Year End Financial Reporting
Workshop
Selecting the right FIRMS Program
Codes and Object Codes
Leslie Chase, San Diego State
University
Lchase@mail.sdsu.edu
1
FIRMS PROGRAM CODE
CHANGES
 Effective with July 1, 2004, there will be
several FIRMS Program code changes.
The FSAC Derivation Rules Committee has
been reviewing the changes and how the CSU
will use these new codes.
Most of the new FIRMS Program code changes
have their origin in FARM changes. Section
references throughout this presentation refer to
FARM.
June 8, 2004
2
FARMS is the “Gold” Standard
 Financial Accounting and Reporting Manual for Higher
Education is published by NACUBO
 FARM rules;
FIRMS follows FARM,
except for certain CSU specific requirements.
FIRMS Financial Information Record Management System
http://www.calstate.edu/cim/elements/program_code.shtml
June 8, 2004
3
External Reporting Requirements:
Financial
Standards
Advisory
Committee
•Legislature
•State Legal/GAAP
•NACUBO/FARMS
•GASB/FASB
•IPEDS
•CSU Trustees
•Employee Unions
•Public
AVC, Financial Services Office
Systemwide Financial Operations
FMS
DOF
Campus Systems
FRS
PeopleSoft
Banner
Oracle
Budget
Office
Qtrly
Qtrly
Qtrly
Qtrly
e
d
i
t
s
Activity Period
Record Type
Agency Code
Sub Agency Code
Organization
State Legal Entity
Approp Reference
CSU Fund
Year of Approp
Year of Budget
Project No.
Program Code
Object Code
Amount
FTE Positions
Standards
Schedule 10
--Governor’s Budget
SCO
Legal/GAAP Reporting
SFO
BP&A
Ad Hoc
Federal
IPEDS
Management Reports
Multi-year
Variance Analysis
--Statistical Abstract
Financial Planning/
Resource Allocation
Why Program Coding Matters
• Used for Financial Statements
• Used for Federal and State Reporting
• Used by Stakeholders in Budget
Discussions
• Comparability campus to campus across the
CSU
• Comparability with other similar institutions
across Higher Education
• BUDGET
Reporting:
WASC Accreditation Reports
Legal Basis Reporting to the State and the
Chancellor’s Office
Basic Financial Statements, campus and
systemwide
IPEDS Inter Postsecondary Education Data
System
CAFR State of California
June 8, 2004
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Classification of Operating Expense
2003
Salaries
Benefits
Scholarships
and
fellowships
Supplies and
other services
Depreciation
Total
Functional classification:
Instruction
$
Research
Public service
105,897,544
22,224,880
15,339,018
143,461,442
119,401
7,506
95,117
222,024
1,820,392
355,289
2,812,562
4,988,243
Academic support
24,032,334
5,752,186
9,254,449
39,038,969
Student services
25,434,739
6,456,027
4,652,173
36,542,939
Institutional support
O peration and
maintenance of plant
Student grants and
scholarships
Auxiliary enterprise
expenses
18,701,996
4,856,396
5,613,689
29,172,081
10,543,156
3,080,001
1,491,760
15,114,917
57,673,854
3,487,662
748,232
57,673,854
19,484,001
Depreciation
Total
June 8, 2004
23,719,895
19,003,020
$
190,037,224
43,480,517
57,673,854
58,742,769
19,003,020
19,003,020
$
$
368,937,384.00
7
Program Groups
01 Instruction
02 Research
03 Public Service
04 Academic Support
05 Student Services
06 Institutional Support
07 Operation and Maintenance of Plant
08 Scholarships and Grants
June 8, 2004
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Program Groups
11
13
20
50
90
June 8, 2004
Reimbursed Activities
Transfers
Auxiliary Enterprises
Revenue
Balance Sheet
9
01 Instruction
0101 General Academic Instruction
0102 Vocational/Technical Instruction
0103 Special Sessions Instruction
0104 Community Education
0105 Preparatory/Remedial Instruction
0106 Instructional Information
Technology
June 8, 2004
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0100 INSTRUCTION 342.11
Discontinue use of 0103 Special Session
Instruction effective 07/01/04
Reclass 0103 activities or departments to 0101
General Academic Instruction
Use new program code 0106 for separately
budgeted and accounted for Information
Technology supporting Instruction. This might
include IT personnel within the colleges, labs in
classrooms and associated costs.
