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Revenue Management Program – RMP October 23 and 24 th Training Task Force Overview

Revenue Management Program – RMP October 23 and 24 th Training Task Force Overview. Agenda. Overview RMP Implementation to date Introduction Major changes regarding Operating Funds Centralized Payroll PFA Campus Budget Methodology Important Dates Terms, Definitions and some new “codes”

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Revenue Management Program – RMP October 23 and 24 th Training Task Force Overview

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  1. Revenue Management Program – RMP October 23 and 24th Training Task Force Overview

  2. Agenda • Overview • RMP Implementation to date • Introduction • Major changes regarding Operating Funds • Centralized Payroll PFA • Campus Budget Methodology • Important Dates • Terms, Definitions and some new “codes” • Overview of today

  3. Progress to Date • Task Force formed by FOA – approx 60 members • First Meeting was one week in May, 2006 • Task Force Update to campuses in May • 250 Attended • Second Meeting was one week in August, 2006 • Task Force Update October, 2006 • 250 in Attendance at this training • Will meet one last time in November • Last Task Force Update in late January or early February 7

  4. Task Force Information • http://www.calstate.edu/BF/rmp/rmp_home.shtml

  5. Task Force • Task Force Documentation

  6. Four Major Projects • All campuses are transferring their campus operating fund (AAAAA) from General Fund to State University Trust • Due by November 30, 2006 • All Campuses will be transferring their banking activity to the new CSU Central Bank • Due to be completed by April 2006 • All Campuses will be transferring their 2006-2007 general fund appropriation to the chancellor’s office • Phase 1 – October 31 • Phase 2 – December 31 • Every thing we do is changing

  7. Four Major Projects • Quick Reference Guide • 1. Banking Implementation • Depository • Disbursement • 2. Operating within Trust • 3. Centralized Payroll PFA (CPA) • 4. Campus Operations

  8. Terms and Definitions • New Terminology – should have clear understanding by the end of these sessions • SWAT • SWIFT • Centralized PFA • Positive Pay File • Depository Bank • Disbursement Bank • CSU Operating Fund • CSU Cash Posting Order • Manual Cash Management • Fund Equity vs BBA • New fund processing types • CPA • General Fund

  9. RMP Implementation to Date • Education Code 89721 authorizes all CSU operating funds to be deposited within State University Trust • Governed by CSU Delegation of Authority • The only funds that MUST continue to be on deposit in the State Treasury in an account with the State Controller are: • Proceeds from the sale of bonds • Interest and principal for debt • Appropriated Capital Outlay • Governed by the funds enabling legislation

  10. Today

  11. Sample of the Future

  12. Sample of the Future

  13. Significant Operating Changes - Features of the Revenue Management Program • The CSU General Fund Budget Act Support Appropriation will be completely spent each fiscal year prior to June 30 • CSU will use the general fund to cover most of it’s payroll. All other costs will be processed through the State University Trust Fund • New CSU Fund 485 – CSU Operating Fund replaces campuses General Fund 4

  14. Significant Operating Changes - Features of the Revenue Management Program • All CSU campuses will operate 100% within the State University Trust Fund in the CSU Operating Fund (CSU Fund 485) • All campuses will maintain all fee revenue within the CSU Central Bank • The Budget Act will only appropriate the State Support portion of CSU Funding • CSU reporting process will assure no loss in funding from the state to the CSU for marginal cost or compensation

  15. Work currently in progress • Campuses preparing for implementing the new CSU Central Bank • Campuses will implement in 3 phases • New Depository Bank – January 2, 2007 • New Disbursement Bank – February thru April 2007 • New Banking Services • Complete re-work of all campus banking activity • On-going training for all staff in campus Finance areas • All business process being reviewed • Over 80% of the business processes are changing • More efficient • All campuses will be operating 100% within the State University Trust Fund – CSU Operating Fund by November 30, 2006 9

  16. Centralized Payroll PFA • Campuses will no longer operate within the general fund (SCO Fund 0001) • Effective July 1, 2006, all CSU payroll originates from the State University Trust Fund (SCO Fund 0948) • Just prior to payroll posting an estimate of payroll cost by fund is transferred from the appropriate fund to cover payroll • After payroll is posted, the amount transferred is adjusted to equal the actuals • All campuses are currently processing these 2 PFA’s per month

  17. Centralized Payroll PFA • In reviewing the Payroll PFA Process, the following was determined • Each campus monthly payroll does not change materially from one month to the next • An estimate of each campuses payroll can be determined at the beginning of each year • Campuses general fund allocation will be equal to that allocated by the Final Budget Allocation process • This amount will remain unchanged for the entire year • All general fund will be expended for payroll only • CSU Total general Fund Allocation is 2.5B • CSU Total payroll is 2.7B

  18. Centralized Payroll PFA • No value added in allocating the general fund to all the campuses in order to have decentralized posting of payroll costs via a PFA • The general fund will no longer be allocated to specific campus agency accounts • Instead of each campus processing 2 PFA per month, the chancellor’s office will process the payroll PFA charging the central general fund account and crediting the campuses individual State University Trust Fund (SCO Fund 948) • Campuses will post the PFA entry within the CSU Operating Fund – State Appropriation Adjustment (NEW FIRMS Object code 690106)

  19. Sample Centralized PFA No campus agency SCO accounts for general fund 0001

  20. Centralized Payroll PFA Transition • Chancellor’s Office centralized payroll PFA process will be fully implemented during 2006-2007 • Campuses will de-allocate remaining general funds balances from campus SCO agency accounts to CO SCO Agency accounts • This will allow for the CSU to be fully operational within the CSU central bank as of July 1, 2007 • The centralized payroll PFA will be implemented in 2 phases • Phase 1 – Implement by October 31 • Campuses who began operating 100% within CSU Fund 485 effective July1 will be Phase 1 • Long Beach, Sonoma, Humboldt, San Jose, San Luis Obispo, Sacramento, San Marcos, East Bay, Stanislaus • Phase 2 – Implement by December 31 • Channel Islands, Fullerton, Pomona, San Diego, Monterey Bay, Northridge, Dominguez Hills, Chico, Los Angeles, San Francisco, Maritime, Fresno, San Bernardino, Bakersfield, CO

