401 Golden Shore, 5th Floor
Long Beach, CA 90802-4210
Financial Services, Accounting
Senior Accounting Manager
Systemwide & CO Accounting
Transfer Request: 109034
Legal Posting: FY 2010-11
GAAP Posting: FY 2010-11
(When GAAP year = Legal year, no GAAP entry is needed)
The CSU has received additional American Recovery & Reinvestment Act (ARRA) funding for fiscal year 10/11. The additional ARRA funding is reimbursement for mitigating reductions to the CSU campuses for expenditures pursuant to Title XIV –ARRA. This transaction is to provide funding to 17 CSU campuses per the attached schedule.
To comply with all the reporting and regulatory requirements, please comply with the below accounting instructions:
- Use the same PeopleSoft fund, within CSU Fund 485 that is mapped to the restricted-other net asset category using FNAT Key # 128955, as you used last year. If preferred, Campus may choose to a create fund.
- New this Year! A new PeopleSoft fund for General Fund (GF), SCO Fund 0001 Ref Item 501 using FNAT Key # 129811, will need to be created by each campus.
- Record PFA 109030 to the Actuals ledger within both the new GF 501 fund and the restricted 485 Trust Fund.
- Prepare a manual journal entry to move salary and benefit expenditures into the restricted fund within CSU fund 485.
- Similar to last year, only departments within the allowable FIRMS program codes are allowable. Therefore, first use expenditures in Instruction (0100-0105, NOT 0106), then Student Services (only 0502, 0503, & 0507) and finally if additional expenditures are needed use Academic Support (only 0402, 0405, & 0408). As a tool to determine the program code by department ID you may use the CDIP FIRMS Rule-4 Detail Table (CSU_CDIP_RUL4_D) in PeopleSoft query manager.
- Prepare the supporting HR Labor Distribution Query that lists department ID, employee ID and payment amounts along with our payroll journal. To arrive at the correct program code distribution, an additional XXCSU business unit JE may be utilized.
- Your manual journal entry may be limited to the 6 major object codes in CSU 485. However, if needed, more benefits accounts can be used. Once you have determined your population, use a reasonable allocation percentage to determine the amounts per account to be transferred to the restricted fund in CSU fund 485. As a starting point, these are the suggested major object codes:
- 601100 – Academic salaries
- 601201 – Management & supervisory
- 601300 – Support staff salaries
- 603001 – OASDI
- 603004 – Health & welfare
- 603005 – Retirement
- DO NOT include any employees that have reimbursed time salary and benefits.
- DO NOT include any employees funded by cost match that have been committed from the CSU Operating Fund in compliance with an externally sponsored agreement. Please coordinate with your Sponsored Program Director.
- After the allocation, the total salary and benefit expenses in the restricted CSU fund 485 in should be equal to the amount of this ADNOAT. In other words, the debit of total salary and benefit expenses should equal to the credit of ARRA grants expenditure offset (690006) in the restricted CSU fund 485.
Be cognizant of the impact this may have your campus/auxiliary federally negotiated F&A (Facilities & Administrative) cost rate for sponsored projects. This is only a concern if FY2010/11 is your “base year”1 for developing your F&A rate. Inclusion of administrative salaries and benefits will ultimately reduce your F&A rate, as those costs would not be allowable in the administrative cost pool for the rate.
If you have any questions regarding this ADNOAT or general ARRA question, please contact me at (562) 951-4611 or email@example.com. For questions, regarding F&A cost rate calculation and impact of the ARRA funding, please contact Sue DeRosa at (562) 951-4213 or firstname.lastname@example.org.
1If you will be using the financial data from fiscal year 2009/10 to develop your next F&A rate for negotiation with the Federal government, then this is your “base year.”