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Summary of Changes to CSAM 2019 Edition

A reference document of changes included in the January 2019 edition of the California School Accounting Manual (CSAM).
Procedure Summary of Changes

Entire CSAM

  • Edits made to comply with federal Section 508 accessibility standards, including:
    • Elimination of the vertical indented left border
    • With few exceptions, use of Arial 12 point font for all text.
    • Elimination of certain illustrations that could not be made compliant. Also noted below in the applicable procedures.
    • Reformatting of accounting examples, illustrations, lists, etc.
    • Addition of subheadings
    • Addition of column headings

Multiple procedures

  • Non-substantive edits for punctuation, clarity, or consistency.
  • Updated web page references to reflect correct source page.
  • Where applicable, replaced references to No Child Left Behind (NCLB) with the Every Student Succeeds Act (ESSA) to reflect the reauthorized Elementary and Secondary Education Act, as amended by the ESSA (noted below in the applicable procedures).

205  The Accounting Cycle

  • Replaced references to NCLB with references to ESSA.

215  Audit Adjustments

  • Updated statutory or regulatory citation(s).

305  Fund Classification

  • Fund 11, Adult Education Fund: Replaced reference to Adult Education Block Grant Program with Adult Education Program.
  • Fund 35, County School Facilities Fund: Added reference to the 2016 State School Facilities Fund (Proposition 51).

310  Resource (Project/Reporting) Classification

  • Replaced references to NCLB with references to ESSA.
  • Added new resource codes established since the last time the manual was published.
  • Added ending dates for newly obsolete resource codes indicating the final year for which funds were available.
  • Deleted obsolete resource and object codes.
  • Replaced obsolete grants in examples with current grants.

315  Project Year Classification

  • Updated project years used in examples to make examples more current.

325  Function Classification

  • Replaced references to NCLB with references to ESSA.
  • Function 1110, Special Education: Separate Classes: Updated statutory citation.

330  Object Classification

  • Object 3701–3702, OPEB, Allocated: Updated definition in accordance with Governmental Accounting Standards Board (GASB) Statement 75.
  • Object 3751–3752, OPEB, Active Employees: Updated definition in accordance with GASB Statement 75.
  • Object 8181, Special Education—Entitlement: Deleted “which is deducted from the state apportionment for special education (see Resource 3310).”
  • Object 8560, State Lottery Revenue: Deleted “This revenue is recorded in the general fund” to avoid confusion. This object code is also open to the charter school funds 09 and 62.
  • Object 8625, Community Redevelopment Funds Not Subject to LCFF Deduction: Updated statutory citation.
  • Object 8671, Adult Education Fees: Deleted “This revenue is recorded in the Adult Education Fund” to avoid confusion. This object code is also open to Fund 01.
  • Object 8673, Child Development Parent Fees: Deleted “This revenue is recorded in the Child Development Fund” to avoid confusion. This object code is also open to charter school funds 09 and 62.
  • Object 8953, Proceeds from Disposal of Capital Assets: Updated title in summary listing.
  • Object 8990, Contributions from Restricted Revenues: Replaced reference to NCLB with reference to ESSA.
  • Object 9150, Investments: Deleted outdated reference to GASB Statement 31.
  • Object 9440, Equipment: Replaced “videotapes” with “computer systems” to make examples more current.
  • Object 9664: Changed title from “Net OPEB Obligation” to “Total/Net OPEB Liability” in accordance with GASB Statement 75. Updated definition in accordance with GASB Statement 75.

340  Valid Account Code Combinations

  • Replaced references to NCLB with references to ESSA.

405  Accounting for Inventories

  • Updated the goal and function codes on the Resource 6500 line in the last example on page 5.

410  Conducting a Physical Inventory

  • Updated federal statutory or regulatory citation(s).
  • Removed obsolete guidance associated with outdated federal regulations.
  • Replaced “typewriters” with “personal computers” to make examples more current.

415  Adopting a Stores System

  • Updated the list of types of supplies with more current examples.

420  Prepaid Expenditures

  • Updated the guidance regarding prepayment of a conference fee to consistently refer to a conference rather than a “class” or “college training session.”
  • Replaced reference to NCLB with references to ESSA.

425 Fair Value: Accounting and Reporting for Certain Investments

  • Deleted outdated references to outdated Financial Accounting Standards Board (FASB) statements.

505  Recording Revenue and Other Cash Receipts

  • Replaced “typewriter” with “laptop” to make examples more current.

560  Abatement of Expenditures

  • Replaced “typewriters” with “computers” to make examples more current.

605  Balance Sheet Accounts—Coding Examples

  • Replaced references to NCLB with references to ESSA.
  • Removed Resource 5630 from Example 3.

610  Revenues—Coding Examples

  • Replaced references to NCLB with references to ESSA and updated associated program titles.
  • Example 2: Updated program description in introductory text.

