Accounting. CSU 101 March 6-9, Justine Heartt Associate Vice President, Financial Services CSU, Sacramento

Transcription

1 Accounting CSU 101 March 6-9, 2011 Monterey Justine Heartt Associate Vice President, Financial Services CSU, Sacramento Lily Wang Director, Management & Accounting Practices Office Chancellor s Office Sherry Pickering Associate Director, Management & Accounting Practices Office Chancellor s Office Agenda Where is that money? State Controller s Office (SCO) vs Campus Fund Balance Clearing vs Cash Transactions with the State Infrequent but still exist Reconciling Transactions with the State Common Transactions Pool the Cash Editing Legal Transactions CFS Conversion and Common Legal Reports Validation Reporting GAAP 2 1

2 CSU is an Agency of the State The State Provides Funding Offers Services Processes Transactions Requires Financial Information at least annually Legal Generally Accepted Accounting Principles (GAAP) 3 Key State Players Department of Finance (DOF) Serve as the Governor s chief fiscal policy advisor Promote responsible resource allocation through the state s annual financial plan Ensure the financial integrity of the state State Controller s Office (SCO) Chief Fiscal Officer of California Control over receipts and disbursements of public funds Audit authority to uncover fraud/abuse of taxpayer dollars Provides fiscal guidance to local governments 4 2

3 Key State Players (continued) State Treasurer s Office (STO) Provides banking, investment and finance services for State government Department of General Services (DGS) Serves the public by providing a variety of tools to state agencies through innovative procurement and acquisition solutions, creative real estate management and design, state-of-the-art telecommunications, environmentally friendly transportation, and funding for the construction of safe schools CSU uses only some of these services. 5 SCO vs. Campus SCO Campus General Fund Dorm Construction CSU Trust Fund Public Works Higher Ed Bonds All of the activity processed by the State plus Student Fees Federal Financial Aid Grants & Contracts Endowment/Scholarships Auxiliary Services (Housing, Parking) 6 3

4 SCO vs. Campus State CSU SCO Record to Ledger Record to Ledger SWIFT Record to Ledger 7 Fund Balance Clearing CA State Tax Revenues/Bond Proceeds Proceeds from the sale of CSU issued bond Remaining Fee Revenue Collections on Deposit 8 4

5 Cash 9 Issue Allocation Order (AO) Chancellor s Office will issue an Allocation Order to establish Budget or spending authority. 10 5

6 Enterprise Fund Operations in State Funds In Remittance Advice Campus collects fees for service provided, deposits them to State Treasury bank account and remits to the State Controller s Office (SCO). Plan of Financial Adjustment (PFA) Establishes the CSU Trust Fund as the Primary Operating Fund Authorized movement of expenses via journal entry executed by the SCO for the purposes of reimbursement 11 State Claims Campus vs. State Payment Claims payments to vendors for supplies and services on claimable funds must be paid by the expenditure fund from the State Controller s Office (SCO). The SCO will either reimburse the Campus or pay the Vendor directly. Claimable Funds would include the SCO Bond Funds 6028, 6041 and Decision Point: Campus pay vendor directly and then be reimbursed or have State pay vendor directly? -Why 12 6

7 State Claims: Campus Pay Vendor SCO Fund 0948 CSU Trust Fund CSU Fund 499 TF Revolving Fund Campus Revolving Fund Used for Campus Payments to Vendors on claimable funds Sac State limit is $100,000 Send Claims to SCO Bi-Weekly Advances (Salary & Travel) Cash/Investment Balance will normally be negative (or zero at best) 13 Campus Pay Vendor and Fund Balance Clearing (305022) Campus voucher and payment to vendor for Construction Contract and then send SCO claim to reimburse Campus Debit Expense (607031) and Credit Fund Balance Clearing (305022) in Claimable Fund ( ) AND Debit Accounts Receivable (103002) and Credit Invested Cash (101100) in Campus Trust Revolving Fund ( ) SCO reimburses Campus for Claim - in their books Debit to Fund Balance Clearing (reduces state liability to us) and Credit to State Cash. Campus receives state payment (warrant) CD102 and receipts to Debit Invested Cash (101100) and Credit AR (103002) in Campus Trust Revolving Fund ( ) SAM99 Timing differences if Campus and SCO process in different months. 14 7

