CSU Business Conference March 2012

Transcription

1 CSU Business Conference March 2012

2 Current Policy It is the policy of the California State University that campus President s ensure that costs incurred by the CSU Operating Fund for services, products, and facilities provided to California State University enterprise programs/activities/funds, auxiliary organizations and entities external to the university are properly and consistently recovered with cash and/or a documented exchange of value. (ICSUAM Section )

3 Overview New Cost Recovery Business Process Goals Background Stakeholders The New Cost Recovery Tools Sample Business Process

4 New Cost Recovery BP Goals The sources for the Year end expenditure totals within the CSU Operating Fund will be the sum total of Student Fees and State Support Campus Departments will be able to easily manage any cost recovery funds they are receiving for services rendered GAAP accountants will be able to identify the cost recovery activity in a way that will assist with the required GAAP adjustment Campus FIRMS Submission equals the campus year end report

5

6 A world with NO Cost Recovery In this example, the University s expenditures are 100% related to the mission of teaching. In other words, there are no services being provided by the University for grants, housing, parking, CERF, FDN, or ASI activities University Area of Expense Perfect World Instruction 00 Library 100 Financial Operations 50 ITS 200 Safety $ 150 1,000 Sources Student Fees $ (480) State Support $ (520) (1,000)

7 Cost Recovery the Old Way University Area of Expense The "Old" Way "Cost Recovery" As of June 30 Instruction $ 650 $ (150) 00 Library $ 130 $ (30) $ 100 Financial Operations $ 70 $ (20) 0 ITS $ 250 $ (50) $ 200 Safety $ 200 $ (50) $ 150 Independent Operations $ - $ 300 $ 300 $ 1,300 $ - $ 1,300 The sum of the Independent Operations program and the Reimbursements had to be zero Sources Student Fees $ (480) $ - $ (480) State Support $ (520) $ - $ (520) Reimbursements $ - $ (300) $ (300) $ (1,000) $ (300) $ (1,300)

8 Cost Recovery the Old Way University Area of Expense Current Year Activity "Cost Recovery" As of June 30 Instruction $ 650 $ (150) 00 Library $ 130 $ (30) $ 100 Financial Operations $ 70 $ (20) 0 ITS $ 250 $ (50) $ 200 Safety $ 200 $ (50) $ 150 Independent Operations $ - $ 300 $ 300 $ 1,300 $ - $ 1,300 The sum of the Independent Operations program and the Reimbursements had to be zero Sources Student Fees $ (480) $ - $ (480) State Support $ (520) $ - $ (520) Reimbursements $ (300) $ - $ (300) $ (1,000) $ - $ (1,300)

9 University Area of Expense Current Year Activity "Cost Recovery" As of June 30 Instruction $ 650 $ (150) 00 Library $ 130 $ (30) $ 100 Financial Operations $ 70 $ (20) 0 ITS $ 250 $ (50) $ 200 Safety Staff Salary 0 0 MPP Salary $ 30 $ 30 Benefits (10) $ 20 $ 20 Overtime $ 60 $ 60 Student Assistant $ 10 $ 10 Supplies and Service $ 10 $ (50) $ (40) Training Travel Equipment Contracual Services Total Safety $ 200 $ (50) $ 150 Independent Operations $ - $ 300 $ 300 $ 1,300 $ (50) $ 1,450 In the past, the focus was on Independent Operations and Reimbursements netting to zero Sources Student Fees $ (480) $ - $ (480) State Support $ (520) $ - $ (520) Reimbursements $ - $ (300) $ (300) $ (1,000) $ (300) $ (1,300)

10 University Area of Expense Current Year Activity "Cost Recovery" As of June 30 Instruction $ 650 $ (150) 00 Library $ 130 $ (30) $ 100 Financial Operations $ 70 $ (20) 0 ITS $ 250 $ (50) $ 200 Safety Staff Salary 0 0 MPP Salary $ 30 $ 30 Benefits (10) $ 20 $ 20 Overtime $ 60 $ 60 Student Assistant $ 10 $ 10 Supplies and Service $ 10 $ (50) $ (40) Training Travel Equipment Contracual Services Total Safety $ 200 $ (50) $ 150 Independent Operations $ - $ 300 $ 300 $ 1,300 $ (50) $ 1,450 Often times the cost recovery entry would result in a negative expenditure So the year end Negative Expenditure business process was born adjustments would be made to make it go away Sources Student Fees $ (480) $ - $ (480) State Support $ (520) $ - $ (520) Reimbursements $ - $ (300) $ (300) $ (1,000) $ (300) $ (1,300)

