1. The methodology by which adjustments to campus budgets are formulated
should be based primarily on campus enrollment targets.
2. As a general rule, the Board of Trustees will review a Lottery Revenue
Budget each year at its March meeting. At its next meeting the Board should
adopt the lottery revenue budget as an action item. Soon thereafter, the
budget will be transmitted to campuses by memorandum (either electronically
or paper) from the CSU Budget Office. The CSU's lottery programs and policies
will be published on the CSU Budget Office's Home Page after the Trustess
approve its annual lottery revenue budget. Upon approval a new Lottery
Policies and Budget Manual will be posted on that web-site. Should hardcopy
be desired, the CSU Budget Office home page on the world web will offer
this option.
3. The system budget as passed by the Board of Trustees and contained
at the end of this document will serve as each campus' base lottery revenue
budget. Campuses will receive base budget funding through allocation orders
issued throughout the year as lottery funds are available. Supplemental
allocation orders will be sent to each campus when funding decisions are
made regarding systemwide unallocated revenue. For example, campuses receiving
supplemental allocations for the California Pre-Doctoral program will be
issued an allocation order for that program as funding decisions are made.
These allocations will be separate from its base lottery budget allocation
order and will supplement that program's base budget. Each allocation order
will be appropriately labelled to provide guidance to each campus as to
its purpose. The timing of allocations will vary throughout the year as
revenue permits, but will generally follow the schedule below:
July - one-third of the campus' base lottery budget
October - one-third of remaining campus base lottery budget
January - one-third of remaining campus base lottery budget.
Supplemental allocations will be issued throughout the year as funding
decisions are made.
4. Program categories, unless otherwise amended by the Chancellor or
the Board of Trustees, will remain under the general term of Systemwide
Programs includes Access and Academic Development, Future Scholars program,
Forgivable Loan Program, Teacher Recruitment, California Pre-Doctoral Program
and the Summer Arts Progra. Two other categories of funds include Campus-Based
Programs and Implementation Costs.
a. Programs designated as Access and Academic Development consist
of programs that seek to increase college participation, retention and
graduation rates of students who are disadvantaged because of their economic,
educational, or environment background.
b. Instructional Partnership (Summer Arts) will be managed by
Chancellor's Office staff and implemented at a designated campus.
c. The allocation of Campus-Based Program funds are considered
a priority funding mechanism, allowing campuses maximum flexibility to
manage resources to fit campus needs. Any increase or decrease in campus
allocations for this program will be based on established enrollment targets.
5. Funds unexpended or uncommitted by June 30 of each fiscal year will
remain at the campus and should be rolled forward to the next fiscal year
until expended. Campuses may consider unexpended/uncommitted Campus-Based
Program funds discretionary.
6. The only allocations excluded from transferability are the programs
for disadvantaged students. This exclusion provides that no funds will
be transferred out of these programs, but funds may be transferred into
these programs. The following are identified as disadvantaged student programs:
Access and Academic Development, CSU Scholarship Program for Future Scholars,
Forgivable Loan/Doctoral Incentive Program, Teacher Recruitment Project
and the California Pre-Doctoral Program.
7. It is essential that campuses report all budget and expenditures
to the assigned FIRMS project number. This will facilitate state and CSU
reporting requirements. The FIRMS data element dictionary can be found
on the Accounting Department's web site at: http://www/acct.co.calstate.edu
The allocation and accounting procedures for the California State University
Lottery Education Fund (Fund 839) have been designated to parallel as closely
as possible those currently used for other funds. However, a number of
differences exist.
1. In the past, approved budget detail and the authority to implement
the budget by committing funds was provided by means of a program "expenditure
authorization." During the 1998/99 fiscal year, the lottery revenue
budget delineating campus allocations will serve as the expenditure authorization
for each campus' base budget. Upon the approval of supplemental funds (i.e.
CO Campus-Based Program funds, California Pre-Doctoral program funds, Forgivable
Loan program funds, and/or Technology Access and Support funds) the allocation
order will serve as the authority to expend those programmatic funds. Should
lottery revenue fail to materialize in the amounts projected, subsequent
notice and a revised budget will be forwarded to campuses. Funding and
notification to the State Controller's Office as to the amount of campus
funding will be provided by the traditional allocation order process.
2. Due to the periodic nature of revenue flowing into the CSU Lottery
Fund from the State Lottery, the initial budget will exceed the funds provided
by allocation order until the final base budget allocation. This imposes
on the campus the responsibility for cash management.
3. The lottery budget is specific as to purpose. Funds may not be transferred
from one lottery program to another, except as provided under general guideline
number 6, above. To ensure this discrete identification of both budget
and expenditures, the accounting procedures follow a project accounting
format by assigning a distinct project number to each program.
4. Notwithstanding the delegation of fiscal flexibility contained in
Executive Order No. 648, local approval of the following transactions within
each program budget is authorized by the Senior Vice Chancellor of Business
and Finance pursuant to the authority delegated to him by Executive Order
No. 648:
a. Transfers between and among allotments within each lottery
program.
b. Transfers between the budgetary programs of Instruction and
Academic Support as required to implement each campus' budget plan. This
authority does not extend to transfer among program budgets, except as
provided under general guideline number 6 above.
c. Establishment, deletion, conversion, or reclassification of
any position for the period of the single fiscal year for which the project
has been funded.
Local approval authority is to be restricted to those individuals currently
designated by each campus President to act on his/her behalf in implementing
Executive Order No. 648.
Allocation orders to establish expenditure accounts in the records of
the State Controller will be issued in the same format as all other Special
Fund allocations. However, due to the periodic flow of revenues into the
CSU Lottery Education Fund itself, it is not possible to allocate at one
time the total required to support the entire budget. Consequently, the
total of a campus's program budget will normally exceed its allocations
until, at the latest, the fourth quarter of the fiscal year. This means
that each campus must manage the timing of its expenditures among its various
allocations so as not to exceed the total funds remaining in its cumulative
allocation at any point in time.
In view of the above, it is critical that each campus program manager
forecast the expenditure flow for his/her program so as to enable campus
business management personnel to monitor and accommodate the total flow
of expenditures for all programs. It is also critical that all those involved
clearly understand the distinction between an "allocation order,"
which is the total actually available for expenditure, and the program
budget, which represents CSU approval to commit funds to implement a program
at a certain dollar level.
Dates for issuing allocation orders are unclear at this time, however,
it is anticipated that the first allocation order will occur as soon after
the beginning of the fiscal year as possible. However, allocation orders
will not be issued until the Trustees have approved the lottery budget
as an action item. Allocations will take into consideration systemwide
programs requiring early funding, after which, other campus based programs
will receive funding. At least two other allocations will be made to campuses,
the dates of which will depend upon the date and amount of the transfer
of funds from the California State Lottery to the CSU.
The President of each campus will be responsible for insuring that no
program is overexpended, that the total campus allocation is not exceeded,
and that the intent of the program expenditure is met. Conversely, the
Chancellor's Office assumes responsibility for insuring that programs are
not authorized which will exceed the total funding available in any given
fiscal year.