8 State Claims: State Pay Vendor May elect to have SCO Pay Vendor directly for good Cash Management Sac State uses SCO for > $100,000 Processing Time No cost $25 $50 $75 up to two weeks 3 rd day payment Next day payment Same day payment 15 State Pay Vendor and Fund Balance Clearing (305022) Same as Campus Pay Vendor; but, accounting entries are fewer with State Pay Vendor Campus records expense and state payment to Vendor for Construction Contract and then sends SCO claim to pay the Vendor directly (rush?) Debit Expense (607031) and Credit Fund Balance Clearing (305022) in Claimable Fund ( ) Notice - Campus has no Credit to Invested Cash. SCO pays Vendor - in their books Debit to Fund Balance Clearing (reduces state liability to us) and Credit to State Cash Receive CD102 notification that Vendor was Paid. SAM99 timing differences if Campus and SCO processed in different months. 16 8

9 State Controller Journal Entries Can be initiated by Campus, Chancellor s Office (CO), Department of General Services (DGS), or others Need to make sure you post in Campus books to stay in balance with SCO (Fund Balance Clearing) Information to post should be from internal records PO for DGS Printing (remember to clear encumbrance) Campus Plan of Financial Adjustment (PFA) for reimbursement from one fund to another CO Accounting Department Notice of Accounting Transaction (AD-NOAT) Payroll Transfer from General Fund to Trust Fund General Fund is a State Fund 17 State Controller Journal Entries sample 18 9

10 SAM99 Business Requirement Section 7900 of the State Administrative Manual (SAM) requires state agencies to prepare a monthly reconciliation of Receipts & Disbursements Budget Balances to the State Controller s Office records 19 SAM99 Relationship to Trial Balance Top Right Section: Adjusts the SCO Cash Basis "Receipts & Disbursement" and "Balance" for Campus Accrual Basis activity Receipts/ Disbursements Balance Account Balance SCO $ $ (800.00) Reverse: Agency PY Accruals $ - $ - SAM99 -Illustrated Apply Agency CY Accruals (Campus Books) Cash $ (100.00) $ (100.00) Accounts Receivable $ (120.00) $ (120.00) Accounts Payable $ $ Total Agency CY Accruals (Campus Books) $ $ Net Expenditures (SCO Adjusted) $ Unexpended Balance (SCO Adjusted) $ (584.00) Bottom Right Section: Reports Campus Accrual Basis Revenue and Expense activity Campus Records Revenue $ - Expense $ Equity Total Campus Records $ $ Warnings: Campus Records total does not equal expenditures Calculated unexpended balance does not = Campus records total balance 20 10

11 Orientation with SAM99 Report Top Right Section: Adjusts the SCO Cash Basis "Receipts & Disbursement" and "Balance" for Campus Accrual Basis activity Receipts/ Disbursements Balance Account Balance SCO $ $ (800.00) Reverse: Agency PY Accruals $ - $ - Apply Agency CY Accruals (Campus Books) Cash $ (100.00) $ (100.00) Accounts Receivable $ (120.00) $ (120.00) Accounts Payable $ $ Total Agency CY Accruals (Campus Books) $ $ Top Section Net Expenditures (SCO Adjusted) $ Unexpended Balance (SCO Adjusted) $ (584.00) Bottom Right Section: Reports Campus Accrual Basis Revenue and Expense activity Bottom Section Campus Records Revenue $ - Expense $ Equity Total Campus Records $ $ Warnings: Campus Records total does not equal expenditures Calculated unexpended balance does not = Campus records total balance 21 Enterprise Fund Operations in State The SCO maintains transactional detail by campus agency, but centralizes the trial balance. The Chancellor s Office picks up the net activity it by campus and any other central transactions to mimic the SCO structure. To eliminate doubling up the reporting of investment balances, the campuses reflect their balance in the state using fund balance clearing. When the Chancellor s Office picks up the net activity, they mirror or show the opposite balance in the fund balance clearing account for each campus

12 Sample Enterprise Fund Activity Chancellor s Office Legal Basis Ledgers SCO Fund - Subfund - CSU Fund Account Description Debit Credit Cash in State Treasury 1, Fund Balance Clearing 1,800 To Record Campus A Activity for the Month Campus Legal Basis Ledgers SCO Fund - Subfund - CSU Fund Account Description Debit Credit SWIFT Cash 2, Parking Permits 2,200 To Record Parking Fees Collected Deposits in SMIF 1, Cash in State Treasury 1,700 To Record State Sweep for Investment Activity Fund Balance Clearing 2, SWIFT Cash 2,200 To Record Remittance Supplies & Services SWIFT Cash 400 To Record Vendor Invoice & Payment SWIFT Cash Fund Balance Clearing 400 To Record Claim Schedule Sample Enterprise Fund Trial Balance Chancellor s Office Legal Basis Ledgers SCO Fund - Subfund - CSU Fund Account Description Debit Credit Cash in State Treasury Deposits in SMIF 1, Fund Balance Clearing 1,800 1,800 1,800 Campus Legal Basis Ledgers SCO Fund - Subfund - CSU Fund Account Description Debit Credit Fund Balance Clearing 1, Parking Permits 2, Supplies & Services 400 2,200 2,200 Legal Basis Ledgers SCO Fund - Subfund - CSU Fund Account Description Debit Credit Cash in State Treasury Deposits in SMIF 1, Parking Permits 2, Supplies & Services 400 2,200 2,200 12

