1. 1 12887 ORA © 2008 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. Table of Contents Topic CHAPTER 1 – OVERVIEW I. History II. Converting from Legal Basis Accounting to GAAP III. Business-Type Activities Model CHAPTER 2 – BEFORE YOU BEGIN CHAPTER 3 – ACCOUNT MAPPING - LEGAL BASIS TO GAAP REPORTING Overview Conversion Matrices Matrix 1: CSU Funds Net Asset Classification Table Matrix 2: Mapping Legal Basis Accounts to GAAP Line Items: Statement of Net Assets Matrix 3.1: Mapping Legal Basis Accounts to GAAP Line Items: Statement of Revenues, Expenses, and Changes in Net Assets Matrix 3.2: Statement of Revenues, Expenses, and Changes in Net Assets by CSU Fund CHAPTER 4 – GAAP ADJUSTMENTS AND RECLASSIFICATIONS Overview SECTION 4-1 -- Beginning Trial Balance SECTION 4-2 -- Capital Assets and Depreciation SECTION 4-3 -- Accounts Payable: Obligations SECTION 4-4 -- State/CSU Receivables and State Appropriations SECTION 4-5 -- Fund Balance Clearing Accounts SECTION 4-6 -- Prepaid Expenses and Inventories SECTION 4-7 -- Faculty and Staff Payroll Accruals SECTION 4-8 -- Compensated Absences SECTION 4-9 -- Deferred Revenues SECTION 4-10 -- Capitalized Leases SECTION 4-11 -- Tuition Discounting SECTION 4-12 -- Other Accounting Issues SECTION 4-13 – Revenue Management Program

2. 2 12887 ORA © 2008 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. Table of Contents Topic CHAPTER 5 – ALLOCATIONS FROM THE CHANCELLOR'S OFFICE SECTION 5-1 -- Construction Work in Progress (Non-Delegated) SECTION 5-2 -- Completed Construction Projects (Non-Delegated) SECTION 5-3 -- Bond Anticipation Notes and Revenue Bonds SECTION 5-4 -- Energy Leases SECTION 5-5 -- Self-Insurance Claims Liability SECTION 5-6 -- Schedules From The Chancellor's Office SECTION 5-7 -- Capitalized Interest CHAPTER 6 – STATEMENT OF CASH FLOWS A Step By Step Guide to Preparing a Direct Statement of Cash Flows Resources Available Sample Cash Flows Worksheets CHAPTER 7 – MANAGEMENT’S DISCUSSION AND ANALYSIS Overview Guide to Preparation of Management’s Discussion and Analysis CHAPTER 8 – AUXILIARY ORGANIZATIONS Overview Coded Memo Attachments SAS 112 Presentation CHAPTER 9 – PREPARING FOR AN AUDIT Introduction Exhibits Campus Examples Reporting Package Template CHAPTER 10 – GAAP PREPARATION CHECKLIST CHAPTER 11 – GAAP FINANCIAL REPORTING CHECKLIST Overview GAAP Financial Reporting Checklist

3. 3 12887 ORA © 2008 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. Table of Contents Topic CHAPTER 12 – PREPARATION OF YOUR CAMPUS STAND-ALONE FINANCIAL STATEMENTS Overview Other Stand-Alone Reporting Information CHAPTER 13 – CAPITAL ASSETS GUIDE CHAPTER 14 – UPDATES AND OTHER INFORMATION Overview I. New Accounting Pronouncements II. Other Relevant Literature III. Access to Technical Accounting Literature and Resources