Chapter 3Mapping Legal to GAAP

Sedong JohnCSU Chancellor’s Office

KPMG LLP

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May 22, 2007 GAAP Reporting Workshop

Purpose of Mapping

To convert legal-basis classifications to GAAP financial statement classifications

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May 22, 2007 GAAP Reporting Workshop

Flow of Information

Input Translation/Conversion Campus Output Systemwide Output

CMP BU

Detail Transactions FNAT/AATCampus user reports; State legal-basis reports (SAM99,

SAM07, etc.)

CSU BU

FIRMS Derivation (Program Codes and

Object Codes)FIRMS Extract program

FIRMS legal-basis data submission

SCO reports; management information

GAP BU

GAAP Derivation (Program Group

Codes, GAAP Object Codes, Net Asset

Categories)

TM1/GAAP Extract Program

GAAP reporting package/campus financial statements; FIRMS GAAP

submission

CSU consolidated financial statements;

Federal F&A rate calculation

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May 22, 2007 GAAP Reporting Workshop

Data Elements Affecting Conversion

CSU Funds determine Net Assets classification (Matrix 1)

Valid combinations with GAAP line items (Matrix 3.2)

Object Codes (Accounts) determine GAAP line item classification except functional

classification of expenses and classification of Net Assets (Matrix 2, Matrix 3.1)

Program Codes determine GAAP line item classification of expenses using

functional classification (Matrix 3.1)

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May 22, 2007 GAAP Reporting Workshop

Data Elements That Determine Classification

Classification Primary Determinant

AssetsFIRMS Object Code (PeopleSoft Account)

Statement of Net Assets LiabilitiesFIRMS Object Code (PeopleSoft Account)

Net Assets CSU Fund

RevenuesFIRMS Object Code (PeopleSoft Account)

Statement of Revenues, Expenses, and Changes in Net Assets

Expenses-Functional Classification FIRMS Program codeExpenses-Natural Classification

FIRMS Object Code (PeopleSoft Account)

Statement of Cash Flows Prepared separately

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May 22, 2007 GAAP Reporting Workshop

Account Hierarchy

State GL Account

FIRMS Object Code

Campus Account

GAAP Line Item

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May 22, 2007 GAAP Reporting Workshop

Things to Watch

Review the conversion results from xxCSU B.U. to xxGAP B.U.

Some CSU Funds may need to classified to more than one Net Assets categories.

Some Object Codes may need to be classified to more than one GAAP line items (e.g., cash, investments, etc.)

Items that need to be eliminated or reclassified (e.g., transfers, reimbursed activities, etc.)

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May 22, 2007 GAAP Reporting Workshop

Summary of Changes to Chapter 3

Overview

Updated to reflect implementation of Revenue Management Program (RMP)

Expanded instructions for FIRMS GAAP submission

Addition of new State/CSU funds

Reclassification of some non-operating revenues to operating revenues

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May 22, 2007 GAAP Reporting Workshop

Summary of Changes - continued

Matrix 1 The following funds have been added:

State Fund 6048, CSU Fund 321 (2006 HECOBF) CSU Fund 485 (TF-CSU Operating Fund) CSU Fund 497 (TF-State Pro Rata Charge Distribution) CSU Fund 499 (TF-Internal Service Fund) CSU Fund 531 (TF-Housing Operations & Revenue) CSU Fund 532 (TF-Housing Maintenance & Repair CSU Fund 533 (TF-Housing Construction) CSU Fund 534 (TF-Campus Union Operations & Revenue) CSU Fund 535 (TF-Campus Union Maintenance & Repair) CSU Fund 536 (TF-Campus Union Construction) CSU Fund 537 (TF-Aux Org Operations & Revenue) CSU Fund 538 (TF-Aux Org Maintenance & Repair) CSU Fund 539 (TF-Aux Org Construction)

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May 22, 2007 GAAP Reporting Workshop

Summary of Changes - continued

Matrix 2 Addition of object codes 105038(Due from Fund

6048) and 202035 (Due to Fund 6048)

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May 22, 2007 GAAP Reporting Workshop

Summary of Changes - continued

Matrix 3.1

1. Moved the following object codes from other non-operating revenues to other operating revenues:

580006 (Installment Charges)

580007 (Trust Receipts)

580008 (Campus Collection Cost)

580009 (Revenue from Late Charges)

580014 (Copyrights, Patents, and Licenses)

580015 (Royalty)

2. Object code 580093 is available to record other non-operating revenues.

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May 22, 2007 GAAP Reporting Workshop

Summary of Changes - continued

Matrix 3.2

1. General Fund (i.e., CSU Funds 001 – 020 except 017) has been updated to reflect RMP implementation.

The following funds have been added: State Fund 6048, CSU Fund 321 (2006 HECOBF) CSU Fund 485 (TF-CSU Operating Fund) CSU Fund 497 (TF-State Pro Rata Charge Distribution) CSU Fund 499 (TF-Internal Service Fund) CSU Fund 531 (TF-Housing Operations & Revenue) CSU Fund 532 (TF-Housing Maintenance & Repair CSU Fund 533 (TF-Housing Construction) CSU Fund 534 (TF-Campus Union Operations & Revenue) CSU Fund 535 (TF-Campus Union Maintenance & Repair) CSU Fund 536 (TF-Campus Union Construction) CSU Fund 537 (TF-Aux Org Operations & Revenue) CSU Fund 538 (TF-Aux Org Maintenance & Repair) CSU Fund 539 (TF-Aux Org Construction)