Cash and Investment Accounting for Year-End
Presented by Lily Wang
May 21, 2007
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Agenda
 Interim Guideline
 Bank and Investment Reconciliation
 Investment Earnings and Earnings Distribution
 GAAP Impact
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Interim Guideline
 Cash in State Treasury
– Un-remitted Cash held in state treasury must be
recorded in object code 101001-General Cash.
– Monthly balance in this object code should be
reconciled to the state treasury bank statement.
– Prior day activity inquiry on this account is
available through the SCO terminal
 SCO instructions describing this tool available here
– Note: Remaining outstanding checks will continue
to be honored, however campuses experiencing
lengthy deficits in this account may be charged
bank fees.
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Interim Guideline
 Wells Fargo Bank (WFB)
– Per RMP interim guideline, all campuses must operate and
invest out of object code 108090-Investments Other, as of
June 30, 2007.
– For those campuses currently operating out of 101006 and
108090, the recommended implementation of the guideline
is to run a one-time allocation process at year-end to move
the balance from 101006 to 108090. See attached below.
 Note: There are some setup changes involved, so workload
must be evaluated before proceeding.
 As an interim step, campuses may accomplish the reporting
requirement by changing the AAT key connected to the
campus local Peoplesoft account established to represent
WFB.
– Campus will still want to make a change later under this
approach to eliminate training issues with systemwide materials
and local chart of accounts.
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Interim Guideline
 Year-End Balance before Allocation Process
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Interim Guideline
 Year-End Balance after Allocation Process
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Bank and Investment
Reconciliation
 Through 06/30/07 - Third party documentations
used to perform the monthly reconciliation of
object code 108090 include: WFB statements,
monthly CMO report, and Wachovia statement.
 Effective 07/01/07 - Third party documentations
to perform the monthly reconciliation of object
code 108090 include: WFB statements, and the
monthly “Bank of CSU” report that recap SWIFT
activities.
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Sample Bank and Investment
Reconciliation at 6/30/07
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Sample Bank and Investment
Reconciliation at 7/31/07
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Investment Earnings and
Earnings Distribution
 Interim Guideline requires investment earnings in
SCO fund 0948 to be recorded in CSU fund 499
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Annual GAAP Adjustment
 For GAAP reporting, the cash and outstanding
checks within the investments-other object code
108090 must be reclassified.
 This reclassification entry needs to be reversed
in the following year.
 To determine the amount and account to
reclassify to, a calculation must be performed to
find the net cash balance (cash less outstanding
checks).
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Annual GAAP Adjustment
 If the net cash is positive, then
– Debit Cash
– Credit Investments
To properly reclassify cash and restore the investment
balance.
 If the net cash is negative, then
– Debit Investments
– Credit Accounts Payable (this is the net outstanding
checks owed to WFB under the overdraft protection)
To reclassify net outstanding checks and restore the
investment balance.
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Annual GAAP Adjustment
 GAAP Adjustment to Reclassify Net Cash
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Excel File of Illustrations
 To view the entire illustrations used in this
presentation, click on the Excel file below.
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