1. June 9, 2004GAAP Reporting Workshop1 Chapter 3 Mapping Legal to GAAP Sedong John, Chancellor’s Office

2. June 9, 2004GAAP Reporting Workshop2 Purpose of Mapping  To convert legal-basis classifications to GAAP financial statements classifications

3. June 9, 2004GAAP Reporting Workshop3 Data Elements Affecting Conversion  CSU Funds determine –Net Assets classification (Matrix 1) –Valid combinations with GAAP line items (Matrix 3.2)  Object Codes (Accounts) determine –GAAP line item classification except functional classification of expenses and classification of Net Assets (Matrix 2, Matrix 3.1)  Program Codes determine –GAAP line item classification of expenses using functional classification (Matrix 3.1)

4. June 9, 2004GAAP Reporting Workshop4 Data Elements That Determine Classification

5. June 9, 2004GAAP Reporting Workshop5 Account Hierarchy State GL Account FIRMS Object Code Campus Account GAAP Line Item

6. June 9, 2004GAAP Reporting Workshop6 Things to Watch  Some CSU Funds may map to more than one Net Assets categories  Some Object Codes may map to more than one GAAP line items  Items that need to be eliminated or reclassified (e.g., transfers, reimbursed activities, etc.)

7. June 9, 2004GAAP Reporting Workshop7 Summary of Changes  Matrix 1 –No changes

8. June 9, 2004GAAP Reporting Workshop8 Summary of Changes (continued)  Matrix 2 –Addition of State GL 1600 (Object Code 106xxx), Provision for Deferred Receivables, to the line item “Accounts receivable, net” –Addition of State GL 2490, Accumulated Amortization-Intangible Assets, to the line item “Capital assets, net” –Addition of State GL 3310 (Object Code 204001), Accrued Interest Payable, to the line item “Other liabilities ”

9. June 9, 2004GAAP Reporting Workshop9 Summary of Changes (continued)  Matrix 3.1 –Addition of Object Code 507002, Interest from Student Loans, to the line item “Other operating revenue” –Elimination of Object Code 580005, Project Revenue, from the line item “Other nonoperating revenues (expenses)” –Addition of Note 1: Gain (loss) on disposal of assets is not to be shown as a separate line item but to be included in “Other nonoperating revenues (expenses)” –Addition of Note 2: The only balance that should remain in the “Transfers” line item after all transfers are mapped properly is inter-agency transfers, which should be eliminated or reclassified as described in Section 4-12 and Section 5-4

10. June 9, 2004GAAP Reporting Workshop10 Summary of Changes (continued)  Matrix 3.2 –There may be “Grants and contracts, noncapital: Federal” in Fund 0948-496 –There may not be “Transfers to/from other funds” in General Fund