2118  SYSTEMWIDE EXPENSES

Reference:  ABS 89-31.

Some costs associated with the operation of the housing program are paid 
centrally.  These systemwide costs include workers compensation and 
unemployment insurance, audit costs, Sacramento and Trustees 
administrative overhead, Treasurer's Office charges, State Insurance Office 
charges, financial consultant expenses, and fire and liability insurance.

Budgeted systemwide expenses for each campus are computed based upon 
actual prior-year expenses.  Campus distributions are calculated by subtracting 
actual systemwide interest earned in the Dormitory Revenue Fund from 
actual systemwide expenses incurred and multiplying the result by the 
campus revenue factor.  The campus revenue factor is computed by dividing 
actual campus revenue by total system revenue.  The actual prior-year figures 
are obtained from the audited financial statements.