CSU Operating Fund Reserves vs Budget Balance Available
Dec 21, 2015
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)
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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
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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
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CSU Fund 485 FNAT Keys
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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
Using CSU Fund 485 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
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Sample SAM 6
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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
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
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Budget and Accounting Agree
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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
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
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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
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Managing Reserve Balances thru the year
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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)
Sample entries PRIOR to June 30, 2008, Reserve entries
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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
Budget and Accounting Agree
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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
Sample Final Reserve Balances
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Account 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)
Reserve in the non-operating funds
Could reserve all equity in 304016 Designated Balances If this is your choice, you could create an allocation to
do the reserve entry in these funds
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