Legal Close Rules & Process: May 19, 2008

1

Legal Basis Reporting WorkshopMay 2009

Closing Rules

• What’s Changed • No changes, however as a reminder….

• RollForward TreeGeneral Fund -Yes node until reversion date

CSU Operating Fund - No node each year

Fund Balance AccountGeneral Fund closes to 305022 Fund Balance Clearing

CSU Operating Fund closes to 305002 Fund Balance Continuing Appropriation

REVIEW FNAT Flip Funds!

Year End Close Rules

Year End Close Rules

What’s Changed

General Fund 001 until reversion date

CSU Operating Fund 485 each year

Year End Close Rules

What’s Changed

CSU Operating Fund 485

General Fund 001

Why?

• Why do we have close rules?

R

F

P

Reverting Funds

Fund Equity Accounts

Project to Date Funds

Why?

• Reverting Funds• Reverting Funds must be identified and cleared to zero.

• Fund Equity Accounts• Legal closing requirements specify that revenues and

expenses close to different Fund Equity Accounts (3050XX) based on SCO Fund.

• Project to Date Funds• Appropriated Funds (until reversion date).• Capital Project funds that need to have revenue and

expense rolled forward (period 0).

What?• What tools do we need?

• Chartfields• Need understanding of revenue, expense, and fund equity accounts in order

to create chartfield value sets

• Trees• Used in defining chartfield value sets

• Chartfield Value Sets• Combination of chartfields and trees used in closing process

• Queries• Use queries to identify fund and account attributes

• Spreadsheets• Store and reorganize data

What?• Examples-Queries

What?

• Example of Chartfield Value Set

What?

• Example-Trees

State Governmental Funds

State Proprietary Funds

State Fiduciary Funds

What?

• Example-Trees

Operating Funds, Enterprise Funds and Reverting Funds

Project to Date Funds, Appropriated Funds until reversion date.

What?

• Example-Spreadsheets

Microsoft Excel Worksheet

Multiple Retained Earnings

Equity Accounts for State Funds

Put it all togetherFund Trees

Road to CloseChartfield Value Sets

Closing Rules Closing Request

“PTD”

“MRE”

How?• How are the detailed procedures performed?

• Additional sources• http://cms.calstate.edu/04_Applications/04B_Fina

nce/FIS90/FIS90_PSWD-01/FIS90_BPGs/GeneralLedger/FIS90_BPG_YearEndGLClosingClosingRulesandSetup_20080118.doc