401 Golden Shore, 5th Floor
Long Beach, CA 90802-4210
August 7, 2012
Financial Services, Accounting
REVISION OF AD2011-02 - Early Start Program Waiver Accounting Requirements
This memo is intended to supplement the two memorandums dated October 12 and November 23, 2011 titled Lottery Fund Allocations- Early Start Financial Aid issued by EVC Ben Quillian by providing clarification and guidance on how to record the waiver for eligible students and how to record the one-time allocation from systemwide resources to reimburse campuses.
As stated in the October memo, a $5 million Early Start set-aside of campus-based Lottery allocations has been made in fiscal year 2011-12 for the first year of the Early Start financial aid program on the basis of campuses’ pro-rata share of total enrollment. This program can be administered either Self-Support or State-Side. Once the campus has determined how this program will be administered, then up to six (6) item types may be created:
- Early Start Program Tuition Fee (New)
- Mandatory Health Facility Fee (Already Established)
- Mandatory Student Union (Already Established)
- Early Start Program Tuition Waiver (New)
- Mandatory Health Facility Fee Waiver (New)
- Mandatory Student Union Fee Waiver (New)
The three (3) new waiver item types must be established with the proper interagency Due to/ From account mapped to object code 131481: Due from CSU 481 - TF Lottery Education within Fund 0948 between agencies. When these new waivers are applied to a student account, the obligation will be removed from the student and recorded as a receivable from the CO. This receivable will be recorded on the campus books until the Systemwide allocation is recorded to relieve the obligation. Since this program will cross fiscal years, it is very important that campuses communicate to the Chancellor’s Office Accounting department the amount recorded on the campus ledger as of 6/30/2012. Further information regarding the requirements related to interagency transactions will be provided at the year-end training.
Each campus must comply with the reporting requirements requested by Student Academic Support to receive reimbursement. Based on the October 12, 2011 memo, the $5 million Early Start financial aid would be distributed in the 2nd Quarter Lottery allocation after campus reports on enrollment and tuition aid costs for financially eligible students have been verified.
To comply with additional reporting requirements, each campus must report the financial data of this program within a unique FNAT (Fund Attribute). These reporting requirements have been requested by Dr. Smith, Executive Vice Chancellor and will facilitate the exclusion of these revenues and faculty retirement costs from the Centrally Paid Indirect Cost/State ProRata calculation and distribution.
Therefore, when creating this fund for CE, CSU Fund 441, please use FNAT 130310. In addition, object code 502105 Continuing Education - Special Session-Other should be used to record the CE Fees. However, for Stateside administered programs, CSU Fund 485, please use FNAT 130311. In addition, object code 501001 TUITION FEE should be used to record the Stateside Fees.
New! For clarification purposes, the mandatory health fee should be for health FACILITIES instead of health SERVICES. Therefore, it should be recorded to CSU Fund 452 in FIRMS object Code 504007.
If you have questions concerning implementation of Early Start financial aid tuition reimbursements and student eligibility, please contact Dean Kulju, Director for Student Financial Aid Services and Programs, at (562) 951-4737. If you have any questions regarding the accounting entries, please contact Kelly Cox, Associate Director of Financial Services Accounting, at (562) 951-4611 or firstname.lastname@example.org.