stand alone report issued May 2010Year-End GAAP Training 3

© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved ORA A Campuses Bakersfield Channel Islands Chico Humboldt Long Beach Maritime Academy Monterey Bay Pomona Sacramento San Bernardino San Diego Stanislaus May 2010Year-End GAAP Training 4

© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved ORA A Campuses (continue) Select Audit Procedures of FY 2009 balances – AB 2613: One year presentation stand alone report required in FY 2010 – FY 2009 scope designation: B or C Campus – Will audit select accounts to opine on the Net Assets as of June 30, 2009 – Select accounts will include at a minimum: capital assets, accounts payable, accrued salaries and benefits payable, accrued compensated absences and capitalized lease obligations (if applicable and deemed significant by your campus Manager and Partner) – All PBCs prepared during FY 2009 will be given to FY 2010 KPMG audit team to facilitate the audit of select FY 2009 accounts May 2010Year-End GAAP Training 5

© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved ORA A campuses (continue) Fieldwork – Interim: Most campuses scheduled May or June 2010 – Final Fieldwork: September 7, 2010 May 2010Year-End GAAP Training 6

© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved ORA B Campuses Chancellor’s Office Fresno San Francisco San Luis Obispo Fieldwork Dates Interim – N/A Final – 9/20/2010 (Audited by KPMG teams on campus) May 2010Year-End GAAP Training 7

© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved ORA C Campuses Dominguez Hills East Bay Fullerton Los Angeles Northridge San Jose San Marcos Sonoma Fieldwork Dates Interim – N/A Final – 9/7/2010 (Audited centrally by KPMG at the Chancellor’s Office) May 2010Year-End GAAP Training 8

© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved ORA A/B/C Campus Scope Questions? May 2010Year-End GAAP Training 9