13 Chancellor s Office Cash Posting Orders (CPO) For our 0948 Funds on Deposit with CSU Bank Wells Fargo Examples include Investment Income Shared Exp. Central Software License SystemWide Allocation Transfer (SWAT) Campus JE required SystemWide Investment Fund-Trust (SWIFT) - No campus JE required 25 Travel & Relocation CSU Policy and Procedures Governing Travel /FS pdf Relocation Expense Reimbursement (FS ) Basis for Campus Policy and Procedures Tax Information Changes to Moving and Relocation Expenses (HR/Benefits )

14 Travel Policy Comparison - Old Standard business mileage reimbursement is currently 50 cents per mile Daily reimbursement amounts (no receipts required): Breakfast $10.00 Lunch $15.00 Dinner $25.00 Incidentals $ 5.00 Total $55.00 daily maximum 27 Travel Policy Comparison - New The new procedures stipulate that reimbursement will be made for actual meal expenses for travel in the contiguous 48 states up to $55 per day. Separate meal limits are eliminated. Receipts are required for expenses of $25 or more. Reimbursement for incidental expenses is increased to $7 per day (from $5). Receipts for incidentals are not required. In contrast t to the existing procedures, no limits it are placed on how many travel claims can be submitted in a month. Frequent travelers rejoice 28 14

15 ProCards Used by employees who have been delegated authority to purchase small dollar items for University use Reduces costs by less PO s and individual vendor payments Baseline CMS modification to handle the distribution of charges to departments Accounts Payable pays vendor directly and rebates are offered by vendor More frequent payments to ProCard vendor increases rebates 29 Cost Recovery Reciprocal Interfund Services Provided/Used Interfund Loans Non- Reciprocal Interfund Transfers Interfund Reimbursement-type Activity 30 15

16 Cost Recovery Services Exchange Provided/Used Non- Exchange Flows of assets without equivalent return [ex. Gifts] 31 Chargebacks Automated or manual chargebacks to bill appropriate areas for their costs Reprographics Postage Utilities Telecommunications Computing Space Rental Facilities Work Orders Other 32 16

17 Expenditure/Budget Transfers Correct key errors or mistakes Abate expense (e.g. Dean buys table for ten at banquet, but has Departments reimburse/abate his Fund/Account for individual seats) Spread costs to appropriate departments 33 Cost Recovery Policy Summary 34 17

18 Petty Cash Funds Tool to minimize small Accounts Payable (AP) reimbursements to faculty and staff Sac State t has Petty Cash Fund for reimbursements within guidelines up to $50.00 AP only has to reimburse Petty Cash custodian when needed (CMS Open Item tracking) 35 Executive Order 1052 Executive Order 1052, University and Auxiliary Organization Funds ( html) FS requires each campus to fully comply with EO 1052 by December 9, EO 1052 will be superseded by two new Orders that have not been published. EO 1052 is still in place, so these transactions may be in your FY data

19 Executive Order 1052 The movement of funds from the auxiliary to the university cannot be recorded as a transfer because auxiliaries are separate legal entities. Instead, the auxiliary should record an expense and the university revenue. As the movement of funds is not an exchange transaction, ti it should be recorded as a non-operating expense by the auxiliary and non-operating revenue by the university. These values will be included in the elimination column on the GAAP financial statements. If detailed information concerning the transaction is unavailable, the transfer should be treated as other non-operating revenue and expense. If the amount is material, it may need to be presented on a separate line on the financial statements. If information on the purpose and nature of funds originally received is available, a more detailed account (such as gift income) should be used. If the original revenue was classified as operating revenue, the entry may need to be reversed to avoid double counting of revenue and expenses. 37 Pooled Cash Fund Transaction Operating Fund Housing Fund Parking Fund Payroll FBC FBC FBC Travel SWIFT SWIFT SWIFT ProCard SWIFT SWIFT SWIFT 38 19

20 Pooled Cash Fund Transaction Operating Fund Payroll FBC Travel SWIFT Housing Fund FBC SWIFT Parking Fund FBC SWIFT ProCard SWIFT SWIFT SWIFT Exchange FBC for SWIFT DR CR DR CR DR CR Cash Management The plan is Deposits receipt as soon as possible Payments pay as late as possible Just-in-time payment of vouchers Need to consider vendor terms, mail time, small business status, etc. Earn as much interest as we can! 40 20

