All cash, checks and other payments related to University accounts shall be received and deposited by the University Cashier in the Fiscal Services Department. No other departments are authorized to collect funds unless authorized in writing by the Director of Fiscal Services.
341.1 Income from Fees and Charges
The trustees of the CSU are authorized to require all persons to pay fees, rents, deposits, and charges for services, facilities or materials provided by the trustees to such persons. The trustees have exercised this authority by establishing various fees and by delegating some authority to the Chancellor and/or to the Presidents. The Chancellor in turn has also delegated some authority to the Presidents.
341.1.1 Fees and Charges
Fees may be collected as a prerequisite to registration in classes in order to offset the costs of educational facilities and programs that are provided for the benefit of all enrolled students. In accordance with CSU policy and state statutes, these fees are deposited either in the General Fund as a source of general operating revenues or in other funds that have been established for designated purposes.
Other fees and charges may be collected where necessary to recover the cost of goods, services, and facilities provided to users who elect to utilize such goods, services, and facilities. These fees and charges shall be structured in a manner that will encourage the most effective and efficient use of such goods, services, and facilities.
Fee policy, including authority to establish and revise fees, is set by the CSU Board of Trustees. In some cases authority to establish and/or adjust fees has been delegated by the Trustees to the Chancellor or the presidents.
341.1.2 Other Charges
Users of campus facilities, goods, and services, including auxiliary enterprises, shall compensate the State for all direct costs and for an appropriate allocation of indirect costs.
- Any laws, regulations or codes of practice which should be referred to in conjunction with the policy:
- California Education Code 89700
- CSU Executive Order 740
- CSU Executive Order 753
- California Administrative Code
- Title 5 (various)
341.2 Income from Contracts and Grants
341.2.1 Direct Cost Recovery
All direct costs incurred in support of contracts and grants shall be recovered unless there is a benefit to the university that offsets any direct costs that are not recovered. Direct costs are those costs that can be identified specifically with a particular sponsored project, an instructional activity or any other institutional activity, or that can be directly assigned to such activities readily and with a high degree of accuracy.
341.2.2 Indirect Cost Recovery
The University shall seek full indirect cost reimbursement for research and development, training, and other sponsored work performed by the University under grants, contracts, and other agreements with the Federal Government. These agreements are referred to as sponsored agreements and the activities conducted under them are referred to as sponsored activities. Indirect costs, as defined by the Department of Health and Human Services (DHHS), are those costs that are incurred for common or joint objectives and, therefore, cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity.
Because indirect costs are real expenses, funds recovered through indirect cost reimbursements are not available to provide additional support for the direct expenses of a project. As indirect cost reimbursements for projects administered fiscally either by the University or by the Foundation are accumulated, they may be utilized by the respective business offices to pay for the financial administration of the projects according to the approved rate. All other recovered funds shall be placed in appropriate Foundation or University trust accounts and shall be used for covering associated costs and for sharing throughout the University.
The indirect cost income received from these grants and contracts shall be distributed in the following order: Foundation controlled: 100% of the administration costs of the Sponsored Programs Office is recovered first; then 100% of the cost of the research facility is recovered; then a reserve is set aside for contingencies, such as audit adjustments. The next level of distribution shall remain in Foundation accounts but shall be University controlled and shall be distributed in the following order: 100% of the cost of Foundation employees and other costs of the Grants Development Office; Centers, Institutes, and Academic Departments that meet certain requirements receive a share; finally, any remaining indirect cost income is put into a research investment pool for continued research and development.
Grants and contracts that are awarded to and administered by the University are usually inter-agency agreements with other State agencies. The indirect cost recoveries associated with these grants and contracts are usually well below the negotiated indirect cost rate for the campus and also less than the cost of administering these grants. Of the amount of such costs recovered, 75% shall be credited to Fiscal Services and the remaining 25% shall be distributed to the Office of Research and Graduate Programs and distributed based upon a proposal for the use of the unallocated overhead that is developed by the Dean for Research and Graduate Programs and sent to the President for approval.
341.3 Investment Income
Cal Poly, as a California State University (CSU) campus, is authorized to invest trust funds. Funds shall be invested in accordance with current CSU policy by any means authorized for the investment of State money.
341.3.1 Report on Investment Performance
The Director of Fiscal Services shall prepare an annual report to the Vice President for Administration and Finance on the performance of the portfolio.
341.3.2 Investments Committee
An Investments Committee shall provide guidance regarding investment decisions as indicated in the investment policy. The committee shall include the Vice President for Administration and Finance, the Associate Vice President for Finance, and the Director of Fiscal Services. The Investment Committee shall review all revisions to the investment policy.
341.3.3 Sources of Investment Cash
Trust Fund deposits may include gifts and donations; scholarship and loan funds; federal grants and contracts; deposits; optional fees and charges; instructionally related activities fees and program income; fees for parking, health facilities or health services, and for self-supporting instructional programs; and revenue received by the trustees from the California State Lottery Education Fund. Trust fund balances shall be considered available for investment unless excluded by law or policy or required for current operations.
Student body funds shall be invested by Cal Poly under the direction of the Chief Fiscal Officer via the CSU Trust Fund. An agreement with ASI covers the investment of these funds.
341.3.4 Sources of Investment Cash
In accordance with current CSU policy, all investments shall be managed by an external investment manager appointed by the Office of the Chancellor. All eligible trust deposits (with the exception of those that may be used for internal loans as described herein) are transmitted by the campuses for investment purposes. All external investments shall be made via one of the CSU investment pools.
Funds may be loaned within or between funds, as authorized by the Associate Vice President for Finance based on the recommendation of the Director of Fiscal Services. The arrangements shall be documented, and interest shall be paid at a reasonable rate.
341.3.5 Distribution of Investment Income
Income from investments, from negative balances, and from internal loans shall be distributed semi-annually on the basis of income actually received or reported by the investment manager during the prior six month periods from July 1 through December 31 and from January 1 through June 30.
341.3.6 Administration Charge
Seven percent of all interest income earned shall be credited to Fiscal Services in compensation for management of the investment program. This charge shall be deducted from interest earned prior to computing the rate of interest earned for distribution purposes.
341.3.7 Administration Charge
Unless stipulated by an agreement external to this policy, the following distribution classes shall be utilized to determine if an account is interest bearing, and if so, the distribution process that will apply:
341.3.8 Endowment, Quasi Endowment and Related Reserve and Operating Accounts
A target rate will be established for endowment and quasi-endowment spending. Interest up to the target rate shall be credited to each endowment account and interest in excess of the target rate shall be held in related reserve accounts. Such reserve balances may be used to supplement distributions at times if the interest earned is less than the target rate.
341.3.9 Other Interest Bearing Accounts
Similar rules shall apply to the distribution of interest to other interest bearing accounts, except that income in excess of the target rate shall be deposited to a single reserve account, a maximum reserve balance shall be established and maintained in that account, and reserves in excess of that maximum shall be distributed in accordance with a formula approved by the Director of Finance. Other interest bearing accounts shall include: Campus Administered Scholarship and Loan Accounts, Perkins Loan Funds, Federal Financial Aid Grant Funds, IRA Accounts, and other gift and donation accounts.
341.3.10 Non-interest Bearing Accounts
Any interest earned on non-interest bearing accounts shall be credited to Fiscal Services in compensation for the cost of administering these accounts. Non-interest bearing accounts shall include: miscellaneous course fee accounts, Scholarship Accounts - externally designated recipients, State Financial Aid Grant Funds, miscellaneous deposits, optional fees and charges, and others as determined.