Systemwide Revenue Bond Financial Statement Audit Terri Williams, SW Revenue Bonds & Capital Projects Chancellor’s Office Year-End GAAP Training April 18, 2014
Jan 11, 2016
Systemwide Revenue BondFinancial Statement Audit
Terri Williams, SW Revenue Bonds & Capital Projects
Chancellor’s Office
Year-End GAAP Training
April 18, 2014
• Revenue Bond Program Overview & Requirements
• SRB Required Lead-sheets
• Legal Reporting Reminders• Auxiliary Organizations• Student Unions
• Q & A Flux Analysis• New Variance Comment Form• Variance Q & A Form
• Key Dates and Deadlines
• Department Contacts
April 2014 Year-End GAAP Training 2
SRB Program
SRB Debt Outstanding
• 2002 – System-Wide Revenue Bond (SRB) program
• Bonds issued by the Board of Trustees
• June 30, 2013 – SRB debt outstanding: $3.6 billion
• All campuses plus Chancellor’s Office participate
• Programs benefiting from SRB bonds:
• Housing Student Unions• Health Centers Continuing Education• Parking Auxiliary Organizations
April 2014 Year-End GAAP Training 3
SRB Audit Requirement• Bond Indenture April 1, 2002
• Section 6.06. Accounting Records and Financial Statements
• (a) … accurate entries shall be made in accordance with industry standards of all transactions relating to the proceeds of Bonds, the Gross Revenues, and all funds and accounts established pursuant to this Indenture.
• (b) …after the end of each Fiscal Year of the Board…the Board will furnish to the Trustee a detailed, certified report of audit, … prepared by an Independent Certified Public Accountant…showing the Gross Revenues and expenses ( by major classification) for such period.
April 2014 Year-End GAAP Training 4
SRB Financial Statements
• High Visibility
• Audience• Bond Holders Banking Industry• Institutional Investors Insurance Companies
• CSU Fund Integrity Is Critical
April 2014 Year-End GAAP Training 5
Tax-Exempt Bond Requirements
• Financing Policy – Key Benchmarks:
• Campus proposals in line with Executive Order 994
• Debt Service Coverage Ratios*
• Campus: minimum 1.35 overall• Program: minimum 1.10• Auxiliary organizations: 1.25
*[net income/annual debt service]
April 2014 Year-End GAAP Training 6
Factors Impacting DSCR
• Proper recording of Pledged Revenue & Operating Expenditures
• Revenue & Expenditures recorded as Transfers
• Capital Expenditures recorded as Maintenance & Repairs
April 2014 Year-End GAAP Training 7
SRB Required Lead-sheets
• Investment Income Lead-Sheet (Exhibit 18)
• Legal to GAAP RF of CSU Pool Investments (Exhibit 32)
• Unearned revenue reasonableness test (Exhibit 12)
• Student Tuition and fees (Exhibit 33)
• Sales & services of auxiliary enterprise revenues (Exhibit 16)
• Liability Lead-Sheet (Exhibit 36)
• Detail of Transfers – PBC 152 April 2014 Year-End GAAP Training 8
PBC 152 – Detail of Transfers
April 2014 Year-End GAAP Training 9
Transfer Analysis Using Data Warehouse Info
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PBC #54 – Investment Income Lead-Sheet (Exhibit 18)
April 2014 Year-End GAAP Training 11
PBC #55 – Legal to GAAP Roll Forward of CSU Pool Investments (Exhibit 32)
April 2014 Year-End GAAP Training 12
PBC #103 – Unearned Fees Calculation/Reasonableness Test (Exhibit 12)
April 2014 Year-End GAAP Training 13
PBC #126 – Tuition and Fees Lead-Sheet (Exhibit 33)
April 2014 Year-End GAAP Training 14
PBC #133 – Sales & Services of Auxiliary Enterprises (Exhibit 16)
April 2014 Year-End GAAP Training 15
PBC #145 – Liability Lead-sheet (Exhibit 45)
April 2014 Year-End GAAP Training 16
Auxiliary Organizations• CSU Fund 537
• SRB Related Activity• FNAT #128893• Project Code SRB000
• Recording Capital Lease Activity • Principal Payments Firms Object Code 580098• Interest Payments Firms Object Code 508092
• Recording Capital Loan Activity• Loan Payments from Aux (Prin. & Int.) Firms Object Code 250002
April 2014 Year-End GAAP Training 17
Proper Legal Reporting is
Important!
Student Union Program
• CSU Fund 534
• Revenue = Student Body Center Fees Firms Object Code 504008
• Expense = Student Union Operating Expenses Firms Object Code 660045
• Support Required to document expenditures:
• Copies of Operating Expenditure Checks ( aka Return of Surplus)
• Budgets• Check Requests• Memorandums
• Submission Date for support required: August 25, 2014
April 2014 Year-End GAAP Training 18
Student Union Program
• New Developments:
April 2014 Year-End GAAP Training 19
Q & A Flux Analysis Process Changes
• Initial Comments will be entered in a new view
• Webcast will be offered to review new process (TBA)
• Follow up comments will be entered in Q & A Form
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New Required Variance Form
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View in TM1
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Select a program
TM1 View
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Will be able to filter
Excel View
SRB Variance Q & A Form
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32
SRB Funds
April 2014 Year-End GAAP Training 33
Key Deadlines
April 2014 Year-End GAAP Training 34
The Team