San Francisco State University We Make Great Things Happen

1. San Francisco State University We Make Great Things Happen

2. CFS User Group Year-End Kick-Off Meeting FY18/19

3. Agenda Special guest – Jeff Last Year’s Close - Sylvia Payroll - Agnes Auxiliary - Tammie AP - Courtney Budget - Elena Accounting – Sylvia, Gloria, Cathy, Yessica Procurement – Megan ITS - Michelle

4. Special Guest Jeff Wilson Interim Vice President & CFO

5. FY17/18 Year-End Close YE close F/S audit free of errors

6. How & What Teamwork & Coordination Communication Learning from PY Plan for YE close

7. Payroll FY 2018 / 19 Payroll Year-End Important Dates

8. Payroll Related - Year-End deadline All ETRAC transactions must be at HR level no later than Wednesday, June 12th. All Payroll related transactions, and retro payment request for Faculty, Staff, Students, Work-Study, Overtime, Shift-Differential and all Hourly employees must be submitted by Friday, June 14th. Special Consultant ETRAC transactions & time sheets, and Honorarium Request Forms must be submitted to HR by Friday, June 14th. June 2019 payroll for Student Assistants, Work-Study and all other hourly payrolls will be charged against FY 2019/20.

9. Auxiliary FY 2018 / 19 Year-End Important Dates

10. UCORP – IMPORTANT DATES

11. UCORP – IMPORTANT DATES P-Card Card The statement cycle for May/June 2019 ends on June 20th. All transactions posted on or before June 20th will be charged to the current FY 2018/19. Please plan your purchases accordingly as any transactions posted on or AFTER June 21st will be charged to the new FY 2018/19.

12. Please settle all petty cash and travel claims by June 18, 2019. • All pending RRT and salary reimbursements should be submitted by May 15, 2019 related to FY 2018-2019. • Please refer to the procedure for disposal or transfer of fixed assets on the UCorp website: http://ucorp.sfsu.edu/fixed-asset-procedure#inventory reconciliations to financial records • A Fixed Asset Disposition must be completed for all broken or no longer useful equipment. Also use this form for lost or stolen equipment. • If Assets have been moved to different locations please use the Fixed Asset Relocation Form. • Preauthorization for compensation • Determination of Independent Contractor or Employee • Approvals UCORP – IMPORTANT DATES

13. Accounts Payable FY 2018 / 19 Year-End Important Dates

14. AP – IMPORTANT DATES

15. Budget Administration & Operations FY 2018–19 Budget Year-End Instructions Carry-forward & Action Items

16. BUDGET YEAR-END DEADLINES

17. Designated for Encumbrance – also called encumbrances or open commitments. It is with a purchase order (PO) issuance. Outstanding Commitments1 – are planned uses of funds tied to specific commitments. Project IDs are required to set up to record funds being used for these types of obligations in our financial system. Planned Obligations1– are tied to planned expenditures for items/purposes, but costs and timing are estimated. Project IDs are required to set up to record funds being used for known obligations in our financial system. Reserve – are a specific fund category recognized in the accounting system and generally used for self-supporting, auxiliary activities or campus-based student fees. Some of the popular categories: reserves for equipment and reserves for capital improvement and deferred maintenance. ICSUAM EQUITY ACCOUNTS VS CAMPUS CATEGORIES 1. Committed and planned obligations have been approved in writing by the appropriate decision-making authority e.g. executive management level (President, CFO, Provost, Dean, Vice Presidents or Equivalent), or as delegated by this level.

18. Operating fund (NG001, NG025, and NR101) year end available will roll over to NR401 as a beginning carry forward balance. The plan, commit and spend will be recorded in NR401 with project ID for a not to exceed two years spending plan. CFW BALANCES – PLANNED OBLIGATIONS2 Notes: 2. Supporting documentation approved by the appropriate decision-making authority is required. 3. The project ID includes: CF-carryforward, FY-Fiscal Year, Abbreviation College or division-3 letters, Last two digit number.

19. CFW BALANCES – PLANNED OBLIGATIONS

20. CFW BALANCES – PLANNED OBLIGATIONS Notes: * The project Id for Capital Improvement/Construction and Designated for Facilities Maintenance & Repairs refers to the Capital Plan Instruction in the Budget Manual. Per Legal Manual Chapter 15, the Capital Improvement (CIMP) and Non-Recurring Maintenance and Repair (NRMR) have the specific CSU designated funds.

21. CFW BALANCES – REPORTING SAMPLE

22. CFW BALANCES – REPORTING PROCESS Spring Review (to align with annual Budget Meeting Process): Budget and Fiscal Offices will provide the carryforward data for the fiscal years for discussion with major units in preparation for each unit’s spring budget meeting. Fall Review (to provide an analysis soon after fiscal year close): After each fiscal year, BAO will provide additional data related to the most recent year- end carryforward balance to each major unit. Year End Potential Management Decisions (President’s Cabinet): The review and analysis of carryforward balances is primarily focused on improving information and ensuring financial decisions, taking into account existing balances as one factor and also taking into consideration a range of management decisions about each unit’s carryforward balances and intended uses. Leadership might also ask for a plan to invest (spend- down) funds within a specific time period or conversely direct units to slow expenditures to build balances within a specific time period.