  21. NEW FIRMS Object Codes • 680100 – Systemwide Allocation Transfers (SWAT) – Out • 506100 – Systemwide Allocation Transfers - (SWAT) – In • SWAT Out/SWAT In • 690003 - General Fund Expenditure Adjustment • 690106 – State appropriation Adjustment

  22. Centralized Payroll Activity • Centralized Payroll Activity (CPA) • Monthly, Campuses will record the state appropriation adjustment for that months payroll funded from the general fund • credit to 690106 -State Approp Adj. • Entry will be based on AD NOAT received from CO • Payroll adjustment will be funded from General Fund up to the campus State Appropriation Allocation at which time the campus will fund the entry with cash • When campus cash is funding the Payroll Adjustment, the AD-NOAT will include a Cash Posting Order (CPO) • Budget in 690106 will be a credit amount equal to the campus state support allocation

  23. Sample CPA Accounting Entries

  24. Sample Sam6 for Fund CSU 485

  25. Central PFA • Summary • All campuses will be de-allocating their 2006-2007 General Fund to the CO • Monthly PFA for payroll will be initiated by CO and the campus will be notified via an AD-NOAT and if applicable a Cash Posting Order. • All camuses will be fully implemented by December 31, 2006 • FIRMS Object Code 690003 is being used to credit CSU Fund 485 for PFA’s being processed by the campus • FRIMS Object Code 690106 will be used to credit CSU Fud 485 for PFA that will be processed by CO • Effective 2007-2008, FIRMS Object Code 690003 will no longer be used

  26. Central Bank Implementation • All campuses will be operating within the new depository bank as of January 2, 2007 • All campuses will be operating within the disbursement bank as of April 2, 2007 • Disbursement bank will be implemented in three phases • Phase 1 – February 1, 2007 • CO, Long Beach, Sonoma, Humboldt, San Jose, San Luis Obispo, Stanislaus, San Diego • Phase 2 – March 1, 2007 • Maritime, Sacramento, Northridge, Bakersfield, Pomona, San Marcos, Fresno, San Francisco, Los Angeles • Phase 3 – April 2, 2007 • Monterey Bay, Dominguez Hills, Chico, Channel Islands, East Bay, San Bernardino, Fullerton

  27. Central Bank Implementation • Important Bank Implementation Dates • October 25 Training by Wells Fargo • October 31 Campus Banking Delegations • December 4 – 8 Webinar Training Session • January 2 Go Live Depository • January 2 -5 Webinar training Session • January 15 Disbursement Banking Implementation Begins

  28. CSU Operating Fund (CSU Fund 485) • Major changes – CSU Operating Fund • CSU Fund 485 is a CSU identified “sub-fund” within the State University Fund 0948 • The state does not have sub-funds in SCO Fund 0948 • Cash balances and activity in the central bank will represent ALL activity and balance in 0948 – State University Trust – no CSU fund specificity • Same as today • State Controller balances and activity will represent all activity and balances within SCO fund 0948 – State University Trust Fund – no CSU fund specificity • Same as today • CSU Fund 485 balances and activity can only be reported from campuses books within PeopleSoft and the CSU FIRMS database

  29. Sample of who has what info

  30. Campus Budget Methodology • Major changes (continued) • Unlike the general fund, changes to the campuses budget will be based on campus defined processes • No more supplemental allocation orders for CSU Operating Fund • SWAT entries • No longer isolate prior year activity by fund • No longer isolate activity by year of appropriation • All activity will be processed within department current year fund • Campus remaining balances will close to fund equity • Campus budget processes in subsequent years will need to consider equity reserves • Ex: Encumbrance reserves, Working Capital, etc

  31. Sample CSU Operating Fund Budget Recon Template

  32. CSU Operating Fund (CSU Fund 485 • Major changes – (continued) • All existing rules, orders, governmental codes and regulations that refer to “general fund” do not apply to the new CSU Operating Fund • CSU Fund operating within the CSU Central Bank will be governed by the CSU Delegation of Authority • CSU Funds operating within the SCO will be governed by existing regulations for these funds

  33. Comprehensive Timeline

  34. Recap Terms and Definitions • New Terminology – should have clear understanding by the end of these sessions • SWAT • SWIFT • Centralized PFA • Positive Pay File • Depository Bank • Disbursement Bank • CSU Operating Fund • CSU Cash Posting Order • Manual Cash Management • Fund Equity vs BBA • New fund processing types • CPA

  35. Overview of Today • Legislation and Authority – Dennis Hordyk • Banking Implementation Overview – Colleen Nickles • Budget Sessions • Revenue in CSU Operating Fund – Rodney Rideau • Supplemental Allocation from CO to Campus – Rodney Rideau and Sean Boylan • Campus Budget Process, Issues & Controls – Debbie Brothwell, Stacy Hayano, Kendal Chaney-Buttleman, and Crystal Little • Accounting Sessions • Accounting for & implementing Centralized Payroll PFA – Sherry Pickering • Transition from SCO Account to Central Bank – Jean Gill • Cutting Off SCO Transactions – Lorlie Leetham • Manual cash Management – Sherry Pickering and Paul Flores • Combo Edits & FIRMS Edits – Dave Foreman • Claims Processing for Capital Outlay – Letitia Coate & Lisa Chavez • CMS Processes and Modifications – Elaine Kist

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