Managing Trust Projects

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Managing Trust Projects

• December 2, 2008

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Trust Projects - Defined

• An enterprise (business-like activity)
• Authorized by the Education Code
• Defined in Trust Project Agreement

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Discussion Goals

• Authorized
• Self Funded
• Self Supporting
• Trial Balance Report

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Trust Projects - Requirements

• AUTHORIZED
• Authority Trust project agreement documents
  CSUMBs authority to engage in activity
• Approved Trust agreement defines approved
  signers for transactions
• Allowable expenditures measured by trust
  agreement, travel hospitality policies, etc.

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Trust Project Requirements

• SELF FUNDED
• Has sufficient cash to meet its cash flow needs
• (Maintains a positive cash/investment balance
  at all times)

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Trust Project Requirements

• SELF SUPPORTING
• Maintains sufficient
• equity
• fund balance
• net assets
• (i.e. cumulative revenues are greater than or
  equal to cumulative expenses)

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Trust Project Management Tool

• Primary tool is the PeopleSoft Trial Balance
  report
• TB_TPXXX
• Used to determine if self funded
• Used to determine if self supporting

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Trial Balance

• The trial balance is a list of all balances by
  account in the trust fund at a given point in
  time
• Balances the cumulative activity. Revenues
  and expenses are cumulative for the year. Other
  accounts are inception to date.
• Account 6 digit P/S accounts, such as fees,
  salaries, supplies, cash, receivables, payables
• Trust Fund 5 digit PeopleSoft funds which map
  to a State trust fund, such as TPXXX, which may
  be grouped to constitute a Trust Project.
• Time The trial balance can be run as of any
  date.

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Trial Balance
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Self Supporting Test

• Self supporting is measured in one of two ways
• Assets 1XXXXX less Liabilities 2XXXX gt0
• (easier method)
• Same as Equity(Fund Balance) 305002 plus
  Revenues 5XXXXX less Expenses 6XXXXX lt0
• Anomaly Fund Balance Clearing, account 305022
  is cash held in the state treasury and is
  considered an Asset, 1XXXXX for this analysis

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Assets
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Liabilities
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Fund Balance (Self Supporting)
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Self Funded Test

• The sum of all cash and investment accounts
  should be gt0 at all times
• 108090 is the primary account used
• 305022 Fund Balance Clearing is considered a cash
  account for this test

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Encumbrances

• Encumbrances i.e. purchase orders contracts
• Require special consideration
• Impact on cash flows as payments are made
• Impact on equity as expenses are incurred

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Encumbrance Considerations
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• QUIZ

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Quiz

• John Grisham Novelist
• Kenny G - Saxophone player
• Bob Newhart Comedian
• Walter Diemer Inventor of bubble gum
• Arthur Blank Atlanta Falcons owner
• All have what in common?

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Quiz

• John Grisham Novelist
• Kenny G - Saxophone player
• Bob Newhart Comedian
• Walter Diemer Inventor of bubble gum
• Arthur Blank Atlanta Falcons owner
• All are former accountants
• Apparently, they didnt want to be accountants
  either

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Running the Trial Balance Report
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PS Screenshot
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PeopleSoft Trial Balance

• General PeopleSoft help is available on the CMS
  website at http//cms.cumb.edu/site/x4234.xml
• Specific help running PeopleSoft nVision reports
  is available http//cms.csumb.edu/site/x19792.xml
  
• Email CMS-FIS at FIS_at_csumb.edu
• Contact Jennifer Stone at x3301

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References

• Managing Trust Projects
• http//finance.csumb.edu/site/x11951.xml 
• EO 761 Hospitality Policy
• http//www.calstate.edu/eo/EO-761.pdf  
• HR 2005-42 Travel Policy
• http//www.calstate.edu/HRAdm/pdf2005/HR2005-42.pd
  f  
• Education Code
• http//www.leginfo.ca.gov/calaw.html 

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This PowerPoint Presentation is

• Available today at the Finance home page
• finance.csumb.edu/site/x5603.xml
• Previous 08/09 BOF Presentations can be found
  under the Business Operations Forums link

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Questions ?
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• THANK YOU !!