1. Chapter 8 Auxiliary Organizations June 30, 2006

2. Key Deadlines (Overview, page 8-2) 4th Quarter FIRMS data submission - July 31, 2006 to Chancellor’s Office Audited financial statements, including supplementary information schedules - September 29, 2006 to campus and Chancellor’s Office FIRMS detail IPEDS reporting - October 31, 2006 to Chancellor’s Office Campus President’s review of auxiliary organizations’ audited financial statements - December 1, 2006 (sample letter provided) Single audit report (A-133) - December 15, 2006 or as soon as available to Chancellor’s Office

3. Supplementary Information – Highlights of Significant Changes Most common errors in 2005 financial statements (Attachment A, page 9). Presented at AOA conference. Supplementary Template (Attachment A-1) Note 2 - Investments Debt, and equity securities are reported on separate line items. Requested by SCO. Note 3 - Capital assets Restatement column for prior period adjustments, if any, and reclassifications. Note 4 - Long-term liabilities activity schedule Unamortized premium on capital lease obligations to campus Unamortized bond premium Unamortized loss on refunding Note 6 – Future minimum lease payments Separate columns for principal and interest

4. Supplementary Information – Highlights of Significant Changes (cont’d) Supplementary Template (Attachment A-1) Placed formulas to verify balances between notes and F/S Comments in text boxes throughout to clarify instructions Troubleshooting checklist now part of template “In relation to” opinion on auditor’s report Supporting document (e.g. payroll report) for additions/reductions in accrued compensated absences Remove “OK” checks, and instructions in printed report Please DO NOT make any changes to the template (e.g. add rows, columns, change line item descriptions, etc.) Please DO NOT include troubleshooting checklist in printed report Completion of checklist will help alleviate errors Must be submitted to campus with audited financial statements. (It is recommended that a draft financial statements is provided to the campus coordinator for review prior to issuance).

5. Statements of Net Assets and Revenues, Expenses, and Changes in Net Assets Classified balance sheet Net assets categories Invested in capital assets, net of related debt - Debt related to unspent bond proceeds should not be included in this category but rather in the same net assets category as the unspent bond proceeds (e.g. restricted for capital projects) Reconciliation of inter-entity account balances and activity with campus and other auxiliary organizations Elimination column – identification of nonexchange transactions (revenues and expenses) between auxiliary organizations and campus

6. Questions? Lily Wang 562-951-4628 Lwang@calstate.edu http://www.calstate.edu/sfsr/