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FIRMS Overview and Update

Sedong John,

CSU Chancellor’s Office

June 8, 2004 Year-End Financial Reporting 2

Overall Assessment Significant improvement in timeliness of

submission for both FIRMS Data and SCO reporting requirements

Signs of improvement in the quality of data– Fewer errors detected by the C.O.

– More Certificates of Excellence issued by the SCO

June 8, 2004 Year-End Financial Reporting 3

Origin of FIRMS Executive Order 648-Delegation of Fiscal

Authority and Responsibility (Jan 1, 1996) defines campus financial reporting requirements to the C.O.

BF 96-01 (March 20, 1996) officially announced creation of Financial Information Record Management System (FIRMS) as the mechanism to fulfill the reporting requirements under E.O. 648.

June 8, 2004 Year-End Financial Reporting 4

Uses of FIRMS Data FIRMS data is collected to meet various

systemwide reporting needs:– State Reports (SAM07, Schedule 10, Governor’s

Budget, etc.)

– Federal IPEDS report

– To provide financial information to the Trustees, auditors, and other information users

– Management analysis

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Flow of Data

Campus Transaction Data

FIRMS Data

System-wide Reports

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Components of FIRMS Database Data Table

– Contains data collected from campuses and the C.O.– Legal basis actuals data for University is collected quarterly– Budget data for the following year is collected annually– Auxiliary organization data collected in July and October

(IPEDS)– GAAP basis actuals data will be collected annually

Reference Tables– Maintained centrally at the C.O.– Contain various attributes to be downloaded into campus

PeopleSoft system– Used to derive meaningful information in systemwide reports

June 8, 2004 Year-End Financial Reporting 7

Things to Watch Do not record encumbrances or accrued expenses in lump sum

using a default program code, but record them where actual expenditures will occur

Do not report any balance in, or with respect to, Fund 0998 Distinguish between intra-fund and inter-fund transactions

(105027/202027, 506026, 680026) Balance Due Froms/Due Tos and Transfers In/Transfers Out Record construction retention as accrued expense, not encumbrance Include Lottery Project numbers for both budget and expenditures Use object codes for specific expenditures rather than expenses-

other (660090) Notify the C.O. and resubmit FIRMS data if data is resubmitted to the

SCO

June 8, 2004 Year-End Financial Reporting 8

What’s new this year? New transfer object codes for inter-agency transactions (5061xx,

6801xx) that replaced 506040, 506041, 680040, 680041 Changes in auxiliary organization reporting template (Attachment IX) Automation of additional validation edits New capital outlay project codes (60702x, 60703x, 60704x) Review of FIRMS submissions and communication to campuses

regarding warnings/errors throughout the year Rules Committee is continuing its effort to refine definition of

Program Codes and Object Codes Started CDIP implementation

– Program derivation in PS 8.4– Will start collecting GAAP data from PS 8.4 campuses

June 8, 2004 Year-End Financial Reporting 9

What’s ahead? CDIP:

– Program codes will be derived using the derivation method in 8.4.

– Transition issues

– In addition to the legal basis data being collected, GAAP data will also be collected into FIRMS database

New Program Codes added effective 7/1/04 based on FARM release 02-6

New Object Codes created for more precise classification: optional this year, required next year

June 8, 2004 Year-End Financial Reporting 10

Division of Responsibility at the C.O. for FIRMS Systemwide Financial Operations/ Systemwide Financial Standards

& Reporting (SFO/SFSR): George Ashkar/Sedong John

– Functional: standards, policies & rules, submission requirements, data quality control coordination

Financial Management Services (FMS): Sean Boylan/Fyle Cagagnot

– Technical: implementation of defined rules, maintenance of reference tables, data analysis for management information users

Corporate Information Management (CIM): Ron Basich/Rick Fletcher

– Programming and database administration

June 8, 2004 Year-End Financial Reporting 11

Flow of Information

AVC- Financial Services

SFO/SFSR

FMS

CIM

FIRMS Database

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Persons to Contact if you have questions See the list on Attachment IV of the Year-End Reporting Instructions

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Annual Expense Variance Analysis

Part of the Data Integrity Initiative…

Lenore Rozner/Glenn Ducat

CSU Chancellor’s Office

June 8, 2004 Year-End Financial Reporting 14

Data Quality Objectives

Timely, accurate data for accountability reporting to CSU stakeholders

Consistency for year-to-year comparisons

Correct categorizations for comparison with other institutions

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Enhancing Data Integrity

• Increased attention to expenditure categorizations (Program, Object Code)

• Expenditure analysis in 2002

• Post-closing campus expenditure reviews, explanations and campus financial officer certifications in 2003

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A Big “THANK YOU!” Expense coding is becoming

more accurate Campus response has been

positive & timely

Looking Forward: Annual reviews/certifications will continue Changes in coding requirements will

make variances a certainty Scope for data accuracy will expand

June 8, 2004 Year-End Financial Reporting 17

CSU General Fund Expenditures Only* : Fiscal Years 1998/99 - 2002/03$Millions 1998/99 1999/00 2000/01 2001/02 2002/03

Instruction $1,215.4 $1,245.2 $1,319.4 $1,428.9 $1,545.7Research $0.5 $1.9 $2.6 $2.3 $2.1 Total Instruct & Research $1,215.9 $1,247.1 $1,322.0 $1,431.2 $1,547.8

