May 2009 Hot Topics & Changes

HOT TOPICS  Uniform Prudent Management of Institutional Funds Act (UPMIFA) o Provides guidance for investment management and enumerates set of rules for prudent investing. o Must be in compliance with the law. o For additional information, refer to training, recorded in Jan. 2009, available on CO’s FAST-ED portal. Also, see PowerPoint presentation at  Reporting of Fixed Assets o Reporting is required in individual proprietary/fiduciary funds. o Further instructions will be provided in legal reporting instructions. 2 HOT TOPICS

HOT TOPICS (continued)  Recording of Fines & Forfeitures o Revenue will be recognized as follows: A)Undisputed fines should be recognized based on whichever occurs first: Payments are made (debit cash / credit revenue). The statutory time allowed for dispute lapses (debit receivable / credit revenue). B)Disputed fines should be recognized net of estimated refunds from rulings overturned on appeal when the appropriate legal authority rules that the fine is legally enforceable (debit receivable / credit revenue). This guidance based on GASB Staff Implementation Guide Z

HOT TOPICS (continued) Recording of Fines & Forfeitures (cont.) o Fines and forfeitures revenue should be recognized in the same period that the asset (cash / receivable) is recognized unless the enabling legislation includes time requirements. If time requirements are imposed, revenues should be recognized in the period when the resources are required to be used or when use is first permitted (debit cash / receivable and credit deferred revenue). o For further information on this topic, refer to GASB 33, paragraphs 17 & 18). 4 HOT TOPICS

HOT TOPICS (continued)  Recording State University Grant (SUG) and Supplemental Educational Opportunity Grant (SEOG) in Legal o If SUG/SEOG is recorded in CSU fund 485, any unexpended balance should be moved to CSU funds 422/421 at 6/30/09.  Recording Data Provided by 3 rd Party Parking Providers o Ensure financial information fully recorded by 6/30/09. o Beginning in fiscal year 2009/2010, record data at a minimum quarterly; monthly is recommended.  Implementation of Corrective Action Relating to Audit Findings o IT segregation of duties and /or implementation of mitigating procedures. o Issues related to financial reporting. 5

HOT TOPICS (continued)  Implementation of GASB Pronouncements o GASB 49 – Pollution Remediation  Effective in 2008/09  GAAP adjusting entries this year; entries should be included in legal beginning next year  Accounting entry instructions provided in chapter 4-12 of GAAP Manual  Regarding the disclosure requirement, a new section has been added to note 12, Commitment and Contingency, in YES (TM1) o GASB 51 – Intangible Assets  Effective in 2009/10  Campus strategy for collection of information needed as of 07/01/2009 –Definite intangible assets –Indefinite intangible assets  Refer to Ch. 14 in GAAP Manual. 6 HOT TOPICS

HOT TOPICS (continued) Implementation of GASB Pronouncements (cont.) o GASB 52 – Land and Other Real Estate Held as Investments by Endowments  Effective in 2008/09  Land and other real estate held as investments by endowments, if any, to be reported at fair value. 7

Changes for  New student fee policy: object codes – are obsolete and is to be used for all Category 4 fees  Augmented health services must be recorded in CSU fund 485  CSU fund 432 for miscellaneous scholarships is eliminated as of 6/30/09  Miscellaneous scholarships are to be reclassified as follows:  Restricted: CSU Fund 431  Unrestricted: CSU Fund 435  Agency: CSU Fund 436 (newly created)  Campus service providers in Reimbursed Activities are to be reclassified to the appropriate CSU funds as follows:  543: TF Campus Services - Internal Services  544: TF Campus Services - Enterprise 8 Changes for 2008/2009

Changes for (continued)  New system-wide code values have been created as follows:  CSU Funds –412: TF-Federal Teach Assistance Grant –436: TF- Agency Fund - Misc Financial Aid/Other  FIRMS Object Codes –108091/711206: Other Long-Term Investment –712209: Other Postemployment Benefits Obligation (GAAP) –501400, , , , and : Allowance/Contra-Revenue for Bad Debts –503302/723010: Local Financial Aid Grants, Noncapital 9 Changes for 2008/2009

Changes for (continued)  Regarding CSU Fund 537, TF-Auxiliary Org.-Operations and Revenue, separate SRB from non-SRB activity in 537 using different FNAT keys as follows:  FNAT for SRB; FNAT for non-SRB  Non-SRB activity example: board deposits held for an auxiliary org  CSU Fund 462, TF-Campus Union Operating Revenue Trust, has been eliminated; move activity to CSU Fund 534  There may be a new automated FIRMS edit to prohibit negative cash at the CSU fund level. If this cannot be implemented by year-end, the prohibition will be enforced manually. 10 Changes for 2008/2009

Changes for (continued)  FYI, a new object code is in effect beginning 7/1/09: , Graduate Professional Business Fee 11