Date:

October 2, 2006

Code: AD NOAT 06-146

To:

Financial Managers
Accounting Officers
Budget Officers

From:

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

Subject:

PRIOR YEAR 2003/2004, 2004/2005 & 2005/2006
PAYROLL ADJUSTMENT FUNDS

Transfer Request: 069065
Legal Posting FY2006-07
GAAP Posting FY2006-07
(When GAAP year = Legal year, no GAAP entry is needed)

The State Controller's Office has been requested to execute the transaction described in Sedong John's email on September 25, 2006 and below. The Chancellor's Office agreed with the State Controller's Office to provide $5,000 budget balance available in each prior year General Fund appropriations (2003-04, 2004-05 and 2005-06) at each campus for the exclusive purpose of absorbing prior year payroll adjustments.

The campuses can proceed to fully expend all existing prior year balances by 12/31/06 as had been planned. The only remaining budget balance in each prior year General Fund appropriation should be the $5,000 provided by this transaction. The $5,000 from the Chancellor's Office may be used only for prior year payroll adjustments by the State Controller's Office. The Chancellor's Office will take back any unexpended balance from the $5,000 shortly before the appropriation reversion date.

Should the State Controller's Office payroll adjustments exceed $5,000, campuses should submit a PFA to move expenses between the 2005 General Fund to the subject year. If any subsequent payroll adjustments exceed $5,000, additional amounts may be provided by the Chancellor's Office in increments of $5,000, subject to later settlement between the Chancellor's Office and the campus.

If you have any other questions on the ADNOAT or the FIRMS Object Code, please contact June Cacho at (562) 951-4654 or via e-mail at jcacho@calstate.edu.

GVA:JC:td AD NOAT 06-146

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