615  Expenditures—Coding Examples

  • Replaced references to NCLB with references to ESSA.
  • Direct-Charged Costs – Example 1: Updated Resource 3905 title.
  • Direct-Charged Costs – Example 2: Updated Resource 3010 title.
  • Transfers of Indirect Costs – Example 1: Updated Resource 3010 title.

625  Staff Development—Coding Examples

  • Replaced references to NCLB with references to ESSA and updated associated program titles.
  • Example 1: Replaced 2000 function range in introductory paragraph.
  • Example 2: Removed outdated program reference in resource description.

640  Transportation—Coding Examples

  • Example 5c: Expanded the goal description to indicate that goal is generally not required for revenues.
  • Example 6b: Expanded the goal description to indicate that goal is not required for balance sheet accounts.
  • Example 6c: Expanded object description to include Object 9110.

650  Facility Maintenance Programs—Coding Examples

  • Expanded guidance for Examples 3 and 4 to indicate that the school field is not required.
  • Updated guidance for the Ongoing and Major Maintenance Account to reflect an amount equal to or greater than 3% of the total general fund expenditures, rather than general fund budgeted expenditures.

655  Employment Separation Costs—Coding Examples

  • Replaced reference to NCLB with reference to ESSA and updated associated program title.

710  Capital Leases

  • Updated GASB codification regarding lease agreements.

770  Distinguishing Between Supplies and Equipment

  • Updated criteria for distinguishing between supplies and capitalized equipment.
  • Removed flowchart associated with distinguishing between supplies and capitalized equipment due to Section 508 accessibility constraints.
  • Removed outdated reference to a Government Finance Officers Association recommendation that capitalization thresholds be set so 80% of the total dollar value of an LEA’s assets are capitalized.
  • Added furniture for a new school to the examples of groups of items an LEA may choose to capitalize that individually do not meet the capitalization threshold.

775  Accounting for Internal Service Funds

  • Revised guidance regarding measurement and recognition of expenses and liabilities for OPEB self-insurance activities,  in accordance with GASB Statement 75.

780  Consolidation of ESSA Administrative Funds

  • Replaced references to NCLB with references to ESSA.
  • In the Allowable Expenditures section, updated reference to General Provisions from Title IX to Title VIII to reflect change under ESSA.
  • Removed outdated sentence “Because Section 1127 of the NCLB (ESSA) requires that allowable program carryover be calculated based on total program expenditures, LEAs must distribute the pooled costs (Resource 3155 expenditures) to the programs participating in the consolidation before carryover is calculated.”  Replaced with “LEAs should distribute the pooled costs (Resource 3155 expenditures) to the programs participating in the consolidation before carryover is calculated.”
  • Changed heading “Program Expenditure Resource Code” to simply “Program” on distribution of expenditures example.

785  Postemployment Benefits Other Than Pensions (OPEB)

  • Updated the entire procedure in accordance with the provisions of GASB Statement 75.

805  Joint Powers Agreements/Agencies (JPAs)

  • Under “Guidelines for JPA Reporting,” in item 1, clarified the reference to other guidance in that part.

905  Documenting Salaries and Wages

  • Replaced references to NCLB with references to ESSA.
  • Removed illustrations showing single and multiple cost objectives due to Section 508 accessibility constraints. Providing narrative examples only.
  • Removed sample Personnel Activity Report 2 due to Section 508 accessibility constraints. Replaced with narrative text.
  • In the Documenting State Unrestricted Salaries and Wages section, removed references to obsolete OMB Circular A-87, Attachment B, Section 8[h][4].

910  Program Cost Accounting

  • Replaced reference to Supervision of Instruction with reference to Instructional Supervision and Administration to reflect correct function title.

915  Indirect Cost Rate

  • Replaced reference to the former U.S. Department of Education’s “Indirect Cost Determination: Guidance for State and Local Government Agencies” with “Cost Allocation Guide for State and Local Governments.”

Appendix C – Consistency of SACS with the Federal Handbook

  • Removed “Special Cost Center” in the Expenditures part of the Financial Accounting Account Classification Structure section.

Appendix D – Function Codes for Common Activities

  • Clarified guidance on annual independent audits subject to the Single Audit Act versus those not subject to the Single Audit Act.

Glossary

  • Updated the definition of Education Department General Administrative Regulations (EDGAR) with the correct parts of the Code of Federal Regulations, Title 34, in which EDGAR is found. Added Part 84 and removed reference to parts 74, 80 and 85.
  • Updated the definition of generally accepted government auditing standards with the correct name of the federal agency establishing the standards, from “U.S. Government Accounting Office” to “U.S. Government Accountability Office,” and with the correct reference to the associated publication, from “Standards and Procedures for Audits of Governmental Organizations, Programs, Activities, and Functions,” to “Government Auditing Standards, also known as the Yellow Book.”
  • Clarified the definition of State School Fund by adding “California” to the “Department of Education” reference.
Questions:   Financial Accountability & Information Services | sacsinfo@cde.ca.gov | 916-322-1770
Last Reviewed: Wednesday, February 27, 2019