CSU Fee Policy and Reporting Requirements Lottery Fund Reserves

1. Cal Poly CSU Fee Policy and Reporting RequirementsLottery Fund Reserves Presented by: Lorlie Leetham, Director of Fiscal Services Victor Brancart, Associate Budget Director

2. Cal Poly Overview Outline • Executive Order 1034 – CSU Student Fee Policy • Fees • Definition and authority • Categories • Policy on unexpended student fee balances • Lottery unexpended balance policy • Student fee policy accountability and reporting • EO 1034 Reporting Requirements • Fee Reporting Process - Implementing the requirements at Cal Poly • Cal Poly Annual Fee Report form • Summary • What this means for this fiscal year end • Questions

3. Cal Poly Executive Order 1034 – CSU Student Fee Policy • Effective June 26, 2008 • Re-categorizes student fees from four to five category • Establishes authority, responsibility, and accountability with respect to all categories of student fees • Continues the requirement for the Campus Fee Advisory Committee • Continues practice of seeking the advice of the campus fee advisory committee combined with student referenda and/or alternative consultation processes for mandatory student fees • Changes the authority for the establishment and/or adjustment of certain fees depending on category • New reporting requirements and accountability for all student fees

4. Cal Poly What do we mean by “fees”? • Payments due to the University by individual students, faculty, & staff • Inclusive of miscellaneous course fees and various student user fees • Exclusive of non-student payments for rents, licenses, and leases • Exclusive of campus recharge programs, conferences, workshops, and performances

5. Cal Poly Flow of Authority • Board of Trustees: Resolutions and Rules • State University Fee, Non-Resident Tuition, Application Fee • CSU Chancellor: Executive Order • Establish new campus-based fees • President: • Adjust mandatory campus-based fees • Establish and adjust certain non-mandatory campus-based fees

6. Cal Poly Student Fee Categories • Category I: Systemwide mandatory fees. Fees that must be paid to apply to, enroll in, or attend the university or pay full cost of instruction. • State University Fee • Non-resident tuition • Application Fee

7. Cal Poly Student Fee Categories • Category II: Campus mandatory fees. Fees that must be paid to enroll in or attend the university. • Academic Fee – College Based Fee/ Cal Poly Plan Fee • Health Services Fee • Instructionally Related Activities (IRA) Fee • Associated Students Incorporated (ASI) Fee • University Union Fee • Health Facilities Fee • Campus Services Card

8. Cal Poly Student Fee Categories • Category III: Miscellaneous course fee – Afee associated with a specific state supported course for materials and services used in course instruction. • MCF rates must be equal to the actual cost incurred to provide the materials or services to one student per term • No unexpended balance at fiscal year end • No administrative or inflationary adjustments can be made to MCF rates • Fee may not be used to cover direct costs of instruction (faculty) or administrative costs

9. Cal Poly Student Fee Categories • Category IV: Fees other than Category II or III paid to receive materials, services, use of facilities, fees resulting from dishonored payments, late submissions, misuse of property, or security deposits. • Examples: - Commencement - Master’s Thesis - Breakage - Transcript - Off-campus Study Abroad Programs

10. Cal Poly Student Fee Categories • Category V: Fees paid to self-support programs such as Parking, Housing, and Continuing Education • Housing license • Parking permits • Continuing Education courses

11. Cal Poly Student Fees – Unexpended Balances • Expectation is that all student fees are fully expended by fiscal year end. • According to EO 1034, if significant unexpended balances exist the fees should be reduced, suspended or eliminated. • Campus Policy: Cumulative unexpended balance shall not exceed 20% of the current year’s allocation and/or revenues. • Allows for timing differences, fiscal resource and cost fluctuations, and expenditure plans that may overlap into the subsequent fiscal year • Exceptions to 20% unexpended balance threshold: • Self Support Programs – unique programmatic reserve policies • Miscellaneous Course Fees (MCF) – CSU policy does not allow for unexpended balance

12. Cal Poly Lottery Funds • While technically not a fee, the CSU holds each campus accountable for excessive unexpended Lottery balances as of June 30 of each year. • CSU Carryforward Fund policy applies: • Cumulative unexpended balance shall not exceed 20% of the current year’s allocation and/or revenues. • Unexpended balances in excess of the 20% will be transferred to division level accounts • Consequences of excess • Excess funds are subject to de-allocation by Chancellor’s Office

13. Cal Poly Student Fees – Unexpended Balance Policy * Fee may be reduced, suspended or eliminated by the President or designee, and excess balances will be transferred to division level accounts.

