1. CSURMA ACCOUNTING UPDATE Alice Kim, Sr. Financial Reporting Manager, Chancellor Office

2. Learning Objectives This session will provide the recent change in Property Claims Reimbursements processed from CSURMA or other insurance carriers. APRIL 2016YEAR-END LEGAL TRAINING 2

3. What is CSURMA? The California State University Risk Management Authority (CSURMA or Authority) is an association of the CSU and the Auxiliary Organizations to provide broad insurance coverage and quality risk management services aimed at stabilizing risk costs in a reliable, economical and beneficial manner. APRIL 2016YEAR-END LEGAL TRAINING 3

4. Covered Programs Liability (Bodily Injury/ Employment Disputes) Worker’s Compensation Property Claims (Flood/Fire) Unemployment Insurance/ Industrial & Nonindustrial Disability (UI /IDL / NDI) Athletic Injury Medical Expense (AIME) Construction and other risk-related programs APRIL 2016YEAR-END LEGAL TRAINING 4

5. Property Claims Reimbursements Effective July 1, 2015, Record to FIRMS object code (FOC) 580093, Other Non-Operating Revenues, instead of FOC 660012, Insurance Claim Deductible. To comply with CSU GAAP Manual Chapter 13 Capital Assets Guide, and GASB Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries. APRIL 2016YEAR-END LEGAL TRAINING 5

6. Scenario A flood damaged an office building in Sacramento State University. 1. Record the impairment of the building Debit Impairment Loss $2,600,000 Credit Capital Asset $2,600,000 2. Record the restoration cost ($2 million is capitalizable) Debit Operation and M&P Expense $1,000,000 Debit Capital Asset $2,000,000 Credit Cash $3,000,000 APRIL 2016YEAR-END LEGAL TRAINING 6

7. Scenario (cont.) 3. Record the insurance recovery from CSURMA or property insurance carrier when the recovery and loss occurs in the same year (net of impairment loss). Debit Cash $900,000 Credit Impairment Loss $900,000 If campuses receive insurance recoveries in subsequent years: Debit Cash $900,000 Credit Non-operating Revenue $900,000 APRIL 2016YEAR-END LEGAL TRAINING 7

8. Insurance Premium Program Codes Campus AccountingCSURMA Accounting Object Code Program Code Object Code IPEDS Program 1 Insurance Premiums Expense General Liability Premiums, AIME Premiums, Auto Liability Premiums 660010 0606 5800905000 Workers' Comp Premiums 660010(A) 5800905000 NDI/IDL & Unemployment Insurance Premiums 660010 0606 5800905000 Property Premiums 660010 0701 5800905000 Other Purchased Premiums Paid Directly to Alliant or Others 660010 0701 5800905000 2 Payroll Expense Industrial Disability (IDL) 603008(B) Non-Industrial Disability (NDI) 603009(B) 3 Campus Reimbursements NDI/IDL Claims 603100 (CR)(B) 660011 (DR)0600 Property Claims 580093 ( C ) 1500 6600120700 4 Deductible Recovery General Liability (Reimburse CSURMA for claims paid on behalf of the campus - up to deductible limit per occurrence) 660012 (DR)0606 660012 (CR)0600 5 Claims General Liability Claims (not processed via CSURMA) 6600120606 (D) 6600120600 Workers Compensation Claims 603007SW % ( E ) APRIL 2016YEAR-END LEGAL TRAINING 8 (A) WC Premiums should be charged to the appropriate funds and programs. It is recommended that prior year payroll be used as a basis for allocating among funds and FIRMS program codes.

9. Resources For more information on CSURMA related accounting, visit the Enterprise & CO Financial Reporting website here at https://csyou.calstate.edu/Divisions-Orgs/bus-fin/Financial- Services/accounting/ecfr/Pages/default.aspx Contact information Manager: Alice Kim- akim@calstate.eduakim@calstate.edu CSURMA Financial Reporting: Jessica Liu- jliu@calstate.edujliu@calstate.edu CSURMA Invoices and Payments: Cindi Le- cle@calstate.educle@calstate.edu CSURMA CPO request: CSURMA_Acctg@calstate.eduCSURMA_Acctg@calstate.edu APRIL 2016YEAR-END LEGAL TRAINING 9

10. Questions and Answers APRIL 2016YEAR-END LEGAL TRAINING 10