San Francisco State University We Make Great Things

San Francisco State University We Make Great Things Happen

2 CFS User Group Year-End Kick-Off Meeting FY 18/19

Agenda • Special guest – Jeff • Last Year’s Close - Sylvia • Payroll - Agnes • Auxiliary - Tammie • AP - Courtney • Budget - Elena • Accounting – Sylvia, Gloria, Cathy, Yessica • Procurement – Megan • ITS - Michelle 3

Special Guest Jeff Wilson Interim Vice President & CFO 4

FY 17/18 Year-End Close • YE close • F/S audit free of errors 5

How & What • Teamwork & Coordination • Communication • Learning from PY • Plan for YE close 6

Payroll FY 2018 / 19 Payroll Year-End Important Dates

Payroll Related - Year-End deadline All ETRAC transactions must be at HR level no later than Wednesday, June 12 th. All Payroll related transactions, and retro payment request for Faculty, Staff, Students, Work-Study, Overtime, Shift-Differential and all Hourly employees must be submitted by Friday, June 14 th. Special Consultant ETRAC transactions & time sheets, and Honorarium Request Forms must be submitted to HR by Friday, June 14 th. June 2019 payroll for Student Assistants, Work-Study and all other hourly payrolls will be charged against FY 2019/20. 8

Auxiliary FY 2018 / 19 Year-End Important Dates

UCORP – IMPORTANT DATES Date June 7 Action Item Last day to enter online requisitions in CFS for FY 18/19. Please review all open requisitions and close those requisitions which are no longer valid. June 14 Last day to request Account Adjustments for transactions posted before May 31, 2019. June 18 All travel Advance/Requests settled by this date. June 18 All Signed Outstanding Invoices to be paid must be submitted by this date (goods or services must be received and/or completed no later than June 30, 2019). Last date to submit signed Check Requisition and Travel Claim forms and Personal Service Contracts. June 18 Last date to settle Petty Cash Requests; no Petty Cash will be distributed after this date until the new Fiscal Year. June 18 Return completed Purchase Order Closing List by this date. 10

UCORP – IMPORTANT DATES Action Item June 18 Final date to submit invoices for payments against existing purchase orders for the FY 2018 – 2019. After this date: Submit a list of goods or services received by this date that have not been invoiced or paid. Please provide a Packing Slip or Contract for the list of goods or services to substantiate accruals for Fiscal Year 18/19 – any Purchase Orders for items or services that do not meet these qualifications will be closed at 5: 00 pm. June 28 Last day to make UCorp deposits at 12 pm for FY 18 -19. July 3 Resume A/P processing for the new fiscal year. July 3 Date Payroll worksheet for Payroll accruals must be submitted by this date. P-Card The statement cycle for May/June 2019 ends on June 20 th. All transactions posted on or before June 20 th will be charged to the current FY 2018/19. Please plan your purchases accordingly as any transactions posted on or AFTER June 21 st will be charged to the new FY 2018/19. 11

UCORP – IMPORTANT DATES • Please settle all petty cash and travel claims by June 18, 2019. • All pending RRT and salary reimbursements should be submitted by May 15, 2019 related to FY 2018 -2019. • Please refer to the procedure for disposal or transfer of fixed assets on the UCorp website: http: //ucorp. sfsu. edu/fixed-asset-procedure#inventory reconciliations to financial records • A Fixed Asset Disposition must be completed for all broken or no longer useful equipment. Also use this form for lost or stolen equipment. • If Assets have been moved to different locations please use the Fixed Asset Relocation Form. • Preauthorization for compensation • Determination of Independent Contractor or Employee • Approvals 12

Accounts Payable FY 2018 / 19 Year-End Important Dates

AP – IMPORTANT DATES DEADLINE ACTION ITEM June 20 Last day to submit Travel & Hospitality and Business Expense Reimbursements. June 20 Last day to submit FY 2018/19 allowable direct payment requests/invoices to Accounts Payable. June 20 Procurement Card/Staples/Department Travel Card purchases posted on or after June 21 st will be charged to FY 2019/20. 14

Budget Administration & Operations FY 2018– 19 Budget Year-End Instructions Carry-forward & Action Items

16 BUDGET YEAR-END DEADLINES TRANSACTIONS Budget Transfers (BTR) DATE ADDITIONAL INFO Friday, June 7 th, 2019 Labor Cost Distribution Adjustments (LCD) Friday, June 7 th, 2019 Preliminary Annual CFW & Campus Reserve Plan Friday, June 14 th, 2019 Final Annual CFW & Campus Reserve Plan Friday, July 5 th, 2019 No additional requests for deadline extension will be taken in consideration.

