California State University
CSU Accounting, Payables, Receipts,
Banking and Other Fun Stuff
Presented by Justine Heartt
Interim Associate Vice President for Financial Services
California State University, Sacramento
CSU 101 in Monterey, March 2009
A little about the course …
Course Description:
This session is about the flow of money (in and out) for
the Campus. Emphasis will be on the processes for
spending our dollars. We will review the CSU Chart of
Accounts from Campus-FIRMS-GAAP perspectives.
The differences in the Campus Pay Vendor and State
Pay Vendor methods will be explained. In addition, we
will discuss Cash Posting Orders, Controller journal
entries, chargebacks, expenditure transfers,
accounting for ProCards and petty cash funds. We will
also talk about good Cash Management practices for
the timing of receipts and disbursements in the
Revenue Management Program. Brief introduction to
Fast-Ed training provided by the CO.
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CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Topics
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Chart of Accounts Review
Revenue Management Program
Key State Players
Claims (Campus vs. State Payment)
Campus Pay Vendor
State Pay Vendor
State Controller Journal Entries
CO Cash Posting Orders (CPO)
Travel
ProCards
Chargebacks
Expenditure Transfers
Petty Cash Funds
Cash Management
Fast-Ed
CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Chart of Accounts Review
3 Sets of Books
CMP – Campus Legal
CSU - FIRMS
GAP -GAAP
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CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Chart of Accounts Review
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CMP - Campus or Legal Books
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Minimum of 3 ChartFields
• Fund – Trial Balance Level and Fund Attribute
(FNAT) maps to State and CSU Values
• Account – Classifies Transactions and Account
Attribute (AAT) maps to NACUBO Object Codes
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1’s – Assets
2’s – Liabilities
3’s – Fund Balance
5’s – Revenue
6’s – Expense
• Department ID – Organizational Structure
• Necessary for CSU/FIRMS Books
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CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Chart of Accounts Review
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CSU - FIRMS Books
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Financial Information Records Management
System
Derived from Campus/Legal Books
Provides SystemWide Reports by Common
Values (CSU Fund, Object Code and
Program Code)
Program Code (4 digits) breaks out
expenses into NACUBO classifications
• Examples
• Institutional Support-Fiscal Operations
• Institutional Support-Admin Computing Support
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CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Chart of Accounts Review
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GAP - GAAP Books
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Derived from CSU/FIRMS books and manual
conversion journal entries
4 ChartFields
• Fund – Net Asset Category
• e.g. Unrestricted, Restricted-Scholarships
• Account – Per Financial Statements
• Program Group (2 digits)
• e.g. Instruction, Institutional Support
• Class – For CSU Fund
• Users of CSU/Campus Financial Statements want more
detail and explanations of ending balances
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Required by State Law and GASB 34/35
• Additional GAAP/GASB rules apply
• SystemWide and Stand-Alone Campus Reports
7
CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Chart of Accounts - Fund
Find the
Differences?
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CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Chart of Accounts Review
SetID, Fund Code &
Descr, Effective Date
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CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Chart of Accounts - Fund
Cash on Deposit with
CSU Bank - Wells Fargo
Capital Outlay Bond Fund
Do NOT Claim – No Reimb
Cash on Deposit with State Treasurer
State CLAIM Required!
Fund Reimb Flag checked
10
CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Chart of Accounts - Account
Find the
Differences?
11
CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Chart of Accounts - Account
SetID & Account Value
A/R Dept Student Fee Revenue
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CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
RMP – Easier or Harder??
Purchase an item the old way or the new way?
OLD
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NEW
CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
RMP – Easier
(most of the time)
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I think the 80/20 rule applies
 (or 90/10)
Easier with New (RMP) Way
 Majority of payments are from 0948
 Campus controls timing
 Keep spending when no state budget
 Normal Accounting – Private Industry Accountants
understand this stuff!!
