Auxiliary OrganizationsPresented by Mark Thomas

Partner - KPMG LLP

KPMG LLP

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GAAP Workshop Teleconference for Auxiliary Organizations

To be held June 1 and June 7, 2005

For auxiliary organization personnel and their auditors

Agenda In-depth review of Chapter 8

More detailed discussion of topics to be covered today in this presentation

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Key Deadlines

4th Quarter FIRMS data submission – July 31, 2005

Audited financial statements, including supplementary information schedules – September 30, 2005

FIRMS detail IPEDS reporting – October 31, 2005 (see Chapter 7)

Campus President’s review of auxiliary organizations’ audited financial statements – December 1, 2005 (sample letter provided – see Chapter 8)

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Supplementary Information – Highlights of Significant Changes

Note 16 of the Reporting Package (“Other Information”)

Depreciation and amortization expense Breakout of portion related to capital assets and

other assets

Long-term liabilities activity schedule Breakout of bonds between revenue bonds and all

other bonds

Capital lease obligations Future minimum lease payments schedule

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Supplementary Information – Highlights of Significant Changes (cont’d)

Note 16 of the Reporting Package (“Other Information”) (cont’d)

Future debt payment schedule Breakout of portion related to revenue bonds

Net assets component – invested in capital assets, net of related debt

Detailed calculation schedule of amount

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Key Deadlines

4th Quarter FIRMS data submission – July 31, 2005

Audited financial statements, including supplementary information schedules – September 30, 2005

FIRMS detail IPEDS reporting – October 31, 2005 (see Chapter 7)

Campus President’s review of auxiliary organizations’ audited financial statements – December 1, 2005 (sample letter provided – see Chapter 8)

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Statements of Net Assets and Revenues, Expenses, and Changes in Net Assets Reconciliation of inter-entity account balances and

activity with campus and other auxiliary organizations

Elimination column – identification of nonexchange transactions between auxiliary organizations and campus

Classified balance sheet

Net assets categories Invested in capital assets, net of related debt - Debt

related to unspent bond proceeds should not be included in this category but rather in the same net assets category as the unspent bond proceeds (e.g. restricted for capital projects)

Restricted

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Top 10 Most Common Errors

See Chapter 8 for complete list of top 10

Top 3 Other information was not included as either a

supplementary schedule or as part of notes to the financial statements (42)

Supplemental schedules, while included, did not accurately follow the CSU format (26)

The net assets category: invested in capital assets, net of related debt was not included (14)

Troubleshooting checklist – to be submitted to campus with audited financial statements (refer to Chapter 8)

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Questions?