The California State University
GAAP Reporting Manual
Effective June 2011
CHAPTER 12 – STAND-ALONE CAMPUS FINANCIAL STATEMENTS
OVERVIEW
Proforma stand-alone financial statements templates include the followings:
•
•
One-year campus basic financial statements (Excel spreadsheet)
One-year campus financial statements include MD&A and all required footnote
disclosures under the provisions of GASB Nos. 34, 35, 37, 38 and 39. (Word document)
The above templates will be emailed to each campus GAAP coordinator by November 2, 2011.
Group A campuses are expected to complete and submit their draft stand-alone financial
statements to KPMG by November 23, 2011. The stand-alone financial statements are expected
to be finalized and released by KPMG on January 13, 2012.
Please note that between November 2, 2011 and December 16, 2011 the Chancellor’s Office will
finalize and release the systemwide financial statements. During this time the potential for
revisions to the campus proforma stand-alone financial statements templates are possible due to
subsequent proposals by KPMG or executives. Any changes to the systemwide financial
statements that result in a revision to the campus proforma stand-alone financial statements
templates will be communicated to each campus GAAP coordinator through email notification.
Submission of Stand-Alone Financial Statements to the Chancellor’s Office (CO)
Group A campuses are responsible for submitting an electronic copy (PDF version) of their
issued stand-alone financial statements and management letter if any to the CO.
Note Disclosure Information Provided by the CO
The following sections include information provided centrally by the CO necessary for the group
A campuses to prepare note disclosures in the stand-alone financial statements.
SECTION 12-1
INVESTMENT RISKS (CREDIT AND CONCENTRATION RISKS)
SECTION 12-2
OTHER POSTEMPLOYMENT
AND DENTAL)
SECTION 12-3
SELF-INSURANCE LIABILITY
SECTION 12-4
DERIVATIVES & FUTURE PURCHASE COMMITMENTS (NATURAL
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BENEFITS OBLIGATION (HEALTH
The California State University
GAAP Reporting Manual
Effective June 2011
GAS AND ELECTRICITY)
Supporting schedules from the Chancellor’s Office for items such as investment risks, other
postemployment benefits obligation, self insurance liability, and purchase commitments, will be
emailed to campus GAAP coordinators and posted on the Chancellor’s Office website at:
http://www.calstate.edu/sfsr/gaap/ - under Stand Alone Templates, FY 2010-11, select schedule
from the drop-down menu.
Below is the timing of the availability of each supporting schedule:
1. GASB 40 template
8/31/2011
(For investment credit and concentration risks disclosure)
2. GASB 45 template
9/15/2011
(For other postemployment benefits obligation disclosure)
3. Self Insurance Liability Note
11/02/2011
4. Future Purchase Commitments
11/02/2011
(For natural gas and electricity purchase commitments disclosure)
Please refer to the Audit and Reporting Timeline provided in the front section of the GAAP
Manual for more details.
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The California State University
GAAP Reporting Manual
Effective June 2011
SECTION 12-1
INVESTMENT RISKS NOTE DISCLOSURE (CREDIT AND CONCENTRATION RISKS)
Objective of Note Disclosure
GASB No. 40, Deposit and Investment Risk Disclosures, require certain disclosures of
investments that have fair values that are highly sensitive to changes in interest rates, including a
disclosure of deposit and investment policies related to the risks identified. This note disclosure
is designed to inform financial statement users about common risks inherent in deposit and
investment transactions.
GASB 40 Template
The CO provides templates (GASB 40 Templates) to campuses and auxiliary organizations that
participate in the SWIFT investment pool to facilitate the credit and concentration risks note
disclosure in their stand-alone financial statements.
The GASB 40 templates include the following:
•
•
SWIFT Investment Type Template (Excel spreadsheets)
SWIFT Issuer Concentration Template. (Excel spreadsheets)
The above templates will be emailed to all campus GAAP coordinator by August 31, 2011.
Group A campuses and auxiliary organizations are expected to complete and incorporate the
information in these templates into their stand-alone financial statements.
For campuses that have other investments beside SWIFT, SMIF, and LAIF, they also need to
complete these templates and email them back to the CO before November 2, 2011 for
systemwide consolidation purpose.
Detail instructions of how to complete the templates are available inside the templates. Please
refer to the “Instruction” tab in the template for further information.
