1. FIRMS & SCO GAAP Submissions Roberta McNiel, Senior Manager, FS / SFSR Chancellor’s Office April 24, 2015

2. Learning Objectives To provide brief overview of the FIRMS GAAP submission, including the key edits that are applied to the data. To apply this year’s changes to the SCO GAAP submission. April 2015Year-End GAAP Training2

3. FIRMS GAAP Submission Covered in new Ch. 7.02 of the GAAP Manual: Provides overview of submission components. Discusses both the automated edits and the manual review applied to the data. Reminds campuses that the FIRMS GAAP submission is the only GAAP data source at the state/CSU fund levels and that data integrity at these levels is essential. April 2015Year-End GAAP Training3

4. FIRMS GAAP Submission (cont.) What are the four elements of the GAAP combination edit? April 2015Year-End GAAP Training4

5. FIRMS GAAP Submission (cont.) GAAP Combination Edits Table Determines validity of combinations of following elements: o CSU fund o Natural class code o Net position category o Program group code April 2015Year-End GAAP Training5

6. FIRMS GAAP Submission (cont.) GAAP Combination Edits Table (cont.) Two types of combination edits: o “X” = valid combination o “X(A) = combination flowing from legal-basis records which needs to be adjusted in GAAP Further details regarding “X(A)” edit error available using PeopleSoft query: CSU_GAAP_Reclass April 2015Year-End GAAP Training6

7. FIRMS GAAP Submission (cont.) Manual review consists of following: Comparison of GAAP FIRMS data to SNP and SRECNP as presented in TM1. Confirmation that changes in asset/liability balances between pre- and post-closing files are zero. Confirmation that changes in net position between pre- and post-closing files equals sum of revenue and expense activity. Confirmation that data as provided in GAAP FIRMS and on TM1 tie to SCO GAAP schedules. April 2015Year-End GAAP Training7

8. FIRMS GAAP Submission (cont.) Submission date: September 8 April 2015Year-End GAAP Training8

9. SCO GAAP Submission Covered in Chapter 18 of the GAAP Manual. Updates include: Change in the data collection method for capital assets/accumulated depreciation. New requirements on the following templates: o Legal to GAAP reconciliation of governmental funds o Breakdown of Statement of Cash Flows Addition of requirements affecting all templates Addition of Testing Protocol for SCO GAAP Templates (at end of chapter) April 2015Year-End GAAP Training9

10. SCO GAAP Submission (cont.) Capital Assets/Accumulated Depreciation Template Completed in Asset Management Consolidated schedule for SCO pulled from Asset Management April 2015Year-End GAAP Training10

11. SCO GAAP Submission (cont.) April 2015Year-End GAAP Training11

12. SCO GAAP Submission (cont.) Capital Assets/Accumulated Depreciation Template (cont.) Elements of template: o Beginning balances – 6/30/14 “legal” balances automatically brought forward o Prior period adjustments – 6/30/14 GAAP adjustments recorded by campuses in FYE 2015 --- -requires entries by campuses April 2015Year-End GAAP Training12

13. SCO GAAP Submission (cont.) Capital Assets/Accumulated Depreciation Template (cont.) Elements of template (cont.): o Adjusted beginning balances – automatically calculated and represents 6/30/14 GAAP balances ---- must tie to last year’s GAAP ending balances as reported to the SCO and in TM1 April 2015Year-End GAAP Training13

14. SCO GAAP Submission (cont.) Capital Assets/Accumulated Depreciation Template (cont.) Elements of template (cont.): o Additions, Deductions and Transfers – automatically populated from current year’s data (“legal” data) o GAAP adjustments, Additions, Deductions and Transfers – entered by campuses April 2015Year-End GAAP Training14

15. SCO GAAP Submission (cont.) Capital Assets/Accumulated Depreciation Template (cont.) Elements of template (cont.): o Ending balances – automatically calculated and represents 6/30/15 GAAP balances Data on the template must tie to TM1 and net capital assets must agree to GAAP FIRMS April 2015Year-End GAAP Training15

16. SCO GAAP Submission (cont.) Capital Assets/Accumulated Depreciation Template (cont.) No balances for 0997 should be included on schedule. Separate Excel worksheet to be completed and submitted to report depreciation expense by state fund. April 2015Year-End GAAP Training16

17. SCO GAAP Submission (cont.) Capital Assets/Accumulated Depreciation Template (cont.) Implementation timeline: o Completion of internal testing – April 30 o Webcast training for campuses – latter part of May o Campus testing – June o Available in production – August 12 April 2015Year-End GAAP Training17

18. SCO GAAP Submission (cont.) Legal to GAAP Reconciliation Added another standard adjustment (#8) for capital outlay funds at the Description of GAAP Adjustments tab: 724001State appropriations, capital 711202 Accounts receivable, net (noncurrent) To record reversion of capital appropriation. April 2015Year-End GAAP Training18

19. SCO GAAP Submission (cont.) Legal to GAAP Reconciliation (cont.) Added instruction to not enter compound entries on the Description of GAAP Adjustments tab; provide each entry required to convert the legal-basis balances to GAAP. April 2015Year-End GAAP Training19

20. SCO GAAP Submission (cont.) Breakdown of Statement of Cash Flows Added to instructions: o Requirement to complete the SNP and SRECNP tabs. o Requirement to clear error messages on all tabs. o Requirement that the net position on the SNP and SRECNP tabs be equal. April 2015Year-End GAAP Training20

21. SCO GAAP Submission (cont.) Breakdown of Statement of Cash Flows (cont.) Additions to instructions (cont.) o Requirement that the depreciation expense reported on the SCF tie to the depreciation expense reported on the Depreciation Expense Schedule. o Requirement that the state fund data on the SCF bear a reasonable relationship to data provided on other SCO GAAP schedules. April 2015Year-End GAAP Training21

22. SCO GAAP Submission (cont.) Which account balance must be the same on both the SNP and SRECNP tabs of the Breakdown of Statement of Cash Flows workbook? April 2015Year-End GAAP Training22

23. SCO GAAP Submission (cont.) New requirements affecting all templates: Numbers must be rounded to the nearest penny. Schedules must tie to each other and rounding issues must be resolved. All abnormal balances need to be explained in a footnote on the schedule reflecting the abnormal balance. Schedules MUST tie to FIRMS GAAP and TM1 entries as specified in the instructions for each schedule. April 2015Year-End GAAP Training23

24. SCO GAAP Submission (cont.) Testing Protocol for SCO GAAP Templates Provides the review steps conducted by the CO upon receipt of the templates. Managers reviewing the templates should use this document to ensure the quality of the campus submission before execution of the certification and submission to the CO. April 2015Year-End GAAP Training24

25. SCO GAAP Submission (cont.) Amounts on SCO GAAP schedules need to be rounded to the nearest: A.Thousand B.Hundred C.Penny D.Any way the campus wants to do it! April 2015Year-End GAAP Training25

26. SCO GAAP Submission (cont.) Submission date: September 10 April 2015Year-End GAAP Training26

27. www.calstate.edu April 2015Year-End GAAP Training27