CSU FUND: 531 TF-Housing Operations and Revenue

CHAPTER 8 HOUSING

CSU FUND: 531 – TF-Housing Operations and Revenue

532 – TF-Housing Maintenance & Repair

533 – TF-Housing Capital Improvements

FUND TYPE: Proprietary – Enterprise Trust Fund

Systemwide Revenue Bonds (SRB) Pledged Funds

AUTHORITY: State Revenue Bond Act of 1947 Ed. Code 89703 Ed.Code Section 90010 Self-Supporting Program as established through EO 1000 - Section IIIA

1.0 OVERVIEW:

The Housing Program at CSU provides residential and other related program facilities for students. The State Dormitory Construction Fund was established under the State Revenue Bond Act of 1947 and bonds were initially sold to support the construction of campus housing facilities. In 1957, the legislature approved a residence hall program, which was financed by both state and federal funds. Today the Housing Program is a self-supporting program deriving its revenues primarily from student license fees collected for the use of the residence facilities. Funds are used for current operating expenses, maintenance and repair, improvements to facilities, development of new facilities, and interest and principal payments on outstanding bonds. After payment of all authorized charges, the balances in any of these funds remain available for future program expenses and facilities expansion. Housing facilities at the Fresno, Monterey Bay and San Marcos campuses are operated by auxiliary organizations.

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In 2003, CSU initiated its Systemwide Revenue Bond program (SRB) under the authority granted in Ed Code 90010. The SRB program is designed to provide lower cost debt and greater flexibility to finance revenue bond projects. Rather than relying on specific pledged revenues to support specific debt obligations, the program pools several sources of revenue as the pledge for the revenue-producing projects. The revenue bond indenture requires that an audit of the bonds be conducted each year. The audit must be completed by late November to satisfy the many deadlines imposed by interested parties.

2.0 FUND SPECIFICS:

CSU Fund 531, TF-Housing Operations and Revenue: Used to record all revenue generated from license fees and other housing-related services and operating costs related to the Housing program. CSU Fund 532, TF-Housing Maintenance & Repair: Used to record all major facilities maintenance and repair costs infrequently incurred or scheduled on a non-routine basis. Includes costs of deferred maintenance, defined as work not completed on building systems or infrastructure on a planned or unplanned basis. Results from not completing material routine maintenance or scheduled maintenance within a system’s life cycle. Includes project expenditures for capital renewal (building systems, equipment and infrastructure that have reached the end of their useful lives due to normal wear and tear). CSU Fund 533, TF-Housing Capital Improvements: Used to record expenditures for activities which improve or alter an existing space, or for construction of new buildings or additions to buildings. Systemwide Revenue Bond (SRB) financed construction is recorded in SCO fund 0576, CSU fund 221. Housing revenues in CSU fund 531 are pledged towards the SRB.

3.0 FUND MANAGEMENT AND ACCOUNTING:

3.1 Housing Revenue

All housing program revenue must be used exclusively for the self-supporting housing program.

Revenue object code 504001, Housing Rent, is only to be used in fund 531 to record license fees charged in association with housing programs.

Revenue object code 504002, Housing Revenue-Others, is only to be used in CSU fund 531 to record fees charged in association with housing programs. It can be used to record Housing late fees and installment charges.

Revenue object code 503401, Private Contributions–Non-Capital, should be used to record monies transferred from auxiliary organizations as non-exchange transactions to CSU fund 531.

3.2 Meal Plan Fees

University-run housing meal plan fees collected at registration are part of the university’s revenue, not agency transactions, thus the revenue should be recorded in the Housing CSU fund 531 using FIRMS object code, 504010, Food Services.

Currently, the majority of CSU universities outsource (subcontract) food service activity to their auxiliary organizations, and the payments to the auxiliary organization are recorded in the Housing CSU fund 531 using FIRMS object code 613001, Contractual Services. Due to the high degree of subcontracting and the resulting low volume of financial transactions systemwide, a separate CSU fund for food service activity has not been established. For those campuses that do have food service activity provided by their university (and thus have revenues and expenses within their university books), CSU fund 531, Housing Operations and Revenue, should be used.

For a complete list of valid object codes, refer to the Legal Edits Table, link provided in Section 7.0, Resources.

4.0 REPORTING REQUIREMENTS:

5.0 FUND BALANCE:

The campus reserve policy is recorded in ICSUAM 2001.00, which is located on the ICSUAM website. See link provided in Section 7.0, Resources. Reserves are also required to be developed and reviewed in accordance with Section 7 of EO 994. See link provided in Section 7.0, Resources.

For further instructions for recording the reserves in the ledger, please see Chapter 4, Section 5.0, Year End.

6.0 GAAP IMPACT:

Resident Assistant Fee Waivers: As a condition of employment, resident assistants who reside on campus are not charged for housing, which includes lodging and meals. Some resident assistants also receive a tuition waiver for their services. Refer to Chapter 4-13, GAAP Adjustments and Reclassification-Other Accounting Issues of the GAAP reporting manual for GAAP treatment and requirements, link provided in Section 7.0, Resources.

As discussed in Section 2.0, Housing program construction is financed through the Systemwide Revenue Bond (SRB) program and certain housing revenues are pledged to SRB, hence subject to the SRB audit and included in the SRB passdown entries from the Chancellor’s Office. Refer to Chapter 4, Long-term Debt Obligations, Chapter 5, Allocations from the Chancellor’s Office and Chapter 16, SRB Audit Requirements, of the GAAP reporting manual for GAAP treatment and requirements, link provided in Section 7.0, Resources.

7.0 RESOURCES:

Education Code 89703 (Housing)

ICSUAM 2001.00 – Campus Reserve Policy

EO 994 – Financing and Debt Management Policy – Project Development and the Systemwide Revenue Bond Program

FS 2016-01 – Definition of Major (Non-recurring) Maintenance & Repair Costs as Used in Executive Order 994 and Chapter 15 of the Legal Accounting and Reporting Manual - Updated

Superseded by FS 2016-01 (see above) FS 2011-05 Definition of Major Maintenance & Repair Costs as Used in Executive Order 994 for Auxiliary Enterprise Funds in the SRB Program

Financing & Treasury: Housing

Standards and Rules: Legal Edit Table

GAAP Manual: Chapter 4-13 - Other Accounting Issues 8-4 California State University | CSU Legal Accounting and Reporting Manual HOUSING

Chapter 4 – Long-term Debt Obligations Chapter 5 - Allocations from the Chancellor’s Office Chapter 16 - SRB Audit Requirements

REVISION CONTROL

Document Title: CHAPTER 8 – Housing – CSU Funds 531, 532, 533 Contributor: Thomas Leung Reviewer: Lily Wang CO Owner: Roberta McNiel Issuance Date: 1/8/14

Revision and Approval History

Section(s) Summary of Revisions Revised Reviewed Approved Revision Revised By by by Date 3.2 Clarified meal plan fees described in this Lily Wang R. McNiel R. McNiel 4/11/2016 chapter refers to university run housing meal plans.

5.0 and 7.0 Added information regarding ICSUAM Kristina Roberta Roberta 4/11/2016 2001.00 – Campus Reserves Randig McNiel McNiel Various Updated fund titles for 531, 532 and 533 Kristina Kristina Kristina 4/3/2017 per CM FS 2016-01. Randig Randig Randig 2.0 Updated fund description in accordance N. Bryant Kristina Kristina 6/8/2017 with the Table of CSU Fund Definitions and Randig Randig Authorities

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