Instruction & Research % 44.5% 44.6% 42.9% 41.9% 44.0%

Academic Support $371.4 $370.2 $435.3 $479.0 $476.8

Academic Support % 13.6% 13.2% 14.1% 14.0% 13.6%

Student Services $270.3 $284.9 $306.7 $325.1 $341.7

Student Services % 9.9% 10.2% 10.0% 9.5% 9.7%

Scholarships & Fellowships $114.9 $116.4 $122.9 $182.7 $172.9

Financial Aid % 4.2% 4.2% 4.0% 5.4% 4.9%

Total Academic & Student Services $1,972.5 $2,018.6 $2,186.9 $2,418.0 $2,539.2

% of Total Expenditures 72.2% 72.2% 71.0% 70.9% 72.2%

Institutional Support $435.0 $426.4 $519.0 $590.0 $599.0

Institutional Support % 15.9% 15.2% 16.8% 17.3% 17.0%

Operations & Maintenance of Plant $318.0 $343.2 $364.8 $388.4 $368.1

Plant O&M % 11.6% 12.3% 11.8% 11.4% 10.5%

Total - $ millions $2,733.0 $2,797.6 $3,081.1 $3,412.0 $3,516.1

FTES Served 273,928 281,782 290,554 316,396 331,353

General Fund Expenditures per FTES $9,977 $9,928 $10,604 $10,784 $10,611

*General Fund Budget Support Plus Fee Revenue

June 8, 2004 Year-End Financial Reporting 18

Major Contributors To Change FY 2002/03 Versus FY 2001/02

Increases $ MillionsAcademic Salaries 64.1

All Other Employee Salaries 31.6Employee Benefits 98.0Insurance Expense 55.8

DecreasesExpenses Other -31.4

Contractual Services -39.5Supplies and Services -29.4

Scholarships /Fellowships -9.8IT Hardware/Software -7.1

Other Decreases -28.2

TOTAL$104.1Million

edits

Activity PeriodRecord TypeAgency CodeSub Agency CodeOrganizationState Legal EntityApprop ReferenceCSU FundYear of AppropYear of BudgetProject No.Program CodeObject CodeAmountFTE Positions

Standards

DOF

Schedule 10---

Governor’s Budget

Financial Standards Advisory Committee

SCOLegal/GAAP Reporting

Federal IPEDS

FRS Qtrly

Management ReportsMulti-year

Variance Analysis---

Statistical Abstract

Activity PeriodRecord TypeAgency CodeSub Agency CodeOrganizationState Legal EntityApprop ReferenceCSU FundYear of AppropYear of BudgetProject No.Program CodeObject CodeAmountFTE Positions

Financial Planning/Resource Allocation

Oracle

Banner

PeopleSoft Qtrly

Qtrly

Qtrly

External Reporting Requirements:•Legislature•State Legal/GAAP•NACUBO/FARMS•GASB/FASB•IPEDS•CSU Trustees•Employee Unions•Public

External Reporting Requirements:•Legislature•State Legal/GAAP•NACUBO/FARMS•GASB/FASB•IPEDS•CSU Trustees•Employee Unions•Public

Campus Systems

FMS

SFO

Budget Office

BP&IM

Ad Hoc

AVC, Financial Services Office

Systemwide Financial Operations

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June 1 Accounting Period Ends

June 30

Close Accounting Period July

31

Corrections / Adjustments

Management ReportsMulti-Year Variance Analysis

FIRMS Working

Table

Internal Data Review Process

Pre-June 30th

Technical Adjustments

Post-June 30th

Campus Financial System

FIRMS Final

Submittal

Review 2-Year Expenditure Data, Explain Expenditure Changes > $100,000, E-mail Variance Report & Management Certification

Submit Variance Report and Data Certification

Mid-August

EDIT Begun in

2003Early August

June 8, 2004 Year-End Financial Reporting 21

June 1 Accounting Period Ends

June 30

Close Accounting Period July

31

Corrections / Adjustments

Management ReportsMulti-Year Variance Analysis

FIRMS Working

Table

NEW EDIT 2004 Internal Data Review Process

Pre-June 30th

Technical Adjustments

Post-June 30th

Campus Financial System

FIRMS Final

Submittal

Review 2-Year Expenditure Data, Explain Expenditure Changes > $100,000, E-mail Variance Report & Management Certification

Submit Variance Report and Data Certification

Mid-August

EDIT Begun in

2003Early August

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FIRMS ReportingData Submission and Quality Review

Corporate Information Management

June 8, 2004

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FIRMS Documentation URL: http://www.calstate.edu/cim/financialAssets/fmenu1.shtml

Continuously updated reference tables Revised Validation Rules Contact Update

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Data Submissions URL-http://orion.calstate.edu:7777/servlet/f60servlet?

config=firms_runedit

Web form works with IE 5 and up (PC only) Secure File Transfer

– Application opener button on panel

– Secure ftp application can be opened outside the FIRMS data submission panel

Files may be in tab-delimited or fixed-field format

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Data Submissions- Notification Campus Data are Processed in FIRMS Working

Table Once Data File is Error-Free, Campus Notifies

Corporate Information Staff Corporate Information Staff Copies Data to Final

FIRMS Corporate Data Table

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Campus Variance Reports Compare Working Table data with Last Year’s

Final Compare This Year’s Final (200406) with Last

Year’s Final (200306) Record Types 10 and 15 Broken Out Brio OnDemand Reports Excel Template for Final Comparison

June 8, 2004 Year-End Financial Reporting 29

Campus Variance Reports- URLs OnDemand Reports- URL:

http://gourdine.calstate.edu/ODSHTML/brio.html

Variance Reports- URL: http://www.calstate.edu/cim/financialAssets/FIRMS/data_quality_review.shtml

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FIRMS Processing Contacts Email: cim_mgr@calstate.edu Ron Basich- 562-951-4276 Rick Fletcher- 562-951-4299