SCO REPORTING Roberta McNiel Year-End Legal Training May 2010.

SCO REPORTING

Roberta McNiel

Year-End Legal Training

May 2010

REPORTING OVERVIEW• The Legal Manual, Chapter 4, provides detailed

information about SCO reporting requirements• SAM 99 file satisfies data requirements of following

reports for governmental funds:Report 1 - Report of Accruals to Controller’s AccountsReport 2 - Accrual WorksheetReport 4 - Statement of Revenue

May 2010 2Year-End Legal Training

REPORTING OVERVIEW (cont) Report 5 - Final Reconciliation of Controller’s

Accounts with Final Budget Report Report 7 - Pre-Closing Trial Balance Report 8 - Post-Closing Trial Balance Report 15 - Reconciliation of Agency Accounts

with Transactions per State Controller

There are no changes to the SAM 99 submission procedure.

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REPORTING OVERVIEW (cont)• The following hard copy reports are required for

governmental funds included in the SAM 99 file:Report 3 - Adjustments to Controller’s Accounts (but only

if applicable)Report 22 - Statement of Contingent Liabilities (but only if

applicable)If there is nothing to report on Reports 3 and 22, indicate

they are not applicable (NA) on the certification memos.


REPORTING OVERVIEW (cont)• A hard copy version of Report 18, Statement of Changes in General

Fixed Assets, is required for both governmental and proprietary/fiduciary funds.

• The following hard copy reports are required for the agency:Report 14 - Report of Bank/Savings and Loan Association Accounts

Outside of the Treasury System Report 19 - Statement of General Fixed Assets


REPORTING OVERVIEW (cont)• If the campus has state fund 0890, Federal Trust Fund,

and/or state fund 0942, Special Deposit Fund, the following reports must be submitted in hard copy format:

Report 7 - Pre-Closing Trial BalanceReport 8 - Post-Closing Trial BalanceReport 9 - Analysis of Change in Fund Balance

(Statement of Operations)Report 20 - Statement of Financial Condition


REPORTING OVERVIEW (cont)• For proprietary/fiduciary funds:Prepared on a consolidated basis by the CO using data

submitted through FIRMSAll required reports presented in hard copy form (i.e. no

data for proprietary funds is included in any SAM 99 file)


REPORT 3, ADJUSTMENTS TO CONTROLLER’S ACCOUNTS • Prepared for each governmental fund to which it applies• Identifies any adjustments needed to correct the central

records maintained by the SCO• Use State Form 576 to report adjustments. Number

adjustments and provide attachment explaining reason for or nature of error.• Report not required if there are no adjustments, however,

it will be listed on the certification memo as not applicable (NA).


REPORT 22, STATEMENT OF CONTINGENT LIABILITIES

• Prepared for each government fund to which it applies• Discloses estimated liabilities, such as pending litigation• For each proprietary and fiduciary fund, the CO will file a

consolidated report as appropriate. To do this, campuses are asked to file with the CO a Report 22 for each proprietary/fiduciary fund to which it is applicable or notify the CO there are no Reports 22 to file.


REPORT 14, REPORT OF BANK ACCOUNTS OUTSIDE THE TREASURY SYSTEM

• Prepared for the campus as a whole• Lists all bank accounts held outside the state treasury

system• Must be filed even if there is nothing to report. Write on

face of report: “No accounts outside State Treasury.”• Only report in hard copy package that must be signed.

Signature must be that of the campus vice president of administration or higher official.


REPORTS 18 & 19, FIXED ASSETS• Report 18 prepared for each governmental and

proprietary/fiduciary fund from which monies were withdrawn to purchase capital items (items costing $5,000 or more with a life exceeding 1 year)• Report 18 provides detail information concerning

acquisitions and disposals• Report 19 is prepared for the campus as a whole and is a

summary of all Reports 18• Detail data is captured through reference to transactions

recorded in the General Fixed Assets Group (fund 0997)May 2010 Year-End Legal Training 11

HARD COPY REPORTING PACKAGE• Includes the following:Cover sheet identifying the campus and its agency

number and the fiscal year end (June 30, 20XX)Table of contentsTransmittal and report certification memos (by fund)Report 3 - Adjustments to Controller’s Accounts (by fund

if applicable)Report 18 - Statement of Changes in General Fixed

Assets (by fund)


HARD COPY REPORTING PACKAGE (cont)

Report 22 - Statement of Contingent Liabilities (by fund if applicable)

Report 14 - Report of Bank/Savings and Loan Association Accounts Outside of the Treasury System (one report per agency)

Report 19 - Statement of General Fixed Assets (one report by agency)

• If the campus has state funds 0890 and 0942, Reports 7, 8, 9 and 20 must also be included in the package (also see slide 6).


