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California State University CSU Accounting, Payables, Receipts, Banking and Other Fun Stuff

California State University CSU Accounting, Payables, Receipts, Banking and Other Fun Stuff. Presented by Justine Heartt Interim Associate Vice President for Financial Services California State University, Sacramento CSU 101 in Monterey, March 2009. A little about the course ….

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California State University CSU Accounting, Payables, Receipts, Banking and Other Fun Stuff

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  1. California State UniversityCSU Accounting, Payables, Receipts, Banking and Other Fun Stuff Presented by Justine Heartt Interim Associate Vice President for Financial Services California State University, Sacramento CSU 101 in Monterey, March 2009

  2. A little about the course … Course Description: This session is about the flow of money (in and out) for the Campus. Emphasis will be on the processes for spending our dollars. We will review the CSU Chart of Accounts from Campus-FIRMS-GAAP perspectives. The differences in the Campus Pay Vendor and State Pay Vendor methods will be explained. In addition, we will discuss Cash Posting Orders, Controller journal entries, chargebacks, expenditure transfers, accounting for ProCards and petty cash funds. We will also talk about good Cash Management practices for the timing of receipts and disbursements in the Revenue Management Program. Brief introduction to Fast-Ed training provided by the CO. CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  3. Topics • Chart of Accounts Review • Revenue Management Program • Key State Players • Claims (Campus vs. State Payment) • Campus Pay Vendor • State Pay Vendor • State Controller Journal Entries • CO Cash Posting Orders (CPO) • Travel • ProCards • Chargebacks • Expenditure Transfers • Petty Cash Funds • Cash Management • Fast-Ed CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  4. Chart of Accounts Review 3 Sets of Books CMP – Campus Legal CSU - FIRMS GAP -GAAP CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  5. Chart of Accounts Review • CMP - Campus or Legal Books • Minimum of 3 ChartFields • Fund – Trial Balance Level and Fund Attribute (FNAT) maps to State and CSU Values • Account – Classifies Transactions and Account Attribute (AAT) maps to NACUBO Object Codes • 1’s – Assets • 2’s – Liabilities • 3’s – Fund Balance • 5’s – Revenue • 6’s – Expense • Department ID – Organizational Structure • Necessary for CSU/FIRMS Books CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  6. Chart of Accounts Review • CSU - FIRMS Books • Financial Information Records Management System • Derived from Campus/Legal Books • Provides SystemWide Reports by Common Values (CSU Fund, Object Code and Program Code) • Program Code (4 digits) breaks out expenses into NACUBO classifications • Examples • Institutional Support-Fiscal Operations • Institutional Support-Admin Computing Support CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  7. Chart of Accounts Review • GAP - GAAP Books • Derived from CSU/FIRMS books and manual conversion journal entries • 4 ChartFields • Fund – Net Asset Category • e.g. Unrestricted, Restricted-Scholarships • Account – Per Financial Statements • Program Group (2 digits) • e.g. Instruction, Institutional Support • Class – For CSU Fund • Users of CSU/Campus Financial Statements want more detail and explanations of ending balances • Required by State Law and GASB 34/35 • Additional GAAP/GASB rules apply • SystemWide and Stand-Alone Campus Reports CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  8. Chart of Accounts - Fund Find the Differences? CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  9. Chart of Accounts Review SetID, Fund Code & Descr, Effective Date CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  10. Chart of Accounts - Fund Cash on Deposit with CSU Bank - Wells Fargo Do NOT Claim – No Reimb Capital Outlay Bond Fund Cash on Deposit with State Treasurer State CLAIM Required! Fund Reimb Flag checked CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  11. Chart of Accounts - Account Find the Differences? CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  12. Chart of Accounts - Account SetID & Account Value A/R Dept Student Fee Revenue CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  13. RMP – Easier or Harder??Purchase an item the old way or the new way? OLD NEW CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  14. RMP – Easier (most of the time) • I think the 80/20 rule applies • (or 90/10) • Easier with New (RMP) Way • Majority of payments