1. CHAPTER 5 GAAP Adjustments or Reclassifications that Require Information from the Chancellor’s Office

2. Section 5-1 CWIP (non-delegated) Allocate current year CWIP to campus via AD NOAT for recording into legal basis records before year-end close. No GAAP pass-down entry from the CO. For GAAP, campus will reverse the direct credit to Investment in Fixed Assets made on legal basis records (see Chapter 4, Section 4-2, page 4- 12).

3. Section 5-2 Completed Projects (non- delegated) “Statement of Capitalization” letter will be distributed via AD NOAT to reclassify completed project from CWIP to proper asset category in legal basis records prior to year-end close. No GAAP entry needed.

4. Section 5-3 BAN Section 5-4 Revenue Bond Carried at the CO legal basis records during the fiscal year, and passed-down to the campuses for GAAP. Allocate current year activity to campus via pass-down entry schedule (see example at end of Chapter 5). Bond Debt service payments are paid via AD NOAT from campus fund 0580, transfer-out, and is mapped to transfers on Matrix 3.1. The transfer-out is eliminated by the pass- down entry as illustrated in Example 1 on page 5-7.

5. Section 5-5 Energy Lease Lease payments are paid via AD NOAT from campus GF as an expense on legal basis records. Allocate current year lease payments between principal and interest, and transfer from Unrestricted to Invested in Capital Assets and Debt Service net assets, respectively.

6. Section 5-6 Self- Insurance Allocation schedule of campus share of the CSU’s self-insurance claims liability. It will reflect prior year’s balance (which campus needs to rebuild), current year addition, current year reduction, and ending liability.

7. Questions? Lily Wang  562-951-4628  Lwang@calstate.edu Lwang@calstate.edu http://www.calstate.edu/sfr/GAAP/ind ex.shtml http://www.calstate.edu/sfr/GAAP/ind ex.shtml