THE CALIFORNIA STATE UNIVERSITY
Office of the Chancellor
400 Golden Shore
Long Beach, California 90802-4275
(310) 951-4610

Code:AD 94-09

Date: June 28, 1994

To: Vice Presidents for Administration
     Vice Presidents for Student Services


From:  George A. Pardon
        Accounting Director
        Business and Finance

Subject:  Accounting for DRF-Housing (580-261) Effective July 1, 1994

Management of the Dormitory Revenue Fund-Housing is being 
decentralized pursuant to APB 94-04 issued by Auxiliaries Planning and 
Bonds in the ChancellorŐs Office.

The purpose of this memo is to provide each campus with the accounting 
principles and methods to be used for DRF-Housing beginning with the 
94/95 fiscal year.  Refer to Attachments A, B, and C for details.

Please provide copies of this memo with attachments to appropriate staff on 
your campus.  If you have any questions, please contact the following 
individuals:

    

  1. For housing and decentralization plan:
	Benjamin Figueroa (310) 985-2790 - Auxiliaries 
	Planning and Bonds.

  2. For accounting and remittance process:
	Fyle Cabagnot (310) 985-2889 - Accounting 

  3. For Chancellor's Office charges and transfers:
	Barbara Wood (310) 985-2561 - Accounting 

  4. For allocations or continuous budgets:
	Howard Hicks (310) 985-2730 - Accounting


GAP:df:AD 94-09 DRF-Hsng

Attachments


Distribution:

AD 94-09
Attachment A
Page 1 of 3



CSU Dormitory Revenue Fund - Housing  (580-261)
Accounting Instructions
Effective Beginning Fiscal Year 94/95


Introduction

Management of the Dormitory Revenue Fund-Housing  (580-261) is being 
decentralized beginning Fiscal Year 94/95.  Please refer to APB 94-04. 

The information contained herein describes  accounting principles and methods 
used prior to fiscal year 94/95 and those being implemented in fiscal year 94/95 
beginning July 1, 1994. 

The information is arranged as follows:

	 I.	Method of Accounting - Prior to Fiscal Year 94/95
	II.	Method of Accounting - Beginning July 1, 1994 for Fiscal Years 
		94/95 and Thereafter

I.	Method of Accounting - Prior to Fiscal Year 94-95

Every fiscal year-end, campuses closed operating income and expenditure 
balances to retained earnings.  In the following fiscal year, the CSU Accounting 
Department initiated a journal entry to transfer campus retained earnings to the 
systemwide Dormitory Revenue Fund-Housing account.  The entry debited 
surplus adjustment and credited fund balance clearing.  Once retained earnings 
were transferred to the systemwide account, they could only be spent by 
submitting a request to Auxiliaries Planning and Bonds in the Chancellor's Office.  
When the request was approved, an allocation order was prepared and sent to 
the campus and to the State Controller's Office (SCO).

The SCO maintained one general ledger cash account for DRF-Housing (this 
procedure will stay the same).  Cash in State Treasury was recorded and 
maintained in the CSU Accounting Department (CSUAD) books.  

Revenues remitted to the State Treasury were posted by the SCO to each 
campus' Allotment Control Ledger.  Monthly reconciliations of campus and 
Chancellor's Office fund balance clearing accounts were required to insure that 
cash recorded in the CSU books reconciled with the SCO.

AD 94-09
Attachment A
Page 2 of 3


II.	Method of Accounting - Beginning July 1, 1994 for Fiscal Years
	94/95 and Thereafter

California State University Accounting

Retained Earnings:

Starting with the 94/95 fiscal year, retained earnings balances will be 
accumulated and managed by each campus. 

At the end of each fiscal year, campuses will close revenue and expenditures to 
retained earnings.  The balances will remain on the campus books.

Transfers:

Starting in the month of July 1994 each campus will need to have funds available 
for a PFA (Plan of Financial Adjustment) transfer to a systemwide account.  This 
PFA will include debt service obligations and systemwide housing expenses, etc. 
(See Attachment B for details.)  The Chancellor's Office Accounting Department 
will prepare the PFA for transmittal to the SCO by the end of each month.  Each 
year this transfer will be revised and updated to reflect changes for expenses and 
debt service, etc.

Operating Expenditures:

(See APB 94-04 Attachment A, page 1 for expenditure authority and procedures.)

Operating Revenue:

Collections will continue to be remitted to the State Treasury as 299100 - 
Operating Revenue Other.  Transfers or revenue to be accounted should be in 
accordance with the CSU Code Book, the State Administrative Manual, the State 
Uniforms Codes Manual, and the CSU Chancellor's Office approved 
decentralization plan.

Budgeting Process:

Automatic "cross-posting" of remittances to the expenditure (D) account will be 
used by the SCO for the Dormitory Revenue Fund-Housing.  Remittances will be 
available for expenditure as soon as they are posted by the SCO as currently 
done for Fines and Forfeitures in the Parking Revenue Fund (583).  (Note on 
remittance advice, 'Please cross-post')  Revenue that has already been remitted 
for 1994-95 as 'Income Collected in Advance' will be allocated to the campus by 
the Chancellor's Office Accounting Department.

AD 94-09
Attachment A
Page 3 of 3


Budgeting Process:  (Continued)

Each campus should maintain a remittance/expenditure subsidiary ledger for 
control purposes.  As remittances are cross-posted by the SCO, each campus 
expenditure budget will automatically increase.

Retained earnings can be used to finance operations established within the 
operating budget.  Requests will no longer be sent to the Chancellor's Office for 
approval.  

State Controller's Office Accounting

The SCO will continue to maintain Allotment Control Ledgers for each campus.

The SCO will automatically "cross-post" CSU remittances as an increase to the 
expenditure (D) account.  This procedure will not require allocation orders and 
remittances will be available for expenditure as soon as they are posted by the 
SCO.

Transfers and Reserve Balances - DBMER

Each campus will now be responsible for maintaining its own required DBMER 
reserve.  Each campus may choose to transfer its required reserve by PFA on an 
annual basis.  This PFA must be submitted to the SCO by August 30 of each fiscal 
year.  If a campus chooses not to transfer reserves on an annual basis then, 
starting July 1, 1994, each campus should prepare a PFA to transfer its monthly 
required transfer (see Attachment C) from the Dormitory Revenue Fund #580 to 
DBMER Fund #575.  At the end of each fiscal year, reserve requirements will be 
recalculated and a new required transfer amount will be sent to each campus.  
See APB 94-04 for more details and explanations.