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The California State University
GAAP Reporting Manual
Effective June 2011
SECTION 12-2
OTHER POSTEMPLOYMENT BENEFITS OBLIGATION NOTE DISCLOSURE (HEALTH AND DENTAL)
Objective of Note Disclosure
GASB No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits
Other Than Pensions, Relating to Other Postemployment Benefits (OPEB), require public
employers such as CSU to recognize the cost of other postemployment benefits such as health
and dental benefits provided to retirees on an accrual basis. This Statement establishes standards
for the measurement, recognition, and display of OPEB expense/expenditures and related
liabilities (assets), and note disclosures in the financial statements.
For more information of how OPEB obligation is measured and recognized, please refer to
chapter 5-6 of the GAAP Manual.
GASB 45 Template
The CO provides a template (GASB 45 Template) to campuses to facilitate the other
postemployment benefits obligation note disclosure in their stand-alone financial statements.
This template is updated based on the information provided by the State each year and is for the
University only and does not intend for the auxiliary organization’s use. For more information
about the implementation of GASB No. 45 for the auxiliary organizations, please refer to page 87 in Chapter 8 of the GAAP Manual.
The GASB 45 template will be emailed to all campus GAAP coordinator by September 15, 2011.
Group A campuses are expected to incorporate the information in the template into their standalone financial statements.
Detail instructions of how to use the templates are available inside the templates. Please refer to
the “Instruction” tab in the template for further information.
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The California State University
GAAP Reporting Manual
Effective June 2011
SECTION 12-3
SELF INSURANCE LIABILITY NOTE
Objective of Note Disclosure
The System and certain auxiliary organizations have established a public entity risk pool,
California State University Risk Management Authority (CSURMA), a blended component unit
of the System, to manage centrally workers’ compensation, general liability, industrial and
nonindustrial disability, unemployment insurance coverage, and other risk-related programs. The
System’s self-insurance claims liability includes estimated amounts for both reported and
unreported events, which includes estimates of both future payments of losses and related loss
adjustment expenses.
Self Insurance Liability Breakdown by Campus Summary
The system’s self-insurance claims liability is pre-populated in the notes of stand alone financial
statements template when it is delivered to the Group A campuses on November 2, 2011.
Moreover, the CO also provides a summary (Self Insurance Liability Note) to Group A campuses
through email and the CO website. This summary provides a breakdown of self insurance claims
liability by campus (in amount and %) for Group A campuses to facilitate the self insurance
liability note disclosure in the stand-alone financial statements.
The summary is usually emailed to all campus GAAP coordinator by November 2, 2011. Group
A campuses are expected to incorporate the information in this template into their stand-alone
financial statements.
Regarding the allocation schedule from the CO relates to the campuses’ share of the CSU Risk
Management Authority’s (CSURMA) future funding commitment mentioned in Chapter 5-5 of
the GAAP manual, it is mainly for campuses to record GAAP adjustments and will be provided
to campuses by September 15, 2011. The schedule is different from the summary mentioned in
this section and is only provided when needed (when there is an amount due to / from
CSURMA). Please refer to Chapter 5-5 of the GAAP manual for more information.
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The California State University
GAAP Reporting Manual
Effective June 2011
SECTION 12-4
DERIVATIVES & FUTURE PURCHASE COMMITMENTS (NATURAL GAS AND ELECTRICITY)
Objective of Note Disclosure
GASB No. 53, Accounting and Financial Reporting for Derivative Instruments, requires a
comprehensive framework for the measurement, recognition, and disclosure of derivative
instrument transactions. For details of training of this Statement, please refer to the following
link:
http://www.calstate.edu/sfsr/GAAP/Manual2010/Presentations/02_GAAP_YE2010_GASB_
51.ppt
The CSU’s investment policy generally allows investment in fixed income securities only, and
therefore does not involve in derivative instrument transactions. As a result, this Statement
generally would not apply to the CSU.
Forward Purchase Breakdown by Campus Summary
In fact, certain campuses at the CSU have participated in forward purchase contracts of natural
gas and electricity which are intended to be used in the normal course of operation. These
forward purchase contracts are not considered as derivative instruments subject to GASB No. 53,
but are considered as significant commitments and therefore are required to be disclosed in the
notes to the financial statements.
The CO obtains a breakdown of natural gas and electricity purchase commitments by campus
each year from the California Department of General Services (DGS) and the systemwide Capital
Planning, Design & Construction (CPDC) department, and provides a summary (Forward
Purchase Summary) to campuses that participate in the systemwide natural gas and / or electricity
purchase contracts.
The summary includes the following tabs:
•
•
Natural Gas Purchase Commitment with the DGS
Electricity Purchase Commitment with the Shell Energy (Shell)
The above summary is usually emailed to all campus GAAP coordinator by November 2, 2011.
Group A campuses are expected to incorporate the information in this template into their standalone financial statements.
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