CHAPTER 5

1. CHAPTER 5 GAAP Adjustments or Reclassifications that Require Information from the Chancellor’s Office

2. Section 5-1 CWIP (non-delegated) • Allocate current year CWIP to campus via AD NOAT for recording into legal basis records before year-end close. • No GAAP pass-down entry from the CO. • For GAAP, campus will reverse the direct credit to Investment in Fixed Assets made on legal basis records (see Chapter 4, Section 4-2, page 4-12).

3. Section 5-2 Completed Projects (non-delegated) • “Statement of Capitalization” letter will be distributed via AD NOAT to reclassify completed project from CWIP to proper asset category in legal basis records prior to year-end close. • No GAAP entry needed.

4. Section 5-3 BANSection 5-4 Revenue Bond • Carried at the CO legal basis records during the fiscal year, and passed-down to the campuses for GAAP. • Allocate current year activity to campus via pass-down entry schedule (see example at end of Chapter 5). • Bond Debt service payments are paid via AD NOAT from campus fund 0580, transfer-out, and is mapped to transfers on Matrix 3.1. • The transfer-out is eliminated by the pass-down entry as illustrated in Example 1 on page 5-7.

5. Section 5-5 Energy Lease • Lease payments are paid via AD NOAT from campus GF as an expense on legal basis records. • Allocate current year lease payments between principal and interest, and transfer from Unrestricted to Invested in Capital Assets and Debt Service net assets, respectively.

6. Section 5-6 Self-Insurance • Allocation schedule of campus share of the CSU’s self-insurance claims liability. • It will reflect prior year’s balance (which campus needs to rebuild), current year addition, current year reduction, and ending liability.

7. Questions? • Lily Wang • 562-951-4628 • Lwang@calstate.edu • http://www.calstate.edu/sfr/GAAP/index.shtml