17 ICSUAM EQUITY ACCOUNTS VS CAMPUS CATEGORIES Designated for Encumbrance – also called encumbrances or open commitments. It is with a purchase order (PO) issuance. Outstanding Commitments 1 – are planned uses of funds tied to specific commitments. Project IDs are required to set up to record funds being used for these types of obligations in our financial system. Planned Obligations 1 – are tied to planned expenditures for items/purposes, but costs and timing are estimated. Project IDs are required to set up to record funds being used for known obligations in our financial system. Reserve – are a specific fund category recognized in the accounting system and generally used for self-supporting, auxiliary activities or campus-based student fees. Some of the popular categories: reserves for equipment and reserves for capital improvement and deferred maintenance. 1. Committed and planned obligations have been approved in writing by the appropriate decision-making authority e. g. executive management level (President, CFO, Provost, Dean, Vice Presidents or Equivalent), or as delegated by this level.

CFW BALANCES – PLANNED 2 OBLIGATIONS Operating fund (NG 001, NG 025, and NR 101) year end available will roll over to NR 401 as a beginning carry forward balance. The plan, commit and spend will be recorded in NR 401 with project ID for a not to exceed two years spending plan. OBLIGATION TYPE/DESCRIPTION FOR OTHER UNITS PROJECT ID 3 Temporary Appointments (contract employees) CF 19 xxxxx Special Projects CF 19 xxxxx Program Development CF 19 xxxxx Equipment CF 19 xxxxx All Others CF 19 xxxxx Notes: 2. Supporting documentation approved by the appropriate decision-making authority is required. 3. The project ID includes: CF-carryforward, FY-Fiscal Year, Abbreviation College or division-3 letters, Last two digit number. 18

CFW BALANCES – PLANNED OBLIGATIONS OBLIGATION TYPE/DESCRIPTION FOR ACADEMIC UNITS PROJECT ID Start-up funding for faculty recruitment CF 19 xxxxx Retention funding for faculty CF 19 xxxxx Fellowships CF 19 xxxxx Endowed chairs CF 19 xxxxx Contract employee CF 19 xxxxx All others: designate appropriate CF 19 xxxxx Renovation CF 19 xxxxx 19

CFW BALANCES – PLANNED OBLIGATIONS OBLIGATION TYPE/DESCRIPTION FOR RESERVE (SELF-SUPPORT UNITS AND UNIVERSITY WIDE) PROJECT ID Capital Improvement/Construction MCxxxxxxx* Designated for Facilities Maintenance and Repairs DMxxxxxxx* Designated for Future Debt Service CF 19 xxxxx Undesignated CF 19 xxxxx Designated for Catastrophic Events CF 19 xxxxx Designated for Financial Aid CF 19 xxxxx Equipment CF 19 xxxxx Designated for Economic Uncertainties CF 19 xxxxx Notes: * The project Id for Capital Improvement/Construction and Designated for Facilities Maintenance & Repairs refers to the Capital Plan Instruction in the Budget Manual. Per Legal Manual Chapter 15, the Capital Improvement (CIMP) and Non-Recurring Maintenance and Repair (NRMR) have the specific CSU designated funds. 20

21 CFW BALANCES – REPORTING SAMPLE PROJECT ID CF 19 BUS 01 CF 19 BUS 02 Total DESCRIPTION CHARTFIELD COMMITMENTS 2019/20 BUDGET YTD ACTUALS BALANCE ENC. AVAILABLE Computer Refresh Acct NR 401 Dept 100 50 20 30 Start Up Funding Acct NR 401 Dept 50 50 0 0 $150 $100 $20 $30

