1. GAAP MANUAL AND OTHER UPDATES
YEAR-END GAAP TRAINING
APRIL 2017
GAAP MANUAL AND OTHER UPDATES
Sheralin Klinthong, Associate Director, Chancellor’s Office
Evajoy Tito, Accounting & Reporting Manager, Fullerton
Kelly Cox, Associate Director, Chancellor’s Office
Lan Luong, Senior Accountant, Chancellor’s Office

2. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
LEARNING OBJECTIVES
Know the key GAAP deliverables and due dates
Understand the GAAP Accounting and Reporting Manual updates and key changes
Know the key reminders specific to GAAP financial reporting

3. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
MASTER TIMELINE

4. Reporting Package Submission
YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
Reporting Package Submission
1st Version
Friday, August 25
2nd Version
Monday, September 18
Final Version
Thursday, September 21

5. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
Other Key Dates
Year-end Audit Fieldwork
Monday, August 28
Component Unit’s Audited FS
Monday, September 18
Issuance of CSU Audited FS
Monday, October 16

6. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
FY Master Timeline
Located in the CSU public website under Financial Services. Link: Master Timeline
Created “Not applicable” option under Status in addition to “Completed” and “Not Started”

7. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
TM1 UPDATES

8. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
TM1 Updates
Other postemployment benefits obligation is now an input cell
[2] SNP CY
Added a new line Other nonoperating revenues (expenses) – interagency transfers
Updated the line Other nonoperating revenues (expenses) – excluding interagency transfers
[4] SRECNP CY
Updated the conditional formatting to highlight abnormal balances for each line item
Removed other current liabilities line in the reconciliation of operating income (loss) to net cash provided by (used in) operating activities
[6] Cashflow

9. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
TM1 Updates
Presents 2 fiscal years instead of 3
The “as a % of total assets/total liabilities and net position” column is now hidden
Added new lines in Section 1: Summary of accounts receivable: Government grants and contracts (current and noncurrent)
Federal grants and contracts
State grants and contracts
Local grants and contracts
Nongovernmental grants and contracts
[7] Analytical SNP

10. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
TM1 Updates
Presents 2 fiscal years instead of 3
The “as a % of operating revenues” column is now hidden
The “as a % of student tuition and fees” column is now hidden
The increase (decrease) between the prior fiscal year and the fiscal year before that is now hidden
Added the line other nonoperating revenues (expenses) – interagency transfers
Updated the line Other nonoperating revenues (expenses) – excluding interagency transfers
The operating expense analytics section has been updated. Except for Student grants and scholarships and depreciation and amortization, the only analytics for operating expenses that will be required is section 3: Operating expenses by function for each natural classification type.
[8] Analytical SRECNP

11. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
TM1 Updates
Updated to reflect the legal names of the component units
Added the type of discretely presented component unit (Foundation, Associated Students, Auxiliary Services, and Others)
[11] FN2 List of discretely presented component unit names
The government grants and contracts line was split into the following:
Federal grants and contracts
State grants and contracts
Local grants and contracts
Nongovernmental grants and contracts
[13] FN4.1 Composition of accounts receivable at June 30

12. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
TM1 Updates
Added a formula as check point for the capital lease receivable related to SRB for the campus compared to the capital lease payable for the discretely presented component units
[13] FN4.2 Leases (as lessor) – future minimum lease payments to be received
Hid the Balance June 30, 20CY Capital assets, net (Calculated) for MD&A purposes
[14] FN5.1 Composition of capital assets at June 30
Hid the lines:
Carrying value of capital assets under capital leases at June 30
Range of interest rates on capital leases (e.g., 12%-15%)
Maturity date of capital lease with longest term
[15] FN6.1 – Capital lease information (passed down from Chancellor’s Office)

13. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
TM1 Updates
Hid the principal, interest, and principal and interest columns related to capital lease obligations passed down from the CO as well as the total capital lease obligations.
[15] FN6.4 Future minimum lease payments
Hid the table that shows the description, interest rate range, fiscal year maturity, original issue amount and amount outstanding at June 30. Information about the interest rate range, maturity date and original issue amount is moved to FN8.1 Long-term liabilities activity schedule.
[16] FN7.1 Long-term debt detail (passed down from Chancellor’s Office)
[16] FN7.2 Long-term debt detail (campus-originated)

14. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
TM1 Updates
Updated the formula of the check to agree with FN8.1 Long-term liabilities activity schedule instead of the above table
[16] FN7.3 Long-term debt schedule
Removed input cell for prior period adjustments column
Added row for information about the interest rate range, maturity date and original issue amount related to the long-term debt
[17] FN8.1 Long-term liabilities activity schedule:
Sheet is now hidden
[18] FN10 Pension plan and postretirement benefits
Updated the table to remove source of funding for the commitments
[19] FN12.1 Commitments

15. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
TM1 Updates
Linked the portion of outstanding debt that is unspent at year-end in FN3.2 Investments held by CO – Revenue Bond Program
[25] FN18 Calculation of Net Position per Statement of Net Position (SNP)
Sheet is now hidden
[26] FN19 Other postemployment benefits obligation (OPEB)
Removed the input cell for the federal expenditures and linked to table 5 SEFA Loan Programs for the following:
Federal Perkins Loan Program
Nursing Student Loan Program
[28] A Student financial assistance cluster

16. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
TM1 Updates
Added a new table to show the total loans made during the year that includes prior year loans for disclosure in the SEFA
[28] A SEFA Loan Programs
Added the line CSU consolidated investment pool (includes SWIFT and 0948 SMIF)
Noncurrent unrestricted endowment investments is now an input cell
[32] FN2.1 Composition of investments at June 30,
[32] FN2.5 Fair value hierarchy in investments at June 30
The line unamortized loss on refunding (DO NOT USE) is now hidden
[32] FN4 Long-term liabilities activity schedule

17. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
TM1 Updates
Added a formula as check point for the capital lease receivable related to SRB for the campus compared to the capital lease payable for the discretely presented component units
[32] 5 Future minimum lease payments

18. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
GAAP MANUAL UPDATES

19. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
GAAP Manual Updates
General
Updated the links throughout the GAAP manual
Ch Cash, Cash Equivalents, and Investments
Added a new discussion about the new authority regarding investments
Updated entries on State Appropriations
Updated the new SWAT object codes
Ch Fund Balance Clearing
Added the process of adjusting fund balance clearing in CSU Fund 230
Ch Receivables
Added discussion about the Interagency Accounts Receivable and Accounts Payable

20. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
GAAP Manual Updates
Ch Capital Assets, Depreciation and Amortization
Updated the discussion of capitalization interest to refer to the GASB standard instead of FASB standards
Ch Net Pension Liability
Updated discussion about GASB No. 68 and the preparation of the pension passdown file
Ch Student Tuition and Fees (net of Scholarship Allowance)
Removed the section and discussion about the alternative method of calculating tuition discounting

21. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
GAAP Manual Updates
Ch Nonoperating Revenues (Expenses)
Added the new object codes for interagency transfers
Ch Elimination
Updated the discussion about the different types of eliminations
Added discussion about the Interagency Accounts Receivable and Accounts Payable
Ch GAAP Adjustments or Reclassifications that Require Information from the Office of the Chancellor
Updated the requirement to exclude Systemwide Forward purchases to be excluded when completing TM1
Ch. 6 Statement of Cash Flows
Updated tab
Added 6.02 Blank Statement of Cashflows Worksheet

22. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
GAAP Manual Updates
Ch Completion of YES (TM1) Reporting Package and Other Information
Updated to reflect all current changes in TM1
Chapter 7.01 Attachment: FY2016 Reporting Package All Campus
Added the most current fiscal year version of the reporting package that includes all updates in TM1
Ch Presentation of Component Units
Added a discussion about GASB No. 80 Blending Requirements for Certain component Units – an amendment of GASB Statement no. 14
Ch Template: Component Unit Presentation: Blended vs. Discretely Presented
Updated the template to include the additional requirement of GASB No. 80

23. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
GAAP Manual Updates
Ch Template: Supplementary Information
Updated the template to reflect the changes in TM1
Added the CSU Consolidated Investment Pool (includes SWIFT and 0948 SMIF) line in table 2.1 Composition of investments at June 30, 2017 and table 2.5 Fair value hierarchy in investments at June 30, Total auxiliaries
Noncurrent unrestricted endowment investments is now an input cell in table 2.1 Composition of investments at June 30, 2017

24. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
GAAP Manual Updates
Ch. 9 Preparing for the Financial Statements Audit
Updated to reflect the FY2016/2017 audit dates
Ch Template: GAAP Preparation and Financial Reporting Checklist
Updated to include the review of component units’ financial statements and TM1
Updated to separate the portion of OPEB and pension

25. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
GAAP Manual Updates
Ch. 14 GASB Updates and Other Information
Added the following discussion
GASB 81 Irrevocable Split-Interest Agreements
GASB 82 Pension Issues – An Amendment of GASB Statements No. 67, No. 68, and No. 73
GASB 83 Certain Asset Retirement Obligations
GASB 85 Omnibus 2017
Ch. 17 IT Audit
Removed chapter

26. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
OTHER REMINDERS

27. CSU Consolidated Investment Pool Rollforward
APRIL 2017
YEAR-END GAAP TRAINING
CSU Consolidated Investment Pool Rollforward
What are some of the major changes to the Investment Rollforward?
Added “Ending Unrealized Gains/(Losses)” column to the Accrual Tab
Removed “Legal Recorded Earnings” and “GAAP Earnings” columns and replaced with “Investment Income Reinvested” column
Added “Period” to differentiate between Legal and GAAP data
Added Investment Income Tab

28. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
CSU Consolidated Investment Pool Rollforward
Investment Rollforward Tab

29. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
CSU Consolidated Investment Pool Rollforward
Investment Income Tab

30. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP 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)

31. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
Interagency Accruals
Prior Year Expenditure CPOs Report
16/17 CPOs issued in 17/18
Every attempt will be made NOT to issue CPOs as GAAP adjustments
Only record CPOs at the direction of SFSR

32. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
Interagency Accruals
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.

33. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
Interagency Accruals
New input matrix for campus interagency reconciliation

34. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
Interagency Accruals
Accounts payable To

35. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
APRIL 2017
Interagency Accruals
Reconciliation

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

37. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP 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’

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

39. TM1 Completion – Accounts Receivable
APRIL 2017
YEAR-END GAAP TRAINING
TM1 Completion – Accounts Receivable
How should the FN4.1 Composition of accounts receivable at June 30, other major receivables be listed?
FN4.1 breakdown of accounts receivable is presented for two years. To appropriately capture the change for other major receivables, ensure that the major item is aligned to how it was presented in the previous year.

40. TM1 Completion – Accounts Receivable (cont.)
APRIL 2017
YEAR-END GAAP TRAINING
TM1 Completion – Accounts Receivable (cont.)
How should the FN4.1 Composition of accounts receivable at June 30, other major receivables be listed?
FN4.1 breakdown of accounts receivable is presented for two years. To appropriately capture the change for other major receivables, ensure that the major item is aligned to how it was presented in the previous year.

41. TM1 Completion – Capital lease receivable
APRIL 2017
YEAR-END GAAP TRAINING
TM1 Completion – Capital lease receivable
Is there a tie point and/or validation check for FN4.2 Leases (as lessor) – future minimum lease payments to be received the capital leases receivable related to SRB in?
Capital leases receivable related to SRB by a campus should have a corresponding capital lease payable related to SRB by a component unit. TM1 FN4.2 of a campus should generally agree to the total component unit’s FN5 future minimum lease payments for capital lease obligations related to SRB. Any differences in the amounts should be communicated to SFSR for further evaluation.

42. TM1 Completion – Eliminations
APRIL 2017
YEAR-END GAAP TRAINING
TM1 Completion – Eliminations
How are the elimination of non-exchange transactions presented in the SRECNP?
FN16.1 Transactions between University and its Discretely Presented component units should be presented in the Eliminations column in the SRECNP
FN16.2 Transactions between two Discretely Presented Component Units should not be included in the Eliminations column of the SRECNP. This will be part of the Systemwide elimination entries.
FN16.3 Transactions between University and Discretely Presented Component Unit of another University should not be included in the Eliminations column of the SRECNP. This will be part of the Systemwide elimination entries.

