The California State University
GAAP Reporting Manual
Effective June 2011
CHAPTER 11
GAAP FINANCIAL REPORTING CHECKLIST
OVERVIEW
The GAAP Financial Reporting Checklist should be prepared as the final step of the GAAP
process. It is intended to allow the financial statement preparer to perform a final review of the
financial statements prior to submission to the independent auditors and the Office of the
Chancellor (CO). References to appropriate sections in this manual are provided for each
requirement listed on the checklist where applicable.
This checklist should be provided to the independent auditors with the financial statements
(reporting package). Part A of this checklist must be completed and provided to the independent
auditors on the 1st day of audit fieldwork. Part B of this checklist must be completed and
provided to the independent auditors no later than Monday, October 3, 2011.
The GAAP Preparation Checklist included in Chapter 10 is provided as a reminder of items that
must be completed prior to completing the GAAP Financial Reporting Checklist.
The following abbreviations are used throughout the checklist:
SNA – Statement of Net Assets
SRECNA – Statement of Revenues, Expenses, and Changes in Net Assets
SCF – Statement of Cash Flows
Last revised April 6, 2011
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The California State University
GAAP Reporting Manual
Effective June 2011
THE CALIFORNIA STATE UNIVERSITY
GAAP FINANCIAL REPORTING CHECKLIST
PART A1 – TO BE PROVIDED ON THE 1ST DAY OF AUDIT FIELDWORK
Chapter
Statement of Net Assets
9
1. Format of the Statement of Net Assets must conform exactly to
the financial statement formats provided by the CO. The formats
are in accordance with GASB Nos. 34, 35, 37, and 38.
4 and 5
2. Amounts recorded for capital lease obligations must equal
campus originated capital leases plus capital leases allocated
from the CO. The obligations must be classified into current and
noncurrent. Note: the carrying value of the asset related to the
capital lease is generally NOT the same value as the capital
lease obligation.
4 and 5
3. Amounts recorded for long-term debt obligations must equal
campus-originated debt plus debt allocated from the CO,
including any unamortized bond premium/discount and
unamortized loss on refunding. The obligations must be
classified into current and noncurrent.
3
4. Due to/from other funds must be eliminated and are not
presented in the Statement of Net Assets.
1
5. Investments that are used for current operations should be
classified as short-term investments. The following are generally
classified as short-term investments:

Local Agency Investment Funds (LAIF)

Surplus Money Investment Funds (SMIF)

Systemwide Investment Fund - Trust (SWIFT)
Investments (including those listed above) that are:

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Restricted for withdrawal or use for other than current
operations (i.e. endowments or Perkins loans).
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GAAP Reporting Manual
Effective June 2011
Statement of Net Assets
Chapter

Designated or restricted for the acquisition or
construction of noncurrent assets (i.e. SCO 0576 funds).

Designated or restricted for the liquidation of the
noncurrent portion of long-term debt.

Restricted as to liquidity of the investments (i.e.
investments in the Common Fund).
should be classified as other long-term investments.
All demand deposits and highly liquid investments with an
original maturity date of three months or less should be classified
as cash and cash equivalents. Uninvested funds included in
SWIFT and the Common Fund Short Term Fund should be
classified as investments.
3
6. Contributions, interest income and loan cancellations of the
Perkins loan and Nursing loan programs should be reflected as
grants refundable in the Statement of Net Assets.
5
7. Allocations of debt (from revenue bond issuances) from the CO
that exceed capital expenditures made from such funds should be
reflected as “other long-term investments” (held by CO) and be
classified in the restricted expendable-capital projects net assets
category.
5
3
3
8. Excess debt service transfers made to the CO should be reflected
as “short-term investments” (held by CO) and be classified in the
restricted expendable-debt service net assets category. Debt
service reserve transfers made to the CO should be reflected as
“short-term investments” (held by CO) and be classified in the
unrestricted net assets category.
9. Institutional loan net assets should be reflected in the restricted
for expendable-loans net assets category based on the existence
of externally imposed restrictions.
