1. FIRMS Derivation Model Overview

2. FIRMS Financial Information Records Management System (FIRMS) A database that stores a variety of data submissions from the campuses that assist the Chancellor’s Office in completing systemwide analysis and reporting tasks. The process for quarterly accounting submission and GAAP submission is the focus of this presentation and is commonly the meaning of this reference for this audience.

3. CDIP The Corporate Data Integrity Package (CDIP) was implemented with Peoplesoft 8.4. NACUBO program code is required for FIRMS reporting. NACUBO issues industry standards on the functional classification of expenses. CDIP standardized the assignment of NACUBO program code to campus data by using a series of rules based on Peoplesoft account type. The derivation model uses separate business units for external reporting of the derived data.

4. Derivation Concept Three PeopleSoft Business Units CMP Business Unit  Legal Basis  All six ChartFields can be used  Campus Business Needs  ChartField Values based on Campus Information Needs CSU Business Unit  Legal Basis  NACUBO Program Code derived into PS Program ChartField  Only Three ChartFields – Fund, Account, Program Code GAP Business Unit  GAAP Basis  Four ChartFields used – Fund, Account, Program Code and Class  All ChartFields are derived Peoplesoft Design

5. Derivation Concept, Cont’d. All derived values are based on attribute values defined by FSAC All derived data values will be based on the CSU standards established by FSAC Original data will be stored in PeopleSoft Tables along with the derived data. (Audit Tables) Peoplesoft Design

6. Derivation Concept Peoplesoft Design

7. CSU Business Unit Derivation Derives the NACUBO Program Code Only posts 3 ChartFields to CSU Business Unit Fund Account Program Code Derivation is based on a set of Rules in combination with the Account Type CSU Derivation

8. Summary of NACUBO Program Code Derivation Rules Rule 1 Account Type determines Program Code Rule 2 Fund Processing type + AAT Key determines Program Code Rule 3 FNAT Key determines Program Code If not on FNAT Key, then PS Fund determines Program Code Rule 4 Department ID determines Program Code CSU Derivation Rules

9. The NACUBO Program Code derivation rules are processed in a specific order for each account type CSU Derivation Rules

10. Assets, Liabilities, Equity These account types use Rule 1 only Program Code is assigned based on Account Type Program Code 9002 is assigned to all account types for assets, liabilities and equity CSU Derivation Rules

11. Revenue These account types will first use Rule 2 Fund Processing Type + AAT Key Sample: Fund 0948 + Trans In from DCF= 1301 If not found in Rule 2 then the program code associated with Rule 1 will be used Account Type R = 5000 CSU Derivation Rules

12. Expense This account type will first use Rule 2 Fund Processing Type + AAT Key Sample CSU Operating Fund + Utilities = 0704 If Rule 2 is not found it will look to Rule 3 FNAT Key has a program code If no program code on FNAT key then PS FUND Attribute If Rule 3 is not found it will look to Rule 4 Department has a program code CSU Derivation Rules

13. Derivation Concept Review Peoplesoft Design

14. GAAP Business Unit Derivation (Look Up) Derived from CSU Business Unit – Actuals Only Derives Net Asset Category from PS Fund Looks up Net Asset Category based on FNAT Derives Natural Classification from PS Account Looks up Natural Classification based on AAT Derives Program Group based on Program Code Derives Class code from CSU fund on FNAT key GAAP Design

15. Audit Tables Each Derivation will store the original value and the new derived value in a set of Accounting Line Tables Both the CSU Business Unit and the GAP Business Unit will be posted via the journal generation process within PeopleSoft GAAP Financial Statements will be produced directly from the PeopleSoft GAAP Ledger Lead Sheets will be produced using the audit tables Audit Tables

