1. FIRMS & SCO Reporting Updates and Reminders Roberta McNiel, Senior Manager, Financial Services / SFSR Chancellor’s Office April 23, 2015

2. Learning Objective To provide updates relating to FIRMS and state reporting submissions. April 2015Year-End Legal Training2

3. FIRMS Added requirement (in Chapter 1 of the Legal Accounting & Reporting Manual) to review program code allocations to campus departments a minimum of every three years. April 2015Year-End Legal Training3

4. FIRMS (cont.) Notification of monthly submissions (non-quarter-end months) File due no later than the 15 th of the month. Two notification methods: o “Notify CO” button if no edit errors. o Via email to CO’s FIRMS contacts when the file contains errors. Email should assure the CO that there are no significant errors in the data and that they will be corrected by the end of the quarter. April 2015Year-End Legal Training4

5. FIRMS (cont.) Notification of monthly submissions (non-quarter-end months) (cont.) No further uploads should be made to the FIRMS Work Table once the campus has notified the CO their data is final. CO will let campuses know via email when uploads can begin for the subsequent month. April 2015Year-End Legal Training5

6. FIRMS (cont.) No changes in the automated and manual edits as set forth in Chapter 3 of the CSU Legal Accounting and Reporting Manual. Abnormal balances represent the single most questioned category of “error” in review. Every effort should be made to identify and correct abnormal balances prior to year end. Clear, concise explanations for any remaining abnormal balances need to be provided. April 2015Year-End Legal Training6

7. SCO Reporting Covered in Chapter 5 of the CSU Legal Accounting and Reporting Manual Requirement to submit Reports 18, Statement of Changes in General Fixed Assets, and 19, Statement of General Fixed Assets, waived for CSU beginning with FYE June 30, 2014. Chapter 5 updated in current fiscal year for change; also sample table of contents at Appendix 5. April 2015Year-End Legal Training7

8. SCO Reporting Do the certification letters need to list Reports 18 and 19 as required reports? April 2015Year-End Legal Training8 Question

9. SCO Reporting (cont.) Reports 18/19 (cont.) Replaced by the detailed fixed assets information provided as part of CSU’s consolidated GAAP submission to the state. Reports must still be listed on certifications for funds for which data is submitted, with the comment “Not required by CSA [California State Auditor] and SCO”. If formerly the only report submitted for a fund was 18, no certification is required. April 2015Year-End Legal Training9

10. SCO Reporting (cont.) SCO has reminded us not to include in the SAM 99 electronic file information regarding funds that have neither current fiscal year activity, nor year-end balances. Include funds which: Have both current fiscal year activity and ending balances. Have current fiscal year activity, but no ending balances. Have no current fiscal year activity, but which have ending balances. Always transmit a fund with year-end accruals. April 2015Year-End Legal Training10

11. SCO Reporting (cont.) Report 14 (Appendix 14) REMINDER: Include the taxpayer ID number(s) under which bank accounts were or could be established. Provide the statutory authority allowing an external account --- for the Wells Fargo Zero Balance Account and the US Bank Pooled Investment Account, the statutory authority is included on the template. Only if there is no specific statutory authority, provide the Department of Finance letter authorizing establishment of the account. April 2015Year-End Legal Training11

12. SCO Reporting (cont.) When does an account held outside the state treasury need to be collateralized? April 2015Year-End Legal Training12 Question

13. SCO Reporting (cont.) Report 14 (cont.) Indicate if the account: o Has been collateralized (“Yes”) --- the amount on deposit exceeds $250,000, but the financial institution has provided the required collateral to the State Treasurer’s Office. o Has not been collateralized (“No”) --- the amount on deposit exceeds $250,000 and the financial institution has not provided the required collateral to the State Treasurer’s Office. April 2015Year-End Legal Training13

14. SCO Reporting (cont.) Report 14 (cont.) o Is not subject to collateralization (“Not Required”) --- when the amount on deposit is less than $250,000 “Not required” should be marked for the Wells Fargo Zero Balance Account, the US Bank Pooled Investment Account and escrow accounts. April 2015Year-End Legal Training14

15. SCO Reporting (cont.) Report 14 (cont.) If an account held outside the treasury requires collateralization, report must be accompanied by the June 30 bank statements. Also, the State Treasurer’s Office requires December 31 statements to be submitted no later than February 1; submission is via email. Report book balances in accounts. Include cash held on behalf of auxiliary. April 2015Year-End Legal Training15

16. SCO Reporting (cont.) Report 14 (cont.) Distribution: o Signed original to State Treasurer’s Office. o Copy of signed document included in hard copy reporting package to SCO. o Unsigned copy in Excel format transmitted to SCO electronically. April 2015Year-End Legal Training16

