1. Systemwide accounting
YEAR-END LEGAL TRAINING
APRIL 2017
Systemwide accounting
Lisa Kasten, General Accounting Manager, Chancellor’s Office
Kelly Cox, Associate Director, Chancellor’s Office
Nancy Freelander-Paice, Director Capital Programs, CO

2. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2016
Agenda
Cash Posting Order Process
Interagency Accruals
Year End Rollforward Tree
Reserves
Chapter 15 Update

3. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
CPO Basics
What is a CPO?
Why Do We Issue CPOs?
Where to Find The CPO Request Page?
Who Should Request a CPO?
How Do You Complete a CPO?
When to Request a CPO?

4. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
What is a
Cash
Posting
Order?
Mechanism to move SWIFT dollars to settle inter-campus transactions

5. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Why Do We Issue CPOs?
Checks:
Slow
Timing delays
Inconsistent Accounting
Costly
CPO:
Consistent Accounting
Systemwide elimination

6. Where To Find The CPO Request Page?
YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Where To Find The CPO Request Page?
CSYou  Tools & Services  Financial Tools  CPO Request

7. Who Should Request CPOs?
YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Who Should Request CPOs?
Exceptions: Remitting to multiple campuses
General Rule: Receiving Campus

8. How Do You Complete A CPO Request?
YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
How Do You Complete A CPO Request?
Review CPO User Guide
Include payment approval from remitting campus (e.g., MOU, s, or contracts)
Verify total dollar amount ties
Verify funds transferred to/from correct campuses
Recommend accounting entries (to be verified by CO)

9. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
When To Request CPOs?
In the same accounting period
After obtaining payment approval
After obtaining supporting documents
After ensuring all campus participants are included on a single CPO request
Year-End Deadline
June 15 is the last day to submit a CPO request
for guaranteed processing

10. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Helpful Tips
Copying & Pasting?
Break down the amounts
Want us to know
Something?

11. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
What’s NEW?
Effective this fiscal year (July 1, 2016) new SWAT object codes have been created: Transfers in – RMP SWAT Transfers out – RMP SWAT (CO Use Only) Transfers in – RMP SWAT Transfers in – RMP SWAT Returns

12. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Important Dates
Last day to submit CPO request:
June 15, 2017
Last day to get DOA approval:
June 23, 2017
Last day a CPO will be distributed:
July 5, 2017
Bank of CSU Statements issued:
July 6, 2017
FIRST day to submit CPO request:
July 10, 2017

13. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
QUESTIONS?

14. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Interagency accruals
Source of AR and AP Balances:
Legal balance derived from Due to/from accounts
Interagency Transaction Table (ITT) Report
Legal balance derived from AR Operating and AP Other
Prior Year Expenditure CPOs Report
GAAP adjustments
Transactions in CSU Fund 230 (claims outstanding)
Other (if any)

15. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Interagency Accruals
Reminder: CPO Deadline June 15th
Interagency Transactions are due by end of business day on Monday, July 3rd
Included in the FIRMS edit in the appropriate due to/from object codes and CSU Funds.
Utilize the new Interagency campus contact list to ensure each side of the entry is completed timely.

16. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Interagency Accruals
2. Transactions received between July 5th until Legal submission are to be recorded as follows:
The campus issuing the AR is to record : AR-Operating Revenue and the remitting campus is to record : AP
Issuing campus MUST the related campus
Utilize the new Campus Contact list.
IMPORTANT! MUST Request CPO for payment processing by July 31st

17. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Interagency Accruals
3a - Prior Year Expenditure CPOs Report
CPOs issued in
Every attempt will be made NOT to issue CPOs as GAAP adjustments.
Only record CPOs at the direction of SFSR.

18. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Interagency Accruals
3b - Transactions in CSU Fund 230
The activity in CSU Fund 230 is not passed down to the campuses in GAAP.
Therefore, the outstanding AP need to be offset from the campuses records.
To facilitate this, we have developed a new matrix to confirm the campus’ balance.

