Transcript Trust Fund Policy - California State University

Lorlie Leetham, Assistant Vice President, Fiscal Services & Auxiliary Reporting, SLO
Kelly Cox, Associate Director, Financial Services Accounting, CO
Josee Larochelle, Associate Vice President, Finance, SJSU
Kristina Randig, Associate Director, Management & Accounting Practices Office, CO
Toolbox
 Authorities
 Trust Fund P0licy
 Carry Forward
 The “Matrix”
 Legal Manual
The Authority of the CSU
• The Constitution of California
• State Laws
•
•
Education Code
Budget Act
• Donohoe Act of 1960
• Title V
• Board of Trustees
• Chancellor
• Campus President
SOURCE, FLOW, AND SCOPE OF STATE GOVERNMENT AUTHORITY AND REGULATIONS
(Exclusive of case law, local governments, and Federal law)
September 2005
ARTICLE IV
THE CONSTITUTION OF CALIFORNIA
Selected constitutional
articles and sections that
affect CSU:
DONOHOE ACT OF 1960
CREATES
THE CSU BOARD OF TRUSTEES
AND CAL STATE SYSTEM OF CAMPUSES
(EDUCATION CODE)
Article III: State of California
Article IV: Legislative
Article V: Executive
Article VII: Public Officers and
Employees
Article XII: Public Utilities
Article XIII: Taxation
Article XIV: Labor Relations
Article XVI: Public Finance
Article XX, §3, §20, §23
Article XXI: Architectural and
Engineering Services
CALIFORNIA CODE OF
REGULATIONS
TITLE 5. Education
Division 5. Board of Trustees of the
California State University
Chapter 1. California State University
ACTIONS OF THE BOARD
RESOLUTIONS AND
ORDERS
Budget Act
Business and Professions Code
Code of Civil Procedure
Corporations Code
Elections Code
Fish and Game Code
Government Code
Health and Safety Code
Labor Code
Penal Code
Public Contract Code
Public Utilities Code
Streets and Highway Code
Vehicle Code
Welfare and Institutions Code
Civil Code
Commercial Code
Education Code
Evidence Code
Financial Code
Food and Agricultural Code
Harbors and Navigation Code
Insurance Code
Military and Veterans Code
Probate Code
Public Resources Code
Revenue and Taxation Code
Unemployment Insurance Code
Water Code
CHANCELLOR
OF THE CSU
EXECUTIVE ORDERS,
DELEGATIONS OF
AUTHORITY, AND
POLICIES
State laws that govern CSU
operations:
STATUTES AND
APPROPRIATIONS OF FUNDS
THE CALIFORNIA LEGISLATURE
STATE SENATE AND STATE ASSEMBLY
CAMPUS
PRESIDENT
RESOLUTIONS AND
RULES
Subchapter
Subchapter
Subchapter
Subchapter
Subchapter
Subchapter
Subchapter
Subchapter
Subchapter
1.
2.
3.
4.
5.
6.
7.
8.
9.
Definitions
Educational Program
Admission Requirements
Student Affairs
Administration
Auxiliary Organizations
Employees
Environmental Quality
Contracts and Purchases
Trust Fund Policy Structure
 Policy Objective
 This policy is to provide direction for the establishment
and management of CSU funds within the SCO’s
“California State University” Trust Fund 0948, in order to
comply with all applicable laws, codes and regulations.
Trust Fund Policy Structure
 Policy Statement
 EC § 89721 provides for the broad delegation of authority
for certain monies to be deposited in SCO Fund 0948.
 In order to provide management, governance and ensure
compliance, the CSU has established unique CSU funds…
to account for the financial resources collected for a
specific purpose.
 SCO Fund 0948 exists both in the records of the State
Controller and in the official records of the CSU.
Trust Fund Policy Structure: Authority
 Authority to establish a CSU fund within SCO Fund 0948 is
provided through a “Delegation of Authority” (DOA).
Examples:
1. Education Code
2. Budget Act
3. Government Code
4. Financial Aid Regulations
5. Etc…
 For those categories listed above, a separate Local Trust
Agreement is not required.
Trust Fund Policy Structure: Authority
 In the absence of a DOA, a Local Trust Agreement (LTA)
must be completed to establish a local trust fund. The
CSU funds which require LTA include:
CSU # Fund Title
491 TF-Special Projects Fund-Special Projects
496 TF-Miscellaneous Trust
542 TF-Capital Project Management
543 TF-Cost Recovery/Reciprocal and Nonreciprocal Campus
544 TF-Cost Recovery/Exchange and Non-exchange Aux Orgs/3rd Party
550 TF-Restricted Expendable-Capital Projects
The “Matrix”
 CSU Fund, Description and Official definition!!
 Located in appendix 19 of the Legal Manual
The “Matrix”
• For each SCO/CSU
Fund there is column for:
• DOA or LTA
• Other Authority Sources
(i.e. Grantor Agreement
or EO 1000)
• Education or Government
code
Draft Policy Highlights
 500 Service Provider Arrangements and
Agreements
 Changed review period to be in accordance with the
contractual terms of the agreement or if not specified
then annually, by the university Chief Financial Officer
(CFO), or designee.
 300 General Requirements - What Changed:

Removed All reference to SCHOLARSHIPS
Draft Policy Highlights
 300 General Requirements - What Changed:
 Removed from Section 800 Fund Specifics
 Add language that additional requirements for
individual CSU Funds are addressed in section 2.0
“Authority and Fund Specifics,” within the Legal Manual
chapters.
 Although these requirements are contained in the Legal
Manual, they are an extension of this policy and
campuses must be in compliance.
Next Steps…
 Final issuance of the Policy - TBD
The “New”
Legal Manual
The “New” Legal Manual
 Enhancements include:
 CSU Business standards and Information
 Procedure oriented information not appropriate for the
policy
 Larger chapters will be broken into more manageable
sections
 Standard formatting within Chapters
 One repository for documents housed elsewhere, i.e.
RMP documents, various guidelines, emails, etc.
The “New” Legal Manual
Two New Chapter Templates
1. Chapters by CSU Fund
2. Chapters by Subject Matter
The “New” Legal Manual
 The standard template include the following:
 Overview
 Authority
 Fund Specific: (POLICY)
 Fund Management and Accounting
 Reporting Requirements
 Fund Balance
 GAAP Impact
 Resources
The “New” Legal Manual
The “New” Legal Manual
 http://www.calstate.edu/sfsr/Y-E-
R_Instructions/2013-2014/LegalManual/index.shtml
The “New” Legal Manual
Discussion
Are we there yet?