Lily Wang, Management & Accounting Practices Sue DeRosa, Sponsored Program Administration 1

Agenda Survey Result Release Time Reporting Requirement Cost Share Reporting Requirement Sound Business Practice Campus Models 2

Survey Result Purpose: To understand how and where each campus records FRT and Cost Share Result of survey taken in September 2013: 14 campuses responded 5 campuses recorded both activities in campus ledger Campus LedgerGAAP Ledger Faculty Release Time 113 Cost Share58 3

Faculty Release Time and Cost Share Per Systemwide Guideline… The NACUBO program code for the released faculty expenses related to the grant must follow the program code for the grant. This requirement became effective as of July 1, 2010 for legal- and GAAP-basis reporting. This requirement also applies to cost match/share where the campus is required to contribute a specified share of the funding as part of the grant agreement. Note: Release time includes staff salary paid in a grant. 4

Cost Share Per Systemwide Guideline…(cont’d) Additionally, cost match should be reported as restricted net assets for GAAP, based on the GASB definition of externally imposed restriction. Externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments. Imposed by law through constitutional provisions or enabling legislation 5

Cost Share Per Systemwide Guideline…(cont’d) A GAAP entry should be prepared by campus to move the cost match from unrestricted net assets to restricted other net assets. Using the illustration below, the entry would be: UnrestrictedRestricted Expendable Other Debit Tuition and Fees $25 Credit Sal & Ben ($25) Debit Sal & Ben $25 Credit Tuition and Fees ($25) 6

Sound Business Practice Why is it important the expenses land in the correct programs and how does it affect the CSU? Functional program and object classification are used for the following reasons: To maintain and develop adequate indicators of the expenditure structure and trends. To formulate, monitor and update an inventory of the most critical, or urgent cost or expenditure centers. To perform on-going analysis and reporting of individual expenditures emphasizing optimal use of resources. To integrate the annual budget with institutions evolving long-range financial and program plans. 7

Sound Business Practice Federal Regulations (2 CFR ; formerly A-110) For all Federal awards, any shared costs, including cash and third party in-kind contributions, must be accepted as part of the CSU's cost sharing or matching and must meet all of the following criteria: (1) Are verifiable from the non-Federal entity's records; (2) Are not included as contributions for any other Federal award; (3) Are necessary and reasonable for accomplishment of project or program objectives; (4) Are allowable under Subpart E—Cost Principles of this part; (5) Are not paid by the Federal government under another Federal award; (6) Are provided for in the approved budget when required by the Federal awarding agency 8

How is the information used? Who are the users of this information? Reports Systemwide Financial Reports Governor’s Budget Schedule 10 (Appropriation and Expenditures Report) Schedule 7A (Salaries and Wages Spreadsheet) Lottery Fund Report Integrated Postsecondary Education Data System (IPEDS) Finance Survey Higher Education Research & Development Survey (HERD) F&A rate/Indirect Cost Report on cost of education (NEW Requirement) Requesters California State Offices and Legislature Offices (SCO, BSA, GO, DOF, LAO) CSU Board of Trustees Chancellor’s Office Executives and Management CSU Campus Presidents and Management National Center for Education (NCE) National Science Foundation (NSF) Federal Agencies 9

Campus Models – Sacramento (Aux Side) Utilize Global DeptID 10

Campus Models – Sonoma (State Side) Release Time Cost Share/Match 11

Campus Models – Sonoma (cont’d) 12