1. FIRMS Darnell Cooper, Accountant II, CSU Sacramento Roberta McNiel, Senior Manager, Financial Services / SFSR, Chancellor’s Office Sedong John, Director, Financial Services / SFSR, Chancellor’s Office April 23, 2015

2. Learning Objectives This session is intended as an open discussion on any issues campuses may have related to FIRMS. April 2015Year-End Legal Training2

3. FIRMS Financial Information Records Management System A database that stores a variety of data submissions from the campuses which assists the Chancellor’s Office in completing system- wide analysis and reporting tasks. April 2015Year-End Legal Training3

4. FIRMS (cont.) Information sources Legal Accounting and Reporting Manual, Chapter 3 FIRMS Data Submission Guide - automated FIRMS edits detailed in Data Validation section April 2015Year-End Legal Training4

5. FIRMS Derivation Process Legal/Campus Business Unit Recording of Campus Activity FIRMS Business Unit Derived Values from Campus Business Unit based on NACUBO Program Code GAAP Business Unit Derived Values from FIRMS Business Unit & GAAP Manual Journal Entries April 2015Year-End Legal Training5

6. FIRMS – Campus Perspective Legal/Campus Business Unit Use your Edits - Campus & CSU Legal Edits! Errors can be identified at entry rather than during FIRMS review and submission CFS Subsystems and “payment” Business Units (e.g. Student) - Combo Edits should be on Inactivate “old” Chartfields so they can’t be used May have to reactivate temporarily for FIRMS April 2015Year-End Legal Training6

7. FIRMS – Campus Perspective Legal/Campus Business Unit (cont.) Rare journal entry posting errors CashNet System is outside of CFS, so there are no edits Validate and manage all chartfield strings Open Items FTE Student Refunds – (only if edits are not in your “payment” business unit) April 2015Year-End Legal Training7

8. FIRMS – Campus Perspective What to do after FIRMS notification is received from CO? In Non- Production – before end of month Derivation from Legal to FIRMS Errors: Invalid Chartfields; Rule 4 Generate Journals – CSA, CSB, & CSE Is Accounting Period open? Combine Actual & Budget Journals into one Run Control Is the Journal locked? Process Encumbrance Journal separately April 2015Year-End Legal Training8

9. FIRMS – Campus Perspective Validate Legal to FIRMS Report Investigate variances FIRMS Extract Error - Delete Previous File on Prod Server Download / Upload File to CO Server Test Submission Investigate Errors AND Warnings Review FIRMS abnormal/unusual balances Test Derivation to GAAP – All Periods April 2015Year-End Legal Training9

10. FIRMS – Campus Perspective Continue to monitor transactions in non-production until the month is closed Make it easier to meet both the Monthly & Quarterly reporting requirements to the CO April 2015Year-End Legal Training10

11. FIRMS – Campus Perspective Legal Auxiliary Submission – tricks Formatting Eliminate zero dollar amounts List Aux by Sub_Agency Order Upload Make sure that file name matches Click on FIRMS_XX06.AUX (TAB Delimited) Errors we’ve run into Filler Field Column, FTE, Approp Yr. April 2015Year-End Legal Training11

12. FIRMS – CO Perspective Monthly submissions required for cash management functions performed by Treasury --- no formal acceptance by CO required. Quarterly submissions required to fulfill system- wide financial reporting requirements --- formal acceptance by CO required. April 2015Year-End Legal Training12

13. FIRMS – CO Perspective (cont.) Quarterly submissions subjected to automated edits; errors must be cleared by campus to obtain CO’s acceptance of data. Occasionally, campuses will request acceptance of file with uncleared errors: Via email to Roberta McNiel explaining reason(s) for errors and why correction cannot be made. Attach copy of FIRMS validation report with relevant errors highlighted. If same error repeated multiple quarters, also attach copy of CO approval for override of first occurrence. April 2015Year-End Legal Training13

14. FIRMS – CO Perspective (cont.) Year-end submissions Pre-closing file - financial data prior to the closure of revenue and expenses to equity Post-closing file - financial data after the closure of revenue and expenses to equity Auxiliary organization file – limited key financial data April 2015Year-End Legal Training14

15. FIRMS – CO Perspective (cont.) Automated edits Edits which check for invalid values. Edits which evaluate data against established business rules (including combination edits). April 2015Year-End Legal Training15

16. FIRMS – CO Perspective (cont.) Manual edits – pre-closing file Review of abnormal balances  Complete Abnormal Balance Explanation Template (Appendix 20) and submit at same time the pre-close FIRMS file is transmittedOR  Transmit the pre-close FIRMS file to the CO and await return of the template for completion by the campus  Information provided by the campus should be in enough detail to allow the Chancellor’s Office to evaluate the propriety of the balance. April 2015Year-End Legal Training16

17. FIRMS – CO Perspective (cont.) Manual edits – pre-closing file (cont.) Validation of the balance in 690003, RMP Expenditure Offset Validation of type codes (G, F and P) used with governmental and nongovernmental AR object codes (G used with 103003; F and P used with 103004) Confirmation that control accounts are not used to record transactions (e.g., 101000, Cash) Confirmation that the designations of fund balances in CSU funds 441 and 485 equal both the balance in 304099, Offset for Reserves/Fund Balance, (except for sign) and the ending equity balance in those funds April 2015Year-End Legal Training17

18. FIRMS – CO Perspective (cont.) Manual edits – pre-closing file (cont.) Confirmation that balances in cash and investment object codes are zero in capital outlay funds Confirmation that fund balances for deactivated funds are zero April 2015Year-End Legal Training18

19. FIRMS – CO Perspective (cont.) Manual edits – post-closing file Confirmation that the change in the asset and liability balances from the pre-closing file is zero Confirmation that the sum of the changes in revenue and expense accounts is equal to the sum of the changes in equity accounts Confirmation that the revenue and expense activity is closed to the appropriate equity object code (see Appendix 1 for guidance) Confirmation that the activity in CSU funds pending deactivation after July 1 net to zero April 2015Year-End Legal Training19

20. FIRMS – CO Perspective (cont.) For information regarding new object codes, new CSU funds and legal combination edit updates, go to Tables of Object Code and CSU Fund Definitions and the Legal Edits Table at the Standards & Rules section of the Systemwide Financial Standards & Reporting (SFSR) website: http://www.calstate.edu/sfsr/standards_and_rules/http://www.calstate.edu/sfsr/standards_and_rules/ April 2015Year-End Legal Training20

21. www.calstate.edu April 2015Year-End Legal Training21