10. The University’s endowments net assets, owned by the campus
or its auxiliary organization, should be reflected in the restricted
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GAAP Reporting Manual
Effective June 2011
Statement of Net Assets
Chapter
for nonexpendable-endowments net assets category. The related
assets should be reflected as endowment investments.
11. Under the University and discretely presented component units
columns (for both GASB and FASB auxiliary organizations),
endowment investments (separate asset line item) and
endowment cash (portion of restricted cash and cash equivalents
line related to endowments) amounts should be compared with
the restricted for nonexpendable-endowments net assets balance
for reasonableness. See calculation in the Reporting Package,
Note 18.2.
9 and 12
12. Invested in capital assets, net of related debt must equal the
capital assets, net balance; less related expended outstanding
debt and lease obligations. Unspent bond proceeds as well as the
portion of outstanding debt that relates to these proceeds should
be included in the restricted expendable-capital projects net
assets category. See calculation in the Reporting Package, Note
18.1.
9 and 12
13. Restricted net assets categories should not be negative. Evaluate
components of net assets category balances causing the negative
balance and record any required adjustments accordingly.
14. Depository accounts, if applicable, should be classified as
noncurrent liabilities if deposits recorded are due in more than one
year from year-end or other than the use for current operation (e.g.
capital projects). Current depository accounts, if applicable, due
within one year and use for current operation, should be reclassified
to current depository accounts.
15. Leases receivable and notes receivable, current and noncurrent
(due from auxiliary organizations) must agree to the related gross
capitalized lease or long-term debt obligations, current and
noncurrent (excluding any unamortized premium or loss) reported on
the auxiliary organizations’ financial statements.
3
8, 9 and
12
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GAAP Reporting Manual
Effective June 2011
Chapter
Statement of Revenues, Expenses, and Changes in Net Assets
9
1. The format of this statement must conform exactly to the format
provided by the CO. The formats are in accordance with GASB
Nos. 34, 35, 37, and 38.
4-04
2. State appropriations, capital should agree to amounts allocated .
and de-allocated by the CO. A reconciliation must be performed
for state appropriations, noncapital (see Chapter 4, Section 4-04).
Summary schedules for both state appropriations, capital and
state appropriations, noncapital are available on the CO website
at: http://www.calstate.edu/sfsr/gaap.
9
3. State appropriations for capital projects (state appropriations,
capital) should be shown separately from state appropriations for
operations (state appropriations, noncapital), after the
nonoperating revenues section.
4
4. Tuition and fees and sales and services of auxiliary enterprises
should be shown net of scholarship discounts and allowances.
5. Interest expense should equal the total interest payments made on
debt, capital lease obligations, and any other applicable
obligations during the year, plus the change in accrued interest
expense, including any amortization of bond premium/discount
and amortization of loss on refunding.
6. Interest on debt used to finance capital items should be recorded
as interest expense.
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7. Construction work in progress amounts allocated by the CO that
were not financed by allocated debt should be reflected as other
nonoperating revenues.
8. Debits should not be reflected in the operating revenues section
and credits should not be reflected in the expenses.
3
9. Endowment earnings are shown separately from additions to
permanent endowments as endowment income within the
nonoperating revenue.
5
10. Transfers from the CO should be reclassified into the appropriate
revenue or expense line item.
Last revised April 6, 2011
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The California State University
GAAP Reporting Manual
Effective June 2011
Chapter
Statement of Revenues, Expenses, and Changes in Net Assets
5
11. Transfers made to the CO for payment of capital lease
obligations and payments made on campus-originated capital
leases should be reflected as a reduction of the capital lease
obligation (for the principal portion) and interest on capitalrelated debt (for the interest portion).
5
12. Transfers made to the CO for payment of long-term debt
obligations and payments made on campus-originated debt
should be reflected as a reduction of the long-term debt liability
(for the principal portion) and interest expense (for the interest
portion).
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13. Beginning net assets must agree to ending net assets per your
prior year campus reporting package submitted to the CO.
