General Accounting Roundtable General Accounting Roundtable DiscussionDiscussion

Santa Cruz EastSanta Cruz East3:30 – 5pm3:30 – 5pm

General Accounting Roundtable General Accounting Roundtable DiscussionDiscussion

Interactive Q&AInteractive Q&A– Not a formal presentationNot a formal presentation– Topics discussed based on campus questionsTopics discussed based on campus questions– Open to other topics, time permittingOpen to other topics, time permitting– PowerPoint presentation is on the accounting PowerPoint presentation is on the accounting

department websitedepartment website

TopicsTopics

TRA changesTRA changes SCO reportsSCO reports Fund 576Fund 576 Year-end trainingYear-end training RFPRFP

EO 753EO 753 GASB 34/35GASB 34/35 Prior year general Prior year general

fund managementfund management Other suggestions?Other suggestions?

TRA ChangesTRA Changes

Mark OsborneMark Osborne

REMINDER: SCO ReportsREMINDER: SCO Reports

AD 01-05AD 01-05 Campuses will be required to print:Campuses will be required to print:

– Notice of transfers (journal entries)Notice of transfers (journal entries)– Agency reconciliation reportsAgency reconciliation reports– Fund reconciliation reportsFund reconciliation reports– Centralized treasury trust system account Centralized treasury trust system account

statementsstatements

REMINDER: SCO ReportsREMINDER: SCO Reports

SCO software “ViewDirect” thru PIMMSSCO software “ViewDirect” thru PIMMS You will need a printer connected to TEALYou will need a printer connected to TEAL You will need to tie PIMMS passwords to You will need to tie PIMMS passwords to

the printerthe printer Instructions for printing were attached to Instructions for printing were attached to

SCO memo SCO memo AD letter & SCO memo are available on the AD letter & SCO memo are available on the

accounting department websiteaccounting department website

Fund 576 (GAAP)Fund 576 (GAAP)

GAAP manual does not address Fund 576GAAP manual does not address Fund 576 Addendum to GAAP Manual will be issued Addendum to GAAP Manual will be issued

by June 15by June 15thth

Prior practice -- Chancellor’s Office onlyPrior practice -- Chancellor’s Office only Decentralization has disbursed 576 activity Decentralization has disbursed 576 activity

to campusesto campuses

Fund 576 (GAAP)Fund 576 (GAAP) 576 is unique576 is unique Revenue Bond Act of 1947Revenue Bond Act of 1947 576 is not a state appropriation576 is not a state appropriation

– Authority to expend for campuses is through Authority to expend for campuses is through allocation ordersallocation orders

– Allocation order is budgetary only, not cash Allocation order is budgetary only, not cash (bond proceeds)(bond proceeds)

CSUCO accounts for Bond accounts, unlike CSUCO accounts for Bond accounts, unlike G.O. Bond fundsG.O. Bond funds

Year-End TrainingYear-End Training

No major change in GAAP ManualNo major change in GAAP Manual This is the last year under current modelThis is the last year under current model Limited campus personnel resources given Limited campus personnel resources given

GASB 34/35 & PeopleSoftGASB 34/35 & PeopleSoft– No training presently planned for this yearNo training presently planned for this year

We will pickup with training once the We will pickup with training once the GASB 34/35 project is further alongGASB 34/35 project is further along

Audit Contract UpdateAudit Contract Update CSU’s existing audit contract includes:CSU’s existing audit contract includes:

– Sytemwide financial statementsSytemwide financial statements– Campus financial statementsCampus financial statements– DRF financial statements – (housing, student DRF financial statements – (housing, student

union, parking)union, parking)– A-133 (financial aid) auditsA-133 (financial aid) audits– UBIT tax returnUBIT tax return– Some NCAA AuditsSome NCAA Audits– Optional services (fixed hourly rate)Optional services (fixed hourly rate)

