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CHAPTER 3
MAPPING LEGAL BASIS ACCOUNTS TO GAAP REPORTING MODEL
OVERVIEW
Once all legal basis year-end closing entries have been recorded in the financial records of the
campus and year-end procedures have been performed, the GAAP derivation process can begin.
The first step of the GAAP derivation process is the classification or “mapping” of all campus
CSU funds and accounts, as reflected in the legal basis financial records, to specific net position
groups and financial statement line items for two of the three required financial statements. The
GAAP derivation process was further enhanced by adding a step to read the program code
override on the AAT key first before using the program code posted to the campus CSU business
unit (BU).
The conversion of data from the FIRMS object code used in the legal-basis financial records to
the GASB 35 natural class code used for external financial reporting occurs automatically in the
financial system. The natural class equivalents for each FIRMS object code are described in the
Table of Object Codes located at the Systemwide Financial Standards & Reporting (SFSR)
website. This table also shows the state General Ledger Account Number (GLAN) equivalents.
The SFSR website also holds the Excel version of the GAAP Edits Table. This table resides in
its electronic form in the Central Financial System (CFS) and in FIRMS and is used by these
systems to validate the combinations of CSU fund, the GAAP natural classification code, the
program code and net position group. The Excel version is organized by net position category
and shows the valid combinations for each state fund and CSU fund.
It should be noted that the GAAP Edits Table operates slightly differently in CFS and in FIRMS.
In CFS, certain combinations are allowed solely to facilitate the posting of GAAP adjusting
entries. The combinations established for this purpose are identified within the Excel version of
the table. Such combinations are invalid in FIRMS as the balances reported in that system must
represent the final values shown in the campus reporting packages (values ultimately flowing to
the consolidated financial statements) and will generate FIRMS errors if used.
Instructions for preparing the Statement of Cash Flows, the third required statement, are
presented in Chapter 6.
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The following chart shows the flow of information from transactions recorded in the campus
accounting records to the SCO reports and the GAAP financial statements.
GAAP DERIVATION TEMPLATES
For GAAP derivation purposes, the campus will prepare legal to GAAP derivation
templates/trial balances for each of the following net position groups and for agency funds by
CSU fund:
Net Investment in Capital Assets
Restricted, Unexpendable – Endowments
Restricted, Expendable – Scholarships and Fellowships
Restricted, Expendable – Research
Restricted, Expendable – Loans
Restricted, Expendable – Capital Projects
Restricted, Expendable – Debt Service
Restricted, Expendable – Other
Unrestricted
Agency Funds – Depository Accounts
Agency Funds – Grants Refundable
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The GAAP derivation templates are used to map legal basis net activity account balances during
the year to the GAP BU by net position category, by CSU fund, and to record GAAP
adjustments and reclassifications (see Chapters 4 and 5). After all the necessary adjusting entries
are posted, the GAP BU ledger trial balance will reflect the adjusted GAAP year-end account
balances by net position category, by CSU fund. The adjusted GAAP balances on the GAP BU
trial balance by net position category, by CSU fund (the totals column), will be reported on the
GAAP financial statement lines.
For CSU audit purposes, the legal to GAAP derivation is included as delivered reports in
PeopleSoft 9.2. A list of the delivered reports is provided in Chapter 9.
ACCOUNT MAPPING OF LEGAL BASIS ACCOUNTS
Use the Excel version of the GAAP Edits Table for classification of CSU funds from the campus
SAM07 report to the proper net position derivation template. The Table of Object Codes should
be used for mapping of balance sheet accounts on the SAM07 report to the Statement of Net
Position line items. Use this table for mapping of State general ledger (GL) accounts and FIRMS
object code account balances to GAAP financial statement line items (e.g. cash and cash
equivalents, investments, accounts receivable, etc.) on the SNP.
The Table of Object Codes should also be used for mapping of revenues, expenses and transfer
accounts on the SAM07 report to the Statement of Revenues, Expenses, and Changes in Net
Position line items. The GAAP Edits Table shows the FIRMS program codes that map to specific
GAAP revenue and transfer line items on the financial statements.
A query report can be developed locally by the campus to map state general ledger revenue,
expense and transfer accounts by FIRMS object codes or FIRMS program codes to GAAP
financial statement line items.