14. Ending net assets must agree to net assets on the Statement of
Net Assets.
Chapter
Footnotes to the Financial Statements
9 and 12
1. Investments footnote: Carrying value of current and noncurrent
investments must agree to the amount reflected on the SNA.
9 and 12
2. Investments footnote: There should be no new investments
outside SWIFT, LAIF and SMIF.
9 and 12
3. Accounts receivable, net footnote: Total of amounts in the
current and noncurrent columns should agree with the related
amounts in the SNA. This footnote should include the breakout
of the major components of the accounts receivable balances.
For the “other” receivables category, the balance should be
further broken out to provide the detail of the components of
“other”.
9 and 12
4. Leases receivable footnote: The present value of future
minimum lease payments to be received should agree to total
current and noncurrent amounts reflected as leases receivable on
the SNA.
9 and 12
5. Notes receivable footnote: Current and noncurrent amounts
should agree to the related amounts reflected as notes receivable
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GAAP Reporting Manual
Effective June 2011
on the SNA.
9 and 12
6. Student loans receivable, net footnote: Total student loans
receivable, net amount should agree to the amount reflected as
student loans receivable, net on the SNA.
9 and 12
7. Capital assets, net footnote: The beginning and ending
balances must agree with the amounts included in the preceding
and current year’s SNA, respectively. The total gross additions
(excluding transfers) should agree or reconcile with the related
amount per the SCF in the Capital and Related Financing
Activities section and should take into account any beginning or
ending accounts payable balances related to capital asset
acquisitions. The acquisition of capital assets per the SCF should
exclude any noncash items. See reconciliation in the Reporting
Package Note 5.3. The gross additions to accumulated
depreciation and amortization plus any noncapital amortization
expense should agree with depreciation and amortization
expense as reflected on the SRECNA (see Reporting Package
Note 5.2). The net capital assets retirements per the capital assets
footnote should reconcile to cash proceeds from sale of capital
assets per the SCF (net capital assets retirements +/- gain/(loss)
+/- write-offs = cash proceeds from sale of capital assets).
Transfers of completed CWIP to the related capital assets
categories should net to zero.
9 and 12
8. Lease obligations footnote: The present value of future
minimum lease payments should agree to total current and noncurrent amounts reflected as capital lease obligations on the
SNA. Capital leases passed down from the CO should only
include energy leases.
9 and 12
9. Long-term debt obligations footnote: Total current and
noncurrent amounts outstanding should agree to the related
current and noncurrent amounts reflected as long-term debt
obligations on the SNA.
9 and 12
10. Long-term debt obligations footnote: Total current portion of
long-term debt amount should agree to year one (i.e. 2011) of
principal in the long-term debt maturity schedule (note 7.3).
9 and 12
11. Long-term liabilities activity footnote: The beginning and
ending balances should agree with the amounts included in the
preceding and current year’s SNA, respectively. The additions
and reductions should agree or reconcile with the related
amounts per the SCF in the Capital and Related Financing
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The California State University
GAAP Reporting Manual
Effective June 2011
Activities section (see reconciliations in the Reporting Package
Notes 8.2 and 8.3). The current portion balances should agree
with the related amounts on the SNA.
9 and 12
12. Commitments and contingencies footnote: Unexpended
authorized construction project expenditures should agree with
encumbrances for authorized capital projects (Reporting Package
Note 12.1). Contingencies should agree with risks disclosed in
SCO Report 22, Statement of Contingent Liabilities (Reporting
Package Note 12.2).
9 and 12
13. Natural classification of operating expenses footnote: Totals
for each functional category in the footnote must agree to the
related amounts shown on the SRECNA. Explanations for
variances above scope must be provided in the Reporting
Package”Analytical SRECNA,” section 3 (components of
expenses by natural classification and by function for each
natural classification type).
