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Year End Financial Reporting Workshop

Year End Financial Reporting Workshop. Selecting the right FIRMS Program Codes and Object Codes Leslie Chase, San Diego State University Lchase@mail.sdsu.edu. FIRMS PROGRAM CODE CHANGES. Effective with July 1, 2004, there will be several FIRMS Program code changes.

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Year End Financial Reporting Workshop

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  1. Year End Financial Reporting Workshop Selecting the right FIRMS Program Codes and Object Codes Leslie Chase, San Diego State University Lchase@mail.sdsu.edu

  2. FIRMS PROGRAM CODE CHANGES • Effective with July 1, 2004, there will be several FIRMS Program code changes. • The FSAC Derivation Rules Committee has been reviewing the changes and how the CSU will use these new codes. • Most of the new FIRMS Program code changes have their origin in FARM changes. Section references throughout this presentation refer to FARM.

  3. FARMS is the “Gold” Standard • Financial Accounting and Reporting Manual for Higher Education is published by NACUBO • FARM rules; FIRMS follows FARM, except for certain CSU specific requirements. FIRMS Financial Information Record Management System http://www.calstate.edu/cim/elements/program_code.shtml

  4. CDIP Activity Period Record Type Agency Code Sub Agency Code Organization State Legal Entity Approp Reference CSU Fund Year of Approp Year of Budget Project No. Program Code Object Code Amount FTE Positions Activity Period Record Type Agency Code Sub Agency Code Organization State Legal Entity Approp Reference CSU Fund Year of Approp Year of Budget Project No. Program Code Object Code Amount FTE Positions FIRMS FIRMS Rules/Edits Standards Financial Standards Advisory Committee • External Reporting Requirements: • Legislature • State Legal/GAAP • NACUBO/FARMS • GASB/FASB • IPEDS • CSU Trustees • Employee Unions • Public AVC, Financial Services Office Systemwide Financial Operations FMS DOF Schedule 10 --- Governor’s Budget Budget Office Campus Systems edits FRS Qtrly SCO Legal/GAAP Reporting Federal IPEDS SFO PeopleSoft Qtrly Management Reports Multi-year Variance Analysis --- Statistical Abstract Banner BP&A Qtrly Oracle Qtrly Ad Hoc Financial Planning/ Resource Allocation

  5. Why Program Coding Matters • Used for Financial Statements • Used for Federal and State Reporting • Used by Stakeholders in Budget Discussions • Comparability campus to campus across the CSU • Comparability with other similar institutions across Higher Education • BUDGET

  6. Reporting: • WASC Accreditation Reports • Legal Basis Reporting to the State and the Chancellor’s Office • Basic Financial Statements, campus and systemwide • IPEDS Inter Postsecondary Education Data System • CAFR State of California

  7. Classification of Operating Expense

  8. Program Groups • 01 Instruction • 02 Research • 03 Public Service • 04 Academic Support • 05 Student Services • 06 Institutional Support • 07 Operation and Maintenance of Plant • 08 Scholarships and Grants

  9. Program Groups • 11 Reimbursed Activities • 13 Transfers • 20 Auxiliary Enterprises • 50 Revenue • 90 Balance Sheet

  10. 01 Instruction • 0101 General Academic Instruction • 0102 Vocational/Technical Instruction • 0103 Special Sessions Instruction • 0104 Community Education • 0105 Preparatory/Remedial Instruction • 0106 Instructional Information Technology

  11. 0100 INSTRUCTION 342.11 • Discontinue use of 0103 Special Session Instruction effective 07/01/04 • Reclass 0103 activities or departments to 0101 General Academic Instruction • Use new program code 0106 for separately budgeted and accounted for Information Technology supporting Instruction. This might include IT personnel within the colleges, labs in classrooms and associated costs.

  12. 02 Research • 0201 Institutes and Research Centers • 0202 Individual and Project Research • 0203 Research Information Technology

  13. 0200 RESEARCH 342.12 • A new program code is available 07/01/04 within the Research program group. The new program is 0203 Research Information Technology. This program code should be used for separately budgeted and accounted for IT costs supporting Research.

  14. 03 Public Service • 0301 Community Service • 0302 Cooperative Extension Service • 0303 Public Broadcasting Services • 0304 Public Service Information Technology

  15. 0300 PUBLIC SERVICE 342.13 • A new program code is available 07/01/04 within the Public Service program group. The new program code is 0304 Public Service Information Technology. This program code should be used for separately budgeted and accounted for IT costs supporting Public Service.

  16. 04 Academic Support • 0401 Libraries • 0402 Museums and Galleries • 0403 Educational Media Services • 0404 Academic computing Support • 0405 Ancillary Support • 0406 Academic Administration • 0407 Academic Personnel Development • 0409 Academic Support Information Technology

  17. 0400 ACADEMIC SUPPORT 342.14 • 0404 Academic Computing Support is discontinued as of 07/01/04. • 0409 Academic Support Information Technology is available as of 07/01/04. Activity previously recorded in 0404 should be moved to this new program effective 07/01/04. IT supporting 01, 02, and 03 which is not separately budgeted and accounted for should also be included in 0409.