Because of their custodial nature, agency funds should never have net position on the
post-closing trial balance or revenue and expense activity on the pre-closing trial balance.
Therefore, the state general ledger fund balance and the revenue and expense accounts for
agency funds, except for funds 0948-403, 0948-406, and 0948-407 (Perkins and Nursing
loans), should be mapped to depository accounts during the derivation process. Funds
0948-403, 0948-406 and 0948-407 should be mapped to grants refundable.
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ANALYSIS OF CERTAIN CSU FUNDS AND ACCOUNTS
Most CSU funds at the campus level can be mapped to the proper net position group directly by
reference to the GAAP Edits Table. However, certain CSU funds, as indicated by a (1) next to
the fund description on the table, must be analyzed at the campus level to determine the proper
net position classification based on the type of activity flowing through the accounts. It may be
necessary to classify activity in a CSU fund into more than one net position group. Campuses
can change the default net position classification of a CSU fund to a more appropriate category,
if necessary, using the GAAP Override feature in PeopleSoft.
Although state general ledger accounts have been mapped on the Table of Object Codes to a
specific asset or liability line item, certain account balances must be analyzed at the campus level
to determine if the account balance contains a current or noncurrent portion. “Current” can
reasonably be expected to either use or generate cash as part of normal business operations
within 12 months of the financial statement date. Accounts should be analyzed and a portion of
the balance reclassified to current or noncurrent, if applicable.
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For derivation purposes, financial line items for Due to Other Funds, Due from Other Funds, and
Transfers among funds can be added to the derivation template. However, Due to Other Funds
and Due from Other Funds accounts for intra-agency transactions should always agree in total at
the campus level and balances should be eliminated on a GAAP basis. Due to Other Funds and
Due from Other Funds accounts for inter-agency transactions do not net to zero at the campus
level. The campus should 1) analyze the accounts for purposes of reclassification to accounts
receivable or accounts payable in the campus reporting package and 2) reconcile with the
corresponding balances at the Chancellor’s Office so that they can be properly eliminated in the
CSU consolidated financial statements. Transfers among CSU funds should also net to zero in
total. Since transfers within the campus should net to zero at the campus level, the only balances
that should remain in the transfer line item after mapping are inter-agency transfers. These interagency transfers should be eliminated or reclassified in the campus reporting package, as
described in Chapter 4 and Chapter 5, and reconciled with the corresponding balances at the
Office of the Chancellor so that they can be properly eliminated in the CSU consolidated
financial statements. The adjusted GAAP balance for these derivation template line items must
net to zero.
CONCLUSION
It is imperative that each campus follow the mapping protocol in order to achieve accuracy and
consistency in financial reporting on a system-wide basis. If accounting personnel at the campus
level are unsure how to classify a specific CSU fund or legal basis account, inquiries should be
directed to the Office of the Chancellor for clarification and guidance.
Mapping of CSU funds to the proper net position group and mapping of legal basis net account
activity balances to the GAP BU ledger should be performed before recording any GAAP
adjustments and reclassifications.
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REVISION CONTROL
Document Title:
CHAPTER 3 – MAPPING LEGAL BASIS ACCOUNTS TO GAAP REPORTING
MODEL
REVISION AND APPROVAL HISTORY
Section(s)
Revised
Summary of Revisions
Revision
Date
Matrix 1
Deleted reference “SRB” from CSU 461 as the fund is not a SRB fund.
May 2014
General
Deleted references to matrices 2.2 and 3.2 as these tables have been
replaced by the GAAP Edits Table, which is separately described in the
chapter.
April 2014
Page 3.0-1
Added information regarding GAAP Edits Table.
April 2014
Page 3.0-6
Deleted section GAAP Combination Edits Table since the information is
now on pg. 3.0-1.
April 2014
Matrix 2.2
and 3.2
Deleted – replaced by GAAP Edits Table residing in CFS and FIRMS.
April 2014
Matrices 1,
2 and 3
Deleted – information formerly on these matrices has been incorporated
in the Table of Object Codes and the GAAP Edits Table.
March 2015
Throughout
text
Deleted references to Matrices 1, 2 and 3 and substituted references to
Table of Object Codes and the GAAP Edits Table.
March 2015
FIRMS
GAAP
Submission
section
Deleted section and moved information to separate chapter, 7.02.
March 2015
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