Allocation of Expense and Interest to Trust Funds

Large self-supporting operations and auxiliary organizations that are included in the University Cost Allocation Plan are not governed by this section of the Trust Fund Guidelines.

Trust Funds essentially represent self-supporting activities. As such, the cost of providing insurance, and business and financial services must be recovered from (charged to) the Trust Fund. This section explains the charges that are assessed to Trust Funds and how they are determined.

Special Exemptions. Some trust funds are automatically exempted from charges. These include:

  • Scholarship funds: in order to preserve the greatest support for student aid, these funds are not assessed risk or administrative charges.
  • Lottery Education Funds: Lottery funds are considered a state appropriation, not a self-supporting activity.
  • Miscellaneous course fees: Per Executive Order 1054, miscellaneous course fees (category III fees) may only be assessed for the actual cost of the materials or services provided and may not include any administrative charges or inflationary components.
  • Construction funds: Funds established to collect revenues for current or future construction projects.
  • Internal services funds: These funds represent fees collected from campus units that are covered by the CSU Operating Fund, or by self-supporting units that reimburse the CSU Operating Fund for risk coverage and administrative services through the University Cost Allocation Program.
  • Pass-through funds: These are funds established to facilitate activities that do not fall under self-supporting activities, but instead are passed through campus accounts by necessity (an example is the Associated Student fee collected by the campus and passed through to Associated Students).
  • Other: Special exemptions may be granted on a case-by-case basis where revenues are generated by activities that result from a student's enrollment in a course.  An example of this is theater productions, where participation in theater performance is required component of a course, and the performance generates revenues from ticket sales.

Other funds may be exempted from charges at the President and/or Chief Financial Officer's discretion, typically when a fund's dollar volume will be very small.

Some Trust Funds receive interest earnings on cash balances based on specific agreements with the President and Chief Financial Officer.

The remainder of this document describes the expenses allocated to Trust Funds, and the existing agreements related to the distribution of interest earnings.