CFW BALANCES – REPORTING PROCESS Spring Review (to align with annual Budget Meeting Process): Budget and Fiscal Offices will provide the carryforward data for the fiscal years for discussion with major units in preparation for each unit’s spring budget meeting. Fall Review (to provide an analysis soon after fiscal year close): After each fiscal year, BAO will provide additional data related to the most recent year- end carryforward balance to each major unit. Year End Potential Management Decisions (President’s Cabinet): The review and analysis of carryforward balances is primarily focused on improving information and ensuring financial decisions, taking into account existing balances as one factor and also taking into consideration a range of management decisions about each unit’s carryforward balances and intended uses. Leadership might also ask for a plan to invest (spend- down) funds within a specific time period or conversely direct units to slow expenditures to build balances within a specific time period. 22

23 CSU FUNDS REQUIRING CFW & RESERVE DESIGNATIONS CSU FUND DESCRIPTION PEOPLESOFT FUNDS 441 Extended Education Operations TCXXX 444 Campus Partners N/A 452 Facility Revenue Fund-Health Facilities Fees TH 202 463 Instructionally Related Activities Trust TAXXX 464 International Programs Trust N/A 471 Parking Revenue Fund-Fines and Forfeitures TP 003 472 Parking Revenue Fund Parking Fees TP 021, TP 022, TP 024, TP 025 481 Lottery Education Fund TLXXX 485 CSU Operating Fund NGXXX, NRXXX 531 Housing Operations and Revenues TDXXX 534 Campus Union-Operations and Revenues TUXXX

24 FY 2019 -20 RISK POOL California State University Risk Management Authority (CSURMA) was formed by CSU and provides several risk management programs such as Pooled Liability Programs, Pooled Worker’s Compensation Program, IDL/NDI/UI Program, Property Program, Foreign Travel, Study Abroad, Special Event and other insurance programs. TYPES RATE OWNER General Liability 0. 30% Fiscal Workers’ comp 1. 10% IDL/NDI/UI 0. 49% Property (Total Insurable Value) TIV=0. 05 AIME (Athletic Injury Medical Expense) Athletics Automobile Liability Budget website: 2019 -20 Budget manual $201. 27/vehicle Risk Mgmt.

25 FY 2019 -20 RISK POOL FY 2019 -20 Estimated Amounts For Budget Planning SELF SUPPORT 2019 -20 EST. AMOUNT Campus Recreation 55 Campus Union 40 Grants & Contract 182 HDCS (Housing) 397 Misc. Trust 111 Parking and Transportation 32 Student Health Service 98 College of Extended Learning 160 Athletics 100 Children Campus Total Budget website: 2019 -20 Budget Manual 17 $1, 192

University Accounting Services FY 2018 / 19 Year-End Important Dates

ACCOUNTING – IMPORTANT DATES DEADLIN E ACTION ITEM May 17 Last day request to University Accounting Services for faculty released/reimbursement time invoicing to UCorp. June 12 Last day to request CPO reimbursements from CO and other CSU campuses to University Accounting Services. June 14 Last day to submit recharges and miscellaneous invoicing to University Accounting Services. June 14 *Reprographics (Copiers), postage, and telephone recharges ended at May 31 st. st will be posted to FY 2019/20. Recharge expenses incurred after May 31 Last day to submit Petty Cash vouchers to the Bursar’s Office. Any vouchers received after June 14 th will be charged to FY 2018/19. June 21 Last day to submit journal entries and fund transfer requests to the University Accounting Services. 27

COST RECOVERY New accounting practices effective 7/1/18 Service provider revenue account Ø 580094 Services provided to a campus department Ø 580095 Services provided to Auxiliary Organizations Ø 580194 Services provided to another CSU campus or CO Ø 580090 Misc. services provided to a third party Service receiver expense account Ø 617001 Services received from a campus department or agencies Ø 617101 Services received from another CSU campus or CO 28

29 Program Code 3001 Description Telephone 3002 - 3007 Utilities 3008 Reprographics 3009 3010 Postage Computing Services 3011 - 3014 Materials & Services 3027 - 3032 3015 Custodial Services 3016 Parking Lots Cleaning 3017 UPD Security Services 3018 Parking Permits/Shuttle Program Code 3019 3020 3021 3022 3023 3024 3025 3026 3033 3034 3035 Description Vista Room Facility & Catering (HDCS) CSUEA (EII) Cleaning & Facilities (MWC) UPN/UPS Guest Suite Cleaning & Facilities (Sutro) UPD Livescans Fingerprint DTC Room Rental COSE Facilities LCA Event Staff DPRC – Cost Recovery

