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

www.calstate.edu

Date:
July 9, 2009
Code: FS 2009-03
To:
Vice Presisents for Administration/Finance
 
From:
George V. Ashkar
Interim Assistant Vice Chancellor, Controller
Financial Services, Accounting
Subject:
2009/10 Centrally Paid Indirect Costs - Health Center Facilities

Each year, the Chancellor’s Office allocates both Direct and Indirect costs to campuses; Direct charges include Systemwide Revenue Bond debt service, and Indirect charges are made up of State Prorata costs and Chancellor’s Office Prorata costs. Commencing 2009/10, Financial Services will be communicating to campuses the Indirect charges, as noted on the attached worksheet. Any direct charges specific to a health center program will be communicated separately by Financing and Treasury.

For the distribution of the State Prorata and Chancellor's Office Prorata costs, the methodology will remain unchanged from prior years. Campuses are classified into two groups: Large and Medium/Small based on prior year revenues for the enterprise programs. The ten campuses with higher revenue bases will be allocated three-quarters of the Indirect Prorata charges, The Medium/Small campuses will be allocated the remaining one-quarter of the costs, Please note that the State Prorata and Chancellor's Office Prorata costs will be charged to all enterprise funds, Auxiliary organizations that have debt, whether that debt is issued through the Systemwide Revenue Bond program or through the auxiliary itself, will also be allocated a portion ofthe costs.

The Indirect costs (both State Prorata and Chancellor's Office Prorata) will be "passed down" to campuses through quarterly Systemwide Investment FundTrust (SW1FT) transfers as initiated by the Chancellor's Office via a Cash Posting Order, While the charges will pass through the Trust Fund (#948), we request that each campus take responsibility for posting the indirect cost assessment to the appropriate program, State!CSU fund, and campus accounts. 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.

Please contact Terri Williams at (562) 951-4386 or Dagoberto Escobedo at (562) 951-4561 for questions regarding the accounting process. Regarding the State Prorata or Chancellor's Office Prorata costs, contact Jean Gill at (562) 951-4318. Thank you for your assistance in the process.

GVA:RE:RHR:as

Attachment (.xls)

Distribution:
Business Managers
Health Center Administrators
Budget Officers
Accounting Officers
Benjamin Quillian
Robert Eaton
Jean Gill
Ben Cheng
Kelly Cox
Rosa H. Renaud
Kathy Skara
Terri Williams
Dagoberto Escobedo
Brian Lee
Angelique Sutanto
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