1. SCO REPORTING Roberta McNiel Year-End Legal Training May 2010

2. REPORTING OVERVIEW The Legal Manual, Chapter 4, provides detailed information about SCO reporting requirements SAM 99 file satisfies data requirements of following reports for governmental funds: Report 1 - Report of Accruals to Controller’s Accounts Report 2 - Accrual Worksheet Report 4 - Statement of Revenue May 20102Year-End Legal Training

3. REPORTING OVERVIEW (cont) Report 5 - Final Reconciliation of Controller’s Accounts with Final Budget Report Report 7 - Pre-Closing Trial Balance Report 8 - Post-Closing Trial Balance Report 15 - Reconciliation of Agency Accounts with Transactions per State Controller There are no changes to the SAM 99 submission procedure. May 2010Year-End Legal Training3

4. REPORTING OVERVIEW (cont) The following hard copy reports are required for governmental funds included in the SAM 99 file: Report 3 - Adjustments to Controller’s Accounts (but only if applicable) Report 22 - Statement of Contingent Liabilities (but only if applicable) If there is nothing to report on Reports 3 and 22, indicate they are not applicable (NA) on the certification memos. May 2010Year-End Legal Training4

5. REPORTING OVERVIEW (cont) A hard copy version of Report 18, Statement of Changes in General Fixed Assets, is required for both governmental and proprietary/fiduciary funds. The following hard copy reports are required for the agency: Report 14 - Report of Bank/Savings and Loan Association Accounts Outside of the Treasury System Report 19 - Statement of General Fixed Assets May 2010Year-End Legal Training5

6. REPORTING OVERVIEW (cont) If the campus has state fund 0890, Federal Trust Fund, and/or state fund 0942, Special Deposit Fund, the following reports must be submitted in hard copy format: Report 7 - Pre-Closing Trial Balance Report 8 - Post-Closing Trial Balance Report 9 - Analysis of Change in Fund Balance (Statement of Operations) Report 20 - Statement of Financial Condition May 2010Year-End Legal Training6

7. REPORTING OVERVIEW (cont) For proprietary/fiduciary funds: Prepared on a consolidated basis by the CO using data submitted through FIRMS All required reports presented in hard copy form (i.e. no data for proprietary funds is included in any SAM 99 file) May 2010Year-End Legal Training7

8. REPORT 3, ADJUSTMENTS TO CONTROLLER’S ACCOUNTS Prepared for each governmental fund to which it applies Identifies any adjustments needed to correct the central records maintained by the SCO Use State Form 576 to report adjustments. Number adjustments and provide attachment explaining reason for or nature of error. Report not required if there are no adjustments, however, it will be listed on the certification memo as not applicable (NA). May 2010Year-End Legal Training8

9. REPORT 22, STATEMENT OF CONTINGENT LIABILITIES Prepared for each government fund to which it applies Discloses estimated liabilities, such as pending litigation For each proprietary and fiduciary fund, the CO will file a consolidated report as appropriate. To do this, campuses are asked to file with the CO a Report 22 for each proprietary/fiduciary fund to which it is applicable or notify the CO there are no Reports 22 to file. May 2010Year-End Legal Training9

10. REPORT 14, REPORT OF BANK ACCOUNTS OUTSIDE THE TREASURY SYSTEM Prepared for the campus as a whole Lists all bank accounts held outside the state treasury system Must be filed even if there is nothing to report. Write on face of report: “No accounts outside State Treasury.” Only report in hard copy package that must be signed. Signature must be that of the campus vice president of administration or higher official. May 2010Year-End Legal Training10

11. REPORTS 18 & 19, FIXED ASSETS Report 18 prepared for each governmental and proprietary/fiduciary fund from which monies were withdrawn to purchase capital items (items costing $5,000 or more with a life exceeding 1 year) Report 18 provides detail information concerning acquisitions and disposals Report 19 is prepared for the campus as a whole and is a summary of all Reports 18 Detail data is captured through reference to transactions recorded in the General Fixed Assets Group (fund 0997) May 2010Year-End Legal Training11

12. HARD COPY REPORTING PACKAGE Includes the following: Cover sheet identifying the campus and its agency number and the fiscal year end (June 30, 20XX) Table of contents Transmittal and report certification memos (by fund) Report 3 - Adjustments to Controller’s Accounts (by fund if applicable) Report 18 - Statement of Changes in General Fixed Assets (by fund) May 2010Year-End Legal Training12

13. HARD COPY REPORTING PACKAGE (cont) Report 22 - Statement of Contingent Liabilities (by fund if applicable) Report 14 - Report of Bank/Savings and Loan Association Accounts Outside of the Treasury System (one report per agency) Report 19 - Statement of General Fixed Assets (one report by agency) If the campus has state funds 0890 and 0942, Reports 7, 8, 9 and 20 must also be included in the package (also see slide 6). May 2010Year-End Legal Training13

