FIRMS & SCO GAAP Submissions

Roberta McNiel, Senior Manager, FS / SFSR

Chancellor’s Office

April 24, 2015

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 2015 Year-End GAAP Training 2

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 2015 Year-End GAAP Training 3

FIRMS GAAP Submission (cont.)

What are the four elements of the GAAP combination edit?

April 2015 Year-End GAAP Training 4

FIRMS GAAP Submission (cont.)

• GAAP Combination Edits Table Determines validity of combinations of following

elements:o CSU fundo Natural class codeo Net position categoryo Program group code

April 2015 Year-End GAAP Training 5

FIRMS GAAP Submission (cont.)

GAAP Combination Edits Table (cont.) Two types of combination edits:

o “X” = valid combinationo “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 2015 Year-End GAAP Training 6

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.

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FIRMS GAAP Submission (cont.)

• Submission date:

September 8

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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 fundso 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 2015 Year-End GAAP Training 9

SCO GAAP Submission (cont.)

• Capital Assets/Accumulated Depreciation Template

Completed in Asset Management Consolidated schedule for SCO pulled from

Asset Management

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SCO GAAP Submission (cont.)

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SCO GAAP Submission (cont.)

Capital Assets/Accumulated Depreciation Template (cont.)

Elements of template:o Beginning balances – 6/30/14 “legal” balances

automatically brought forwardo Prior period adjustments – 6/30/14 GAAP

adjustments recorded by campuses in FYE 2015 ----requires entries by campuses

April 2015 Year-End GAAP Training 12

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 2015 Year-End GAAP Training 13

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 2015 Year-End GAAP Training 14

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 2015 Year-End GAAP Training 15

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.

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SCO GAAP Submission (cont.)

Capital Assets/Accumulated Depreciation Template (cont.)

Implementation timeline:o Completion of internal testing – April 30o Webcast training for campuses – latter part of Mayo Campus testing – Juneo Available in production – August 12

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SCO GAAP Submission (cont.)

• Legal to GAAP Reconciliation Added another standard adjustment (#8) for capital

outlay funds at the Description of GAAP Adjustments tab:

724001 State appropriations, capital

711202 Accounts receivable, net (noncurrent)

To record reversion of capital appropriation.

April 2015 Year-End GAAP Training 18

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.

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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 2015 Year-End GAAP Training 20

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.

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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?

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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 2015 Year-End GAAP Training 23

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 2015 Year-End GAAP Training 24

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!

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SCO GAAP Submission (cont.)

• Submission date:

September 10

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www.calstate.edu

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