Date: January 22, 1998 Code: AD 98-04

To: Vice-Presidents for Administration

From: George A. Pardon

Accounting Director

Business and Finance

Subject: Revised Plan of Financial Adjustment

The State Controller's Office has approved the attached revised Plan of Financial Adjustment (PFA). The plan was changed to incorporate fund 0658. Effective immediately, PFA's must refer to "a continuing plan of financial adjustment approved by the State Controller on December 30, 1997."

Please note that PFA's are not intended to be a means of providing working capital advances, nor overcoming cash flow problems. They are also not to be used to distort interest earnings or potential interest earnings between funds. Corrections of prior PFA's, transfer of funds and other journal entries must be submitted as a separate request, not a PFA.

If you have questions, please refer to SAM Section 8452, or contact Bill Musselman via e-mail at william_musselman@calstate.edu or Ruth Stipp via e-mail at ruth_stipp@calstate.edu or contact either at (562) 951-4610.

GAP:WM:mc AD 98-04

Attachment-Letter to Kathleen Connell, SCO, dated October 30, 1997

Distribution: Ms. Lee Ramirez, State Controller's Office

Accounting Officers

Chancellor's Office Accounting Staff

Chancellor's Office Distribution: Accounts Payable

Emelda Becerra

Sue Belvin

Lisa Chavez

Keith Clinkscales

Raynard Gray

Raymond Juanico

Susan Koch

Marcia Le Beau

Bill Musselman

Bill Pittman

Cecilia Patz

Ruth Stipp