16. CO FIRMS Database Extracts Quarterly and year-end legal basis data will be extracted from the CSU Business Unit Includes data from Actuals, Encumbrances and Budgets GAAP Data will be extracted from the GAP Business Unit GAAP Beginning Balances will be in Period 0 of the GAP Business Unit Legal data will be in Acctg Periods 1-12 of the GAP Business Unit GAAP adjusting entries (including reclassifications) will be in Acctg Period 998 GAAP closing entries will be in Acctg Period 999 FIRMS Extracts

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18. Viewing and Confirming FIRMS Derivation Rules

19. Review Run the attribute build Rule 2 Run Query Compare with Spreadsheet Rule 3 Run Query Compare with Spreadsheet Rule 4 Yearly

20. Review Rule 2 Run query for current Rule 2 values CSU_CDIP_RULE_2_REVIEW Compare with Spreadsheet

21. Records in Rule 2 Review Query

22. Fields in Rule 2 Review Query

23. Review Rule 2

24. Compare results of Query to Systemwide Summary of Rule 2

25. Rule 2 Review – Query vs Spreadsheet

26. Rule 3 Review Run Rule 3 Query CSU_CDIP_FUND_PROC_TYPE Compare with Spreadsheet

27. Records in Rule 3 Review Query

28. Fields in Rule 3 Review Query

29. Rule 3 Query Results

30. Rule 3 Spreadsheet of Rule 3

31. Rule 3 Review – Query vs Spreadsheet

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33. FIRMS Process

34. FIRMS Review the Derivation Rules Open Accounting Periods in CSU Business Unit Derivation Process Journal Generation Process Allocations for Technology Program Codes Run the BU in synch report Extract & Submit Delete Batch and Redo

35. Open Accounting Periods Open accounting periods in the XXCSU Business Unit when ready to derive The only required open period Tran Type for the XXCSU business unit is DEF Open Budget and Actuals Ledger

36. Open Accounting Period cont.

37. Open Accounting Period

38. Derivation Process Run the derivation after XXCMP BU is closed Many campuses derive on a monthly basis to run edits and correct problems in a timely manner Chartfields may be inactivated throught out the year and would have to be re-inactivated if derivation was done quarterly – could be tedious Actual submission due quarterly At year end use cloned databases or the batch delete process to run the FIRMS process multiple times before submitting

39. Derivation Run Control

40. Journal Generation One run control for each type of Journal Actuals Budget Encumbrance Journals need to be edited, budget checked and posted Use either online or batch processing depending on the size of the journal

41. Journal Generate – Save Run Control – Save Time

42. Journal Generate 3 or 4 Journals

43. Journal Generation cont. Actual Journals Actuals Contains the data from the Ledger Actuals Also contains FTE data Use batch edit, budget check and posting. Encumbrance Journals Contains information from Ledger KK_DTL_ENC Use batch edit and budget check

44. Journals Generated

47. Budget Journals Contains information from the Ledger_Budg Journal can be processed on-line

48. Journals Generated

49. Allocations for new Technology Program classifcations 616 Allocation Starting July 1, 2004 there were new program codes to be used for information and technology expenses within each program code. An allocation was developed to record activity in the 616 FIRMS object code series in these new program codes 616001-IT Communications 616002-IT Hardware 616003-Misc. Info Tech Cost

50. 616 Technology Allocation This allocation looks at any expenses in a 616XXX account that is in a program code other than the appropriate information and technology program code. A journal is created to move those expenses from the incorrect program code to the correct one.

51. 616 Technology Allocation

53. 616 Allocation

54. Example Program Group 01

55. Allocation Pool

56. Allocation Target

57. Allocation Process Run the allocation

58. Query results before Allocation

59. Allocation cont.

61. Technology Allocation Verification

62. How do you find them before they happen? Run the CDIP Reports to find discrepancy’s

63. Business Units (BU) In Synch Report

64. BU In Synch Report Output

65. Extract Run the FIRMS Extract Submit the file to the FIRMS database Run Edits Correct Errors

66. Extract

67. Delete FIRMS and GAAP Derivation Batches  Criteria In order for FIRMS or GAAP derivation data to be deleted, one of the following criteria must be met: 1.Batch has not yet been journal generated 2.Batch has been journal generated but journal was deleted before posting 3.Batch has been journal generated and posted but then unposted 6767

