Based on Executive Vice Chancellor Quillian’s memorandum dated September 25, 2012, issued to your Campus Chief Financial Officers, the legislature and governor granted a one-time authority for the Chancellor to transfer balances from Continuing Education to the “state-side” in order to mitigate the effects on state-supported instruction in the 2012-13 fiscal year. The chancellor has directed campuses to make this transfer on or before October 30, 2012. In order to comply with this directive and the related reporting back to the Joint Legislative Budget Committee by June 30, 2013 on “…the use of any transferred funds,” campuses are required to record the transfer and related expenditures as follows:

• A new PeopleSoft fund within CSU Fund 485 is to be created by each campus using FNAT Key # 130457 (Project Code CETRN).
  
  
• Each Campus is to record a journal entry to move the specified cash amount, per EVC Quillian’s memo  to your Campus CFO, from the Continuing Education local trust fund to the new PeopleSoft fund within the CSU Operating Fund using the appropriate transfer object code.
  
  
• Transfer-In, 570441 or 570444, will be allowable within CSU Fund 485 for the 12/13 fiscal year only and will not require a year-end record type 7 adjustment for this activity. Systemwide Budget will exclude the unique FIRMS project code for the transfer-in and related expenditures for the Schedule 10, Year-End reporting.
  
  
• Funds must be used to fully or partially reinstate cuts made to state-supported instructional programs in the 2012/13 campus final budget submissions to the Chancellor’s Office.
  
  
• “State-supported instructional programs” would include departments within the FIRMS program codes of Instruction (0100-0106), Student Services (0500-0504, 0508-0510), Academic Support (0400-0409), and, to a limited degree, Operations and Maintenance of Plant (only these program codes are allowed 0702-0704, 0707).
  
  
• These funds must be reported (expended and/or encumbered) within FIRMS by March 31, 2013 to facilitate reporting to the Director of Finance.
  
  
• The new fund’s expenditures and transfer-in must net to zero.

New Things to Consider:

1. DO NOT include any expenditures in the new fund that were already budgeted for state-supported instructional programs in the 2012/13 campus final budget submissions to the Chancellor’s Office.

• DO NOT include any reimbursed time (salary and benefits).
  
  
• DO NOT include costs related to the FIRMS Program code of Research, Public Service, and Scholarship & Fellowship.
  
  
• DO NOT include any cost match that may have been committed from the CSU Operating Fund in compliance with an externally sponsored agreement. Please coordinate with your Sponsored Programs Director.

If you have any questions, please contact Kelly Cox at (562) 951-4611 or e-mail kcox@calstate.edu.

 

GVA:kc AD 2012-03

cc:  Benjamin F. Quillian, Executive Vice Chancellor and Chief Financial Officer