This memo is to provide accounting guidance in regards to the memorandum dated September 22, 2011 titled Change in Cal Grant Payments issued by EVC Ephraim Smith, and EVC Ben Quillian.  We have received requests for clarification and guidance on the following: How to record the resources used to cover the loss of Cal Grant reimbursement from CSAC; The one-time allocation from systemwide resources to reimburse campuses for keeping planned fall 2011 Cal Grant student awards intact; And, if a new item type needed to track payments to students from sources other than State University Grant (SUG).

As stated in the September 22 memo, the notification of change in Cal Grant payments occurred after awards had been issued for fall 2011, therefore, campuses are asked to use any unallocated SUG to cover its loss of Cal Grant reimbursements from CSAC.  In the event the student is not eligible for SUG, campus should use Lottery Fund financial aid resources where an item type already exist and maps to CSU fund 481-TF-Lottery Fund.  New item types are not required to record these changes in aid resources, but may be needed if there are no existing items that map to the indicated resources.  As stated in the memo, a one-time allocation will be made from systemwide resources to reimburse campuses. Each campus will perform a reconciliation of students affected by this change as of fall 2011 census. A CPO will then be issued to clear the SWAT and Lottery receivable. Proposed accounting entries to record the resources used and the one-time allocation from system office have been provided in Attachment A (refer to entries to the right).

If you have questions, please contact Lily Wang at (562) 951-4628 or Sherry Pickering at (562) 951-4519.

GVA:LW;td

Attachment

CC: FSAC, Dean Kulju, Student Academic Support, Rodney Rideau, Systemwide Budget