Completing Your Package
description
Transcript of Completing Your Package
Completing Your Reporting Package and Stand-Alone Financial StatementsPresented by Elisa StilwellSenior Manager - KPMG LLPKPMG LLP
2GAAP Reporting Workshop
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
3GAAP Reporting Workshop
2005 Reporting Package Components (cont’d)
A-133 audit (single audit): Schedule of Expenditures of Federal Awards
(SEFA)
Notes
4GAAP Reporting Workshop
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
5GAAP Reporting Workshop
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)
6GAAP Reporting Workshop
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
7GAAP Reporting Workshop
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
8GAAP Reporting Workshop
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
9GAAP Reporting Workshop
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
10GAAP Reporting Workshop
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”)
11GAAP Reporting Workshop
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
12GAAP Reporting Workshop
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
13GAAP Reporting Workshop
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
14GAAP Reporting Workshop
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
15GAAP Reporting Workshop
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
16GAAP Reporting Workshop
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
17GAAP Reporting Workshop
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)
18GAAP Reporting Workshop
Questions?