19. Interagency Accruals - Reconciliation
YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Interagency Accruals - Reconciliation
New input matrix for campus interagency reconciliation
Legal
103004
201001
GAAP
All Accounts
AR From
Down
Across

20. Interagency Accruals - Reconciliation
YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Interagency Accruals - Reconciliation
Accounts payable To
Across
Down

21. Interagency Accruals - Reconciliation
YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Interagency Accruals - Reconciliation
Reconciliation
Confirm no variance
Contact campus to resolve

22. Interagency Accruals - Reconciliation
YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Interagency Accruals - Reconciliation
Reconciliation will assist with the Footnote 4.1 & 17

23. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Interagency Accruals
How to Edit the file
Use Internet Explorer
Click the down arrow
Select ‘Edit in Browser’
Make your edits
Close page by clicking ‘Interagency AR/AP’

24. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Interagency Accruals
Legal Transactions received between July 5th and July 10th are to be reconciled in the new Legal Interagency matrix.
Deadline is July 10th
GAAP transactions received between Legal close and August 18th are to be reconciled in the new GAAP interagency matrix.
Deadline is August 18th

25. Knowledge Check Question
YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Knowledge Check Question
Question: what new tool will you use to help you record interagency transactions?
A – ITT Report
B – Interagency Campus Contact list
C – Kelly’s address

26. Knowledge Check Question
APRIL 2017
YEAR-END LEGAL TRAINING
Knowledge Check Question
Question: When is the last day to submit all Legal interagency Due to/Due from transactions for the year?
A – 6/15/2017
B – 7/3/2017
C – 7/5/2017

27. Year End Rollforward Tree
YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Year End Rollforward Tree
Rollforward funds should be limited to:
Capital Improvement (CIMP) Funds
Until the project is completed
Non-Recurring Maintenance and Repair Projects (NRMR)
Grants and contract
Until the grant or contract is completed
Appropriated funds until the ‘Reversion date’.
Currently at 2014 General Fund

28. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Rollforward Tree
Limited 0948 funds should rollforward:
CIMP suite of CSU Funds
NRMR suite of CSU Funds
CSU Fund 465 – Grants and Contracts
CSU Fund 491 – Special Projects–
FNAT for capital only
CSU Fund 550–Restricted Expendable–Capital Projects

29. Non-Rollforward Funds
YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Non-Rollforward Funds
0948 funds that should NOT Rollforward:
CSU fund 403 – Perkins Loans
CSU fund 407 –Nursing Student Loans- Undergraduate
CSU fund 436- Agency Funds
CSU fund 485- CSU Operating Fund
CSU fund 496- Misc Trust
Operating CSU Funds (Parking, Housing, Student Union, etc.)
CSU fund 542- Capital project Management Fee
CSU fund 543- Internal Cost Recovery
CSU fund 544- External Cost Recovery

30. Knowledge Check Question
YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2016
Knowledge Check Question
Question: What is a type of fund that should rollforward?
1 – Financial Aid
2 – Grants and Contracts
3 – Cost Recovery

31. Reserves for Economic Uncertainty
YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Reserves for Economic Uncertainty
Reserve for Economic Uncertainty is limited to 50% of annual operating budget.
Pay attention to the amounts you are including in this account.
Don’t dump all your reserves in “Reserve for Economic Uncertainty”. 
Do spread your reserves out according to your plan.
Plan ahead.

32. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Capital Authority
Increase in Funding Authority
Education Code Sections
CSU may finance capital using operating funds and fund on a pay as you go basis.
Limits CSU capital expenditures to 12% of the budget
State moved Budget and Debt payment to CSU
GO Bonds and Public Works Board (PWB) Bonds
PWB debt restructured
Use reduced payment to issue more debt
Board of Trustees Approve Multi-Year Financing Plan

33. Project Tracking and Reporting
APRIL 2017
YEAR-END LEGAL TRAINING
Project Tracking and Reporting
Why is it important?
How do we use the information?
Does it work? 33

34. Project Tracking and Reporting
APRIL 2017
YEAR-END LEGAL TRAINING
Project Tracking and Reporting
Board of Trustees
Facilities Renewal and Capital Improvement Plan (Book)
Active Project Report
Department of Finance
Quarterly Reports
Deferred Maintenance
State Legislature
Capital Outlay Program Request per EC Section 67501
Support Expenditures for Capital Outlay Projects per EC Section 89722
Legislative Analyst’s Office
IRS and Bondholders
Private Activity
Project expenditures against spend down targets

35. Projects Subject to Reporting
APRIL 2017
YEAR-END LEGAL TRAINING
Projects Subject to Reporting
Board Approved
Delegated Approved (Assistant Vice Chancellor)
State Funded
Systemwide Revenue Bond Financing
CSU Funding [PAYGO]
Designated Campus Reserves
Major Repairs and Renovations (CSU fund 486)
Minor Capital Projects (CSU funds 486 and 487)

36. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
Reporting Tools
Systemwide Data Warehouse – Campus Financials
All Projects
Activity
Expenditures
Encumbrances
Non-Recurring Maintenance and Repair
Capital Improvement
Powerful Search and Reporting Capabilities

37. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
Reporting Tools
State Controller’s Office (PIMMs Terminal Fi$Cal)
Verify Project Funding
CSU Systemwide Revenue Bonds
State Appropriated General Fund
General Obligation and Public Works Board Bonds
Spending Authority Limits
Expenditures
Cash Balance
Monitor Tax-Exempt Bond Expenditures

38. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING 38

39. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING 39

40. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Chapter 15 Update
Updated Definitions:
Recurring maintenance/repair: Activities, typically in cycles less than one year, required for ongoing, routine operations and maintenance of buildings and equipment. Work necessary to keep facilities, buildings, equipment, roads, sidewalks, sewer and water systems, utility infrastructure, and grounds in good repair, appearance and operating condition.

41. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Chapter 15 Update
Updated Definitions:
Non-recurring maintenance/repair (NRMR) – deferred maintenance: Work required to restore facilities, buildings, equipment, roads, sidewalks, sewer and water systems, utility infrastructure, and grounds to their original condition or to such condition that they can be effectively used for their intended purpose, ensuring ongoing operation of the campus. Typically, this work occurs on cycles greater than one year (and is not funded as part of the new space budget allocation). Some campuses budget non-recurring maintenance separately and, for example, may establish (1) use of one-time funds for such expenditures, or (2) set aside permanent base funds to address non-recurring maintenance and deferred maintenance.
Restore does not change anything – it simply replaces what is no longer there or something that is no longer working.

42. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Chapter 15 Update
Updated Definitions:
Capital Improvement Project (CIMP): An activity which improves or alters an existing space or creates new space. New construction of facilities, buildings, equipment, roads, sidewalks, sewer and water systems, utility infrastructure, and grounds are all capital expenditures, as distinguished from Maintenance/repair.
Improve or alter ‘changes’ from what was previously in place.
Changing the use of space by altering walls, doors, type of flooring etc. to support a different use.

43. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2017
Chapter 15 Update
Repairs & Maintenance for contractual services arrangements, campuses will select from the below:
Building Maintenance (0702)
Custodial Services (0703)
Utilities (0704) CO-GENERATION PLANTS ONLY
Landscape and Grounds Maintenance (0705)
Discontinue use:
Major Repairs & Renovations (0706)
For Health, Parking, Housing, Auxiliary Enterprise programs the program code will default to 2001, via Rule 3.
Discontinued Use of Facilities Repairs and Maintenance effective 7/1/2017 or earlier.

44. FIRMS Capital Object Codes
April 2017
YEAR-END LEGAL TRAINING
FIRMS Capital Object Codes
FIRMS
Object Code
Object Name
Description
607002
Acquisition
For costs incurred to acquire real estate; includes due diligence studies.
607008
Service Districts Assessments
For one-time assessments on construction imposed by municipal taxing authorities.
607009
Capital Equipment
For the cost of fixtures, furniture and moveable equipment purchased with funds budgeted as part of the original project cost.  Includes installation costs.
607010
Lease Purchase
For payments made on a lease that in substance is a financing arrangement for acquisition of a building.  Allowable in construction improvement funds only.
607011
Minor Capital Outlay
Used for projects that correct deficiencies, provide new or improved facilities, or provide equipment which is part of a new or improved facility (e.g. HVAC) and which are estimated to cost no more than the threshold set biennially (January of even years) by the Director of the Department of Finance, as set forth in Section of the Public Contract Code.  Contracts for minor capital outlay projects are exempt from Chancellor's Office review and approval per Executive Order 1057.  (Ref. State University Administrative Manual, Section XII, Construction Management, Part , Minor Capital Outlay Projects) At the option of the campus, the more detailed capital outlay expenditure object codes (in the 607XXX series) can be used for projects meeting the definition of "minor capital outlay" project in place of this object code.
607022
Capital-Design Fees (pre-construction phase)
Used for all project design costs incurred prior to beginning of construction, including architectural fees, feasibility studies, plan checks, peer and constructability reviews, CEQA, soils investigations and surveys (including those related to hazardous materials).  If applicable, include costs charged by general contractor for working with design team during design phase (referred to as "construction management pre-construction services").  Also include contractually identified reimbursable expenses such as advertising, printing and reproduction, and travel costs. Use object code , Capital - Design Fees (construction phase), for architectural costs, including reimbursables, incurred during construction.
607031
Capital-Construction Contract
For the general construction contract and all associated change orders, only.  Do not include any additional contracts that are not with the main contractor (these should be recorded in object code , Capital - Construction Other).

