1. FIXED ASSETS Roberta McNiel Year-End Legal Training May 2010

2. RECORDING FIXED ASSETS ON LEGAL BASIS The Legal Manual, Section 2.7 in Chapter 2, provides guidance on the recording of fixed assets on the legal basis Capitalization criteria: Acquisition cost equals or exceeds $5,000 Estimated useful life exceeds 1 year May 20102Year-End Legal Training

3. RECORDING FIXED ASSETS ON LEGAL BASIS Two sets of entries to record acquisition: In fund financing purchase Dr. Expenditures Cr.Fund Balance Clearing or Investments In state fund 0997 (General Fixed Assets Memo Fund), CSU fund 501 Dr.Fixed Assets Cr.Investment in Fixed Assets May 2010Year-End Legal Training3

4. RECORDING FIXED ASSETS ON LEGAL BASIS Depreciation expense is not recorded on the legal basis books. Instead, accumulated depreciation is adjusted in state fund 0997, CSU fund 501: Dr.Investment in Fixed Assets Cr.Accumulated Depreciation May 2010Year-End Legal Training4

5. REPORTING FIXED ASSETS IN ACCORDANCE WITH CSUAM Requires all fixed asset activity to be recorded in state fund 0997, CSU fund 501, regardless of funding type (i.e. governmental, proprietary, fiduciary) State requires fixed assets funded by proprietary and fiduciary funds to be recorded in those funds and not in state fund 0997. To meet state’s reporting requirements, CO will record fixed assets and related accumulated depreciation in these funds when it prepares consolidated annual reports for the SCO. May 2010Year-End Legal Training5

6. SUBMISSION OF FIXED ASSET DATA TO CO Pertains to proprietary and fiduciary funds only Allows CO to make entries on consolidated trial balances prepared for the SCO for the cost of fixed assets and related accumulated depreciation Campuses complete a CO template, providing original cost, accumulated depreciation and net asset value for each state general ledger number associated with fixed assets Data provided by campuses must reconcile to Reports 18 and 19. CO will confirm. May 2010Year-End Legal Training6

7. RECORDS RETENTION Campuses remain responsible for retaining all data and schedules supporting the information submitted to the CO in their files in accordance with the CSU Records Retention Policy May 2010Year-End Legal Training7

8. SUBMISSION DATE Fixed Assets Template – JULY 30, 2010 May 2010Year-End Legal Training8

9. www.calstate.edu May 20109Year-End Legal Training