1. Prepared by Client (PBC) List - Part 1 Chapter 9 Presented by KPMG LLP and CSU KPMG LLP

2. PBC List – General Update
The PBC list is preliminary
As the audit progresses, more items will be requested
If new items are added on a systemwide level, they will be added to the end of the list. No re-numbering
The list was reviewed extensively by a task force
Coordinated with IT audit
Clarified PBC items
More exhibits added to aid campuses
Mandatory formats are indicated, otherwise format is optional
Duplicate or obsolete items were deleted
Reorganized by area
Jessica

3. Let’s Go Green!
Campus binders should have a labeled divider tab for every single PBC item
Provide PBC items to the audit team electronically on the flash drive handed out today, when possible
Electronic PBC items – label refer to the file on flash drive on the divider tab
“ORIGINAL, DO NOT REMOVE” should be clearly marked
All files and schedules provided should be clearly labeled and cross-referenced to the PBC list
Example: General #1
Jessica

4. Sample Selections and Coordination
Sample selections will be made by the audit team within the first week of fieldwork
Campuses interested in receiving selections earlier should contact and coordinate with their manager/senior
Potential sample expansions if errors found
Interviews with the Auditors
Audit team will communicate the list of individuals that they will need to interview within first 2 weeks
PBC items related to interviews have been deleted from the PBC list
Please ensure that the meeting time is agreed to by both parties
Jessica

5. Jessica The PBC List – General
#1 – Completed and Campus approved Reporting Package, including comprehensive analytical review
Analytical review explanations should not be entered into YES
Submit a separate Word document following the format in Exhibit 27
#2 – Trial balance of CMP/CSU/GAP for periods 1-12
The outcome should line up the three campus business units ledger data to show that the derived data in the xxGAP ledger is a complete population
A write up is included in Exhibit 29 that shows multiple methodologies to gather the data to create the schedule
Jessica

6. The PBC List – General (cont.)
#4 – Supporting documentation for YES, Note 14 Transactions with Related Entities
The Chancellor’s Office (CO) will pre-populate amounts for interagency charges to the campus (e.g. state pro-rata)
Auxiliary amounts must be entered and reconciled with the auxiliary note input sheet, Note 8
Jessica

7. The PBC List – General (cont.)
#5 – Detail and supporting documentation for nonexchange transactions included on the SRECNA
#6 – Access to original GAAP journal entries with attached supporting documentation
Do not make a separate copy of GAAP journal entries for the audit team (indicate “ORIGINAL, DO NOT REMOVE”)
Where applicable, refer to the GAAP journal entry number in exhibits and schedules provided to the audit team
Jessica

8. The PBC List - General (cont.)
#7 – Prior Period Adjustments
Restatement adjustments to beginning net assets must be entered in YES, Note 15
A separate Excel file must be provided of any prior period adjustments being pushed through the current year SRECNA and any prior year reclassifications for comparability to current year financial statements
Two separate tabs in the workbook for each type of adjustment
Supporting source documents for all adjustments must be provided in the binder
Jessica

9. The PBC List – General (Cont.)
# 8 – Analysis of all non-GAAP accounting policies and procedures
Exhibits 28 and 30 illustrate an acceptable write-up
Each campus will need to evaluate and quantify the impact of each non-GAAP accounting policy used to prepare the financial statements
Supporting source documents to be included in the binders and/or flash drive
#9 – Detail of all legal expenses (excluding CSURMA)
#10 – Completed GAAP Financial Reporting Checklist
Part A -due on the first day of fieldwork
Part B -due with the submission of the revised reporting package on 10/6/2008
Jessica

10. The PBC List – General (cont.)
#11 – Completed MD&A Checklist
Checklist is found in Chapter 7
#12 – Supporting calculations and source documentation for all amounts/percentages disclosed in the MD&A
#13 – Completed Draft Financial Statements, including MD&A and all footnotes
Submitted version of the Draft Financial Statements should be the FINAL DRAFT
All levels of management should have approved this version before submission to the audit team
Jessica

11. #14 – #17 General FS Reporting Auxiliary Orgs
The PBC List
#14 – #17 General FS Reporting Auxiliary Orgs
Contact information for independent auditors of each of the campus’ auxiliary organizations
Copy of all auxiliary organizations audited financial statements and completed Financial Reporting checklist for each auxiliary
Auxiliary Organizations consolidating and individual YES print outs that tie to the audited auxiliary financial statements
Reconciliation of YES, Note 14 to the Auxiliary Consolidated Workbook (Generated from YES)
Jessica

