THE CALIFORNIA STATE UNIVERSITY
OFFICE OF THE CHANCELLOR
400 Golden Shore Drive
Long Beach, California 90802-4275
(310) 951-4610

Code:  AD 95-05

Date: March 28, 1995


To:  Vice Presidents for Administration

From: George A. Pardon
       Accounting Director
       Business and Finance

Subject:Health Services Fee (581-281) and Dormitory Revenue Fund 
- Auxiliary Facilities  (580-263)
The purpose of this memorandum is to 
notify campuses of the changes in accounting for the following funds:

  1. Health Services Fees (581-281)

  2. Dormitory Revenue Fund - Auxiliary Facilities (580-263)

1) The legislation that allowed Health Services Fees collected in the 1993/94 
and 1994/95 fiscal years to be deposited in the California State University 
Facilities Revenue Fund (581-281) will sunset on JuneÊ30,Ê1995.  Health 
Services Fees collected for fiscal years beginning in 1995/96 will have to be 
remitted to the Higher Education Fees and Income (498) and General 
Fund (001).  Please refer to Attachment A for details.

2) The Dormitory Revenue Fund - Auxiliary Facilities (580-263) was 
established to facilitate the issuance of bonds or notes for the acquisition, 
construction, and improvement of student health centers.  In 
January,Ê1994, the bonds for the student health centers were retired.  As a 
result, the CSU is required, by Education Code 89702, to deposit all 
revenue not in connection with bonds or notes into the California State 
University Facilities Revenue Fund (581).  In addition to directing the 
Health Facilities Fees to a different fund, this change will initiate cross 
posting of these fees to the campuses for expenditure.  Please refer to 
Attachment A and B for details.

Questions should be directed to Mr. Keith Clinkscales, Accounting at 
(310)Ê951-4610.

GAP:KC:df:AD 95-05 Health/DRF-Aux 
Fee
Attachments
Distribution:


Attachment A


Health Services Fee (581-281)
CSU Dormitory Revenue Fund - Auxiliary Facilities (580-263)
Accounting & Budgeting Procedures


1) Health Services Fee (581-281)

Senate Bill 593 (Education Code Section 89702.1) established the authority to 
deposit and spend Health Services Fees in the California State University 
Facilities Revenue Fund (581-281) during 1993/94 and 1994/95 fiscal years. 
Memorandum BA 93-12, dated November 8, 1993, instructed the campuses to 
choose  to account for the health services fee in either (1) Higher Education 
Fees and Income (498); and General Fund (001); or (2) California State 
University Facilities Revenue Fund - Health Services Fee (581-281).  Option 2 
is not available after June 30, 1995.  
The campuses will be allowed to spend any balance that remains in the CSU 
Facilities Revenue Fund-Health Services Fee (581-281) after fiscal year 
1994/95.  Pursuant to Trustees policy, the remaining fund balance from 
Health Services Fees in this fund shall be used only to support student health 
services operations.

Effective with Health Services Fees collected for fiscal years beginning in 
1995/96, campuses will have to account for the Health Services Fees in Higher 
Education Fees and Income (498) and the General Fund (001).  The existing 
accounting and budgeting procedures should be followed.

2) Dormitory Revenue Fund - Auxiliary Facilities (580-263)

Historically, Health Facilities Fees have been remitted to the Dormitory 
Revenue Fund-Auxiliary Facilities Fund (580-263) to meet the covenants of 
the bond resolutions.  In January, 1994, all bonds for this program were 
retired.  As a result of the retirement of the bonds, the CSU is now required to 
deposit all revenue into the California State University Facilities Revenue 
Fund (581).

Effective with Health Facilities Fees collected for fiscal years beginning 
1995/96, campuses will account for revenues and expenditures related to this 
program in the CSU Facilities Revenue Fund-Health Facilities Fee (581-282).  
Effective with this change in the remittance process, the fees remitted will be 
automatically cross-posted by the State Controller's Office and available for 
expenditure by the campus.  The Health Facilities Fee has different 
restrictions than the Health Services Fee.  The Health Facilities Fee is 
restricted by law for the acquisition, construction, and maintenance of student 
health centers (Education Code Section 89702).  Please see Attachment B for 
accounting and budgeting procedures for the CSU Facilities Revenue Fund-
Health Facilities Fee (581-282).