14. TABLE OF CONTENTS Lists all state funds, governmental and non- governmental, for which reports are being filed Format as follows: Divide into 2 sections, one listing all governmental funds, the other listing all nongovernmental funds Page 1 shows identifying data for the SAM 99 file; CO provides form List state funds in numerical order within each section May 2010Year-End Legal Training14

15. TABLE OF CONTENTS (cont) For each fund grouping, organize as follows: o Transmittal and Report Certification Memo o Reports in numerical order (except of Reports 14 and 19) Because Reports 14 and 19 are filed for the campus as a whole, SCO has directed that they be presented and certified with reports applicable to the General Fund (state fund 0001) May 2010Year-End Legal Training15

16. PRESENTATION OF REPORT 18 Campuses prepare Report 18 for both governmental and non-governmental funds and include all Reports 18 in their submission. The Chancellor’s Office includes fixed asset and accumulated depreciation balances in the non-governmental trial balances it prepares, but does not prepare Reports 18 on behalf of the campuses. Every Report 18 submitted by a campus must be accompanied by a Transmittal and Report Certification Memo. May 2010Year-End Legal Training16

17. TRANSMITTAL & CERTIFICATION MEMO A memo is required for each fund’s set of reports. Requirement extends to the Report 18 filed for each non- governmental fund. Memo certifies under penalty of perjury the accuracy of the data being submitted and must be signed both the campus president and vice president of administration and finance. May 2010Year-End Legal Training17

18. TRANSMITTAL & CERTIFICATION MEMO (cont) Certification is not only for reports submitted as part of the hard copy package but also pertains to the data included in the SAM 99 file for governmental funds. Each memo provides a complete list of hard copy reports that could be filed (i.e. Reports 3, 18 and 22) and indicates whether or not they are being submitted. The certification for the General Fund also includes Reports 14 and 19. May 2010Year-End Legal Training18

19. TRANSMITTAL & CERTIFICATION MEMO (cont) Each memo must include the following: Date Agency name Agency number Fund name and number Contact name(s), phone number(s) and email address(es) Memo templates are provided in the appendix of the Legal Manual for both governmental and non-governmental funds. May 2010Year-End Legal Training19

20. HARD COPY REPORT SUBMISSION TO SCO The package must be assembled in the manner specified by the SCO. Instructions are included in the Legal Manual, Chapter 4. Campuses are strongly encouraged to consult the SCO’s Year End Reports Checklist to ensure their packages are complete and correctly formatted. The document is provided in the appendix of the Legal Manual. Mailing instructions have not changed and are included in the Legal Manual, Chapter 4. May 2010Year-End Legal Training20

21. HARD COPY REPORT SUBMISSION TO CO A complete and exact copy of the campus’s submission to the SCO must be forwarded to the CO. Submission to the CO needs to include an executed FIRMS Data Integrity Certification Form signed by the campus’s chief financial officer. It confirms the accuracy of data submitted to the CO via FIRMS. The form is available in the appendix of the Legal Manual. May 2010Year-End Legal Training21

22. RECORDS RETENTION Campuses are required to retain a complete set of all reports filed with the SCO for a period of two years or until audited by the Department of Finance, Office of Financial and Performance Audits (FPA), whichever is later. Make sure this is consistent with the CSU records retention policy, which may be longer. May 2010Year-End Legal Training22

23. SCO COMMENTS Each year the SCO is solicited for comments concerning campus submissions. This year’s feedback: 45 certification memos had errors Required identification and contact information (see slide 19) were missing A single memo certifying all funds was submitted instead of a memo for each fund Certification did not include a list of all reports submitted in hard copy form and via the SAM 99 submission May 2010Year-End Legal Training23

24. SCO COMMENTS (cont) Five campuses overspent their appropriations in one or more of 3 state funds, 6028, 6041 and 6048, as a result of year-end accruals. This condition is to be avoided, however, if it does occur, a written explanation must be submitted with the financial reports for the fund. Negative cash and investment balances were reported. If a negative balance does occur, it should be reclassified to a liability (due to) account. If no adjustment is being made, a written explanation must be submitted with the financial reports for the fund. May 2010Year-End Legal Training24

25. SCO COMMENTS (cont) Year-end revenue and expenditure accruals were not within 90% to 110% of the actual amount earned or spent in the subsequent fiscal year. May 2010Year-End Legal Training25

26. SCO COMMENTS (cont) The Mobile Equipment Report due to the Department of General Services was not submitted on time. Campus staff sought training on the report submissions process from the SCO instead of seeking help internally. SCO does not have the staff to support this effort. CO contacts are provided in Chapter 7 of the Legal Manual. May 2010Year-End Legal Training26

27. SUBMISSION DATES Last day for documents to be received by SCO for guaranteed processing prior to year end – JUNE 15, 2010 SAM 99 data file and all required hard copy reports to SCO – AUGUST 2, 2010 Report 22 for non-governmental funds to CO – JULY 30, 2010 May 2010Year-End Legal Training27

28. www.calstate.edu May 201028Year-End Legal Training