Date:

September 29, 2005

Code: AD NOAT 05-132

To:

Financial Managers
Accounting Officers
Budget Officers

From:

Mr. George V. Ashkar
Senior Director, Controller
Financial Services, Accounting

Subject:

FY04/05 Golden Handshake

Legal Posting FY N/A
GAAP Posting FY N/A
(When GAAP year = Legal year, no GAAP entry is needed)

This is an addendum to ADNOAT 05-74 issued June 7, 2005.

For the seven campuses that elected installment payment method, you accrued the Total Principal (example: Dom Hills accrued $996,361.44) as of June 30, 2004 for GAAP financial statements, according to the CO memo to campuses on September 15 and 22, 2004.

Please refer to the attached amortization schedules that breakdown the interest and principal portions of the annual payments in 2006, 2007 & 2008, and apply the principal portions to the liability account each year until it is paid off.

The CO will send an ADNOAT to the seven campuses around June of 2006, 2007 & 2008, respectively, to advise you of the PFA process for payments by the SCO with accounting instructions on how to record the principal portion and interest portion on legal basis.

Again, please remember that only the principal portions of the payments are accrued, not including the interest portion.

If you have any other questions on the ADNOAT or the FIRMS Object Code, please contact Raquel Bazan (562) 951-4637 or via e-mail at rbazan@calstate.edu.

GVA:RB:tp AD NOAT 05-132

Attachment A
Attachment B