June 8, 2004
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02 Research
0201 Institutes and Research Centers
0202 Individual and Project Research
0203 Research Information Technology
June 8, 2004
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0200 RESEARCH 342.12
A new program code is available
07/01/04 within the Research program
group. The new program is 0203
Research Information Technology. This
program code should be used for
separately budgeted and accounted for IT
costs supporting Research.
June 8, 2004
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03 Public Service
0301 Community Service
0302 Cooperative Extension Service
0303 Public Broadcasting Services
0304 Public Service Information
Technology
June 8, 2004
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0300 PUBLIC SERVICE
342.13
A new program code is available
07/01/04 within the Public Service
program group. The new program code
is 0304 Public Service Information
Technology. This program code should
be used for separately budgeted and
accounted for IT costs supporting Public
Service.
June 8, 2004
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04 Academic Support
0401 Libraries
0402 Museums and Galleries
0403 Educational Media Services
0404 Academic computing Support
0405 Ancillary Support
0406 Academic Administration
0407 Academic Personnel Development
0409 Academic Support Information
Technology
June 8, 2004
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0400 ACADEMIC SUPPORT
342.14
0404 Academic Computing Support is
discontinued as of 07/01/04.
0409 Academic Support Information
Technology is available as of 07/01/04. Activity
previously recorded in 0404 should be moved to
this new program effective 07/01/04. IT
supporting 01, 02, and 03 which is not
separately budgeted and accounted for should
also be included in 0409.
June 8, 2004
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0400 ACADEMIC SUPPORT
342.14
 Program 0407 Academic Personnel
Development continues historical
definition and usage.
 State Faculty Grants, Faculty Grants-in-Aid, Faculty
Development Program, RSCA (Research, Scholarship
and Creative Activity) Grants, and the like fall within
this classification.
June 8, 2004
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05 Student Services
0501 Student Services Administration
0502 Social and Cultural Development
0503 Counseling and Career Guidance
0504 Financial Aid Administration
0505 Student Admissions / Records
0507 Student Health Services
0508 Student Services Information
Technology
0509 Student Admissions
0510 Student Records
June 8, 2004
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0500 STUDENT SERVICES
342.15
0505 Student Admissions / Records is
discontinued effective 07/01/04
0509 Student Admissions is available effective
07/01/04
0510 Student Records is available effective
07/01/04
0508 Student Services Information Technology
is available effective 07/01/04
June 8, 2004
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0500 STUDENT SERVICES
Costs previously recorded in program
0505 Student Admisssions and Records
will need to be broken out to two
programs. Personnel costs may be
identified separately to the functions of
admissions and records. Or a campus
policy could be established to allocate
costs between the two new programs.
June 8, 2004
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0500 STUDENT SERVICES
0508 Student Services Information
Technology is available effective
07/01/04. Separately budgeted and
accounted for IT costs supporting Student
Services should be recorded within this
program. Such costs might include
student information systems such as
SIMS-R or Student Financial Aid
programs.
June 8, 2004
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06 Institutional Support
 0601 Executive Management
 0602 Fiscal Operations
 0603 General Administration and Logistical Services
 0604 Administrative Computing Support
 0605 Public Relations / Development
 0606 General Administration
 0607 Administrative Information Technology
June 8, 2004
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0600 INSTITUTIONAL
SUPPORT 342.16
0604 Administrative Computing Support is
discontinued effective 07/01/04.
0607 Administrative Information Technology is
available as of 07/01/04.
Costs previously recorded under program 0604
should be moved to 0607 effective 07/01/04.
IT costs supporting 05 or 07 which are not
separately budgeted an accounted for are also
reflected under 0607.
June 8, 2004
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0600 INSTITUTIONAL
SUPPORT 342.16
0603 General Administration and Logistical
Services is discontinued as of 07/01/04.
Costs previously reflected in 0603 will be
reflected under 0606 General Administration or
0707 Security and Safety or 0708 Logistical
services as is appropriate under the various
FARM descriptions of what should be included
in these new functional areas of expense.
June 8, 2004
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0603 General Administration and Logistical
Services
Administrative functions move to program
0606 General Administration
Environmental Health and Safety and
Public Safety move to program group 07
into program code 0707 Security and Safety
Space rent, moving services, material
management, shipping and receiving, and
mail services move to 0708 Logistical
Services.
