Summary of Changes to CSAM 2011 Edition

Various procedures

• Non-substantive edits for punctuation, clarity, or consistency.

105 – Fund Accounting

• Clarified guidance regarding restricted programs and activities within the general fund to align with the revised definition of restricted balances in accordance with Governmental Accounting Standards Board (GASB) Statement 54.
• Corrected “capital project fund(s)” to “capital projects fund(s).”
• Corrected “minimum number of funds principle” to “number of funds principle.”

205 – The Accounting Cycle

• Revised the title of Object 9790, replacing “Undesignated” with “Unassigned,” in accordance with GASB Statement 54.

210 – Budgetary Accounting

• Updated ending balance object codes and titles in accordance with GASB Statement 54.
• Renamed the section “Recording Budgeted Reserves” to “Recording Budgeted Components of Fund Balance,” and updated the associated guidance to conform to GASB Statement 54.

215 – Audit Adjustments

• Revised the terminology used for fund balance components in the example of determining audit adjustment materiality, to conform to GASB Statement 54.
• Added language to clarify that Object 9793 and Object 9795 should not be used with standardized account code structure (SACS) resource codes subject to deferred revenue rather than to fund balance.

305 – Fund Classification

• Added language stating that guidance may include information that is temporarily superseded by categorical flexibility provisions of SBX3 4 and SB 70.
• Added “(Valid through 2007–08)” to the titles and definitions of former optional Fund 03 and Fund 06.
• Updated special revenue fund definition in accordance with GASB Statement 54.
• Added new Fund 10, Special Education Pass-Through Revenue Fund, in accordance with California Department of Education 's (CDE’s) March 3, 2011, letter.
• Clarified definitions of Fund 17 and Fund 20 in accordance with GASB Statement 54.
• Corrected “capital project fund(s)” to “capital projects fund(s).”
• Added reference to Procedure 750 in the definition of Fund 76.

310 – Resource (Project/Reporting) Classification

• Removed references to amounts “designated” to conform to GASB Statement 54.
• Updated the fiscal year references in definitions of obsolete resource codes.
• Deleted outdated resource codes, including resource codes ending as a result of statutory categorical ending balance flexibility.
• Added various new resource codes.
• Added final fiscal year designation “(09–10)” to obsolete resource codes.
• Revised the titles of various resource codes.
• Added strike-through to resource codes temporarily inactivated as a result of statutory categorical flexibility, and added explanatory footnote.

320 – Goal Classification

• Replaced “ROC/P” with “ROCP.”
• Clarified the definition of Goal 1110, Regular Education, K–12, for circumstances in which a county office of education would use this goal.

325 – Function Classification

• Added language stating that guidance may include information that is temporarily superseded by categorical flexibility provisions of SBX3 4 and SB 70.
• Updated program reference in the Function 2100 description.
• Updated regulatory reference in the Function 3110 description.
• Clarified the definition of optional Function 7410, Staff Development for noninstructional staff, to distinguish it from the optional instructional staff development Function 2140.
• Clarified the definition of Function 7700, Centralized Data Processing, to emphasize its use for agency-wide data processing services of an administrative nature.