are from 0948 • Campus controls timing • Keep spending when no state budget • Normal Accounting – Private Industry Accountants understand this stuff!! • Harder with Old Way • Still use State Claims process for some Funds • Don’t use often and that’s tougher • Need to consider Cash Flow and Vendor relations • SCO Audit of expenditures of Student Fees evolving CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  15. Key State Players • Department of Finance (DOF) • Serve as the Governor’s chief fiscal policy advisor • Promote responsible resource allocation through the state’s annual financial plan • Ensure the financial integrity of the state • http://www.dof.ca.gov • State Controller’s Office (SCO) • Chief Fiscal Officer of California • Control over receipts and disbursements of public funds • Audit authority to uncover fraud/abuse of taxpayer dollars • Provides fiscal guidance to local governments • http://www.sco.ca.gov CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  16. Key State Players (continued) • State Treasurer’s Office (STO) • Provides banking, investment and finance services for State government • http://www.treasurer.ca.gov • Department of General Services (DGS) • Their mission is to help other agencies better serve the public by meeting --at best value-- their needs for products, services and office space.  This includes managing the State's real estate, purchasing, service agreements, publishing, telecommunications and transportation needs, school funding, administrative law hearings, insurance and risk policies, and building planning and design. At the same time, they employ practices that support the Governor's green initiative to reduce energy consumption and help preserve California resources.  CSU uses only some of these services. • http://www.dgs.ca.gov CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  17. State Claims: Campus vs. State Payment • Claims – payments to vendors for supplies and services on claimable funds must be paid by the expenditure fund from the State Controller’s Office (SCO). The SCO will either reimburse the Campus or pay the Vendor directly. • Claimable Funds in RMP world include the SCO Bond Funds 6028, 6041 and 6048. • Decision Point: Campus pay vendor directly and then be reimbursed or have State pay vendor directly? CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  18. State Claims:Campus Pay Vendor • SCO Fund 0948 CSU Trust Fund CSU Fund 499 TF Revolving Fund • Campus Revolving Fund • Used for Campus Payments to Vendors on claimable funds • Sac State limit is $100,000 • Send Claims to SCO Bi-Weekly • Advances (Salary & Travel) • Cash/Investment Balance will normally be negative (or zero at best) CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  19. Campus Pay Vendor andFund Balance Clearing (305022) • Fund Balance Clearing Account (Object Code) is used to record all transactions affecting claimable funds • Used to reconcile to SCO reports (SAM99) • Reclassed in GAAP based on SCO Fund • Campus voucher and payment to vendor for Construction Contract and then send SCO claim to reimburse Campus • Debit Expense (607031) and Credit Fund Balance Clearing (305022) in Claimable Fund (6041-320) AND Debit Accounts Receivable (103002) and Credit Invested Cash (108090) in Campus Trust Revolving Fund (0948-499) • SCO reimburses Campus for Claim - in their books Debit to Fund Balance Clearing (reduces state liability to us) and Credit to State Cash. • Campus receives state payment (warrant) CD102 and receipts to Debit Invested Cash (108090) and Credit AR (103002) in Campus Trust Revolving Fund (0948-499) • SAM99 Timing differences if Campus and SCO process in different months. CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  20. State Claims:State Pay Vendor • May elect to have SCO Pay Vendor directly for good Cash Management • Sac State uses SCO for > $100,000 • Processing Time • No cost up to two weeks • $25 3rd day payment • $50 Next day payment • $75 Same day payment CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  21. State Pay Vendor andFund Balance Clearing (305022) • Same as Campus Pay Vendor; but, accounting entries are fewer with State Pay Vendor • Campus records expense and state payment to Vendor for Construction Contract and then sends SCO claim to pay the Vendor directly (rush?) • Debit Expense (607031) and Credit Fund Balance Clearing (305022) in Claimable Fund (6041-320) Notice - Campus has no Credit to Invested Cash. • SCO pays Vendor - in their books Debit to Fund Balance Clearing (reduces state liability to us) and Credit to State Cash • Receive CD102 notification that Vendor was Paid. SAM99 timing differences if Campus and SCO