June 8, 2004
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0600 INSTITUTIONAL
SUPPORT 342.16
0606 General Administration
 Risk Pool Premium expense is recorded using FIRMS
Object Code 660010 within General Administration
program 0606 (except W/C premium and Property
Liability premium)
 CSURMA reimbursements to campuses for payroll
expenses regarding 603008 Industrial Disability and
603009 Non-Industrial Disability should be abated
back against those object codes in those programs
where the payroll expense was recorded.
June 8, 2004
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Program Code changes at the Org level
ORG
62011
63013
63014
63016
67010
65010
Old
Old
New
New
ORGANIZATION
Function Program Function Program
Business Information Management
3401
0603
3616
0607
Mail Services
3401
0603
4108
0708
Material Management
3401
0603
4108
0708
Shipping and Receiving Services
3401
0603
4108
0708
Dept of Public Safety
3401
0603
4107
0707
Environmental Health and Safety
3401
0603
4107
0707
June 8, 2004
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07 Operation and Maintenance of Plant
0701 Physical Plant Administration
0702 Building Maintenance
0703 Custodial Services
0704 Utilities
0705 Landscape & Grounds Maintenance
0706 Major Repairs & Renovations
0707 Security and Safety
0708 Logistical Services
0709 Oper. & Maint. Plant Information
Technology
June 8, 2004
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0700 OPERATION AND
MAINTENANCE OF PLANT
 FARM Section for 0700 functional areas is
342.17
Three new programs are available 07/01/04 for
Operation and Maintenance of Plant.
0707 Security and Safety
0708 Logistical Services
0709 Operation and Maintenance Information
Technology
June 8, 2004
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0700 OPERATION AND
MAINTENANCE OF PLANT
0707 Security and Safety will be used to
capture certain activities previous
recorded within program 0603 General
Administration & Logistical Services.
Such activities include:
Public Safety
Environmental Health & Safety
Hazardous Materials Management
June 8, 2004
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0700 OPERATION AND
MAINTENANCE OF PLANT
0708 Logistical Services is a new
program available as of 07/01/04. Some
costs previously classified under
program 0603 General Administration &
Logistical Services will be moved to
0708. Space rent, capital leasing, and
central receiving costs will be recorded
under program 0708 effective 07/01/04.
June 8, 2004
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0700 OPERATION AND
MAINTENANCE OF PLANT
 0709 Operation and Maintenance of Plant
Information Technology will be available
07/01/04 for IT costs separately budgeted and
accounted for within Operation and
Maintenance of Plant. IT costs for the 07
program group which are not separately
budgeted and accounted for will continue to be
included under 0607 Administrative
Information Technology.
June 8, 2004
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Example:
ORG
65010
65010
65010
65010
65010
ORGANIZATION
ENVIRONMENTAL
ENVIRONMENTAL
ENVIRONMENTAL
ENVIRONMENTAL
ENVIRONMENTAL
June 8, 2004
HEALTH
HEALTH
HEALTH
HEALTH
HEALTH
AND
AND
AND
AND
AND
SAFETY
SAFETY
SAFETY
SAFETY
SAFETY
FUND PROGRAM
1003 0603
1003 0704
1004 0707
1004 0707
3184 0706
FUNCTION BUDGET
3401
663,339.57
3901
181,900.00
4107
4107
4101
269,800.00
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0800 SCHOLARSHIPS &
FELLOWSHIPS 342.18
0801 Scholarships
0802 Fellowships
June 8, 2004
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Reimbursed Activities
 Reimbursements plus Reimbursed Activities Expenditures
net to zero
 Self-Support Budget identifies source of reimbursement
and reimbursed activities expenditures
 Program Code for both sides of a reimbursed activity is
1100
 Unique to CSU, not established in FARM
 Organization makes expenditures on behalf of external
entity and bills external entity for reimbursement
 Contractual relationship supported by PO or MOU
June 8, 2004
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1301 TRANSFERS – INTRACAMPUS
Transfers within the campus will be
recorded under program 1301 beginning
07/01/04.
Intra-Campus transfers will net to zero.
Intra-Campus transfers will use object
codes 5060xx (i.e., 506001 – 506031 for
Transfers In and object codes 680001 –
680029 for Transfers Out).