45. FIRMS Capital Object Codes
April 2017
YEAR-END LEGAL TRAINING
FIRMS Capital Object Codes
FIRMS
Object Code
Object Name
Description
607032
Capital-Construction Management
For Project management direct costs (including salaries and benefits of project management personnel and supplies directly associated with the management of a particular project), internal or external inspection fees (e.g. county building inspector, but not inspection fees imposed by a state agency; charge inspection fees charged by a state agency to object code ), campus-based and CPDC/CO Accounting administrative fees (imposed for the recovery of administrative overhead costs), and project management costs charged by an external vendor.  Do not include pollution remediation or hazardous material inspection fees; charge these costs to , Capital - Pollution Remediation Costs, if part of a capital project.
607033
Capital-Construction Other
Used for agreements written during the construction phase which are not part of the general contract (the general construction contract and all associated change orders are charged to object code , Capital - Construction Contract) or which are not properly charged to another 607XXX object code (such as inspection fees ; design fees ; management fees ).  Should include fees for testing required to be in compliance with building code and other state regulations, soils testing, legal fees, utility transfers/hookups and miscellaneous construction contracts.
607034
Capital-Design Fees (construction phase)
Architect fees during the construction phase, including reimbursables. Architectural fees incurred during the design phase are to be charged to object code , Capital - Design Fees (pre-construction phase)
607037
Capital-Insurance Premiums
Used to record all insurance costs associated with capital projects, including BRIP (Builders Risk Insurance Program), OCIP (Owner Controlled Insurance Program) and seismic self-insurance.
607038
Capital-State Agency Costs
Used to record all state agency costs associated with construction projects (e.g. fees imposed by State Fire Marshal, Division of State Architect, Department of Industrial Relations).
607041
Capital-Contingency
Unencumbered funds available for project expenditure (balance available).
607042
Capital-Construction Reserve
Unallocated funds, bid savings, and project savings not available for expenditure.
607043
Capital-Pollution Remediation Costs
Pollution remediation costs, including related inspection fees, that are part of capital projects.  Costs that are not part of such projects should be recorded in object code

46. FIRMS Capital Object Codes
April 2017
YEAR-END LEGAL TRAINING
FIRMS Capital Object Codes
FIRMS
Object Code
Object Name
607021
Capital-Design Other
TO BE DEACTIVATED - DO NOT USE FOR PROJECTS WITH INCEPTION DATE OF APRIL 1, 2017 OR LATER
607023
Capital-Design Arch Extra Services
607024
Capital-Design Arch Extra Services Contractual
607025
Capital-Design Reimbursables
607035
Capital-Const-Arch Extra Services
607036
Capital-Const-Arch Reimbursables

47. YEAR-END LEGAL TRAINING
April 2017
YEAR-END LEGAL TRAINING
Statement of Finance
What
Management tool during project
Why
Communication between project management and accounting

48. Campus Funded Major Improvements Projects
April 2017
YEAR-END LEGAL TRAINING
Coding Implementation
CO Funded Projects
Campus Funded Major Improvements Projects
CO creates and sets up project attributes
51% rule – Project CPDC Form 2-7
Amend – CPDC to campus correspondence
Funding – AO attachment
Academic – CPDC
Self-support – F&T
Campus tags attributes to PS Project Chartfield

49. YEAR-END LEGAL TRAINING
April 2017
YEAR-END LEGAL TRAINING
Example 49

50. YEAR-END LEGAL TRAINING
April 2017
YEAR-END LEGAL TRAINING
Coding Implementation
2015 CP
2015A TE SRB
2017A TE SRB
Reserves & ELF
Spending Implications

51. YEAR-END LEGAL TRAINING
April 2017
YEAR-END LEGAL TRAINING
Coding Implementation
2015 DM
2015A TE SRB
2015 CP
2017A TE SRB 2016
2017A TE SRB 2015
Bridge Loan – Early campus spend
Spending Implications

52. Campus Funded Projects
April 2017
YEAR-END LEGAL TRAINING
Campus Funded Projects
Campus Designated Reserves
Minor capital improvements
Minor or major repair and maintenance
CSU Fund Selection
486 Non-Recurring Maintenance and Repair
487 Capital Improvement
Enterprise programs select corresponding CSU funds
Implementing coding
Campus facilities identify project type
Campus records activity in appropriate CSU fund
51% rule

53. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
Deferred Maintenance
General Fund
State Appropriation
Total Appropriation
$25 million
$35 million
Allocation Order AO AO
AO Issue Date to Campuses
Dec 4, 2015
Sept 16, 2016
Encumbrance Date
June 30, 2017
June 30, 2018
Reversion Date
June 30, 2019
June 30, 2020
Claimed at SCO as of 2/28
30.0%
1.7%
*Actuals as of 3/21
34.0%
2.0%
*Encumbrances as of 3/21
20.0%
8.0%
*Source: Systemwide Data Warehouse

54. YEAR-END LEGAL TRAINING
APRIL 2017
YEAR-END LEGAL TRAINING
APRIL 2016
Questions and Answers