  18. 0400 ACADEMIC SUPPORT 342.14 • Program 0407 Academic Personnel Development continues historical definition and usage. • State Faculty Grants, Faculty Grants-in-Aid, Faculty Development Program, RSCA (Research, Scholarship and Creative Activity) Grants, and the like fall within this classification.

  19. 05 Student Services • 0501 Student Services Administration • 0502 Social and Cultural Development • 0503 Counseling and Career Guidance • 0504 Financial Aid Administration • 0505 Student Admissions / Records • 0507 Student Health Services • 0508 Student Services Information Technology • 0509 Student Admissions • 0510 Student Records

  20. 0500 STUDENT SERVICES 342.15 • 0505 Student Admissions / Records is discontinued effective 07/01/04 • 0509 Student Admissions is available effective 07/01/04 • 0510 Student Records is available effective 07/01/04 • 0508 Student Services Information Technology is available effective 07/01/04

  21. 0500 STUDENT SERVICES • Costs previously recorded in program 0505 Student Admisssions and Records will need to be broken out to two programs. Personnel costs may be identified separately to the functions of admissions and records. Or a campus policy could be established to allocate costs between the two new programs.

  22. 0500 STUDENT SERVICES • 0508 Student Services Information Technology is available effective 07/01/04. Separately budgeted and accounted for IT costs supporting Student Services should be recorded within this program. Such costs might include student information systems such as SIMS-R or Student Financial Aid programs.

  23. 06 Institutional Support • 0601 Executive Management • 0602 Fiscal Operations • 0603 General Administration and Logistical Services • 0604 Administrative Computing Support • 0605 Public Relations / Development • 0606 General Administration • 0607 Administrative Information Technology

  24. 0600 INSTITUTIONAL SUPPORT 342.16 • 0604 Administrative Computing Support is discontinued effective 07/01/04. • 0607 Administrative Information Technology is available as of 07/01/04. • Costs previously recorded under program 0604 should be moved to 0607 effective 07/01/04. • IT costs supporting 05 or 07 which are not separately budgeted an accounted for are also reflected under 0607.

  25. 0600 INSTITUTIONAL SUPPORT 342.16 • 0603 General Administration and Logistical Services is discontinued as of 07/01/04. • Costs previously reflected in 0603 will be reflected under 0606 General Administration or 0707 Security and Safety or 0708 Logistical services as is appropriate under the various FARM descriptions of what should be included in these new functional areas of expense.

  26. 0603 General Administration and Logistical Services • Administrative functions move to program 0606 General Administration • Environmental Health and Safety and Public Safety move to program group 07 into program code 0707 Security and Safety • Space rent, moving services, material management, shipping and receiving, and mail services move to 0708 Logistical Services.

  27. 0600 INSTITUTIONAL SUPPORT 342.16 • 0606 General Administration • Risk Pool Premium expense is recorded using FIRMS Object Code 660010 within General Administration program 0606 (except W/C premium and PropertyLiability premium) • CSURMA reimbursements to campuses for payroll expenses regarding 603008 Industrial Disability and 603009 Non-Industrial Disability should be abated back against those object codes in those programs where the payroll expense was recorded.

  28. Program Code changes at the Org level

  29. 07 Operation and Maintenance of Plant • 0701 Physical Plant Administration • 0702 Building Maintenance • 0703 Custodial Services • 0704 Utilities • 0705 Landscape & Grounds Maintenance • 0706 Major Repairs & Renovations • 0707 Security and Safety • 0708 Logistical Services • 0709 Oper. & Maint. Plant Information Technology

  30. 0700 OPERATION AND MAINTENANCE OF PLANT • FARM Section for 0700 functional areas is 342.17 • Three new programs are available 07/01/04 for Operation and Maintenance of Plant. • 0707 Security and Safety • 0708 Logistical Services • 0709 Operation and Maintenance Information Technology

  31. 0700 OPERATION AND MAINTENANCE OF PLANT • 0707 Security and Safety will be used to capture certain activities previous recorded within program 0603 General Administration & Logistical Services. Such activities include: • Public Safety • Environmental Health & Safety • Hazardous Materials Management

  32. 0700 OPERATION AND MAINTENANCE OF PLANT • 0708 Logistical Services is a new program available as of 07/01/04. Some costs previously classified under program 0603 General Administration & Logistical Services will be moved to 0708. Space rent, capital leasing, and central receiving costs will be recorded under program 0708 effective 07/01/04.

  33. 0700 OPERATION AND MAINTENANCE OF PLANT • 0709 Operation and Maintenance of Plant Information Technology will be available 07/01/04 for IT costs separately budgeted and accounted for within Operation and Maintenance of Plant. IT costs for the 07 program group which are not separately budgeted and accounted for will continue to be included under 0607 Administrative Information Technology.