June 8, 2004
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1302 INTER-AGENCY
TRANSFERS
 Inter-Agency Transfers will net to zero at the
system-wide level only.
Inter-Campus Transfers In will be recorded
using object codes beginning with 5061 (i.e.,
5061xx).
Inter-Campus Transfers Out will be recorded
using object codes beginning with 6801 (i.e.,
6801xx).
June 8, 2004
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TRANSFERS
Effective 07/01/04 the following transfer
program codes will no longer be used:








0901 Provision for Debt Service on Education Plant
0902 Loan Fund Matching
0903 Other Mandatory Transfers (between 0498 and 0001)
1001 Educational & General Non-Mandatory Transfers
2004 Mandatory Transfers Auxiliary Enterprises
2005 Non-Mandatory Transfers Auxiliary Enterprises
3003 Mandatory Transfers Independent Operation
3004 Non Mandatory Transfers Independent Operations
June 8, 2004
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OTHER PROGRAM CODES







1100 Reimbursed Activities
1200 Depreciation
2001 Auxiliary Enterprises ( see FARM 342.21)
3001 Independent Operations ( see FARM 342.221)
5000 Revenues
9001 Provision for Allocations
9002 Balance Sheet Items
These program codes are unchanged as of 07/01/04.
June 8, 2004
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Object Code Categories
Assets, Liabilities, Fund equity, Revenues,
and Expense
Groupings within each of those
Hand-out: Object Category Definitions
and Usage
June 8, 2004
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Goals
Consistency
Accuracy
Classification : To be as clear as we can
be about what our expenses are
Variance Analysis / external users of our
financial information
June 8, 2004
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Unbundling 660090 Expenses - Other
New object codes are available for your
use now:
Space Rental
Recruitment and Employee Relocation
Accreditation Expense
Loan Cancellations and Defaults
Student Union Return of Surplus
June 8, 2004
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660090 survey results suggest reclassification:
Special Lecturers > Contractual Services
613001
Administrative Cost Allowances > Transfers out
to Higher Education Fees and Income 680005
Executive Housing Allowance > Benefits –
Other 603090
Protective Clothing > Benefits – Other 603090
Uniform Allowance > Benefits – Other 603090
June 8, 2004
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OBJECT CODE
CONSIDERATIONS
 605006 Hazardous Waste Removal moves from program code 0704 Utilities to
program code 0707 Security and Safety.
 660010 Insurance Premiums is used within program 0606 General Administration
for Risk Pool Premium expense.
 Object codes beginning with 607 are designated for capital project expenses.
Capital Project expenses are recorded under program code 0706 Major Repairs &
Renovations.
 CSURMA reimbursements to campus for IDL and NDL should be abated against
603008 for Industrial Disability and 603009 for Non-Industrial Disability.
 Object Category Definitions and Usage handout is available for guidance on
Object Codes at the Category level. FARM sections are referenced therein where
FARM provides guidance.
June 8, 2004
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FARM
Financial Accounting and Reporting
Manual for Higher Education
published by NACUCO
FARM is the rule; FIRMS follows FARM,
except for certain CSU specific requirements.
June 8, 2004
46
Handouts of interest:
Object Category Definitions and Usage
Independent Operations
Transfers In and Transfer Out
FSAC Derivation Rules Committee Discussion Items
Program Code Definitions and Usage –
Summary of Changes
June 8, 2004
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FSAC DERIVATION RULES COMMITTEE
a sub-committee of FSAC
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June 8, 2004
Bernice Dizon, Chancellor’s Office
Brian Dahm, Dominguez Hills
Cecilia Patz, Fullerton
Chris Canfield, Chancellor’s Office
Debbie Brothwell, Cal Poly San Luis Obispo
Fyle Cabagnot, Chancellor’s Office
Laleh Graylee, Fullerton
Leslie Chase, San Diego State University
Lily Wang, Chancellor’s Office
Lorlei Leetham, Cal Poly San Luis Obispo
Michelle Korte, Chico
Patti Salomon, Chico
Ruth Stipp, Monterey Bay
Sean Boylan, Chancellor’s Office
Sedong John, Chancellor’s Office
Shawn McCown, Long Beach
Sheryll Foye, San Diego State University
Susan Koch, Monterey Bay
48