Date:

August 9, 2004

Code: AD 04-03

To:

Associate Vice Presidents for Administration/Controllers

From:

George V. Ashkar
Director of Systemwide Financial Operations
Business and Finance

Subject:

SCO Request for GAAP Information for the Year Ending June 30, 2004

Under Government Code Section 12460, the State Controller’s Office (SCO) is required to prepare the State of California’s Comprehensive Annual Financial Report (CAFR), the State’s audited financial statements, in accordance with Generally Accepted Accounting Principles (GAAP). As an agency of the state, the CSU is requested by the state to provide GAAP adjustments to be used in preparing the CAFR. The information will be used to make adjustments to the amounts reported in the state’s Budgetary/Legal Basis Annual report to derive the CAFR balances.

In the past, the CSU has not been in compliance with this requirement due to the timing of our internal GAAP audit preparation. For fiscal year ending June 30, 2004, the SCO is enforcing the requirement. Although, we will still not be able to meet the SCO’s deadline of September 1, we will provide them the data at a date when the GAAP adjustments become available. In an effort to minimize any interruptions or undue burden on the campuses during this busy time, we surveyed several campuses. What we heard is that due to the timing of the request, October 1, 2004 deadline would be most feasible for this year, because campuses would have their GAAP adjustments prepared by then for the audit fieldwork.

Given the above conclusion, please provide the GAAP adjustments using the SCO’s templates attached by fund type, for the following state funds, as deemed applicable:

Fund	Fund Type
0001	General Fund
0498	Special Revenue Fund
0574	Capital Project Fund
0658	Capital Project Fund
0705	Capital Project Fund
0839	Special Revenue Fund
0890	Special Revenue Fund
0942	Agency Fund
0947	Special Revenue Fund
0948	Special Revenue Fund (excluding CERF, Health Facility, and Parking Fees)
6028	Capital Project Fund

The line items on the template are summary level state GL accounts, and each column is representative of a GAAP entry, with a description of the entry at the bottom of the column. Please add additional columns as needed. The GAAP entries should consist of current year adjustments. No beginning net assets GAAP entries are requested at this time. The SCO will utilize the revenue bond financial statements for preparing the enterprise funds type. Hence, no GAAP adjustments are needed for these funds, and are excluded from the list above.

Please submit your completed forms to Lily Wang at lwang@calstate.edu on or before October 1, 2004. If you have any questions, please contact Lily Wang or Sedong John at the Chancellor’s Office.

The CSU will continue to strive to improve our processes in order to meet the SCO’s September 1 deadline next year. A discussion on this topic will be included for the next FOA meeting scheduled during October.

GVA:lw AD 04-03

Attachment A (.pdf)
Attachment B (.pdf)
Attachment C (.pdf)

Distribution:

Financial Managers
Accounting Officers
GAAP Coordinators