Presenters:
•Michelle Korte
CSU, Chico
mkorte@csuchico.edu
•Patti Salomon
CSU, Chico
psalomon@csuchico.edu
Statement of Cash Flows (SOCF)
• GASB Statement 34, ¶ 105
• Governments should present a statement of
cash flows for proprietary funds based on
the provisions of GASB Statement 9, as
amended by this Statement. The direct
method of presenting cash flows from
operating activities (including a
reconciliation of operating cash flows to
operating income) should be used.
Statement of Cash Flows
• GASB Statement 35, ¶ 57
• Reiterates that Public Colleges and
Universities will also be required to use the
direct method for the Statement of Cash
Flows.
SOCF Layout
• Cash flows from operating activities
• Cash flows from noncapital financing activities
• Cash flows from capital and related financing
activities
• Cash flows from investing activities
• Reconciliation of net operating revenues
(expenses) to net cash provided (used) by
operating activities
• Supplemental schedule of noncash transactions
CASH FLOWS from Operating
Activities
• GASB Statement 9, ¶ 16
• Operating activities generally result from
providing services and producing and delivering
goods, and include all transactions and other
events that are not defined as capital and related
financing, noncapital financing, or investing
activities. Cash flows from operating activities
generally are the cash effects of transactions and
other events that enter into the determination of
operating income.
Statement of Cash Flows (Operating
Activities Section)
University
Cash flows from operating activities:
Tuition and fees
Federal grants and contracts
State and local grants and contracts
Nongovernmental grants and contracts
Payments to suppliers
Payments to employees
Payments to students
Sales and services of auxiliary enterprises
Sales and services of educational activities
Other receipts
Net cash (used in) provided by operating activities
$
33,471,718
15,791,185
2,654,375
0
(24,699,045)
(115,285,295)
(20,407,549)
6,571,230
480,055
254,921
(101,168,405)
CASH FLOWS from Noncapital
financing Activities
• GASB Statement 9, ¶ 20
• Noncapital financing activities include borrowing
money for purposes other than to acquire, construct,
or improve capital assets and repaying those
amounts borrowed, including interest. This
category includes proceeds from all borrowings
(such as revenue anticipation notes) not clearly
attributable to acquisition, construction, or
improvement of capital assets, regardless of the
form of the borrowing. Also included are certain
other interfund and intergovernmental receipts and
payments.
Statement of Cash Flows (NONCAPITAL
FINANCING Activities Section)
University
Cash flows from noncapital financing activities:
State appropriations
Gifts and grants received for other than capital purposes
Federal loan program receipts
Federal loan program disbursements
Monies received on behalf of others
Monies disbursed on behalf of others
Other
Net cash provided by noncapital
financing activities
108,538,455
1,911,818
37,024,562
(36,881,401)
4,654,240
(4,471,187)
(1,223,616)
109,552,871
CASH FLOWS from CAPITAL AND
RELATED FINANCING Activities
• GASB Statement 9, ¶ 23
• Capital and related financing activities include (a)
acquiring and disposing of capital assets used in
providing services or producing goods, (b)
borrowing money for acquiring, constructing, or
improving capital assets and repaying the amounts
borrowed, including interest, and (c) paying for
capital assets obtained from vendors on credit.
Statement of Cash Flows (CAPITAL and
related FINANCING Activities Section)
University
Cash flows from capital and related financing activities:
Proceeds from capital debt
State appropriations
Capital grants and gifts
Proceeds from sale of capital assets
Acquisition of capital assets
Principal paid on capital debt and leases
Interest paid on capital debt and leases
Net cash used in capital and related
financing activities
0
10,251,998
0
174
(13,861,769)
(1,624,313)
(680,878)
(5,914,788)
CASH FLOWS from INVESTING
Activities
• GASB Statement 9, ¶ 26
• Investing activities include making and collecting
loans (except program loans, as discussed in
paragraph 19) and acquiring and disposing of debt
or equity instruments.
