2007-2008 Changes to Come

1. 2007-2008 Changes to Come D. Brothwell, CPSLO

2. EO 1000 – Delegation of Fiscal Authority • Processing SWAT’s • CSU policies, standards, and definitions • CSU Manual to be produced • New Investment Managers • All qualified funds fully operational within SCO Fund 0948 • CSU Reserve Policy • Central Cash Management Changes • Accounts Receivable Classification Changes D. Brothwell, CPSLO

3. SWAT’s in the Future – CPO Only D. Brothwell, CPSLO

4. EO 1000 – CSU Delegation of Fiscal Authority • Overall approach • Create a framework that supports the development of CSU accounting definitions and standards (principle based). Create a delegation of authority based on “textbook” governmental accounting definition of funds – sustainability for the CSU. • This EO acknowledges, defines and guides the CSU, as it now operates within two succinct set of accounting records. D. Brothwell, CPSLO

5. Campuses will continue to maintain 2 distinct sets of accounting records EO 1000 defines the activity within SCO Fund 0948 D. Brothwell, CPSLO

6. New CSU “Manual” • “CSU policies, standards, and definitions” refers to a unified system of CSU policies, standards, and definitions pertaining to the administration and safe-keeping of university assets, budgetary accounting and classification, financial accounting and classification, and financial reporting, and is inclusive of financial transactions between the campus and recognized Auxiliary Organizations. D. Brothwell, CPSLO

7. New Investment Managers • US Bank (custodian) and Wachovia • Effective with the implementation of the new investment activity (daily sweeping of balanced) campuses will NO LONGER receive CPO documents for investment activity • Daily sweep activity can be seen on-line in the Wells CEO • Effective 7-2-2007, all campus Wachovia accounts will be closed and a new CSU account held at US Bank will be opened. • CMO is developing a “Bank of CSU” Statement to replace their current Wachovia statement D. Brothwell, CPSLO

8. Central Cash Management • Beginning 7/2/2007, Chancellor’s Office will handle processing cash transfers to cover the estimated General Fund, Non-General Fund and off-cycle payroll costs in SCO 0948. No Action required by the campus other than budget projection information • Chancellor’s Office will be developing a process so that campuses do not have to manage Fund Balance Clearing for State University Trust. D. Brothwell, CPSLO

9. Accounts Receivable Classification • Previously Accounts Receivable for Student Fees that were deposited within SCO Fund 498 – Higher Education Fees and Income was classified • SCO State GL 1313 AR-Revenue • Only valid in Governmental Funds • Revenue mapped to 8040 Revenue from Services to the Public D. Brothwell, CPSLO

10. Accounts Receivable • Now Student Fees are deposited within State University Trust (948-485) • State GL for Revenue remains mapped to 8040 –Revenue from Services to the Public • AR should now be recorded in AR-Operating Revenue 1314-0000 • Also Deferred AR and Allowance for Uncollectible AR related to Student Fee Revenue should be recorded in AR-Operating Revenue • Needs to be implemented by June 30,2008 D. Brothwell, CPSLO

11. Current “Report Card” on the Exit Strategy D. Brothwell, CPSLO

12. Important Documents • Interim Guidelines Memo – March 19, 2007 • From Dennis Hordyk to Vice Presidents • EO 1000 – Delegation of Fiscal Authority • Current Approved PFA – March 28, 2007 • Year end training materials D. Brothwell, CPSLO