processed in different months. CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  22. State Controller Journal Entries • Can be initiated by Campus, Chancellor’s Office (CO), Department of General Services (DGS) , or others • Need to make sure you post in Campus books to stay in balance with SCO (Fund Balance Clearing) • Information to post should be from internal records • PO for DGS Printing (remember to clear encumbrance) • Campus Plan of Financial Adjustment (PFA) for reimbursement from one fund to another • CO Accounting Department Notice of Accounting Transaction (AD-NOAT) • Payroll Transfer from General Fund to Trust Fund • General Fund is a State Fund CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  23. State Controller Journal Entriessample CSU 101 at Shell Beach, November 4 - 7, 2007 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  24. Chancellor’s OfficeCash Posting Orders (CPO) • For our 0948 Funds on Deposit with CSU Bank – Wells Fargo • Examples include • Investment Income • Shared Exp. Central Software License • SystemWide Allocation Transfer (SWAT) – Campus JE required • SystemWide Investment Fund-Trust (SWIFT) - No campus JE required CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  25. Travel • CSU Policy and Procedures Governing Travel and Relocation Expense Reimbursement (FS2009-01) • https://www.calstate.edu/FinancialServices/codedmemos/2009 • Basis for Campus Policy and Procedures • Tax Information Changes to Moving and Relocation Expenses (HR/Benefits 2009-01) • http://www.calstate.edu/HRAdm/memos.shtml CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  26. Travel (continued) • Standard business mileage reimbursement is currently 55 cents per mile • Daily reimbursement amounts (no receipts required): • Breakfast $10.00 • Lunch $15.00 • Dinner $25.00 • Incidentals $ 5.00 Total $55.00 daily maximum CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  27. ProCards • Used by employees who have been delegated authority to purchase small dollar items for University use • Reduces costs by less PO’s and individual vendor payments • Some Campuses and CO have a modification in CMS to handle the distribution of charges to departments • Accounts Payable pays vendor directly and rebates are offered by vendor CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  28. Chargebacks • Automated or manual chargebacks to bill appropriate areas for their costs • Reprographics • Postage • Utilities • Telecommunications • Computing • Space Rental • Facilities Work Orders • Other CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  29. Expenditure Transfers • Correct key errors or mistakes • Abate expense (e.g. Dean buys table for ten at banquet, but has Departments reimburse/abate his Fund/Account for individual seats) • Spread costs to appropriate departments CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  30. Petty Cash Funds • Tool to minimize small Accounts Payable (AP) reimbursements to faculty and staff • Sac State has Petty Cash Fund for reimbursements within guidelines up to $50.00 • AP only has to reimburse Petty Cash custodian when needed (CMS Open Item tracking) CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  31. Cash Management • The plan is • Deposits – receipt as soon as possible • Payments – pay as late as possible • Just-in-time payment of vouchers • Need to consider vendor terms, mail time, small business status, etc. • Earn as much interest as we can! CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  32. Fast-Ed • Chancellor's Office Financial Accounting Training Portal • https://zeta.calstate.edu:8250/portal/page?_pageid=74,1&_dad=portal&_schema=PORTAL • User Name = fasted • Password = fasted4csu • Tutorials CSU 101 at Shell Beach, November 4 - 7, 2007 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  33. Fast-Ed CSU 101 at Shell Beach, November 4 - 7, 2007 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  34. References • CO Executive Orders (including 1000) • http://www.calstate.edu/eo/ • CO Business & Finance • http://www.calstate.edu/BF/ • State Administrative Manual – the sun is setting for CSU • http://sam.dgs.ca.gov • EO 1000 Policies/Procedures in the ICSUAM • Integrated California State University Administrative Manual • Coming soon to a web address for YOU! • State Key Players (within PPT) CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

  35. Questions? Justine Heartt California State University, Sacramento 6000 J Street Sacramento, CA 95819 916-278-7440 office Hearttj@csus.edu CSU 101 in Monterey, March 2009 Accounting, Payables, Receipts, Banking and Other Fun Stuff

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