Statement of Cash Flows (INVESTING
Activities Section)
University
Cash flows from investing activities:
Proceeds from sales and maturities of investments
Investment income
Purchase of investments
Net cash used in investing activities
16,549,510
78,283
(19,255,380)
(2,627,587)
Reconciliation of Net Operating Revenues (Expenses) to Net
Cash Provided (Used) by Operating Activities
• Begin with Operating Income (Loss)
• Add back noncash expenses included in the determination
of operating income (loss)
• Plus or minus changes in assets and liabilities pertaining to
operating activities (GASB 9, ¶ 33)
Statement of Cash Flows (RECONCILIATION TO
OPERAting activities Section)
University
Reconciliation of net operating (loss) income to net cash
(used in) provided by operating activities:
Operating (loss) income
Adjustments to reconcile net operating (loss) income to net cash
(used in) provided by operating activities:
Depreciation and amortization expense
Change in assets and liabilities:
Accounts receivable, net
Prepaid expenses and other assets
Accounts payable
Accrued salaries and benefits
Accrued compensated absences
Deferred revenue
Self insurance claims liability
Depository accounts
Other liabilities
Net cash (used in) provided by operating activities
$
(111,013,205)
8,672,570
935,357
(293,470)
1,258,370
557,831
(37,853)
(399,262)
(895,000)
0
46,257
$
(101,168,405)
Supplemental Schedule of Noncash
Transactions
GASB Statement 9 ¶ 37 states that a disclosure is
required for all investing, capital and financing
activities during the year that “affect recognized
assets or liabilities but do not result in cash
receipts or cash payments in the period”.
Examples of noncash transactions
include:
• Assets acquired by capital leasing
• Gifts in kind
• Capital contributions (including transfers of assets between
the University and auxiliary organizations)
• Construction work in progress passed down from the
Chancellor’s Office
• Construction in progress costs accrued
Statement of Cash Flows (Supplemental
schedule of noncash transactions section)
Supplemental schedule of noncash transactions:
Contributed capital asset
Acquisition of capital asset through capital lease
$
50,000
200,000
Cash Flow Statements For Your Auxiliary
Organizations
With the CSU’s implementation of GASB
Statement 39 effective July 1, 2003, the Auxiliary
Organization’s statement of cash flows is no
longer required to be included in the campus’
financial statements.
Survival Tips for Preparing the Statement of
Cash Flows
1.
2.
3.
4.
Analyze net asset line items by statement of
cash flow categories during preparation of audit
workpapers and lead schedules.
Complete all other sections of the CSU GAAP
reporting package.
Prepare Statement of Net Asset (SNA)
Variance worksheet.
Compile the Additional Cash Flow Data
worksheet.
Survival Tips for Preparing the Statement of Cash
Flows, continued
5.
6.
7.
Using the “Cash Flow Stmt Worksheet”
template, transfer/link amounts from SRECNA,
SNA Variance and Additional Cash Flow Data
Worksheet.
Prepare Operating Activities section first. Then
prepare reconciliation section. It is important
to keep these two sections in balance.
Most common pitfall is transposing the sign (+/-)
on amounts.
Survival Tips for Preparing the Statement of Cash
Flows, continued
Increase
Decrease
Assets
Liabilities
(-)
+
Decrease to cash
Increase to cash
+
(-)
Increase to cash
Decrease to cash
Chico’s Secret Survival Tips
•
•
•
•
Lots of chocolate
Daily devotions to the Cash Flow Tiki Goddess
Lots of chocolate
ProvIDE the Cash Flow Statement preparer a
protected cash flow conducive environment: LOTS OF
DESK space without ANY interruptions for as long as he/she needs! Note– DO
NOT ASK IF THE STATEMENT IS IN BALANCE!
• Lots of chocolate
Presenters:
•Michelle Korte
CSU, Chico
mkorte@csuchico.edu
•Patti Salomon
CSU, Chico
psalomon@csuchico.edu