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Financial Services
401 Golden Shore, 5th Floor
Long Beach, CA 90802-4210

www.calstate.edu

Date:
July 26, 2010
Code: FS 2010-02
To:

Vice Presidents for Administration/Finance

 
From:
George V. Ashkar
Assistant Vice Chancellor, Controller
Financial Services
Subject:

2010/11 Centrally Paid Costs

Each year the Chancellor’s Office allocates both direct and indirect costs to campuses; direct charges consists mainly of Systemwide Revenue Bond debt service, and indirect charges are made up of State Prorata costs and Chancellor’s Office overhead costs.  The purpose of this memorandum is to provide you a summary of the total indirect and direct costs that will be charged to your campus during the 2010/2011 fiscal year. 

Campuses will be assessed approximately $12,036,000 of indirect costs in 2010/2011, which will be assessed in four quarterly installments of $3,009,000.  Each campus’ portion of the quarterly assessment can be found on the attached summary as well as attachments by program. 

Campuses will be assessed approximately $184,738,000 for direct costs (mainly debt service) in 2010/11. The transfers related to direct costs will occur on October 1, 2010 and April 1, 2011. In 2010/11, the housing program will receive a one-time credit related to the release of old housing bond reserve requirements. Only campuses that had funds tied to reserves will be receiving the credit. Commencing 2010/11, campuses that participated in the issuance of the Build America Bonds (BABs) Series 2010B will receive bi-annual subsidies of approximately 35% of the interest expense coming due on November and May of each year. The subsidies are not incorporated in the attachments because they are not characterized as an offset to the debt service obligations and should be used for program operations. The subsidies will be distributed to the campuses semi-annually via a Cash Posting Order. Please refer to the attached summary and detail by program for your campus’ portion of direct costs.

Please ensure that the appropriate fiscal personnel at your campus have this information as they will need it to develop and account for next year’s operating budget and cash flow.  Thank you for your assistance in this process.

GVA:KS:gs

Attachment 1 Attachment 6  Attachment 11 Attachment 16
Attachment 2  Attachment 7  Attachment 12
Revised 3-29-11
Attachment 17
Attachment 3 Attachment 8 Attachment 13  
Attachment 4   Attachment 9  Attachment 14 
Revised 3-29-11
 
Attachment 5  Attachment 10
Revised 3-29-11
Attachment 15  

Distribution of Attachments:

Vice Presidents for Student Affairs (all attachments)
Business Managers (all attachments)
Housing Officers (attachments 1, 3, 9, 10)
Student Union Directors (attachments 1, 2, 5, 13, 14)
Parking Officers (attachments 1, 2, 4, 11, 12)
Health Center Administrators (attachments 1, 2, 6, 16)
Continuing Education Administrators   (attachments 1, 2, 8, 17)
Auxiliary Organization Administrators (attachments 1, 2, 7)
Budget Officers (all attachments)
Accounting Officers (all attachments)
Dr. Benjamin F. Quillian (all attachments)
Robert Eaton (all attachments)
Jean Gill (all attachments)
Ben Cheng (all attachments)
Kelly Cox (all attachments)
Rosa H. Renaud (all attachments)
Kathy Skara (all attachments)
Terri Williams (all attachments)
Lilian Audet (all attachments)
Angelique Sutanto (all attachments)