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Year End Financial Reporting Workshop. Selecting the right FIRMS Program Codes and Object Codes Leslie Chase, San Diego State University [email protected]. FIRMS PROGRAM CODE CHANGES. Effective with July 1, 2004, there will be several FIRMS Program code changes. - PowerPoint PPT Presentation
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Year End Financial Reporting Workshop
Selecting the right FIRMS Program Codes and Object Codes
Leslie Chase, San Diego State University
June 8, 2004 2
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 3
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
4 June 8, 2004
edits
Activity PeriodRecord TypeAgency CodeSub Agency CodeOrganizationState Legal EntityApprop ReferenceCSU FundYear of AppropYear of BudgetProject No.Program CodeObject CodeAmountFTE Positions
Standards
DOF
Schedule 10---
Governor’s Budget
Financial Standards Advisory Committe
e
SCOLegal/GAAP Reporting
Federal IPEDS
FRS Qtrly
Management ReportsMulti-year
Variance Analysis---
Statistical Abstract
Activity PeriodRecord TypeAgency CodeSub Agency CodeOrganizationState Legal EntityApprop ReferenceCSU FundYear of AppropYear of BudgetProject No.Program CodeObject CodeAmountFTE Positions
Financial Planning/Resource Allocation
Oracle
Banner
PeopleSoft Qtrly
Qtrly
Qtrly
External Reporting Requirements:•Legislature•State Legal/GAAP•NACUBO/FARMS•GASB/FASB•IPEDS•CSU Trustees•Employee Unions•Public
External Reporting Requirements:•Legislature•State Legal/GAAP•NACUBO/FARMS•GASB/FASB•IPEDS•CSU Trustees•Employee Unions•Public
Campus Systems
FMS
SFO
Budget Office
BP&A
Ad Hoc
AVC, Financial Services Office
Systemwide Financial Operations
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
June 8, 2004 6
Reporting:
WASC Accreditation ReportsLegal Basis Reporting to the State and the
Chancellor’s OfficeBasic Financial Statements, campus and
systemwideIPEDS Inter Postsecondary Education Data
SystemCAFR State of California
June 8, 2004 7
Classification of Operating Expense
2003 Salaries Benefits
Scholarships and
fe llowshipsSupplies and
other services Depreciation Total
Functional classification:
Instruction $ 105,897,544 22,224,880 15,339,018 143,461,442
Research 119,401 7,506 95,117 222,024
Public service 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 18,701,996 4,856,396 5,613,689 29,172,081
O peration and maintenance of plant 10,543,156 3,080,001 1,491,760 15,114,917
Student grants and scholarships 57,673,854 57,673,854
Auxiliary enterprise expenses 3,487,662 748,232 19,484,001 23,719,895
Depreciation 19,003,020 19,003,020
Total $ 190,037,224 43,480,517 57,673,854 58,742,769 19,003,020 $ $ 368,937,384.00
June 8, 2004 8
Program Groups
01 Instruction02 Research03 Public Service04 Academic Support05 Student Services06 Institutional Support07 Operation and Maintenance of Plant08 Scholarships and Grants
June 8, 2004 9
Program Groups
11 Reimbursed Activities13 Transfers20 Auxiliary Enterprises50 Revenue90 Balance Sheet
June 8, 2004 10
01 Instruction
0101 General Academic Instruction0102 Vocational/Technical Instruction0103 Special Sessions Instruction0103 Special Sessions Instruction0104 Community Education0105 Preparatory/Remedial Instruction0106 Instructional Information
Technology
June 8, 2004 11
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 12
02 Research
0201 Institutes and Research Centers0202 Individual and Project Research0203 Research Information
Technology
June 8, 2004 13
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 14
03 Public Service
0301 Community Service0302 Cooperative Extension Service0303 Public Broadcasting Services0304 Public Service Information
Technology
June 8, 2004 15
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 16
04 Academic Support
0401 Libraries0402 Museums and Galleries0403 Educational Media Services0404 Academic computing Support0404 Academic computing Support0405 Ancillary Support0406 Academic Administration0407 Academic Personnel Development0409 Academic Support Information
Technology
June 8, 2004 17
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 18
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 19