330 – Object Classification

• Added language stating that guidance may include information that is temporarily superseded by categorical flexibility provisions of SBX3 4 and SB 70.
• Object 4300, Materials and Supplies – expanded definition to clarify that it would include items that are not consumable but that do not meet either the capitalization threshold or the inventory threshold.
• Object 5100, Subagreements for Services – revised the definition to provide that the first $25,000 of subagreements for services chargeable to Object 5800 is per year, not per subagreement, to reflect recent change in federal direction. 
• Object 5450, Other Insurance (Optional) – expanded the definition to emphasize that employee health insurance is not charged to this object code.
• Object 6400, Equipment – clarified the definition for types of software purchases considered equipment, and the costs that should be included in the acquisition cost of equipment.
• Object 8046, Supplemental Educational Revenue Augmentation Fund (SERAF) – added new object code.
• Object 8435, Class Size Reduction, Grades K–3 – added “(Inactive effective 2009–10 due to statutory categorical flexibility)” to the title and definition.
• Object 8480, Charter Schools Categorical Block Grant – added “(Inactive effective 2009–10 due to statutory categorical flexibility)” to the title and definition.
• Object 8540, Deferred Maintenance Allowance – added “(Inactive effective 2009–10 due to statutory categorical flexibility)” to the title and definition.
• Object 8629, Penalties and Interest from Delinquent Non-Revenue Limit Taxes – corrected hyphenation.
• Object 8973, Proceeds from Lease Revenue Bonds – clarified definition by removing reference that the special reserve fund for capital projects (Fund 40) does not allow lease revenue bond transactions.
• Object 8995, Categorical Education Block Grant Transfers – added “(Inactive effective 2009–10 due to statutory categorical flexibility)” to the title and definition.
• Object 8997, Transfers of Restricted Balances – added “(Valid 2003–04, 2008–09 and 2009–10 only)” to the title and definition, and clarified the definition to include reference to SBX3 4.
• Object 8998 – revised title from “Categorical Flexibility Transfers per Budget Act Section 12.40” to “Categorical Flexibility Transfers” and added “(Inactive as of 2009–10).” Clarified the definition to distinguish the use of this object in 2008–09 versus its use in prior years for Budget Act Section 12.40 transfers.
• Objects 9700 through 9790 – retained pre-GASB 54 codes, titles, and definitions, clarifying that they are valid through 2010–11, and added new section of GASB 54-compliant codes, titles, and definitions, clarifying that they are effective beginning 2011–12.
• Added new Object 9796, Capital Assets, Net of Related Debt, for use in Funds 61 through 73.
• Added new Object 9797, Restricted Net Assets, for use in Funds 61 through 73.

340 – Valid Account Code Combinations

• Object 9790 – replaced Undesignated/Unappropriated with Unassigned/Unappropriated (9790), in accordance with GASB Statement 54.
• Object 1100 – corrected the title from “Teachers' Salaries” to “Certificated Teachers' Salaries.”
• Object 2100 – corrected the title in example from “Instructional Aides’ Salaries” to “Classified Instructional Salaries.”
• Updated outdated resource code references.

420 – Prepaid Expenditures

• Replaced “undesignated fund balance” with “unassigned fund balance” in accordance with GASB Statement 54.

425 – Fair Value: Accounting and Reporting for Certain Investments

• Revised the guidance for reporting unrealized gains and losses in fund balance to conform to GASB Statement 54.

605 – Balance Sheet Accounts—Coding Examples

• Added language stating that guidance may include information that is temporarily superseded by categorical flexibility provisions of SBX3 4 and SB 70.
• Corrected the title of Object 1100 in Example 1b from “Teachers' Salaries” to “Certificated Teachers' Salaries.”
• Updated ending balance object codes and titles in accordance with changes made pursuant to GASB Statement 54.
• Revised page 3 to remove reference to “reservations and designations;” replaced with “components” in accordance with GASB Statement 54.

610 – Revenues—Coding Examples

• Corrected the title of Object 1100 in example from “Teachers' Salaries” to “Certificated Teachers' Salaries.”
• Corrected the title of Object 2100 in example from “Instructional Aides’ Salaries” to “Classified Instructional Salaries.”

645 – County Office of Education—Coding Examples

• Added language stating that guidance may include information that is temporarily superseded by categorical flexibility provisions of SBX3 4 and SB 70.
• Corrected the title of Object 1100 from “Teachers' Salaries” to “Certificated Teachers' Salaries.”
• Corrected the title of Resource 6680 in one of the examples.

650 – Facility Maintenance Programs—Coding Examples

• Added language that guidance may include information that is temporarily superseded by categorical flexibility provisions of SBX3 4 and SB 70.

655 – Employment Separation Costs—Coding Examples

• Clarified guidance that federal programs subject to the federal cost principles may not be charged directly for normal separation costs, to allow for exceptions such as American Recovery and Reinvestment Act (ARRA) State Fiscal Stabilization Funds.
• Clarified guidance that federal programs subject to the federal cost principles may not be charged directly or indirectly for abnormal or mass separation costs, to allow for exceptions such as ARRA Ed Jobs Funds.
• Clarified guidance throughout that those federal programs subject to the federal cost principles may not be charged certain types of separation costs.

720 – Certificates of Participation (COPs)

• Revised the COPs reserve account description with the appropriate fund balance classification in accordance with GASB Statement 54.
• Updated ending balance object codes titles in accordance with GASB Statement 54.
• Replaced Undesignated/Unappropriated with Unassigned/Unappropriated in accordance with GASB Statement 54.
• Replaced Reserve for All Others with All Other Nonspendable Assets in accordance with GASB Statement 54.