43. TM1 Completion – Eliminations
APRIL 2017
YEAR-END GAAP TRAINING
TM1 Completion – Eliminations
How should the FN16 be presented in TM1?
The format of the journal entry to be input in this section should be in the format as referenced in the GAAP Manual Ch Elimination

44. TM1 Completion – Commitments
APRIL 2017
YEAR-END GAAP TRAINING
TM1 Completion – Commitments
What should be included in the commitments section in TM1 FN12.1
Other commitments footnote should only include campus originated commitments. The gas and electricity commitments handled by Systemwide should be excluded in this footnote.

45. TM1 Completion – Accounts Payable
APRIL 2017
YEAR-END GAAP TRAINING
TM1 Completion – Accounts Payable
How should the FN17 Accounts Payable other payables be listed?
FN 17 breakdown of accounts payable is presented for two years. To appropriately capture the change for other payables, ensure that the major item is aligned to how it was presented in the previous year.

46. TM1 Completion – Accounts Payable (cont.)
APRIL 2017
YEAR-END GAAP TRAINING
TM1 Completion – Accounts Payable (cont.)
How should the FN17 Accounts Payable other payables be listed?
FN 17 breakdown of accounts payable is presented for two years. To appropriately capture the change for other payables, ensure that the major item is aligned to how it was presented in the previous year.

47. Component Unit – Supplemental Schedule
APRIL 2017
YEAR-END GAAP TRAINING
Component Unit – Supplemental Schedule
A component unit received SRB related funding, how should the liability be reflected in their supplemental schedule?
If the funding has been received prior to FY2008 and the agreement is between the campus and the component unit, this should be reflected as capital lease obligations. Accordingly, the campus will have a corresponding capital lease receivable related to SRB.
If the funding has been received after FY2008 and the agreement is between the CO and the component unit, this should be reflected as notes payable related to SRB. Accordingly, the CO will have a corresponding notes receivable related to SRB.

48. Component Unit – Supplemental Schedule
APRIL 2017
YEAR-END GAAP TRAINING
Component Unit – Supplemental Schedule
If a component unit has current restricted cash, how should this be presented in the supplemental schedule?
For purposes of the supplemental schedule, if a component unit has a current restricted cash, this should be reported under cash and cash equivalents.

49. Component Unit – Supplemental Schedule
APRIL 2017
YEAR-END GAAP TRAINING
Component Unit – Supplemental Schedule
If a component unit is participating in the SWIFT investment pool, how should this be presented in the supplemental schedule?
Based on the requirement of GASB No. 72 for purposes of the systemwide consolidated financial statements, a look-through should be made, meaning, the disclosure should be made related to the underlying investments of the pool and not its position in the internal investment pool.

50. APRIL 2017
YEAR-END GAAP TRAINING
SRB Debt Passdown
What are the changes to the SRB debt passdown schedule?
The purchases and sales of investments related to the 0576/0578 will be added in the file
To avoid negative net position in SCO Funds 0576 and to facilitate capitalization of interest, interest expense will now be booked in CSU Fund 501 rather than initially allocate between CSU Fund 501 and SCO Funds 0576 on the basis of long-term debt in both funds.

51. Statement of Cash Flows
APRIL 2017
YEAR-END GAAP TRAINING
Statement of Cash Flows
How do you calculate the purchases and sales of investments related to SMIF 0576/0578?
In the C_ RF tab under the grand total column:
Add all the negative numbers, flip the sign and that will be the investment purchases
Add all the positive numbers, flip the sign and that will be the investment sales
Take the amount from the investment income line, flip the sign and that will be the investment income reinvested

52. Statement of Cash Flows (cont.)
APRIL 2017
YEAR-END GAAP TRAINING
Statement of Cash Flows (cont.)
How do you calculate the purchases and sales of investments related to SMIF 0576/0578?
In the C_ RF tab under the grand total column:
Add all the negative numbers, flip the sign and that will be the investment purchases.
Add all the positive numbers, flip the sign and that will be the investment sales.
Take the amount from the investment income line, flip the sign and that will be the investment income reinvested.

53. Statement of Cash Flows
APRIL 2017
YEAR-END GAAP TRAINING
Statement of Cash Flows
Is the supplemental schedule of noncash transactions in the SCF all inclusive?
No. This list shows the most common non-cash transactions for the University and is not all inclusive. There may be non-cash transactions specific to the campus and should be entered into the additional space provided in the cash flows.

54. YEAR-END GAAP TRAINING
APRIL 2017
YEAR-END GAAP TRAINING
Questions?