1. Reporting Package Update Chapter 9 Presented by Lily Wang CSU, Chancellor’s Office KPMG LLP

2. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 2 Agenda Overview Updates YES Upgrade Features

3. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 3 Reporting Package The reporting package is used: – By the external auditor to perform the campus audit – To consolidate the campus’ financial data into the CSU consolidated financial statements The reporting package consists of: – The three basic financial statements – Footnote disclosures – Analytics – A-133 – Auxiliary Organization financial statements and footnote disclosures

4. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 4 Reporting Package Template A reporting package template using a web-based Year End System (YES) is made available for campuses to enter the required financial data. – Campus input sheets – Auxiliary input sheets – Reporting package (workbook) - downloadable and printable to provide to the external auditors

5. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 5 Statement of Net Assets Update A new line item called “Other postemployment benefits obligation” (OPEB) has been added. CSU’s OPEB includes the employer share of health and dental benefit of retirees, and are classified as billable and nonbillable accounts. Only the billable health benefit is reported on the campus’ financial statements. CSU OPEB Obligati on BillableNonbillable Health benefit Allocate to and accrued by campuses Paid by the State. No accrual Dental Benefit Accrued by the Chancellor’s Office. No allocation

6. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 6 Statement of Net Assets Update (cont’d) Restricted for non-expendable endowments net asset line item will no longer be an input field. Instead, the amount will be derived from footnote 18.2 Calculation of net assets – Restricted for nonexpendable endowments.

7. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 7 Statement of Net Assets Update (cont’d)

8. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 8 Statement of Revenues, Expenses, and Changes to Net Assets Update No major changes

9. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 9 Statement of Cash Flows Update No major Changes

10. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 10 Footnote (Note) Disclosures Update Note 1 – Campus management approval – No change – Must indicate preparers names, and reviewers names. Print a hard copy for signatures. Note 2 – List of campus auxiliary organizations – No change – Any name changes, or changes to auxiliary organizations (e.g. new auxiliary) must be communicated to the Chancellor’s Office (CO).

11. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 11 Footnote (Note) Disclosures Update (cont’d) Note 3.2 – Composition of investments – Current investments are separated into restricted and unrestricted columns – Noncurrent investments are separated into restricted and unrestricted columns Note 3.3 – Investments held under contractual agreements – Created two line items: One for those auxiliary organizations that report these investments as investments on its financial statements – Another for those auxiliary organizations that report these investments as receivables on its financial statements

12. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 12 Footnote (Note) Disclosures Update (cont’d) Note 3.4 – Restricted current investments – List what the restriction is related to and enter the amount – The total must agree to the total restricted current investments in note 3.2 Note 3.5 – Restricted noncurrent investments – List what the restriction is related to and enter the amount – The total must agree to the total restricted noncurrent investments in note 3.2

13. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 13 Footnote (Note) Disclosures Update (cont’d) Note 4 – Receivables – No major changes – Future minimum payments to be received after the first five years are in five year increments Note 5 – Capital assets – No changes

14. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 14 Footnote (Note) Disclosures Update (cont’d) Note 6.1 – Capital lease information from CO – Created two lines: One for reporting the carrying value of capital assets under the Energy lease – Another for reporting carrying value of capital assets under the Public Works Board lease

15. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 15 Footnote (Note) Disclosures Update (cont’d) Note 7 – Long-term obligations – No change Note 8 – Long-term liabilities – No change Note 9 – Short-term financing – No change Note 10 – Pension plan and post-retirement benefits – No change Note 11 – Self-insurance program – No change

16. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 16 Footnote (Note) Disclosures Update (cont’d) Note 12.3 – Pollution remediation liabilities - NEW – Result of GASB Statement No. 49 – Provide a brief description of the liability and enter the amount – Report as other liabilities (current and noncurrent) on the Statement of Net Assets Note 13 – Natural classification of operating expenses – No change

17. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 17 Footnote (Note) Disclosures Update (cont’d) Note 14 – Transactions with related entities – In addition to gifts-in-kind, created another gift line for cash or asset gifts. – In addition to accounts receivable and payable from/to auxiliary organizations, two new lines; other amounts receivable and payable from/to auxiliary organizations have been added. These lines should be used for all other receivables or payables that are not disclosed in accounts receivable or accounts payable from/to auxiliary organizations. – Transactions with auxiliary organizations should agree to the auxiliary organizations’ note 8. Else, a reconciliation (PBC #20) needs to be provided to the external auditor for any differences.

18. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 18 Footnote (Note) Disclosures Update (cont’d) Note 15 – Prior period adjustments (PPA) – No change – PPAs and PY reclassifications that will be pushed through the current year should be reported on the Summary of Passed PPAs and Summary of PY Reclassifications spreadsheets (Exhibit 21). – GAAP adjusting entries related to GASB 45 and 49 will be pushed through the current year, and thus reported on the Summary of Passed PPAs.

19. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 19 Footnote (Note) Disclosures Update (cont’d) Note 16 – Elimination of nonexchange transactions – 16.1 is for nonexchange transactions between the university and its auxiliary organization, and – 16.2 is for nonexchange transactions between the university’s auxiliary organizations – Identify organization name, GASB or FASB, description of transaction, and financial statement line item affected

20. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 20 Footnote (Note) Disclosures Update (cont’d) Note 17 – Accounts Payable – No change Note 18.2 - Calculation of net assets – Restricted for nonexpendable endowments – Created to reconcile endowment investments to endowment net assets. – Balance will carry forward and populate the restricted for nonexpendable endowments net assets balance on the Statement of Net Assets.

21. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 21 Footnote (Note) Disclosures Update (cont’d) Note 19 – Other postemployment benefits obligation – GASB 45 disclosure – No data entry required from campus. All information will be calculated or entered by CO. – Balance will carry forward and populate the OPEB obligation balance on the Statement of Net Assets.

22. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 22 Footnote (Note) Disclosures Update (cont’d) Populate the SNA

23. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 23 Analytics Statement of Net Assets – No major changes Statement of Revenues, Expenses, and Changes to Net Assets – No major changes Statement of Cash Flows - NEW – Campus will compare current year to prior year, and provide explanation for amounts greater than the scope threshold.

24. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 24 A-133 Single Audit A research and development cluster has been added to the overflow page. – Refer to OMB Circular A-133 compliance supplement for determination of programs to be included. Section 3 – Perkins Loan Program – Item #2 Loans assigned to ED will no long be an input field.

25. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 25 YES Upgrade Features Upgraded features: – Compatible with Office 2003, Office 2007, and Windows Vista – Automatic recalculation is the new default instead of manual recalculation – Faster speed in saving data, saving security setting, and quicker data processing – Copy and paste values – Long strings (>255) is ok in data field. Campuses may now provide explanation to analytics in YES.

26. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 26 YES Upgrade Features (cont’d) New URL to YES http://cowewwshp03.calstate.edu/TM1web/ Security – Campus is still able to change the reporting package from “Write” to “Read”, but will continue to request change from “Read” to “Write” from the CO. Continue to download any input sheets or reporting package workbook to Excel using “Snapshot to Excel”.

27. © 2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International. 14055ORA May 2009 GAAP Reporting Workshop 27 References Recording of this presentation https://zeta.calstate.edu:8250/portal/page?_pageid=74,1 &_dad=portal&_schema=PORTAL PowerPoint Presentation http://www.calstate.edu/SFSR/Workshops/index.shtml Auxiliary organization supplementary schedules update will be presented as part of the Auxiliary Organizations GAAP Update session.