Completing Your Reporting Package and Stand-Alone Financial StatementsPresented by Elisa StilwellSenior Manager - KPMG LLPKPMG LLP

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2005 Reporting Package Components

Financial statement audit: Campus management approval sheet

Statement of net assets

Statement of revenues, expenses, and changes in net assets

Statement of cash flows

Comprehensive analytical review / variance analysis

Notes

Conversion worksheet for stand-alone statements

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2005 Reporting Package Components (cont’d)

A-133 audit (single audit): Schedule of Expenditures of Federal Awards

(SEFA)

Notes

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2005 Reporting Package – Highlights of Significant Changes

Lots of data links!

New data added in order to: Help facilitate an efficient audit process

Reduce the number of questions and review comments as information will already be available and analyzed

Consists of 2 sections, which are in 2 separate electronic files (excel workbook and word document) – refer to reporting package index

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2005 Reporting Package – Highlights of Significant Changes (cont’d)

Prior year data added Statement of net assets

Statement of revenues, expenses, and changes in net assets

Statement of cash flows

Note 4 – accounts receivable

Note 13 – Operating expenses by natural classification

Check formulas added to notes that require prior year balances (i.e. rollforward of capital assets and rollforward of long-term debt obligations)

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2005 Reporting Package – Highlights of Significant Changes (cont’d)

Separate tabs for comprehensive analytical review / variance analysis

Contains three years (i.e. 2005, 2004, and 2003)

Identification of trends and relationships between financial statement account balances

Current year vs. prior year balances – dollar and percentage changes

Comparison of balances as a percentage of total assets/ total liabilities and net assets for each year

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2005 Reporting Package – Highlights of Significant Changes (cont’d)

Separate tabs for comprehensive analytical review / variance analysis (cont’d)

Components of revenues and expenses by function as a percentage of student and tuition and fees, net of scholarship allowances, for each year

Components of revenues as a percentage of total revenues for each year

Current year vs. prior year balances – dollar and percent changes for expenses by natural classification

Components of expenses 1) by natural classification and 2) by function as a percentage of total expenses for each year

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2005 Reporting Package – Highlights of Significant Changes (cont’d)

Note 4 – Receivables Capital leases receivable due from auxiliary

organizations – schedule of future minimum lease payments to be received

Note 5 – Capital assets Breakout of depreciation and amortization

expense related to capital assets and other assets

Reconciliation of capital assets additions per rollforward schedule to acquisition of capital assets per statement of cash flows

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2005 Reporting Package – Highlights of Significant Changes (cont’d)

Note 8 – Long-term liabilities Reconciliation of additions per rollforward

schedule to proceeds from capital debt and principal paid per statement of cash flows

Note 17 – Net assets component – invested in capital assets, net of related debt

Detailed calculation schedule of amount

Note 16 – Other information: auxiliary organizations

See separate auxiliary organization presentation

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2005 Reporting Package – Highlights of Significant Changes (cont’d)

A-133 Audit (single audit) Separate “overflow page” for additional grants

to be included on the SEFA

Other Changes More check formulas added

Date submitted added to top of each tab

Must use standard naming convention when submitting electronic file - include only campus location and submission date (for example: “Chico_RP 2005_10.18.05.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

Key Dates (refer to Audit Timeline) Campus to provide complete stand-alone

financial statements to KPMG – November 10, 2005

Financial statements issued – December 15, 2005

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

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Preparing Your Stand-Alone Financial Statements

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

Must use electronic template of proforma financial statements (refer to 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 GAO Independence Standards.

More details on MD&A in separate presentation today

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Preparing Your Stand-Alone Financial Statements

Required reclassification adjustment for stand-alone reporting purposes only (refer to Chapter 12)

Included as separate tab in reporting package

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Preparing Your Stand-Alone Financial Statements

Elimination column - must eliminate nonexchange transactions between the campus and the discretely presented auxiliary organizations, if any (refer to Chapter 4)

For CSU, common types of nonexchange transactions may include:

Scholarship contributions

Donations and other contributions

Grants

Gifts

In-kind gift contributions

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Preparing Your Stand-Alone Financial Statements

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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Questions?