Chapter 3 Mapping Legal to GAAP

1. Chapter 3Mapping Legal to GAAP Sedong John, Chancellor’s Office GAAP Reporting Workshop

2. Purpose of Mapping • To convert legal-basis classifications to GAAP financial statements classifications GAAP Reporting Workshop

3. 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) GAAP Reporting Workshop

4. Data Elements That Determine Classification GAAP Reporting Workshop

5. Account Hierarchy GAAP Line Item State GL Account FIRMS Object Code Campus Account GAAP Reporting Workshop

6. Things to Watch • Some CSU Funds may map to more than one Net Assets categories • Some Object Codes may map to more than one GAAP line items • Items that need to be eliminated or reclassified (e.g., transfers, reimbursed activities, etc.) GAAP Reporting Workshop

7. Summary of Changes • Matrix 1 • No changes GAAP Reporting Workshop

8. Summary of Changes (continued) • Matrix 2 • Addition of State GL 1600 (Object Code 106xxx), Provision for Deferred Receivables, to the line item “Accounts receivable, net” • Addition of State GL 2490, Accumulated Amortization-Intangible Assets, to the line item “Capital assets, net” • Addition of State GL 3310 (Object Code 204001), Accrued Interest Payable, to the line item “Other liabilities” GAAP Reporting Workshop

9. Summary of Changes (continued) • Matrix 3.1 • Addition of Object Code 507002, Interest from Student Loans, to the line item “Other operating revenue” • Elimination of Object Code 580005, Project Revenue, from the line item “Other nonoperating revenues (expenses)” • Addition of Note 1: Gain (loss) on disposal of assets is not to be shown as a separate line item but to be included in “Other nonoperating revenues (expenses)” • Addition of Note 2: The only balance that should remain in the “Transfers” line item after all transfers are mapped properly is inter-agency transfers, which should be eliminated or reclassified as described in Section 4-12 and Section 5-4 GAAP Reporting Workshop

10. Summary of Changes (continued) • Matrix 3.2 • There may be “Grants and contracts, noncapital: Federal” in Fund 0948-496 • There may not be “Transfers to/from other funds” in General Fund GAAP Reporting Workshop