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ICSUAMTrust Fund Policy

Lorlie Leetham, Assistant Vice President, Fiscal Services & Auxiliary Reporting, SLO

Kelly Cox, Associate Director, Financial Services Accounting, COJosee Larochelle, Associate Vice President, Finance, SJSU

Kristina Randig, Associate Director, Management & Accounting Practices Office, CO

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Toolbox Authorities

Trust Fund P0licyCarry Forward

The “Matrix”

Legal Manual

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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

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THE CONSTITUTION OF CALIFORNIA

DONOHOE ACT OF 1960CREATES

THE CSU BOARD OF TRUSTEESAND CAL STATE SYSTEM OF CAMPUSES

(EDUCATION CODE)

ARTI

CLE

IV

ACTIONS OF THE BOARD RESOLUTIONS AND RULES

CALIFORNIA CODE OF REGULATIONS

TITLE 5. EducationDivision 5. Board of Trustees of the California State University Chapter 1. California State University

Subchapter 1. DefinitionsSubchapter 2. Educational ProgramSubchapter 3. Admission RequirementsSubchapter 4. Student AffairsSubchapter 5. AdministrationSubchapter 6. Auxiliary OrganizationsSubchapter 7. EmployeesSubchapter 8. Environmental QualitySubchapter 9. Contracts and PurchasesRE

SOLU

TION

S AN

D OR

DERS

CHANCELLOR OF THE CSU

THE CALIFORNIA LEGISLATURESTATE SENATE AND STATE ASSEMBLY

STAT

UTES

AND

AP

PROP

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IONS

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FUND

S

CAMPUSPRESIDENT

EXEC

UTIV

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, DE

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S OF

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ITY,

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S

State laws that govern CSU operations:

Budget ActBusiness and Professions Code

Code of Civil ProcedureCorporations Code

Elections CodeFish and Game Code

Government CodeHealth and Safety Code

Labor CodePenal Code

Public Contract CodePublic Utilities Code

Streets and Highway CodeVehicle Code

Welfare and Institutions CodeCivil Code

Commercial CodeEducation CodeEvidence CodeFinancial Code

Food and Agricultural CodeHarbors and Navigation Code

Insurance CodeMilitary and Veterans Code

Probate CodePublic Resources Code

Revenue and Taxation CodeUnemployment Insurance Code

Water Code

SOURCE, FLOW, AND SCOPE OF STATE GOVERNMENT AUTHORITY AND REGULATIONS(Exclusive of case law, local governments, and Federal law)

September 2005

Selected constitutional articles and sections that

affect CSU:

Article III: State of CaliforniaArticle IV: LegislativeArticle V: ExecutiveArticle VII: Public Officers and EmployeesArticle XII: Public UtilitiesArticle XIII: TaxationArticle XIV: Labor RelationsArticle XVI: Public FinanceArticle XX, §3, §20, §23Article XXI: Architectural and Engineering Services

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Trust Fund Policy StructurePolicy 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.

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Trust Fund Policy StructurePolicy 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.

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Trust Fund Policy Structure: AuthorityAuthority 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.

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Trust Fund Policy Structure: AuthorityIn 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

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The “Matrix”

CSU Fund, Description and Official definition!!

Located in appendix 19 of the Legal Manual

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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

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Draft Policy Highlights500 Service Provider Arrangements and

AgreementsChanged 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

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Draft Policy Highlights300 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.

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Next Steps…Final issuance of the Policy - TBD

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The “New”Legal Manual

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The “New” Legal ManualEnhancements include:

CSU Business standards and InformationProcedure oriented information not

appropriate for the policyLarger chapters will be broken into more

manageable sectionsStandard formatting within ChaptersOne repository for documents housed

elsewhere, i.e. RMP documents, various guidelines, emails, etc.

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The “New” Legal ManualTwo New Chapter Templates

1. Chapters by CSU Fund

2. Chapters by Subject Matter

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The “New” Legal ManualThe standard template include the following:

Overview Authority Fund Specific: (POLICY)Fund Management and AccountingReporting RequirementsFund BalanceGAAP ImpactResources

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The “New” Legal Manual

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The “New” Legal Manualhttp://

www.calstate.edu/sfsr/Y-E-R_Instructions/2013-2014/LegalManual/index.shtml

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The “New” Legal Manual

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Discussion

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Are we there yet?