Harder with Old Way
 Still use State Claims process for some Funds
 Don’t use often and that’s tougher
 Need to consider Cash Flow and Vendor relations
 SCO Audit of expenditures of Student Fees evolving
CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Key State Players
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Department of Finance (DOF)
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State Controller’s Office (SCO)
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Serve as the Governor’s chief fiscal policy advisor
Promote responsible resource allocation through the state’s
annual financial plan
Ensure the financial integrity of the state
http://www.dof.ca.gov
Chief Fiscal Officer of California
Control over receipts and disbursements of public funds
Audit authority to uncover fraud/abuse of taxpayer dollars
Provides fiscal guidance to local governments
http://www.sco.ca.gov
CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Key State Players (continued)
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State Treasurer’s Office (STO)
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Provides banking, investment and finance services for State
government
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http://www.treasurer.ca.gov
Department of General Services (DGS)
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Their mission is to help other agencies better serve the
public by meeting --at best value-- their needs for products,
services and office space. This includes managing the
State's real estate, purchasing, service agreements,
publishing, telecommunications and transportation needs,
school funding, administrative law hearings, insurance and
risk policies, and building planning and design. At the same
time, they employ practices that support the Governor's
green initiative to reduce energy consumption and help
preserve California resources. CSU uses only some of
these services.
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http://www.dgs.ca.gov
CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
State Claims:
Campus vs. State Payment
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Claims – payments to vendors for supplies
and services on claimable funds must be
paid by the expenditure fund from the State
Controller’s Office (SCO). The SCO will
either reimburse the Campus or pay the
Vendor directly.
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Claimable Funds in RMP world include the
SCO Bond Funds 6028, 6041 and 6048.
Decision Point: Campus pay vendor
directly and then be reimbursed or have
State pay vendor directly?
CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
State Claims:
Campus Pay Vendor
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SCO Fund 0948 CSU Trust Fund
CSU Fund 499 TF Revolving Fund
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Campus Revolving Fund
• Used for Campus Payments to Vendors on
claimable funds
• Sac State limit is $100,000
• Send Claims to SCO Bi-Weekly
• Advances (Salary & Travel)
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Cash/Investment Balance will normally be
negative (or zero at best)
CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Campus Pay Vendor and
Fund Balance Clearing (305022)
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Fund Balance Clearing Account (Object Code) is used to record all
transactions affecting claimable funds
Used to reconcile to SCO reports (SAM99)
Reclassed in GAAP based on SCO Fund
Campus voucher and payment to vendor for Construction Contract and then
send SCO claim to reimburse Campus
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Debit Expense (607031) and Credit Fund Balance Clearing (305022) in
Claimable Fund (6041-320) AND
Debit Accounts Receivable (103002) and Credit Invested Cash (108090) in
Campus Trust Revolving Fund (0948-499)
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SCO reimburses Campus for Claim - in their books Debit to Fund Balance
Clearing (reduces state liability to us) and Credit to State Cash.
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Campus receives state payment (warrant) CD102 and receipts to Debit
Invested Cash (108090) and Credit AR (103002) in Campus Trust Revolving
Fund (0948-499)
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SAM99 Timing differences if Campus and SCO process in different months.
CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
State Claims:
State Pay Vendor
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May elect to have SCO Pay Vendor
directly for good Cash Management
Sac State uses SCO for > $100,000
 Processing Time
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No cost
$25
$50
$75
up to two weeks
3rd day payment
Next day payment
Same day payment
CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
State Pay Vendor and
Fund Balance Clearing (305022)
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Same as Campus Pay Vendor; but, accounting entries
are fewer with State Pay Vendor
 Campus records expense and state payment to
Vendor for Construction Contract and then sends
SCO claim to pay the Vendor directly (rush?)
• Debit Expense (607031) and Credit Fund Balance
Clearing (305022) in Claimable Fund (6041-320)
Notice - Campus has no Credit to Invested Cash.
• SCO pays Vendor - in their books Debit to Fund
Balance Clearing (reduces state liability to us) and
Credit to State Cash
• Receive CD102 notification that Vendor was Paid.
SAM99 timing differences if Campus and SCO
processed in different months.
