information from the chancellor’s office chapter 5 presented by csu and kpmg, llp
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Information from the Chancellor’s Office Chapter 5 Presented by CSU and KPMG, LLP. Revenue Bond Passdown Schedule. Rollforward of debt. Revenue Bond Passdown Schedule (cont’d). GAAP passdown entries Current year activities Sectioned by net asset categories - PowerPoint PPT PresentationTRANSCRIPT
Information from the Chancellor’s Office
Chapter 5
Presented by CSU and KPMG, LLP
2
May 22, 2008 GAAP Reporting Workshop
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Revenue Bond Passdown Schedule
Rollforward of debt
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May 22, 2008 GAAP Reporting Workshop
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Revenue Bond Passdown Schedule (cont’d)
GAAP passdown entries Current year activities
Sectioned by net asset categories Invested in capital assets, net of related debt
Restricted expendable debt service
Restricted expendable capital projects
Unrestricted
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May 22, 2008 GAAP Reporting Workshop
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Revenue Bond Passdown Schedule (cont’d)
GAAP passdown entries (cont’d) Types of entries in invested in capital assets, net of
related debt Current year principal payment from debt service
transfers from campus
Reclassify next year’s principal debt obligation from noncurrent to current
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May 22, 2008 GAAP Reporting Workshop
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Revenue Bond Passdown Schedule (cont’d)GAAP passdown entries (cont’d)
Types of entries in restricted expendable debt service Current year interest expense (may be capitalizable)
Current year interest receivable - 4th quarter SMIF (reverse in following year)
Debt service transfers-in from campus
Transfer-in of bond proceeds set aside to pay future debt services
Investment income
Investment income from bond proceeds above (may be capitalizable)
Accrued interest payable (reverse in following year)
Increase/decrease to investments based on above transactions
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May 22, 2008 GAAP Reporting Workshop
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Revenue Bond Passdown Schedule (cont’d)
GAAP passdown entries (cont’d) Types of entries in restricted expendable debt service
(cont’d) Reclassify debt service reserves internally imposed to
unrestricted net assets (reverse in following year)
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May 22, 2008 GAAP Reporting Workshop
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Revenue Bond Passdown Schedule (cont’d)
GAAP passdown entries (cont’d) Types of entries in restricted expendable capital
projects BAN (Bond Anticipation Note) proceed
Interest expense from BAN (may be capitalizable)
LT-debt obligation from BAN issuance
Accrued interest payable (reverse in following year)
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May 22, 2008 GAAP Reporting Workshop
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Revenue Bond Passdown Schedule (cont’d)GAAP passdown entries (cont’d)
Types of entries in restricted expendable capital projects (cont’d) Current year interest receivable - 4th quarter SMIF (reverse in following year)
Record BAN payoff
Transfer-out of bond proceeds set aside to pay future debt services
LT-debt obligation from bond issuance
Investment income
Investment income from unexpended bond proceeds by project (may be capitalizable)
Unamortized bond premium/discount
Current year amortization
Increase/decrease to investments based on above transactions
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May 22, 2008 GAAP Reporting Workshop
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Revenue Bond Passdown Schedule (cont’d)
GAAP passdown entries (cont’d) Types of entries in unrestricted
Reclassify debt service reserves internally imposed from restricted expendable debt service net assets (reverse in following year)
Centralized campus union maintenance and repair fund 0575 activities
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May 22, 2008 GAAP Reporting Workshop
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Revenue Bond Passdown Schedule (cont’d)
Footnote disclosure - YES, note 7 Interest rate
Maturity date
Original issue amount
Outstanding balance at 6/30
Future principal and interest payments
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May 22, 2008 GAAP Reporting Workshop
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Additional Schedules Provided by CO SRB Sources and Uses Summary - This schedule supports the revenue bond passdown
entries and is used to tie-out the amount transferred to escrow agent on the SCF.
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May 22, 2008 GAAP Reporting Workshop
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Additional Schedules Provided by CO Interagency Transfer Schedule - This schedule is used to reconcile to
the state appropriations revenue, noncapital on the SRECNA (refer to Chapter 4, Section 4-13).
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May 22, 2008 GAAP Reporting Workshop
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Additional Schedules Provided by CO
SWIFT (SystemWide Investment Fund Trust) Rollforward - This schedule is used to prepare the investment section on the SCF and the reconciliation of investment income on the SRECNA from the CSU pooled investments.
Investments Held by CO Rollforward Schedule – This schedule is used to tie-out the ending investments held by CO for SCO funds 0576, 0578, and 0575 (for applicable campuses). Please note the ending balance on this schedule is prior to any reclassification entries on the passdown schedules (e.g. entries 2.4, 2.5, 3.5 and 4.4).
Microsoft Excel Worksheet
Microsoft Excel Worksheet
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May 22, 2008 GAAP Reporting Workshop
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Capitalize Interest
Campus needs to determine if the capitalization of interest is required for projects that are contained in its CWIP accounts. CWIP accounts can be broken out into 4 key categories:
1. Projects acquired using gifts, grants or State of California capital appropriations
No interest capitalization required
2. Project that are self-funded by the Campus No interest capitalization required if not applicable or
immaterial
Documentation if applicable
3. Projects funded with taxable debt No interest capitalization required if not applicable or
immaterial
Documentation if applicable
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May 22, 2008 GAAP Reporting Workshop
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Capitalize Interest (cont’d) Campus needs to determine if the capitalization of
interest is required for projects that are contained in its CWIP accounts. CWIP accounts can be broken out into 4 key categories: (cont’d)
4. Projects funded with tax-exempt debt Most likely result in interest capitalization
Capitalize interest cost less interest earned until assets are ready for intended use
For the portion of interest costs and interest earnings that are related to assets which have been placed in service, entries are recorded as presented in the pass down schedule.
For the portion of interest cost and interest earnings that are related to CWIP, campus needs to capitalize such amounts, i.e. to record the net amount as an addition to CWIP.
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May 22, 2008 GAAP Reporting Workshop
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Calculation of Future Funding Commitment Receivable (Payable)
Represents amounts due to (from) CSURMA from the campuses to fund the estimated liability as of year end.
Calculated as follows: Campus’ simple average contribution to total liabilities
multiplied by receivable (payable) adjusted for campus prepayments received as of June 30.
Actuarial reports are received detailing each campus’ respective liability for workers’ compensation (WC), general liability (GL), AIME, AO WC, AO AGPIP-SIR. The campus’ percentage relative to the totals for WC and GL are calculated. Then a simple average is calculated based on both WC and GL.
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May 22, 2008 GAAP Reporting Workshop
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Calculation of Campus Liability
Workers’ Compensation [{Percentage of total campus WC liability to total
liability} * by total liability] * by campus relative percentage of WC (percentage of campus specific WC to total WC).
General Liability [{Percentage of total campus GL liability to total liability}
* by total liability] * by campus relative percentage of GL (percentage of campus specific GL to total GL).
Sum of WC and GL to obtain total campus liability. Percentage calculated to CSURMA total liability.
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May 22, 2008 GAAP Reporting Workshop
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Reference
Passdown schedules will be available on the Chancellor’s Office website at: http://www.calstate.edu/sfsr/gaap/
Revenue Bonds available by August 20 Risk Pool available by September 30