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May 19, 2008 1
CSU Operating FundReserves vs Budget Balance Available
Legal Basis Reporting Workshop
May 19, 2008
May 19, 2008 2
CSU Fund 485 – Operating Fund Reserve Requirements
Entire fund balance in the CSU Operating Fund (485) will be reserved via a “pre-closing” year-end entry
FIRMS Object Codes:• 304018 – Reserve for Encumbrance
• Sam 6 Encumbrance Totals
• 304016 – Fund Balance Designated
• 304015 – Fund Balance Undesignated
• 304099 – Offset (all 304 accounts must net to zero, 304099 should equal Fund Equity)
May 19, 2008 3
Campus Unique Accounts
Campuses can establish multiple reserve/designation accounts for management purposes
Example:• Mapped to 304016 - Designated
• 304800 – Designated for Divisions
• 304801 – Designated for University
• Mapped to 304015 - Undesignated• 304802 – Unallocated Campus Designation
May 19, 2008 4
Transition Year - New Activities Within CSU Fund 485 – CSU Operating Fund
User Fees Activity previously accounted for in CSU Fund
467 – Student Fees Miscellaneous Course Fees Health Services Augmented Health Services Investment Activity related to CSU Fund 485
May 19, 2008 5
New FNAT Keys Established
FNAT Key
CSU
Fund
Code
FIRMS
Project Avail To
Required/O
ptional Use
126464 485 00000 All Required General CSU Fund 485 127942 485 INTAC All Required Interest Earnings on CSU Fund 485 127340 485 HSFEE All Optional Health Services Operations 127341 485 MISCF All Optional Miscellaneous Fees128101 485 USERF All Optional User Fees 126555 485 REIMB All Optional Reimbursed Activities
May 19, 2008 6
Using New FNAT keys
Separate FNAT Keys REQUIRE separate PeopleSoft Funds
SAM 6 will subtotal based on the FNAT Keys
SAM 6 will show the summarized net income by FNAT key• Can be used to determine reserve entry
May 19, 2008 7
Sample SAM 6 FIRM Project Value display in
the Section Header
SAM 6 Sub-totals based on the FIRMS Project Value (net income
that will close to reserve)
Adobe Acrobat 7.0 Document
May 19, 2008 13
How much money is left?
Budget reconciles to accounting data
Both Budget and Accounting should agree on the carry forward balance
Campus needs to develop its process for managing carry forward balances
May 19, 2008 14
Budget and Accounting Agree
Reserve vs Budget Balance AvailableCampus
Operating Fund Investments User Fees Reimb ActSL001 SL900 MRXXX SL002
June 30, 2007 Equity A (21,532,201.32)$ -$ -$ -$ Portion of equity not allocated B 818,306.91$ -$ -$ -$
Etimated Revenue/Transfers in (89,425,348.42)$ (2,723,811.07)$ (602,227.92)$ (5,891,758.44)$ Expenditures 80,403,204.00$ 2,695,338.92$ 290,000.00$ 5,891,758.44$ Estimated Net Income C (9,022,144.42)$ (28,472.15)$ (312,227.92)$ -$
Estimated Equity @ June 30, 2008 (Total Reserves) A + C (30,554,345.74)$ (28,472.15)$ (312,227.92)$ -$
Budget Balance Available - (SAM 6) D 24,658,956.00$ 28,472.15$ 296,589.92$ -$
Difference Between BBA & Equity A + C + D (5,895,389.74)$ (0.00)$ (15,638.00)$ -$
Difference is made up of: Unallocated Equity B 818,306.91$ -$ -$ -$ Encumbrances @ June 30, 2008 (SAM 6) E 5,077,082.83$ -$ 15,638.00$ Sub-total 5,895,389.74$ -$ 15,638.00$ -$
Unallocated reserves from Prior Year B 818,306.91$ -$ -$ -$ Budget Balance from Current Year D 24,658,956.00$ 28,472.15$ 296,589.92$ -$ add back Encumbrances E 5,077,082.83$ -$ 15,638.00$ -$ Total Funds to be reserved 30,554,345.74$ 28,472.15$ 312,227.92$ -$
Budget and Accounting agree
May 19, 2008 15
Now you agree on the total… Reserve entries are based on management’s