730 – Short-Term Borrowings

• New procedure added to provide guidance previously disseminated in letters, regarding options and accounting for short-term borrowing.

750 – Pass-Through Grants and Cooperative Projects

• Added language that guidance may include information that is temporarily superseded by categorical flexibility provisions of SBX3 4 and SB 70.
• Expanded guidance on the cash conduit pass-through model to include guidance that certain types of funding passed through by authorizing local educational agencies to charter schools should be reported in an agency fund.

755 – Special Education

• Added a new section that provides an overview of the Special Education Local Plan Area (SELPA).
• Added a new section that describes SELPA Administrative Unit pass-through activities and the use of the new Fund 10, Special Education Pass-Through Revenue Fund, for those activities.
• Updated examples throughout to reflect the addition of Fund 10.

760 – Regional Occupational Centers/Programs (ROCPs)

• Added language that guidance may include information that is temporarily superseded by categorical flexibility provisions of SBX3 4 and SB 70.
• Replaced “ROC/P” with “ROCP.”
• Corrected title of Object 1100 from “Teachers' Salaries” to “Certificated Teachers' Salaries.”

770 – Distinguishing Between Supplies and Equipment

• Clarified what costs to include in the cost of an item when determining whether it should be capitalized.

775 – Accounting for Internal Service Funds

• Expanded guidance on recording expenditures for claims or judgments in the self-insurance fund to emphasize the use of the appropriate object code.
• Added guidance and an illustration for recording reimbursements to the general fund for costs of administering self-insurance activities.

805 – Joint Powers Agreements/Agencies (JPAs)

• Added language stating that guidance may include information that is temporarily superseded by categorical flexibility provisions of SBX3 4 and SB 70.
• Replaced “ROC/P” with “ROCP.”

810 – Charter Schools

• Updated reference to GASB authoritative literature regarding reporting entities.
• Clarified guidance regarding the use of function codes in Fund 62.
• Objects 9700–9790 – retained pre-GASB 54 codes and titles, clarifying that they are valid through 2010–11, and added new section of GASB 54 compliant codes and titles, clarifying that they are effective 2011–12.
• Added new Object 9796, Capital Assets, Net of Related Debt.
• Added new Object 9797, Restricted Net Assets.

905 – Documenting Salaries and Wages

• Clarified guidance that the federal cost principles cited in the procedure apply only to those federal programs that are subject to those principles, to allow for exceptions such as ARRA State Fiscal Stabilization or Ed Jobs Funds.
• Added notation regarding exception to time accounting requirements for employees who work 100% on a Schoolwide Program (SWP) plan at a school that has consolidated all its programs in its SWP.

910 – Program Cost Accounting

• Updated to reflect recent inclusion of charter schools funds in the Program Cost Report.

915 – Indirect Cost Rate

• Added link to Web site where the effective date of the current indirect cost plan and the delegation agreement number can be found.
• Added language at United State Department of Education’s request to emphasize that indirect costs are a subset of administrative costs.
• Updated guidance to reflect recent changes to CDE’s approved indirect cost plan, primarily relating to how the carry-forward adjustment for over- or under-recovery of indirect costs is calculated.
• Updated guidance for minor changes to amounts included in the numerator and denominator of the indirect costs calculation.

Appendix A – Analysis of Salaries

• Corrected the function code for certain Teacher (Object 1100) classifications.

Appendix B – Normal Balances of Balance Sheet Accounts

• Updated ending balance objects codes and titles in accordance with GASB Statement 54.
• Added new Object 9796, Capital Assets, Net of Related Debt.
• Added new Object 9797, Restricted Net Assets.

Glossary

• Capital Project Funds – clarified definition to conform to GASB Statement 54.
• Designation for Economic Uncertainties – removed definition and added notation to refer to “Reserve for Economic Uncertainties.”
• General fixed asset account group and general group of long term debt accounts – deleted obsolete terms and definitions.
• General group of long term debt accounts – deleted obsolete term and definition.
• Reserve – deleted term and definition; in this context, term is no longer applicable in accordance with GASB Statement 54.
• Reserve for Economic Uncertainties – removed “see Designation for Economic Uncertainties” and added definition in accordance with GASB Statement 54.
• Special Revenue Funds – clarified to conform to GASB Statement 54.