Attachment B
AD NOAT 07-052
THE CALIFORNIA STATE UNIVERSITY
Continuing Education Revenue Fund
2006/07 Centrally Paid Direct Program Costs
(REVISED)
           
           
  Debt Service Debt     Annual   Quarterly 
Campus Payments Service Reserve    PFA Amount   PFA Amount (a) 
           
           
Bakersfield 0 0                          -                            -  
Channel Islands 0 0                          -                            -  
Chico 0 0                          -                            -  
Dominguez Hills 0 0                          -                            -  
Fresno 0 0                          -                            -  
Fullerton 0 0                          -                            -  
Hayward 0 0                          -                            -  
Humboldt 0 0                          -                            -  
Long Beach 0 0                          -                            -  
Los Angeles 0 0                          -                            -  
Maritime Academy 0 0                          -                            -  
Monterey Bay 0 0                          -                            -  
Northridge 0 0                          -                            -  
Pomona 0 0                          -                            -  
Sacramento 0 0                          -                            -  
San Bernardino 0 0                          -                            -  
San Diego                   378,826                  56,824 [1]  (b)                 435,650             108,912.50
San Francisco 0 0                          -                            -  
San Jose 0 0                          -                            -  
San Luis Obispo 0 0                          -                            -  
San Marcos 0 0                          -                            -  
Sonoma 0 0                          -                            -  
Stanislaus 0 0                          -                            -  
           
           
Totals                   378,826                  56,824                  435,650                  108,913
           
Campus Journal Entry Required (FIRMS):        
Debit 680126 680126  
Credit 305022 305022      
             
  Net Revenue Debt Service Coverage Ratio (DSCR) Calculation  
  Example:   
                  If annual revenue = $15,000,000   
                  and annual operating expense = $10,000,000  
                  then, annual net income = $5,000,000  
   
                  If annual debt service payment = $750,000 (c)  
                  then, 15% reserve (of debt service payment) = $112,500 (c)  
                  and annual debt service transfer = $862,500  
   
                  Therefore, DSCR = $5,000,000/$750,000 = 6.67  
             
Note:
(a) Revised: Transfers to occur September 1, October 1, February 1 and April 1. 
(b) Projected debt service reserve for 07/08 is $57,090.
(c) This should be recorded as "Transfer Out" (680126) in FIRMS.
[1]
Office of the Chancellor:
for 07/08, the 15% reserve applies to the whole year of d/s.