plans for spending• Carry Forward to Divisions/Departments
• Carry Forward for Centrally maintained budgets
• Carry Forward for Encumbrances
• Unallocated Funds
• Etc
Budget Balance Available is used to determine the “owner” and/or classification of reserves
May 19, 2008 16
Revenue
Revenue Balances are usually centrally maintained by the campus
“Unscheduled” balances at year end will be part of the total equity amount that needs to be reserved
For ease of identification, all revenues could be fully allocated so that the budget balance available for all revenues is zero• By default, all funds will be identified based on the
BBA within the expenditure budget
May 19, 2008 19
Managing Reserve Balances thru the year
Reserve Balances by Accouting Period
Account Description 2007-0 2007-6 2007-11 Total304018 Reserve for Encumbrances (3,160,689) 0 0 (3,160,689)304099 Fund Bal Reserves Offset 21,532,201 2,303,826 0 23,836,028304800 Reserve-Division Oblig (016) (12,779,668) 0 0 (12,779,668)304801 Res-Campus Oblig (016) (3,950,759) (3,126,605) 0 (7,077,364)304802 Unallocated Camp Reserves (015 (1,641,086) 822,779 0 (818,307)305002 Fund Balance-Continuing Approp (21,532,201) 0 0 (21,532,201)
Fund Balance (21,532,201) 0 0 (21,200,189)
May 19, 2008 20
Reserve Balances by Accouting Period
Account Description 2007-0 2007-6 2007-12 Total304018 Reserve for Encumbrances (3,160,689) 0 3,160,689 0304099 Fund Bal Reserves Offset 21,532,201 2,303,826 (23,836,028) 0304800 Reserve-Division Oblig (016) (12,779,668) 0 12,779,668 0304801 Res-Campus Oblig (016) (3,950,759) (3,126,605) 7,077,364 0304802 Unallocated Camp Reserves (015 (1,641,086) 822,779 818,307 0305002 Fund Balance-Continuing Approp (21,532,201) 0 21,532,201 0
Fund Balance (21,532,201) 0 21,532,202 0
Sample entries PRIOR to June 30, 2008, Reserve entries
May 19, 2008 21
Budget and Accounting Agree
Reserve vs Budget Balance AvailableCampus
Operating Fund Investments User Fees Reimb ActSL001 SL900 MRXXX SL002
June 30, 2007 Equity A (21,532,201)$ -$ -$ -$ Portion of equity not allocated B 818,307$ -$ -$ -$
Etimated Revenue/Transfers in (89,425,348)$ (2,723,811)$ (602,228)$ (5,891,758)$ Expenditures/Tranfers Out 80,403,204$ 2,695,339$ 290,000$ 5,891,758$ Estimated Net Income C (9,022,144)$ (28,472)$ (312,228)$ -$
Estimated Equity @ June 30, 2008 (Total Reserves) A + C (30,554,346)$ (28,472)$ (312,228)$ -$
Budget Balance Available - (SAM 6) D 25,076,253$ 28,472$ 296,590$ -$
Difference Between BBA & Equity A + C + D (5,478,093)$ (0)$ (15,638)$ -$
Difference is made up of: Unallocated Equity B 1,235,604$ -$ -$ -$ Encumbrances @ June 30, 2008 (SAM 6) E 4,659,786$ -$ 15,638$ Sub-total 5,895,390$ -$ 15,638$ -$
Unallocated reserves from Prior Year B 818,307$ -$ -$ -$ Budget Balance from Current Year D 25,076,253$ 28,472$ 296,590$ -$ add back Encumbrances E 4,659,786$ -$ 15,638$ -$ Total Funds to be reserved 30,554,346$ 28,472$ 312,228$ -$
Budget and Accounting agree
May 19, 2008 22
Sample Final Reserve BalancesAccount Description 2007-0 2007-6 20070-12 Total304018 Reserve for Encumbrances (3,160,689) - (1,499,097) (4,659,786) 304099 Fund Bal Reserves Offset 21,532,201 2,303,826 6,718,319 30,554,346 304800 Reserve - Division Oblig (12,779,668) - (3,769,704) (16,549,372) 304801 Res- Campus Oblig (3,950,759) (3,126,605) (1,032,220) (8,109,584) 304802 Unallocated Campus Reserves (1,641,086) 822,779 (417,297) (1,235,604) 305002 Fund Balance - Continuing Approp (21,532,201) - (9,022,148) (30,554,349)