68. Delete FIRMS and GAAP Batches How?  Navigation : CSU BU Derivation> Derivation Processes > Delete CSU Batch  Parameters: Required Business Unit Optional CSU Batch Number Journal Template Accounting Date Journal ID − Select CSU Batch 6868

69. Delete FIRMS and GAAP Batches  Click the Trash Can icon to delete batch 6969

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71. FIRMS Edit Errors

72. Types of Error Messages Validation edits can be categorized as one of the following: Valid values Business Rules-Accounting & Budget Comparison Errors

73. FIRMS Error Examples Combination Error Comparison Error Business Rule

74. Valid Values Makes sure all the values are valid and in the correct form Program Codes Object Codes Project Code Data Elements

75. How to Fix an error of a Valid Value Fix error in CSU If needed fix business rules in CMP Combo Edits Rule 2 Rule 3 Rule 4

76. Business Rules-Accounting & Budget These rules check that data complies to standard business practice Scholarship and fellowship program group can only use financial aid object codes FTE can only be on salary and wages object codes Comparison Errors Due To/From = 0 Reimbursed Activity = 0 Campus Budget = Central Validation Table

77. Know where to find the CSU FIRMS Information http://www.calstate.edu/es/intranet/applications/f ob/firms/documents/validation_rules.pdf

78. Know where to find the CSU FIRMS This web-site gives definitions for all attributes found in the FIRMS files. http://www.calstate.edu/es/intranet/applications/f ob/firms/firms-data-element- dictionary/index.shtml

79. Existing Tools to Combat FIRMS Edit Errors Enhancements were added in 2006-07 to assist with locating errors CSU_FIRMS_FILE Table Populated by the extract process, it shows the FIRMS file line number along with the campus local Fund, Account and Department that were summarized to create the line. +/-.01 FTE is added to the extract file when the FTE read by the extract is 0.00. 7979

80. 80 FIRMS Edit Error Example - FTE 80

81. 81 CSU_FIRMS_FILE Table 81

82. 82 CSU_FIRMS_FILE vs. Posted LEDGER FTE  CSU_FIRMS_FILE Results LEDGER Table Results 82

83. The +/-.01 FTE is added to the extract file when the FTE read by the extract is 0.00 for each combination of object code-CSU fund- program code. In the instance shown above, the campus will need to enter a journal to increase the FTE on the positive dollar line. 83 Understanding the FTE Enhancement and How to Fix FTE Errors 83

84. How do you find them before they happen? Comparison Errors -Know what the comparison is between Most comparisons involve campus data only – Due To/From, Transfers In/Out, A/R, and Reimb. Activity Comparisons using a central validation table: Fund Balance Clearing, Equity and Budget Validation

85. How do you find them before they happen? Delivered queries to verify data follows business rule for comparison CSU_GL_DUETO_DUEFROM_RECON March 2006 Release several queries added with tables attached so results include SCO and CSU values Due To/From Transfer In/Out

86. Error options Accrue in XXCSU – reversing next period Process in XXCMP in next period Underive XXCSU Process in XXCMP in Current Period Re-derive If program code only Process correcting journal in XXCSU Only Correct Derivation rule in error for next time

87. What are the options for correcting? Depending on error If a monthly “check” fix in XXCMP in the subsequent month. If a submission month make determination based upon type of error Ex. If the A/R Reserve account is more than the actual A/R account fix in XXCSU as a reversal entry and then fix in XXCMP the subsequent month.

88. What are the options for correcting? A decision to reopen the BU is a decision made by the Financial Managers based upon the severity of the problem and how it will affect the reporting.

89. What are the options for correcting? At year end the production environment is cloned Check errors in the clone Once clean we close the BU and submit Any errors after this point the business unit would be opened to make corrections

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