To ensure that the CERF trust account bears a reasonable portion of the campuswide instructional technology upgrade project's costs, San Josť State should immediately determine the proportionate share of the project cost each stakeholder, including extended education, should bear and, if necessary, transfer funds back to the CERF trust account.
The campus had originally allocated $13.2 million of the $28 million NextGen project to the CERF fund (as per audit report page 56). We have now reduced this amount by $4 million to result in a total of $9.2 million allocated charges to CERF. Complete details of new allocation methodology, and of the return of $4 million from NextGen to CERF, are being sent separately to CSA via email.
According to an internal "note to file" provided by the campus, San Josť State determined that the distribution [or proportion] of courses taught online was the appropriate method for allocating costs for its NextGen project. The campus calculated that about 1/3 of the courses taught online during Fall 2013 were extended education and about 2/3 were state-supported. By applying these proportions, the campus reduced extended education's share of the NextGen project's cost from $13.2 million to $9.2 million, resulting in $4 million being returned to the campuse's CERF fund.
Agency responses received are posted verbatim.