14. Cal Poly Student Fee Accountability and Reporting • Since 1998, CSU campuses have been required to submit a standardized annual fee report to the Chancellor’s Office (CO). • Required past and current fee rates and total revenue collected by fee • No unexpended fee balances reported • EO 1034 requires an annual report of all fees in Category II, III, IV, and V to the CO and to the Campus Fee Advisory Committee (CFAC). • Reports will include past and current year fee rates, total revenue collected for each individual fee, and any unexpended balance by individual fee. • CSU Annual Fee Report is due to CO by August 31 of each year • Report to CFAC during Fall quarter

15. Cal Poly Student Fee Accountability and Reporting • Purpose is accountability and responsibility • We charge student fees to pay for services, materials, use of facilities, and fines, and the revenue should be spent accordingly. • This year’s students should not be paying for next year’s services. • Reported fee information used by Board of Trustees, Integrated Post Secondary Education Data-System (IPEDS) and the Western Interstate Commission for Higher Education (WICHE). • Information may be used to help shape policy in the future. • Full requirements of the new EO 1034 are in effect for the 2008/09 fiscal year.

16. Cal Poly Fee Reporting Process • Vice Presidents and/or College Deans have been delegated authority and responsibility for administering University budgets • Each individual fee will be associated with a college, a department and a responsible department head. • Department heads may need to identify and work with responsible fee owners in their departments • Department budget specialists will coordinate the process • Annual fee reporting process for Cal Poly will include completion and submittal of the Cal Poly Annual Fee Report form for all Miscellaneous Course Fees, and for all other fees with unexpended balances greater than 20% of that year’s revenues

17. Cal Poly Fee Reporting Process • Fiscal Services will distribute annual fee information and fee report form via email to department heads in July for the fiscal year just ended • Deans/Vice Presidents and department budget specialists will be copied • Fee rate, revenue information, and unexpended balances (when available) for each fee will be provided by Fiscal Services. • Example: IRA, fees recorded in MRxxx funds, Study Abroad Program fees, some user fees • In some cases, unexpended balances will have to be provided by department • Example: Miscellaneous Course Fees, some user fees

18. Cal Poly Fee Reporting Process • Responsible fee owners will document explanation of unexpended balances greater than 20% • For Miscellaneous Course Fees, any unexpended balance must be explained • Form must be signed by the department head and the College Dean/Division Vice President • Signatures certify acknowledgement and approval of expenditure plan for excess balance • Excess balances carried over next fiscal year will be transferred to division level accounts

19. Cal Poly Fee Reporting Process • Fees with an unexpended balance remaining of less than 20% - no reporting required from campus departments • Campus fee report to CO will indicate balances due to timing differences and fiscal resource and cost fluctuations • If department has balance for reasons other than that indicated here, you will need to provide that information. • Fees with unexpended balance greater than 20% of revenues • Department will complete Cal Poly Annual Fee Report form • Provide explanation of expenditure plan for balance • MCF must have expenditure plan for all unexpended balances • No 20% reserve tolerance • Due to summer quarter timing differences, small balances may occur and must be explained

20. Cal Poly Fee Reporting Process • Completed annual fee report forms will be returned to Fiscal Services by October 15 of each year • Information will be used to make corrections to CSU fee reporting data base as needed • CSU will collect expenditure plan information from campuses during Fall quarter, no date given as of yet • Report to CFAC will include changes in fee rates, total revenue collected, unexpended balances, and expenditure plans • Unexpended balances in excess of the 20% threshold that are carried over into the next year will be transferred to division level accounts • Consistent with EO 1034, fees generating excess balances will be reviewed by the President or designee to determine if the fee should be decreased, suspended, or eliminated

22. Cal Poly Summary • EO 1034 effective June, 2008 • Re-categorized student fees • Established authority, responsibility and accountability • Established new reporting requirements • Campus unexpended balance policy and annual fee reporting process developed in order to comply • CSU Annual Fee report completed by August 31 • MCF - expect no unexpended balances, all amounts must be explained • Other fees – unexpended balances up to 20% of current year revenues • Annual email sent to responsible department heads • Will include centrally maintained fee information and Cal Poly Annual Fee Report form • Excess balances must be explained and plan of expenditure followed • Must be completed and signed by department heads and Deans • Forms returned to Fiscal Services by October 15 • Excess balances carried over into next year will be transferred to division level accounts • Report to CFAC in Fall • Link to EO 1034: http://www.fees.calpoly.edu/policies.htm

23. Questions?