YEAREND INVOICES SEARCH AP Unrecorded Liabilities Ø University obligations – Goods or services have been received as of June 30 but not yet paid Ø Open invoices received will be reviewed at yearend to identify payments for goods or services received before June 30 Ø June 1 st to Oct 15 th - Invoice payment requests require to provide the date of goods or services received 30

31 Goods/Services Received Date Ø Date the goods were RECEIVED from the vendor Ø Date the services were COMPLETED from the service provider Ø Can be a service period

32 Goods/Services Received Date

Options: 33

34 MORE Options:

NOT the Payment Approval Date

36

AUDITS Ø GAAP Financial Statement Audit • Interim Audit • Year-end Audit Ø Single Audit (A-133) • Financial Aid – full scope • Other Federal Programs (grants) - TBD Ø System-wide Revenue Bond (SRB) • Housing, Parking, CEL, Health Facility, Student Union (including Rec. Center) Departmental information will be needed during the audit preparation and field work. 37

MONTH-END NOTICE Month-End Close Notification 38

USEFUL INFORMATION • Account Usage Guidelines • Last updated as of March 14, 2019 • Chart of Accounts • Last updated as of April 2, 2019 Website: http: //fiscaff. sfsu. edu/forms_and_documents 39

UBIT Ø UBTI is generated by any Trade or Business which is regularly carried on for which the entity was granted their tax exempt status Ø Examples of activities on our campus that may generate UBTI include: Ø Rental income, in conjunction with other services Ø Sponsorships Ø Research Ø Summer camps ( e. g. sports campus) Ø IRS rules to determine UBTI and calculate the potential taxes are complex and changed in 2018 Ø The individuals responsible for UBTI has to constantly engage University personnel and departments to proactively assess potential UBTI situations 40

UBIT Three Elements that need to be present for an activity to be considered UBIT: 1. not substantially related to the University’s exempt purpose (e. g. University’s mission) 2. “regularly carried on” 3. a trade or business Ø Related to University Exempt Purpose – To be related to the University’s educational purpose, there must be a substantial causal relationship to the achievement of those purposes, i. e. , the activity must contribute importantly to the accomplishment of the exempt purposes (other than the University’s need to produce income) 41

UBIT Ø Prior to 2018 income and expenses from all Unrelated Business Activities (UBA’s) were aggregated to derive each University's net operating loss (NOL) amount Ø The NOL could be carried forward to offset future net income amounts from the UBA Ø Per internal revenue Code 512 (A)(6), effective 2018 exempt organizations with more than one UBA must calculate the NOL on a per activity basis. Ø E. G expenses from a college’s annual T-Shirt sales cannot be offset against income earned on University sales of used computers 42

UBIT IMPORTANT DATES • Departments answer UBIT questionnaire July-August • Departments respond to UBIT questionnaire review August – October • Departments respond to UBIT reporting package preparation October & November • Departments respond to UBIT report package review by CO and Auditors February - April 43

44 TRUST FUND Trust Fund Balance & Cash Balance § Carry over from one year to the next § Fund/Program should maintain positive cash position § Should never have a deficit fund balance without proper justification § When would the cash deficit spending is allowed

45 TRUST FUND Impact Solution § AP Payment not process § Business plan § Petty cash request disapprove § Deficit notification § Journal entry reject § Transfer in resources § Carry over with negative fund/cash § Reduction of spending balance to next year § Abnormal balance/Expense not proper recorded for the FY § Deficit “automatic” to be covered by fund per the Trust Fund Agreement Part 4 for year end by 06/28/19

46 CSU FUND 491/496 CONVERSION §Trust Fund Agreement No Paper format effective 07/01/2019 §Mini Grant (SG 101 + 69 xxxxxx) • Budget Request • Available Balance Carry Forward 07/01/2019

47 CSU FUND 491/496 CONVERSION Mini Grant Carry Forward Balance

48 JOURNAL ENTRY REQUEST PROCESS §Email: journalrequest@sfsu. edu §Completed Journal Entry Library https: //sfsu. account. box. com/login