  34. Example:

  35. 0800 SCHOLARSHIPS & FELLOWSHIPS 342.18 • 0801 Scholarships • 0802 Fellowships

  36. Reimbursed Activities • Reimbursements plus Reimbursed Activities Expenditures net to zero • Self-Support Budget identifies source of reimbursement and reimbursed activities expenditures • Program Code for both sides of a reimbursed activity is 1100 • Unique to CSU, not established in FARM • Organization makes expenditures on behalf of external entity and bills external entity for reimbursement • Contractual relationship supported by PO or MOU

  37. 1301 TRANSFERS – INTRA-CAMPUS • Transfers within the campus will be recorded under program 1301 beginning 07/01/04. • Intra-Campus transfers will net to zero. • Intra-Campus transfers will use object codes 5060xx (i.e., 506001 – 506031 for Transfers In and object codes 680001 – 680029 for Transfers Out).

  38. 1302 INTER-AGENCY TRANSFERS • Inter-Agency Transfers will net to zero at the system-wide level only. • Inter-Campus Transfers In will be recorded using object codes beginning with 5061 (i.e.,5061xx). • Inter-Campus Transfers Out will be recorded using object codes beginning with 6801 (i.e., 6801xx).

  39. TRANSFERS • Effective 07/01/04 the following transfer program codes will no longer be used: • 0901 Provision for Debt Service on Education Plant • 0902 Loan Fund Matching • 0903 Other Mandatory Transfers (between 0498 and 0001) • 1001 Educational & General Non-Mandatory Transfers • 2004 Mandatory Transfers Auxiliary Enterprises • 2005 Non-Mandatory Transfers Auxiliary Enterprises • 3003 Mandatory Transfers Independent Operation • 3004 Non Mandatory Transfers Independent Operations

  40. OTHER PROGRAM CODES • 1100 Reimbursed Activities • 1200 Depreciation • 2001 Auxiliary Enterprises ( see FARM 342.21) • 3001 Independent Operations ( see FARM 342.221) • 5000 Revenues • 9001 Provision for Allocations • 9002 Balance Sheet Items These program codes are unchanged as of 07/01/04.

  41. Object Code Categories • Assets, Liabilities, Fund equity, Revenues, and Expense • Groupings within each of those • Hand-out: Object Category Definitions and Usage

  42. Goals • Consistency • Accuracy • Classification : To be as clear as we can be about what our expenses are • Variance Analysis / external users of our financial information

  43. Unbundling 660090 Expenses - Other • New object codes are available for your use now: • Space Rental • Recruitment and Employee Relocation • Accreditation Expense • Loan Cancellations and Defaults • Student Union Return of Surplus

  44. 660090 survey results suggest reclassification: • Special Lecturers > Contractual Services 613001 • Administrative Cost Allowances > Transfers out to Higher Education Fees and Income 680005 • Executive Housing Allowance > Benefits –Other 603090 • Protective Clothing > Benefits – Other 603090 • Uniform Allowance > Benefits – Other 603090

  45. OBJECT CODE CONSIDERATIONS • 605006 Hazardous Waste Removal moves from program code 0704 Utilities to program code 0707 Security and Safety. • 660010 Insurance Premiums is used within program 0606 General Administration for Risk Pool Premium expense. • Object codes beginning with 607 are designated for capital project expenses. Capital Project expenses are recorded under program code 0706 Major Repairs & Renovations. • CSURMA reimbursements to campus for IDL and NDL should be abated against 603008 for Industrial Disability and 603009 for Non-Industrial Disability. • Object Category Definitions and Usage handout is available for guidance on Object Codes at the Category level. FARM sections are referenced therein where FARM provides guidance.

  46. FARM • Financial Accounting and Reporting Manual for Higher Education published by NACUCO FARM is the rule; FIRMS follows FARM, except for certain CSU specific requirements.

  47. Handouts of interest: • Object Category Definitions and Usage • Independent Operations • Transfers In and Transfer Out FSAC Derivation Rules Committee Discussion Items • Program Code Definitions and Usage – Summary of Changes

  48. FSAC DERIVATION RULES COMMITTEEa sub-committee of FSAC • Bernice Dizon, Chancellor’s Office • Brian Dahm, Dominguez Hills • Cecilia Patz, Fullerton • Chris Canfield, Chancellor’s Office • Debbie Brothwell, Cal Poly San Luis Obispo • Fyle Cabagnot, Chancellor’s Office • Laleh Graylee, Fullerton • Leslie Chase, San Diego State University • Lily Wang, Chancellor’s Office • Lorlei Leetham, Cal Poly San Luis Obispo • Michelle Korte, Chico • Patti Salomon, Chico • Ruth Stipp, Monterey Bay • Sean Boylan, Chancellor’s Office • Sedong John, Chancellor’s Office • Shawn McCown, Long Beach • Sheryll Foye, San Diego State University • Susan Koch, Monterey Bay

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