Completing Your Reporting Package and Stand-Alone Financial StatementsCompleting Your Reporting Package

and Stand-Alone Financial Statements

Presented by

Elisa Stilwell and Patty McClendon

Senior Managers - KPMG LLP

Presented by

Elisa Stilwell and Patty McClendon

Senior Managers - KPMG LLP

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Reporting Package Components

2004 Campus Reporting Package includes: For the financial statement audit:

Statement of Net Assets

Statement of Revenues Expenses, and Changes in Net Assets

Statement of Cash Flows

Notes

For the A-133 audit:

Schedule of Expenditures of Federal Awards

Notes

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Reporting Package – Highlights of Significant Changes for 2004

Note 3 – Cash, Cash Equivalents and Investments Endowment cash and cash equivalents

Note 4 – Accounts Receivable Other receivables must include a breakout of

significant components

Note 8 – Long-term Liabilities Activity Schedule Rollforward by individual debt issue and subtotal by

debt type

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Reporting Package – Highlights of Significant Changes for 2004 (cont’d)

Note 14 – Transactions with Related Entities Gross amounts of receivables and payables

Separate FASB and GASB columns

Note 16 – Other Information: Auxiliary Organizations Endowment cash and cash equivalents

Composition of investments, current and noncurrent

Long-term liabilities activity schedule – breakout of significant components of other long-term liabilities

Prior period adjustment(s) information, if any, for GASB and FASB entities separately

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Reporting Package – Highlights of Significant Changes for 2004 (cont’d)

A-133 Audit (Single Audit) Included in Reporting Package – see separate tab

Pass-through identifying number and pass-through source for each grant

Other Changes Removal of statement of cash flows for discretely

presented component units (auxiliary organizations)

More check formulas added

Version number and date submitted added to footer

Use standard naming convention for electronic file that includes only location name and version number (for example: “Chico_RP 2004_v1.xls”)

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Preparing Your Stand-Alone Financial Statements

Campus stand-alone financial statements include the following components:Management’s Discussion and Analysis

(MD&A)

Statement of Net Assets

Statement of Revenues, Expenses, and Changes in Net Assets

Statement of Cash Flows

Notes to the Financial Statements

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Preparing Your Stand-Alone Financial Statements Timing depends on campus

Campus stand-alone financial statements should not be issued before the Systemwide financial statements (refer to Audit Timeline)

Access to technical accounting literature and resources to help ensure successful preparation of GAAP financial statements (refer to Chapter 14)

Use electronic template of proforma financial statements (included in Chapter 12) to begin the preparation process Option of 1 year or 2 year comparative presentation

Electronic template should be tailored as applicable to the individual campus.

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Preparing Your Stand-Alone Financial Statements

MD&A

If opting for 1 year presentation, presentation of current year and prior year financial data is still required

Campus is responsible for drafting the MD&A. KPMG cannot assist under the new GAO Independence Standards.

More details on MD&A in separate presentation today

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Preparing Your Stand-Alone Financial Statements Elimination of nonexchange transactions between

the Campus and the discretely presented auxiliary organizations, if any

Based on the significance of the discretely presented auxiliary organizations to the financial reporting entity, the Campus must evaluate whether certain auxiliary information should be included in the notes to the financial statements.

KPMG campus teams must revise the opinion accordingly based on which accounting firms audit which auxiliary organizations (i.e. KPMG or other auditors)

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Preparing Your Stand-Alone Financial Statements Required reclassification adjustments for stand-

alone reporting purposes only (refer to Chapter 12) Accounts receivable due from the Chancellor’s Office

Other changes to electronic template of the proforma financial statements Tables included in notes to the financial statements

are in excel format

Note 2 (a) Financial Reporting Entity – revisions to summary information for discretely presented auxiliary organizations

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Preparing Your Stand-Alone Financial Statements

Campus must submit a complete draft of the financial statements, including MD&A, to KPMG to begin the review process.

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Questions?