001.5 Financial Accounting & Reporting Standards

Owned by Chad
May 20, 2021

PSU financial accounting records are maintained in accordance with generally accepted accounting principles (GAAP). GAAP is in the form of a hierarchy of Levels A, B, C and D, with the understanding that higher levels (e.g., GAAP Level A) take precedence over lower levels (e.g., GAAP Level D).

PSU adheres to the accounting standards, principles and policies of the following organizations:

GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)
GASB was created in 1984 and is charged with the responsibility of establishing accounting principles for state and local governments, including government-controlled colleges and universities.  PSU Controller's Office reviews the GASB Statements of Governmental Accounting Standards (GAAP Level A), and designs and communicates PSU accounting policies for implementing the GASB statements.

FINANCIAL ACCOUNTING STANDARDS BOARD (FASB)
FASB was created in 1973 and is the designated organization for establishing accounting and financial reporting standards for the private sector. PSU applies FASB Statements of Financial Accounting Standards (GAAP Level A) issued on or before November 30, 1989, unless those statements conflict with or contradict GASB standards. PSU also applies the former Accounting Principles Board (APB) Opinions and the former Committee on Accounting Procedures (CAP) Accounting Research Bulletins, unless those standards are superseded by FASB or conflict with or contradict GASB standards.
GASB statement No. 20 provides the option of adopting FASB standards issued after November 30, 1989, except for those that conflict with or contradict GASB standards. PSU has chosen not to adopt this option.

AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA)
PSU follows the recommendations in the 1975 second edition of the AICPA Audits of Colleges and Universities (GAAP Level B), unless those recommendations conflict with or contradict GASB standards.

NATIONAL ASSOCIATION OF COLLEGE AND UNIVERSITY BUSINESS OFFICES (NACUBO)
PSU follows the Financial Accounting and Reporting Manual for Higher Education (FARM) (GAAP Level D) published by NACUBO, unless those recommendations conflict with or contradict GASB standards.

STATE OF OREGON
The following State of Oregon references impact PSU's application of generally accepted accounting principles:

  • Oregon Revised Statutes (ORS's), primarily Chapter 351 pertaining to Oregon Higher Education. ORS's are created by the State Legislature. The ORS's pertaining to accounting and financial issues impact the PSU financial accounting and financial reporting policies.
  • Oregon Accounting Manual (OAM), issued by State of Oregon Department of Administrative Services (DAS). PSU is not required to follow the DAS OAM, but uses the manual as a reference for developing its financial accounting and financial reporting policies.
  • Uniform Management of Institutional Funds Act (UMIFA) as adopted by the Oregon State Legislature. UMIFA governs the management and distribution of endowment funds and thereby affects the accounting of PSU investments.

FEDERAL GOVERNMENT OFFICE OF MANAGEMENT & BUDGET (OMB)
PSU follows the cost principles required by OMB Circular A-21, Cost Principles for Educational Institutions.