17. SCO Reporting (cont.) Report 14 (cont.) New Requirement: Include with the submission of Report 14 to the Chancellor’s Office only a reconciliation of the US Bank account --- reconciliation of the SWIFT balance per the campus’ books to the SWIFT balance as reflected by the Chancellor’s Office for that campus. April 2015Year-End Legal Training17

18. SCO Reporting (cont.) Do campuses include in their Due To/From Other Funds/Appropriations Supplemental Forms activity recorded in non-governmental funds? April 2015Year-End Legal Training18 Question

19. SCO Reporting (cont.) Due To/From Other Funds/Appropriations Supplemental Form (Appendix 17) Campuses file for governmental state funds only; submitted only when activity exists in the fund. CO files for non-governmental state funds, including 0948, based on information provided by campuses. Includes transactions between state agencies, including between campuses, and between funds at the same campus. April 2015Year-End Legal Training19

20. SCO Reporting (cont.) Due To/From Other Funds/Appropriations Supplemental Form (cont.) Accrue interagency receivables/payables at June 30, except for transactions with the Department of Justice (DOJ). CO will coordinate collection of necessary information from DOJ to record accrual on the consolidated reports for state fund 0948. For any unrecorded due to/from transactions with other state agencies, campuses must complete the Unrecorded Transactions tab at Appendix 17. April 2015Year-End Legal Training20

21. SCO Reporting (cont.) For which funds do campuses prepare the Material Variance Explanation Form? April 2015Year-End Legal Training21 Question

22. SCO Reporting (cont.) Material Variance Explanation Form (Appendix 21) Required for every fund included in the SAM 99 electronic file and for state funds 0890 and 0942, whether or not the variances reach the thresholds for explanation. Required as long as there are numbers for one of the two years being compared. Explain variances in revenue, expenditures, transfers in and transfers out where the differences are $1,000,000 or more AND 10% or more. Not required by the CO for non-governmental funds. April 2015Year-End Legal Training22

23. SCO Reporting (cont.) Certifications (Appendix 7) Two templates: o Template #1 – used to certify data in the SAM 99 electronic file and hard copy reports for active governmental funds. o Template #2 – used to certify hard copy reports for non-governmental funds. Used by campuses only if submitting reports for state funds 0890, Federal Trust Fund, and 0942, Special Deposit Fund. April 2015Year-End Legal Training23

24. SCO Reporting (cont.) Under what three circumstances is a certification letter required? April 2015Year-End Legal Training24 Question

25. SCO Reporting (cont.) Certifications (cont.) SCO has summarized the certification requirement as follows: o If the campus has no current fiscal year activity and no ending balance, no certification letter is required. o If the campus has no current fiscal year activity, but HAS an ending balance, a certification letter is required. o If the campus has current year activity and NO ending balance, a certification letter is required. April 2015Year-End Legal Training25

26. SCO Reporting (cont.) Legal Reports Submission Checklist (Appendix 13) Lists all required reports, number of copies to be provided and agencies to which they need to be distributed. Provides addresses of recipients. April 2015Year-End Legal Training26

27. SCO Reporting (cont.) What are the three groups of documents campuses upload to the State Reporting SharePoint site? April 2015Year-End Legal Training27 Question

28. SCO Reporting (cont.) State Reporting SharePoint Site is used by campuses to upload the following: An identical copy of the report package submitted to the SCO. Submit in.pdf format. Non-governmental funds supplemental schedules: o Non-governmental Fixed Assets Template (Appendix 11) o Statement of Contingent Liabilities (Appendix 16) o Due To/From Other Funds/Appropriations Supplemental Form (Appendix 17) April 2015Year-End Legal Training28

29. SCO Reporting (cont.) State Reporting SharePoint Site (cont.) SCO GAAP schedules o Legal to GAAP Reconciliations o Reconciliation of Due To/From o Reconciliation of Transfers o Pollution Remediation Obligations Use naming conventions provided in the General Information Library at the site. April 2015Year-End Legal Training29

30. SCO Reporting (cont.) Other Updates to Appendices Appendix 2, Fund Reporting Summary – Report # section updated with new instructions for each form; added Supplemental Reports section Appendix 3, Reports 18/19 templates – removed April 2015Year-End Legal Training30

31. UBIT Fund Accounting Added as Section 12 in Chapter 29 of the CSU Legal and Accounting Manual. Based on my January 30 email instructions to campuses. April 2015Year-End Legal Training31

32. www.calstate.edu April 2015Year-End Legal Training32