21 3 Sets of Books Chart of Accounts Review CMP Campus Legal CSU - FIRMS GAP -GAAP 41 Chart of Accounts Review CMP - Campus or Legal Books Minimum of 3 ChartFields Fund Trial Balance Level and Fund Attribute (FNAT) maps to State and CSU Values Account Classifies Transactions and Account Attribute (AAT) maps to NACUBO Object Codes 1 s Assets 2 s Liabilities 3 s Fund Balance 5 s Revenue 6 s Expense Department ID Organizational Structure Necessary for CSU/FIRMS Books 42 21

22 Chart of Accounts Review CSU - FIRMS Books Also Legal Books Financial Information Records Management System Derived from Campus/Legal Books Provides SystemWide Reports by Common Values (CSU Fund, Object Code and Program Code) Program Code (4 digits) breaks out expenses into NACUBO classifications Examples Institutional Support-Fiscal Operations Institutional Support-Admin Computing Support 43 Chart of Accounts Review GAP - GAAP Books Derived ed from CSU/FIRMS S books and manual conversion journal entries 4 ChartFields Fund Net Asset Category e.g. Unrestricted, Restricted-Scholarships Account Per Financial Statements Program Group (2 digits) e.g. Instruction, Institutional Support Class For CSU Fund Users of CSU/Campus Financial Statements want more detail and explanations of ending balances Required by State Law and GASB 34/35 Additional GAAP/GASB rules apply SystemWide and Stand-Alone Campus Reports 44 22

23 Chart of Accounts - Fund Find the Differences? 45 Chart of Accounts Review SetID, Fund Code & Descr, Effective Date 46 23

24 Chart of Accounts - Fund Cash on Deposit with CSU Bank - Wells Fargo Do NOT Claim No Reimb Capital Outlay Bond Fund Cash on Deposit with State Treasurer State CLAIM Required! Fund Reimb Flag checked 47 Chart of Accounts - Account Find the Differences? 48 24

25 Chart of Accounts - Account SetID & Account Value A/R Dept Student Fee Revenue 49 Legal Edits Defined 50 25

26 UCM and Legal Edit 51 Legal Edits Redefined 52 26

27 Attribute Build 53 FIRMS Legal Edits Process CSU BU Derivation> FIRMS Legal Edits > FIRMS Legal Edits 54 27

28 Tree Manager> Tree Manager Tree Name: CSUFE_FUND Sample Combo Edit Fund Tree 55 Tree Manager> Tree Manager Tree Name: CSUFE_ACCOUNT Sample Combo Edit Account Tree 56 28

29 Sample Combo Edit Rules Setup Fin.> Common Def. > Design CF Values > Combo Edit > Combo Edit Rule 57 Sample Combo Edit Group Setup Fin.> Common Def. > Design CF Values > Combo Edit > Combo Edit Group 58 29

30 Attach Edit Rule to Business Unit Set Up Financials/Supply Chain > Business Unit Related > General Ledger > Ledgers For a Unit Add New Rule 59 Build Combo Edit Rule Set Up Financials/Supply Chain > Common Definitions > Design ChartFields >Combination Editing > Build Combination Data 60 30

31 Combo Edit Processing 61 Timing CSU_LGL_EDT_TBL updated with each Attribute Build run To update the rule active for the campus transactions: Run FIRMS Edit Process Build Combo Edits Open Transactions, like Purchase Orders, that passed the campus edit may not pass the Legal Edit 62 31

32 CFS Conversion Strategy Conversion Strategy 32

33 SAM99 Standard Reports Introduction Bank Reconciliation Compare the State Controller s Office (SCO) Ledger Balance & Budget Balance Available (BBA) to Ledger Postings SAM06 Budget vs. Actual P/L SAM07 Trial Balance SAM99 from Legacy No Roll Forward 33

34 SAM99 from CFS No Roll Forward SAM99 from Legacy Roll Forward 34

35 SAM99 from CFS - Roll Forward SAM06 from Legacy 35

36 SAM06 from CFS SAM07 from Legacy 36

37 SAM07 from CFS GAAP Reporting Final Submission by July 15 Manual Reports by July 31 Legal Reporting GAAP Fieldwork Early September Initial Reporting Package PBC Schedules Late November MD&A Statements Issued in January Stand Alone Statements 74 37

38 Fast-Ed Chancellor's Office Financial Accounting Training Portal =74,1&_dad=portal&_schema=PORTAL User Name = fasted Password = fasted4csu Tutorials 75 Fast-Ed 76 38

39 References CO Executive Orders CO Business & Finance State Administrative Manual the sun is setting for CSU EO 1000 Policies/Procedures in the ICSUAM Integrated California State University Administrative Manual Coming soon to a web address for YOU! State Key Players (within PPT) 77 39