49 REFERENCES • CSU Legal Accounting and Reporting Manual Chapter 16 -4 -5. 0 & Chapter 29 -4 -3. 3 • SFSU Trust Fund Practice Directive

PROCUREMENT FY 2018 / 19 Year-End Deadlines

PROCUREMENT – IMPORTANT REMINDERS Ø May 15 - Last day for RFP request – Formal and Informal Request for Proposals Ø June 7 - Final date to approve/budget-check requisitions for the procurement of any item Ø June 14 - Final date to submit requests in writing for account code changes, or adjustments Don’t forget to review all prior year open purchase orders , and close orders that are no longer active. 51

PROCUREMENT – IMPORTANT REMINDERS Blanket Purchase Orders Ø Procurement will close BPO’s by June 28 th. However keep in mind any PO, blanket or otherwise, with a balance <$1000 and no activity since 7/01/18 will be closed regardless of fund. Ø Procurement will assist with processing payment for goods or services received prior to June 28 th against a blanket order that has already been closed. An invoice for goods or services received prior to June 28 th against a BPO that has been closed may be processed as a pre-approved direct pay. Send an email with the attached form to Megan Dobbyn who will sign off before sending to A/P. 52

2 FA FOR CFS Michelle Martinez, ITS

54 For security, SF State protects sensitive data using two-factor authentication. SF State employees who access sensitive data to perform work will need to install Duo, the SF State application for two-factor authentication, and provide a second credential before access is granted. 2 FA – TWO-FACTOR AUTHENTICATION

55 Acronyms & Authentication Methods MFA: Multiple Factor Authentication 2 FA: Two Factor Authentication UFA: Universal 2 -Factor Authentication Duo: Application provides token Enter 6 digit code as second password or nd type ”push” in 2 password field to approve Hardware Token: Provides 6 digit code as second password

56 Changes to Authentication Methods Ø Ø 2 FA login high risk methods removed Ø “Call Me” - phone calls to landline or cell phone for approval Ø “SMS”- text message sends to phone with numeric token Ø Implementation date: April 26, 2019 2 FA for CFS Login Ø Notice on Quick Links page Ø Implementation date: Wednesday, May 15, 2019

57 Security Concerns Ø Duo Allows “Push” Ø Type “push” for the 2 nd password Ø Sends message to approve 2 FA request Ø Before you Approve Ø Confirm that your SF State ID Ø Location lists where you are currently Ø Time is consistent with when you submitted your “push” request

58 Device settings can be updated at either website: https: //2 FA. sfsu. edu https: //VPN. sfsu. edu

59 Next steps… Ø Vigilance is required… Report Ø Lost or stolen devices Ø Hardware token Ø Cell phone with Duo application Ø Odd issues with email account Ø Use a unique password for SF State global login Ø Evaluation of additional 2 FA requirements Ø Other web accessed resources Ø Possibly email, SF State global login Ø May even be implemented for students

60 RESOURCES Ø Two-Factor Authentication (2 FA) Guide https: //its. sfsu. edu/guides/2 fa Ø Setup the Duo application Ø Login using Duo Ø Troubleshooting Ø Service. Now Catalog Request https: //sfsu. service-now. com/sp Ø Request Hardware Token Ø Get Help with Lost or Stolen device

61 CFS Login Changes on Wed, May 15 th ØITS Service Desk: In Person support at ADM 110, 8 am – 5 pm Ø 2 FA Support Hours: ADM 103 Ø Tuesday, May 7 th 3 -4 pm Ø Thursday, May 9 th 11 am-Noon Ø Wednesday, May 15 th 9: 30 am-10: 30 am

Contact Us Budget: Elena Stoian estoian@sfsu. edu Payroll: Agnes Cheng acheng@sfsu. edu Auxiliary: Tammie Ridgell ridgell@sfsu. edu Procurement: Megan Dobbyn mdobbyn@sfsu. edu General Fund Accounting: Gloria Tseung gtseung@sfsu. edu Trust Fund Accounting: Cathy Liu cathyliu@sfsu. edu Financial Reporting: Tax Reporting/UBIT: Young Kim yskim@sfsu. edu ITS: Yessica Gonzalez yessicagonzalez@sfsu. edu Michelle Martinez micayela@sfsu. edu