05 Student Services0501 Student Services Administration0502 Social and Cultural Development0503 Counseling and Career Guidance0504 Financial Aid Administration0505 Student Admissions / Records0505 Student Admissions / Records0507 Student Health Services0508 Student Services Information
Technology0509 Student Admissions0510 Student Records
June 8, 2004 20
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 21
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 22
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 23
06 Institutional Support
0601 Executive Management 0602 Fiscal Operations 0603 General Administration and Logistical Services0603 General Administration and Logistical Services 0604 Administrative Computing Support0604 Administrative Computing Support 0605 Public Relations / Development 0606 General Administration 0607 Administrative Information Technology
June 8, 2004 24
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 25
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 26
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 27
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 28
Program Code changes at the Org level
ORG ORGANIZATIONOld Function
Old Program
New Function
New Program
62011 Business Information Management 3401 0603 3616 060763013 Mail Services 3401 0603 4108 070863014 Material Management 3401 0603 4108 070863016 Shipping and Receiving Services 3401 0603 4108 070867010 Dept of Public Safety 3401 0603 4107 070765010 Environmental Health and Safety 3401 0603 4107 0707
June 8, 2004 29
07 Operation and Maintenance of Plant
0701 Physical Plant Administration0702 Building Maintenance0703 Custodial Services0704 Utilities0705 Landscape & Grounds Maintenance0706 Major Repairs & Renovations0707 Security and Safety0708 Logistical Services0709 Oper. & Maint. Plant Information
Technology
June 8, 2004 30
0700 OPERATION AND MAINTENANCE OF PLANT FARM Section for 0700 functional areas is
342.17Three new programs are available 07/01/04 for
Operation and Maintenance of Plant.0707 Security and Safety0708 Logistical Services0709 Operation and Maintenance Information
Technology
June 8, 2004 31
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 SafetyEnvironmental Health & SafetyHazardous Materials Management
June 8, 2004 32
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 33
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 34
Example:
ORG ORGANIZATION FUND PROGRAM FUNCTION BUDGET65010 ENVIRONMENTAL HEALTH AND SAFETY 1003 0603 3401 663,339.57 65010 ENVIRONMENTAL HEALTH AND SAFETY 1003 0704 3901 181,900.00 65010 ENVIRONMENTAL HEALTH AND SAFETY 1004 0707 4107 - 65010 ENVIRONMENTAL HEALTH AND SAFETY 1004 0707 4107 - 65010 ENVIRONMENTAL HEALTH AND SAFETY 3184 0706 4101 269,800.00
June 8, 2004 35
0800 SCHOLARSHIPS & FELLOWSHIPS 342.18
0801 Scholarships
0802 Fellowships
June 8, 2004 36
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 37
1301 TRANSFERS – INTRA-CAMPUS
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 38
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 39
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 40
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 41
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 42
Goals
Consistency AccuracyClassification : To be as clear as we can
be about what our expenses areVariance Analysis / external users of our
financial information
June 8, 2004 43
Unbundling 660090 Expenses - Other
New object codes are available for your use now:
Space RentalRecruitment and Employee RelocationAccreditation ExpenseLoan Cancellations and DefaultsStudent Union Return of Surplus
June 8, 2004 44
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 603090Uniform Allowance > Benefits – Other 603090
June 8, 2004 45
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 46
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 47
Handouts of interest:
Object Category Definitions and UsageIndependent OperationsTransfers In and Transfer Out
FSAC Derivation Rules Committee Discussion Items
Program Code Definitions and Usage – Summary of Changes
June 8, 2004 48
FSAC DERIVATION RULES COMMITTEEa sub-committee of FSAC
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