11 University Area of Expense Current Year Activity "Cost Recovery" As of June 30 Instruction $ 650 $ (150) 00 Library $ 130 $ (30) $ 100 Financial Operations $ 70 $ (20) 0 ITS $ 250 $ (50) $ 200 Safety Staff Salary 0 0 MPP Salary $ 30 $ 30 Benefits (10) $ 20 $ 20 Overtime $ 60 $ (50) $ 10 Student Assistant $ 10 $ 10 Supplies and Service $ 10 $ - $ 10 Training Travel Equipment Contracual Services Total Safety $ 200 $ (50) $ 150 Independent Operations $ - $ 300 $ 300 $ 1,300 $ (50) $ 1,450 All Gone Sources Student Fees $ (480) $ - $ (480) State Support $ (520) $ - $ (520) Reimbursements $ - $ (300) $ (300) $ (1,000) $ (300) $ (1,300)

12 What would the correct entry have been for the $50.00 University Area of Expense Current Year Activity "Cost Recovery" As of June 30 Instruction $ 650 $ (150) 00 Library $ 130 $ (30) $ 100 Financial Operations $ 70 $ (20) 0 ITS $ 250 $ (50) $ 200 Safety Staff Salary 0 0 MPP Salary $ 30 $ 30 Benefits (10) $ 20 $ 20 Overtime $ 60 $ (50) $ 10 Student Assistant $ 10 $ 10 Supplies and Service $ 10 $ - $ 10 Training Travel Equipment Contracual Services Total Safety $ 200 $ (50) $ 150 Independent Operations $ - $ 300 $ 300 $ 1,300 $ (50) $ 1,450 Assume the $50.00 was for all services rendered throughout the year (indirect) Sources Student Fees $ (480) $ - $ (480) State Support $ (520) $ - $ (520) Reimbursements $ - $ (300) $ (300) $ (1,000) $ (300) $ (1,300)

13 Budget Act Pre and Post RMP

14

15 Stakeholders The State of California The CSU Chancellor s Office The Campus Budget Office The Campus Department Users The Campus Accounting Department The GAAP accountants

16 University Area of Expense Current Year Activity "Cost Recovery" As of June 30 Instruction $ 650 $ (150) 00 Library $ 130 $ (30) $ 100 Financial Operations $ 70 $ (20) 0 ITS $ 250 $ (50) $ 200 Safety Staff Salary 0 0 MPP Salary $ 30 $ 30 Benefits (10) $ 20 $ 20 Overtime $ 60 $ (50) $ 10 Student Assistant $ 10 $ 10 Supplies and Service $ 10 $ - $ 10 Training Travel Equipment Contracual Services Total Safety $ 200 $ (50) $ 150 Independent Operations $ - $ 300 $ 300 $ 1,300 $ (50) $ 1,450 Sources Student Fees $ (480) $ - $ (480) State Support $ (520) $ - $ (520) Reimbursements $ - $ (300) $ (300) $ (1,000) $ (300) $ (1,300) The As of June 30 amounts are submitted the CSU via FIRMS and the State Of California via the CO Budget Office The Campus safety dept was looking for $50. Probably not as a reduction to overtime. The GAAP Accountant would have to review all transactions to see this entry

17

18 New Infrastructure New CSU Funds 543 Cost Recovery Campus 544 Cost Recovery Aux or 3 rd Party New FIRMS Object Codes Cost Recovery 3 rd Party Cost Recovery from other CSU Fund within Cost Recovery from Aux Org Cost Recovery from Non-0948

19 New Awareness CSU year end reports to the state for expenditures in CSU Fund CSU Operating Fund can only include expenditures supported by state support and student fees Cost Recovery activity related to and including account Cost Recovery from other CSU Fund within 0948 must be eliminated in GAAP Requirements Departments are used to receiving budget transfers for additional resources

20 New Options Option 1 CSU Fund 485 will only have state support and student fee revenues and related expense not additional FIRMS submission 4 th quarter is final Option 2 CSU Fund 485 will have state support, student fees AND cost recovery, transfers and additional revenues such as sale of state property. An additional FIRMS submission is required to eliminate all revenue other than state support and student fees and related expenses.

21 Understand Option 1 vs. Option 2 Final University Area of Add'l FIRMS Submission Expense Submission Option 1 Option 2 to State Instruction 00 $ 650 $ (150) 00 Library $ 100 $ 130 $ (30) $ 100 Financial Operations 0 $ 70 $ (20) 0 ITS $ 200 $ 250 $ (50) $ 200 Safety $ 150 $ 200 $ (50) $ 150 $ 1,000 $ 1,300 $ (300) $ 1,000 Sources Student Fees $ (480) $ (480) $ - $ (480) State Support $ (520) $ (520) $ - $ (520) Cost Recovery $ - $ (300) $ 300 $ - $ (1,000) $ (1,300) $ 300 $ (1,000) In concept, the end result for campus reporting would not be different with option 1 or option 2. However Net Income $ - $ - $ - $ -