12. The PBC List – Entity Level Controls
#28 – Access to view minutes from meetings of the President/Vice President
#29 – Access to view accounting policies and procedures manual
#30 – Most recent FISMA report – draft if not issued
#31 – Campus budget to actual analysis for select dept and months
#32 – Campus Risk Assessment Annual Report – Per EO 715 prepared and presented to each campus president annually
Jessica

13. The PBC List – Entity Level Controls (cont.)
#33 – Organizational Charts
Two charts requested:
1 -President down three levels
2 -Finance department detail from VP down
#34 – Access to view Employee Handbook
#35 – Access to view Code of Conduct
#36 – Job Descriptions of 2 newly hired accounting personnel – (IRM PBC 208)
#37 – Job Description/list of responsibilities of finance department personnel – (PBC #33 organizational chart)
Jessica

14. The PBC List – Entity Level Controls (cont.) & Misc.
#38 – Employee turnover statistics or analysis by department or classification of employee
Do not create this schedule if it does not exist
#39 – 1 contract for a newly hired employee –(IRM PBC 208)
#40 –1 goal setting form and 1 evaluation form for a finance department individual – (PBC #33 organizational chart)
#41 –1 completed hew hire form/packet, including references, employment contract –(IRM PBC 208)
Jessica

15. #43 – Listing of cash accounts broken out by CSU fund as of 6/30/2008
The PBC List - Cash
#43 – Listing of cash accounts broken out by CSU fund as of 6/30/2008
The Cash Leadsheet shown in exhibit 1 is the required format to be used by all campuses. This will help with the SRB audit and reduce the number of questions to the campuses
Legal balances must tie out to SAM07, and GAAP balances must tie out to Reporting Package
#44 – Understanding of (nature of restriction) and supporting documentation for restricted cash
Lily

16. The PBC List - Investments
#47 – Investments leadsheet as of 6/30/ YES, Note 3.2 and 3.3
#48 – Access to original June 2008 investment statements or other supporting documentation for any investments not managed by US Bank/SWIFT pool
#49 – Confirmation for non-US Bank investment balances
Lily

17. The PBC List – Investments (cont.)
#50 – Consolidated rollforward by type of investment, investment purchases and sales with supporting documentation - Exhibit 2. CO will provide SWIFT investment rollforward information.
#51 – Detail leadsheet of investment income and accrued interest receivable as of and for the year ended 6/30/2008 that agrees to the SRECNA and SNA - Exhibit 18 (Requested Format). If using different format, provide CSU funds needed for SRB audit.
Lily

18. The PBC List – Accounts Receivable
#52 – Leadsheet of accounts receivable with 6/30/2008 and 6/30/2007 balances - YES, Note 4.1
#54 – Reconciliation of the SCO Tab Run Report 6/30/2008 balances to the state appropriations receivable balances - Exhibit 3a and 3b
#55 Listing of students and vendors with their outstanding balances at 6/30/2008 (aging report). Must agree to leadsheet.
#56 – Detail of accounts receivable from the CO
#57 – Detail of other accounts receivable as presented in YES, Note 4.1
Lily

19. The PBC List – Accounts Receivable (cont.)
#58 – Detail of accounts receivable by invoice due from grants and contracts
#59 – Policy for establishing allowance for doubtful accounts and writing off uncollectible receivables - Exhibit 5
#60 – Allowance for doubtful accounts leadsheet and detailed supporting documentation - Exhibit 4. Must agree to YES, Note 4.1
#61 – Calculation and analysis of the 6/30/2008 allowances established for each type of receivable.
Lily

20. The PBC List – Leases/Notes Receivable
#62 – Copies of new lease or note agreements
Campus is lessor.
Include all operating/capital entered into during the fiscal year.
#63 – Schedule of lease/note income - Exhibit 6. Must provide future minimum lease income for operating leases in YES, Note 4.2
#64 – Detail of lease/note payments received during the year
Lily

21. The PBC List – Student Loans Receivable
#65 – Student loans receivable aging and reconciliation (review for collectibility)
#66 – Student loans receivable leadsheet. Include loans by type (e.g. Perkins) at 6/30/2008 and 6/30/2007 and related allowances by type - Exhibit 8. Must agree to YES, Note 4.4
#67 – Calculation and analysis of the 6/30/2008 allowance for uncollectible student loans receivable
#68 – June 2008 ECSI Report. Must agree to item #66
Lily

22. The PBC List – Prepaids
#73 – Detail of prepaid expenses and other assets at 6/30/ Exhibit 7
Lily

23. Questions