8, 9 and 12
14. Transactions with related entities footnote: For line items
related to auxiliary organizations, amounts should agree to the
summation of the related amounts reported on the auxiliary
organizations’ audited financial statements (supplementary
information note 8). Additionally, the accounts receivable
balance due from auxiliary organizations should agree to the
related amount shown in the Reporting Package Note 4. The
accounts payable balance due to auxiliary organizations should
agree to the related amount shown in the Reporting Package
Note 17. A reconciliation is needed if there is a difference in any
of the above lines. (Refer to Chapter 9.7 – PBC item#17)
9 and 12
15. Prior period adjustments (PPA) footnote: For Note 15.3 of
this footnote, a separate schedule (excel file) must be completed
which contains a summary of passed prior period audit
differences and reclassifications. This schedule must be attached
with the submission of the Reporting Package.
9 and 12
16. Elimination of nonexchange transactions footnote: Amounts
in this note must agree with the amounts shown on the
SRECNA.
Note: In order to prepare this footnote, the campus must first
verify that all nonexchange transactions 1) between the campus
and the related auxiliary organizations and 2) between the
auxiliary organizations have been properly identified and
eliminated.
This must include communicating with the
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The California State University
GAAP Reporting Manual
Effective June 2011
applicable auxiliary organizations’ personnel 1) to verify that all
nonexchange transactions have in fact been captured and 2) to
confirm how the related transactions were recorded in the
auxiliary organizations’ audited financial statements. Regardless
of the nature of the transaction, the campus should not presume
how a particular transaction was recorded by an auxiliary
organization (i.e. which financial statement line items were
affected). The campus must confirm directly with the auxiliary
organization in order to ensure that the proper elimination is
made in the Reporting Package.
9 and 12
17. Account payable footnote:
shown on the SNA.
Totals must agree to amounts
12
18. PERS data: This information for your campus must be
obtained for your financial statements and disclosed in the
footnotes (refer to PBC item #140).
Chapter
Single Audit (A-133)
15
1. Schedule of Expenditures of Federal Awards (SEFA):
a) CFDA numbers: Must be entered in correct numerical format
as “XX.XXX” (for example: 84.042).
b) Program title column: Must enter full name (no
abbreviations). The cell should not be blank if there is an
amount in the federal expenditures column.
c) Federal expenditures column: Amounts must be entered in
whole dollars.
d) Federal grantor agency column: Must enter full name of
agency (no abbreviations) using the listing of federal grantor
agencies (not all-inclusive listing) provided on the CO
website, when possible. The exact name shown on the listing
must be entered on the SEFA. The cell should not be blank
if there is an amount in the federal expenditures column.
e) Pass-through agency column: Must enter full name of agency
(no abbreviations) or indicate “none”. The cell should not be
blank if there is an amount in the federal expenditures
column.
f) Pass-through entity identifying number column: If there is a
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GAAP Reporting Manual
Effective June 2011
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Single Audit (A-133)
Chapter
pass-through agency listed, a pass-through entity identifying
number must be entered. If there is no pass-through agency,
indicate “none” in the column. The cell should not be blank
if there is an amount in the federal expenditures column.
g) Amounts provided to subrecipients column: Amounts must
be entered in whole dollars.
h)
9
Separately input each ARRA grant in the SEFA by CFDA
number. Campuses need to specifically identify all Federal
ARRA grants they received by CFDA number and by
attaching the prefix “ARRA-“ to the program title column in
their A-133 input or overflow sheet of the reporting package.
2. SEFA: For the Federal Supplemental Educational Opportunity
Grant (FSEOG), Federal Work-Study (FWS) Program, and
Federal Perkins Loan Program, the expenditure amounts must
include the administrative cost allowance claimed or each
program (see Reporting Package, A-133 Note 4).
3. Federal Perkins Loan Program: The outstanding balance
reported in the FISAP, Part III on lines 3.0, 4.0, 5.1, 5.2, 5.3, and
5.4 (line 2.0 should not be included) must equal the related
balance recorded within student loans receivable, net on the SNA
(see Reporting Package, A-133 Note 3, and Reporting Package,
Note 4.4).