TABLE OF CONTENTS• Lists all state funds, governmental and non-

governmental, for which reports are being filed• Format as follows:Divide into 2 sections, one listing all governmental funds,

the other listing all nongovernmental fundsPage 1 shows identifying data for the SAM 99 file; CO

provides form List state funds in numerical order within each section


TABLE OF CONTENTS (cont) For each fund grouping, organize as follows:o Transmittal and Report Certification Memoo Reports in numerical order (except of Reports 14

and 19) Because Reports 14 and 19 are filed for the campus

as a whole, SCO has directed that they be presented and certified with reports applicable to the General Fund (state fund 0001)


PRESENTATION OF REPORT 18Campuses prepare Report 18 for both governmental and non-governmental funds and include all Reports 18 in their submission. The Chancellor’s Office includes fixed asset and accumulated depreciation balances in the non-governmental trial balances it prepares, but does not prepare Reports 18 on behalf of the campuses. Every Report 18 submitted by a campus must be accompanied by a Transmittal and Report Certification Memo.


TRANSMITTAL & CERTIFICATION MEMO• A memo is required for each fund’s set of reports.

Requirement extends to the Report 18 filed for each non-governmental fund.• Memo certifies under penalty of perjury the accuracy of

the data being submitted and must be signed both the campus president and vice president of administration and finance.


TRANSMITTAL & CERTIFICATION MEMO (cont)• Certification is not only for reports submitted as part of

the hard copy package but also pertains to the data included in the SAM 99 file for governmental funds.• Each memo provides a complete list of hard copy reports

that could be filed (i.e. Reports 3, 18 and 22) and indicates whether or not they are being submitted. The certification for the General Fund also includes Reports 14 and 19.


TRANSMITTAL & CERTIFICATION MEMO (cont)• Each memo must include the following:DateAgency nameAgency numberFund name and numberContact name(s), phone number(s) and email address(es)

Memo templates are provided in the appendix of the Legal Manual for both governmental and non-governmental funds.May 2010 Year-End Legal Training 19

HARD COPY REPORT SUBMISSION TO SCO • The package must be assembled in the manner specified

by the SCO. Instructions are included in the Legal Manual, Chapter 4.• Campuses are strongly encouraged to consult the SCO’s

Year End Reports Checklist to ensure their packages are complete and correctly formatted. The document is provided in the appendix of the Legal Manual.• Mailing instructions have not changed and are included in

the Legal Manual, Chapter 4.


HARD COPY REPORT SUBMISSION TO CO• A complete and exact copy of the campus’s submission

to the SCO must be forwarded to the CO.• Submission to the CO needs to include an executed

FIRMS Data Integrity Certification Form signed by the campus’s chief financial officer. It confirms the accuracy of data submitted to the CO via FIRMS. The form is available in the appendix of the Legal Manual.


RECORDS RETENTION

Campuses are required to retain a complete set of all reports filed with the SCO for a period of two years or until audited by the Department of Finance, Office of Financial and Performance Audits (FPA), whichever is later.

Make sure this is consistent with the CSU records retention policy, which may be longer.


SCO COMMENTSEach year the SCO is solicited for comments concerning campus submissions. This year’s feedback:•45 certification memos had errorsRequired identification and contact information (see slide 19) were missing A single memo certifying all funds was submitted instead of a memo for each fundCertification did not include a list of all reports submitted in hard copy form and via the SAM 99 submission


SCO COMMENTS (cont)• Five campuses overspent their appropriations in one or

more of 3 state funds, 6028, 6041 and 6048, as a result of year-end accruals. This condition is to be avoided, however, if it does occur, a written explanation must be submitted with the financial reports for the fund.• Negative cash and investment balances were reported. If

a negative balance does occur, it should be reclassified to a liability (due to) account. If no adjustment is being made, a written explanation must be submitted with the financial reports for the fund.May 2010 Year-End Legal Training 24

SCO COMMENTS (cont)• Year-end revenue and expenditure accruals were not

within 90% to 110% of the actual amount earned or spent in the subsequent fiscal year.


SCO COMMENTS (cont)

• The Mobile Equipment Report due to the Department of General Services was not submitted on time.• Campus staff sought training on the report submissions

process from the SCO instead of seeking help internally. SCO does not have the staff to support this effort. CO contacts are provided in Chapter 7 of the Legal Manual.


SUBMISSION DATES• Last day for documents to be received by SCO for

guaranteed processing prior to year end – JUNE 15, 2010

• SAM 99 data file and all required hard copy reports to SCO – AUGUST 2, 2010

• Report 22 for non-governmental funds to CO – JULY 30, 2010


www.calstate.edu

May 2010 28Year-End Legal Training

http://www.calstate.edu/

SCO REPORTING Roberta McNiel Year-End Legal Training May 2010.

Documents

applicable report

consolidated report

final budget report

report of banksavings

report of accruals

reporting overview cont

treasury system report

accrual worksheet report