23. CSU FUNDS REQUIRING CFW & RESERVE DESIGNATIONS

24. California State University Risk Management Authority (CSURMA) was formed by CSU and provides several risk management programs such as Pooled Liability Programs, Pooled Worker’s Compensation Program, IDL/NDI/UI Program, Property Program, Foreign Travel, Study Abroad, Special Event and other insurance programs. FY2019-20 RISK POOL Budget website: 2019-20 Budget manual

25. FY 2019-20 Estimated Amounts For Budget Planning FY2019-20 RISK POOL Budget website: 2019-20 Budget Manual

26. University Accounting Services FY 2018 / 19 Year-End Important Dates

27. ACCOUNTING – IMPORTANT DATES

28. New accounting practices effective 7/1/18 • Service provider revenue account • 580094 Services provided to a campus department • 580095 Services provided to Auxiliary Organizations • 580194 Services provided to another CSU campus or CO • 580090 Misc. services provided to a third party • Service receiver expense account • 617001 Services received from a campus department or agencies • 617101 Services received from another CSU campus or CO COST RECOVERY

30. AP Unrecorded Liabilities • University obligations – Goods or services have been received as of June 30 but not yet paid • Open invoices received will be reviewed at yearend to identify payments for goods or services received before June 30 • June 1st to Oct 15th- Invoice payment requests require to provide the date of goods or services received YEAREND INVOICES SEARCH

31. Goods/Services Received Date • Date the goods were RECEIVED from the vendor • Date the services were COMPLETED from the service provider • Can be a service period

32. Goods/Services Received Date

33. Options:

34. MORE Options:

35. NOT the Payment Approval Date

37. GAAP Financial Statement Audit Interim Audit Year-end Audit Single Audit (A-133) Financial Aid – full scope Other Federal Programs (grants) - TBD System-wide Revenue Bond (SRB) Housing, Parking, CEL, Health Facility, Student Union (including Rec. Center) AUDITS Departmental information will be needed during the audit preparation and field work.

38. MONTH-END NOTICE Month-End Close Notification

39. Account Usage Guidelines Last updated as of March 14, 2019 Chart of Accounts Last updated as of April 2, 2019 USEFUL INFORMATION Website: http://fiscaff.sfsu.edu/forms_and_documents

40. UBTI is generated by any Trade or Business which is regularly carried on for which the entity was granted their tax exempt status • Examples of activities on our campus that may generate UBTI include: • Rental income, in conjunction with other services • Sponsorships • Research • Summer camps ( e.g. sports campus) • IRS rules to determine UBTI and calculate the potential taxes are complex and changed in 2018 • The individuals responsible for UBTI has to constantly engage University personnel and departments to proactively assess potential UBTI situations UBIT

41. Three Elements that need to be present for an activity to be considered UBIT: • 1. notsubstantially related to the University’s exempt purpose (e.g. University’s mission) • 2. “regularly carried on” • 3. a trade or business • Related to University Exempt Purpose – To be related to the University’s educational purpose, there must be a substantial causal relationship to the achievement of those purposes, i.e., the activity must contribute importantly to the accomplishment of the exempt purposes (other than the University’s need to produce income) UBIT

42. Prior to 2018 income and expenses from all Unrelated Business Activities (UBA’s) were aggregated to derive each University's net operating loss (NOL) amount • The NOL could be carried forward to offset future net income amounts from the UBA • Per internal revenue Code 512 (A)(6), effective 2018 exempt organizations with more than one UBA must calculate the NOL on a per activity basis. • E.G expenses from a college’s annual T-Shirt sales cannot be offset against income earned on University sales of used computers UBIT

43. Departments answer UBIT questionnaire July-August Departments respond to UBIT questionnaire review August – October Departments respond to UBIT reporting package preparation October & November Departments respond to UBIT report package review by CO and Auditors February - April UBIT IMPORTANT DATES

44. Trust fund Trust Fund Balance & Cash Balance • Carry over from one year to the next • Fund/Program should maintain positive cash position • Should never have a deficit fund balance without proper justification • When would the cash deficit spending is allowed

45. Trust fund Solution Business plan Deficit notification Transfer in resources Reduction of spending Deficit “automatic” to be covered by fund per the Trust Fund Agreement Part 4 for year end by 06/28/19 • Impact • AP Payment not process • Petty cash request disapprove • Journal entry reject • Carry over with negative fund/cash balance to next year • Abnormal balance/Expense not proper recorded for the FY

46. Trust Fund Agreement No Paper format effective 07/01/2019 Mini Grant (SG101 + 69xxxxxx) Budget Request Available Balance  Carry Forward 07/01/2019 CSU Fund 491/496 Conversion

47. CSU FUND 491/496 CONVERSION • Mini Grant Carry Forward Balance

48. JOURNAL ENTRY REQUEST PROCESS • Email: journalrequest@sfsu.edu • Completed Journal Entry Library • https://sfsu.account.box.com/login

49. REFERENCES • CSU Legal Accounting and Reporting Manual Chapter 16-4-5.0 & Chapter 29-4-3.3 • SFSU Trust Fund Practice Directive

50. PROCUREMENT FY 2018 / 19 Year-End Deadlines