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The California State University
GAAP Reporting Manual
Effective June 2011
PART A2 – TO BE PROVIDED NO LATER THAN 7TH DAY OF AUDIT FIELDWORK
Chapter
Statement of Cash Flows
6
1. Net cash provided by (used in) operating activities per cash flows
from operating activities and per the reconciliation of net
operating income (expenses) to net cash provided by (used in)
operating activities must agree.
6
2. The difference between total state appropriations received per the
SCF and total state appropriations revenue per the SRECNA
must equal the change in state appropriations receivable from
6-30-PY to 6-30-CY (i.e. state appropriations revenue plus the
change in state appropriations receivable must equal state
appropriations received per the SCF).
6
3. The operating income (loss) per the SCF must agree to operating
income (loss) on the SRECNA.
6
4. The acquisition of capital assets per the SCF should agree to total
gross additions of capital assets (excluding transfers and
considering beginning and ending accounts payable balances
related to capital asset acquisitions) per the capital assets
footnote, unless there are any noncash items, such as donations
or transfers from another entity (see reconciliation in the
Reporting Package Note 5.3). Proceeds from the sale of capital
assets per the SCF should reconcile to net capital assets
retirements per the capital assets footnote (see footnotes section
item 4 below). Depreciation and amortization per the SCF must
agree to depreciation and amortization expense on the SRECNA.
6
5. Cash at the end of the year per the SCF must equal total cash and
cash equivalents on the SNA – current and restricted (should
not include short-term or long-term investments).
6. Cash inflows should be positive and cash outflows should be
negative.
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Effective June 2011
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Chapter
Statement of Cash Flows
6
7. Donated capital assets (including transfers to/from the University
and the auxiliary organizations) should not be included in
acquisitions of capital assets in the investing section as this is a
noncash item. This should be listed separately in the
supplemental schedule of noncash transactions section (see list
below).
8. List all noncash transactions within the supplemental schedule of
noncash transactions at the bottom of the statement of cash flows
(below the reconciliation of operating loss to net cash used in
operating activities). Examples of noncash transactions are as
follows:
 Contributed/donated capital assets (including transfers of
assets between the University and auxiliary organizations)
 Assets acquired by capital lease
 Acquisition of capital asset through long-term debt obligation
(other than capital lease)
 Construction work in progress passed down from the CO
 Capital asset transferred from the CO
 Change in accrued capital asset costs (purchased but unpaid
at year-end)
 Gifts in kind
 Operating expenses paid through long-term debt obligation
 Prepaid expenses paid directly through issuance of long-term
debt obligation
 Amortization of bond premium/discount
 Amortization of loss on refunding
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Date
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Date
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GAAP Reporting Manual
Effective June 2011
PART B –TO BE PROVIDED NO LATER THAN MONDAY, OCTOBER 3, 2011
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Chapter
General
9 and 12
1. GASB and FASB auxiliary organizations should each be
presented in a separate column on the SNA and SRECNA.
Chapter
Statement of Net Assets
5
2. The 6/30/CY balance due to/from the California State University
Risk Management Authority (self-insurance claims liability)
must agree to the amount allocated from the CO. The ending
balance should be classified as a current liability if it is a credit
balance. If the ending balance is a debit balance, it should be
recorded as a component of prepaid expenses and other assets.
A summary schedule for the self-insurance pass down
entry
is
available
on
the
CO
website
at:
http://www.calstate.edu/sfsr/gaap.
Chapter
Footnotes to the Financial Statements
5, 9 and 12
1. Self-insurance Program footnote: Amounts must agree to the
pass down entry provided by CO. A summary schedule for the
self-insurance pass down entry is available on the CO website at:
http://www.calstate.edu/sfsr/gaap.
5, 9 and 12
2. Other Postemployment Benefits (OPEB) Obligation footnote:
Amounts must agree to the allocation schedule provided by the
CO. A summary allocation schedule for the OPEB obligation is
available on the CO website at:
http://www.calstate.edu/sfsr/gaap.
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Preparer’s Signature
Date
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Reviewer’s Signature
Date
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