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CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
State Controller Journal Entries
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Can be initiated by Campus, Chancellor’s Office (CO),
Department of General Services (DGS) , or others
Need to make sure you post in Campus books to stay
in balance with SCO (Fund Balance Clearing)
Information to post should be from internal records
 PO for DGS Printing (remember to clear
encumbrance)
 Campus Plan of Financial Adjustment (PFA) for
reimbursement from one fund to another
 CO Accounting Department Notice of Accounting
Transaction (AD-NOAT)
• Payroll Transfer from General Fund to Trust Fund
• General Fund is a State Fund
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CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
State Controller Journal Entries
sample
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CSU 101 at Shell Beach, November 4 - 7, 2007
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Chancellor’s Office
Cash Posting Orders (CPO)
For our 0948 Funds on Deposit with
CSU Bank – Wells Fargo
 Examples include
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Investment Income
 Shared Exp. Central Software License
 SystemWide Allocation Transfer
(SWAT) – Campus JE required
 SystemWide Investment Fund-Trust
(SWIFT) - No campus JE required
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CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Travel
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CSU Policy and Procedures Governing Travel and
Relocation Expense Reimbursement (FS2009-01)
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https://www.calstate.edu/FinancialServices/codedmemos/2009
Basis for Campus Policy and Procedures
Tax Information Changes to Moving and Relocation
Expenses (HR/Benefits 2009-01)
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http://www.calstate.edu/HRAdm/memos.shtml
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CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Travel (continued)
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Standard business mileage reimbursement
is currently 55 cents per mile
Daily reimbursement amounts (no receipts
required):
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Breakfast
Lunch
Dinner
Incidentals
Total
$10.00
$15.00
$25.00
$ 5.00
$55.00 daily maximum
CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
ProCards
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Used by employees who have been
delegated authority to purchase small dollar
items for University use
Reduces costs by less PO’s and individual
vendor payments
Some Campuses and CO have a
modification in CMS to handle the
distribution of charges to departments
Accounts Payable pays vendor directly and
rebates are offered by vendor
CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Chargebacks
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Automated or manual chargebacks to bill
appropriate areas for their costs
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Reprographics
Postage
Utilities
Telecommunications
Computing
Space Rental
Facilities Work Orders
Other
CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Expenditure Transfers
Correct key errors or mistakes
 Abate expense (e.g. Dean buys table
for ten at banquet, but has
Departments reimburse/abate his
Fund/Account for individual seats)
 Spread costs to appropriate
departments
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CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Petty Cash Funds
Tool to minimize small Accounts
Payable (AP) reimbursements to
faculty and staff
 Sac State has Petty Cash Fund for
reimbursements within guidelines up
to $50.00
 AP only has to reimburse Petty Cash
custodian when needed (CMS Open
Item tracking)
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CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Cash Management
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The plan is
Deposits – receipt as soon as possible
 Payments – pay as late as possible
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• Just-in-time payment of vouchers
• Need to consider vendor terms, mail time,
small business status, etc.
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Earn as much interest as we can!
CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Fast-Ed
Chancellor's Office Financial Accounting
Training Portal
 https://zeta.calstate.edu:8250/portal/page?_pa
geid=74,1&_dad=portal&_schema=PORTAL

User Name = fasted
 Password = fasted4csu
 Tutorials
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CSU 101 at Shell Beach, November 4 - 7, 2007
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Fast-Ed
33
CSU 101 at Shell Beach, November 4 - 7, 2007
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
References
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CO Executive Orders (including 1000)
 http://www.calstate.edu/eo/
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CO Business & Finance
 http://www.calstate.edu/BF/

State Administrative Manual – the sun is setting for CSU
 http://sam.dgs.ca.gov

EO 1000 Policies/Procedures in the ICSUAM
 Integrated California State University Administrative Manual
 Coming soon to a web address for YOU!
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State Key Players (within PPT)
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CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff
Questions?
Justine Heartt
California State University, Sacramento
6000 J Street
Sacramento, CA 95819
916-278-7440 office
Hearttj@csus.edu
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CSU 101 in Monterey, March 2009
Accounting, Payables, Receipts, Banking and
Other Fun Stuff