Extended Education Local Trust Fund Expenditures (August 5, 2015)

MEMORANDUM                                                                                                                       

 

Date:             August 5, 2015

 

To:                 Deans, Directors & Other Campus Administrators

 

From:            Maureen Pasag, Associate Vice President for Fiscal Affairs

                      

Subject:        Extended Education Local Trust Fund Expenditures


San Francisco State University recently underwent a Continuing Education audit by the CSU Chancellor’s Office.  One of the audit findings noted was the following:  “The campus did not document the nexus between expenditures made from campus revenue-share trust accounts and the specific continuing education (CE) self-supported program functions that benefitted from the expenditures.”  Since the audit, the Chancellor’s Office has issued written guidance for campuses regarding these documentation requirements for CE expenditures.  We are outlining them below and have also attached the original memo issued:
 

Additional Guidance for Campus Documentation of Extended Education Local Trust Fund Expenditures

  • Campuses shall follow existing policies and guidelines with regard to expenditures for self-support instructional programs in the CSU.
  • Direct expenditures shall be allocated and recovered based on actual costs incurred.
  • Indirect expenditures shall be allocated and recovered according to a consistent methodology and documented cost allocation plan.
  • Campuses shall document expenditures in a manner that ensures a clear and appropriate connection for the overall support and development of self-supporting instructional programs.
  • Campuses shall review and widely communicate policy to ensure campus compliance, including, but not limited to, notifying campus deans and department chair of the requirements to ensure there is a connection between expenditures made from campus revenue share trust accounts and the specific continuing education functions that benefitted from the expenditures.
  • Campuses are responsible for the implementation of this policy and shall have in place an internal monitoring mechanism to ensure compliance.

Fiscal Affairs has been working with your department business officers and/or AOCs in meeting the above documentation requirements.  For direct expenditures, this would include providing written justification on requisitions, purchase orders, direct payments, procurement card transactions and journal entries.  For indirect expenditures, a cost allocation plan would need to be provided as support.

This policy is effective August 5, 2015.  If you have any questions or need assistance, please contact Bon Bitonio, University Controller at bonb@sfsu.edu or at (415) 338-2582.

 

 

Cc:         Ronald S. Cortez, Vice President & CFO, Administration & Finance

               Jay Orendorff, Executive Director, Budget Administration & Operations

               Bon Bitonio, University Controller, Fiscal Affairs

 

Encl:      CSU Memo, “Extended Education Internal Audit Findings and Recommendations” dated June 23, 2015