Audit Contract UpdateAudit Contract Update

Contract expired FY June 30, 2000Contract expired FY June 30, 2000 RFP Committee of CO & Campus RFP Committee of CO & Campus

personnel was created personnel was created An RFP was issued similar to the prior RFPAn RFP was issued similar to the prior RFP Limited interest – only 2 vendors at Limited interest – only 2 vendors at

mandatory bidder’s conferencemandatory bidder’s conference CSU cancelled the RFPCSU cancelled the RFP

Audit Contract UpdateAudit Contract Update The RFP Committee met with several large The RFP Committee met with several large

firms to determine how to get greater firms to determine how to get greater participationparticipation

The RFP was redrafted The RFP was redrafted – SimplifiedSimplified– Term now 3+3 yearsTerm now 3+3 years

RFP issued April 4RFP issued April 4 Award expected at the May Board of Award expected at the May Board of

Trustees MeetingTrustees Meeting

Inter-fund LoansInter-fund Loans

Education Code 89760 Education Code 89760 ““The Trustees may transfer money from The Trustees may transfer money from

one special fund to another special fund or one special fund to another special fund or the general fund in order to meet the the general fund in order to meet the commitments of the CSU if the transferred commitments of the CSU if the transferred moneys are returned to the special fund of moneys are returned to the special fund of origin in time to fulfill the purposes of the origin in time to fulfill the purposes of the special fund……”special fund……”

Inter-fund LoansInter-fund Loans

Special funds are enterprise and trust funds Special funds are enterprise and trust funds Does not include any funds subject to the Does not include any funds subject to the

Revenue Bond Act of 1947 (DRF’s)Revenue Bond Act of 1947 (DRF’s)

Inter-fund LoansInter-fund Loans

Interest shall be paid on the money Interest shall be paid on the money transferred to another special fund or to the transferred to another special fund or to the general fund at a rate determined by the general fund at a rate determined by the trustees to be the current earning rate of the trustees to be the current earning rate of the fund from which the money was fund from which the money was transferred.transferred.

Inter-fund LoansInter-fund Loans

General FundGeneral Fund– Allowable purpose of GF only!Allowable purpose of GF only!

Loan DocumentLoan Document– Terms & Conditions of Payment(s)Terms & Conditions of Payment(s)– Interest PaymentInterest Payment

EO 753 Allocation of costs to EO 753 Allocation of costs to auxiliary enterprises auxiliary enterprises

Requires:Requires:– Direct cost reimbursement to general fundDirect cost reimbursement to general fund– Indirect cost reimbursement to general fundIndirect cost reimbursement to general fund– Written cost allocation plan approved by the Written cost allocation plan approved by the

campus CFOcampus CFO Includes auxiliary enterprises and auxiliary Includes auxiliary enterprises and auxiliary

organizationsorganizations

GASB 34/35GASB 34/35

Laleh will give brief update tomorrowLaleh will give brief update tomorrow Training was well received, we will offer Training was well received, we will offer

additional training as work progresses additional training as work progresses Reporting ModelReporting Model

General Fund ManagementGeneral Fund Management

CY Budget Act changed 3/2 practice to 2/2CY Budget Act changed 3/2 practice to 2/2– No relief expectedNo relief expected– Dept of Finance intends to continue 2/2Dept of Finance intends to continue 2/2

EO 648EO 648– Requires pull back of campus GF balances 6 Requires pull back of campus GF balances 6

months prior to expiration datemonths prior to expiration date

General Fund ManagementGeneral Fund Management

Suggestions provided to CABOSuggestions provided to CABO– Charge CY direct expense items, such as utility Charge CY direct expense items, such as utility

bills , against prior year fundsbills , against prior year funds– Transfer current year expenses to prior year Transfer current year expenses to prior year

accounts via PFAaccounts via PFA– Disencumber PY encumbrances and Disencumber PY encumbrances and

re-encumber them in the CYre-encumber them in the CY– Cease remitting cash receipts to PY Cease remitting cash receipts to PY

appropriationsappropriations

Other suggestionsOther suggestions

QuestionsQuestions

On to…..On to…..