Per the memorandum dated August 10, 2010 titled 2010/11 State Budget and Capital Outlay Program Funding issued by Elvyra F. San Juan, the re-appropriation of various capital projects is contingent on the approval of the final state budget. Due to the delay in the budget approval by the governor, the re-appropriation has also not been approved. However, campuses may continue capital project spending, as determined by the Vice President, utilizing the campuses’ working capital. If appropriate, this shall be implemented by the campus Financial Services staff using the following steps:

1. The invoices from the reverted or expired projects shall be paid from the project fund and appropriate expenditure account via direct vendor pay. When the claims process is run, the deficit cash balance created by the payment in the capital project fund will be relieved and moved to the campus revolving fund mapped to CSU fund 499 – TF Revolving Fund.

1. These items should be treated as an exception to any established campus policy on dollar limits for direct vendor pay in reimbursable funds.

2. Detailed accounting and accounts payable instructions including the treatment of rejected claims are enclosed in Attachment A.

2. The TF CSU Operating Fund, or CSU fund 485, provides the working capital for the revolving fund activity in CSU fund 499. Therefore, the forgone interest due to delayed reimbursement of the held claims shall be absorbed by the Operating Fund.

1. Campuses may be asked for an accounting of the forgone interest and thus should maintain adequate records in anticipation of a request for this information by the Chancellor’s Office.  

If you have any questions, please contact Jean Gill at (562) 951-4318 or jgill@calstate.edu.

CC: Jean Gill, Assistant Controller

       Elvyra F. San Juan, AVP, Capital Planning, Design and Construction

       Nancy Freelander-Pace, Executive Program and Fiscal Manager

GVA:kc  AD 10-04

Attachment A