22 Understand Option 1 vs. Option 2 Final University Area of Add'l FIRMS Submission Expense Submission Option 1 Option 2 to State Instruction 00 $ 650 $ (185) $ 465 Library $ 100 $ 130 $ (50) $ 80 Financial Operations 0 $ 70 $ (30) $ 40 ITS $ 200 $ 250 $ (60) $ 190 Safety $ 150 $ 200 $ (60) $ 140 $ 1,000 $ 1,300 $ (385) $ 915 Sources Student Fees $ (480) $ (480) $ - $ (480) State Support $ (520) $ (520) $ - $ (520) Sale of Fixed Asset $ - $ (50) 0 $ - PY Revenue Adj $ - $ (25) $ 25 $ - Cost Recovery $ - $ (300) $ 300 $ - Rental of State Propery $ - $ (10) $ 10 $ - $ (1,000) $ (1,385) $ 385 $ (1,000) All revenue recorded in CSU Fund 485 OTHER than Student Fees is considered fully spent Option 2 results in an incorrect representation of the expenditure activity IF that is not the case Net Income $ - $ (85) $ - $ (85)

23 Tools Setting up unique funds for each type of cost recovery PeopleSoft Allocations Set up unique Department ID s to managed central activity within each NACUBO program. Budget Transfers are recorded from these dept ID s Train budget and accounting on university cost recovery business process

24 Campus Cost Recovery Funds

25 EC414 Campus Cost Allocation Plan Once the annual Cost Allocation Plan is prepared it is forwarded to accounting Accounting updates the fixed amount field for several PS Allocations and runs the group Journals are created to post the cost recovery journal for cost allocation Accounting notifies the budget office when the accounting entries are complete Budget transfers are processed to the various campus departments

26 Sample of last page of Campus Cost Allocation Plan CSU EAST BAY 2011/12 COST ALLOCATION/REIMBURSEMENT PLAN FOR CSU OPERATING FUND JOURNAL BASIS CALCULATION Offset Target FIRMS Basis Fund Fund Dept Division Dept Descr Cost Basis % Basis Gross Cost Adjustment Net Allcoation EB001 EC414 F0409 CIO Information Systems 6, % 4, ,609 CR_0409 EB001 EC414 F0409 CIO IT Infrastructure 128, % 96, ,059 CR_0409 F0409 Total 100,668 EB001 EC414 F0501 VP Admin & Fin Accessibility Services 2, % 2, ,966 CR_0501 F0501 Total 2,966 EB001 EC414 F0508 VP PEMSA Planning & Enrollment Mgt 217, % 15, ,196 CR_0508 F0508 Total 15,196 EB001 EC414 F0509 VP PEMSA Planning & Enrollment Mgt 217, % 115, ,052 CR_0509 F0509 Total 115,052 EB001 EC414 F0510 VP PEMSA Planning & Enrollment Mgt 217, % 86, ,831 CR_0510 F0510 Total 86,831 EB001 EC414 F0601 VP Admin & Fin Enterprise Activities 231, % 231, ,562 CR_0601 EB001 EC414 F0601 VP UNIV ADVANCEMENT VP, University Advancement 42, % 8, ,433 CR_0601 F0601 Total 239,996 EB001 EC414 F0602 VP Admin & Fin Budget 55, % 55, (3,540.02) 51,558 CR_0602 EB001 EC414 F0602 VP Admin & Fin Finance Support Unit 21, % 21, (1,246.60) 20,613 CR_0602 EB001 EC414 F0602 VP Admin & Fin Accounting & Fiscal Services 216, % 216, (13,941.65) 203,050 CR_0602 EB001 EC414 F0602 VP Admin & Fin Payroll 41, % 41, ,125 CR_0602 F0602 Total 316,346 EB001 EC414 F0605 VP UNIV ADVANCEMENT VP, University Advancement 42, % 33, ,734 CR_0605 F0605 Total 33,734 EB001 EC414 F0606 All University Divisional Telephones 37, % 37, ,901 CR_0606 EB001 EC414 F0606 VP Admin & Fin Procurement Services 136, % 136, (8,493.28) 127,884 CR_0606 EB001 EC414 F0606 VP Admin & Fin Risk Mgmt & Internal Control 35, % 35, ,049 CR_0606 EB001 EC414 F0606 VP Admin & Fin Human Resources 75, % 75, ,891 CR_0606 F0606 Total 276,725

27 One allocation per NACUBO Program Code all in one Group An allocation for each program code amount to be allocated is filled in and the Group is run. Prorates based on dept activity

28 Allocation setup for NACUBO program Safety Amount to be allocated is input in the Fixed amount field Type = Prorata with Record Basis Basis = University Police Dept ID Expense Accounts CSU Operating Fund Year To Date Target = Cost Recovery Fund Offset = CSU Operating Fund with Central Dept ID s

29 After all entries are booked

30 For prorated activity PS allocations are used

31 GAAP Elimination

32 Things to remember Do it right Any revenues other than state support and student fee should have offsetting expenditures Budget and accounting analyst need to be aware of the campus business process are they researching the gross or the net Always ask What expenses is this revenue reimbursing? If the answer is none don t record it in CSU Fund 485