The college faces a critical situation with respect to operating expense fund balances for the current fiscal year. Several major budget accounts have been exceeded as a result of factors beyond our immediate control. For example, the particularly harsh weather encountered during the past year has resulted in many thousands of dollars in additional utility expenses. Motor vehicle operation expenses have been inordinately high. Communications expenses have also substantially exceeded estimates. These major expenditures represent on-going operations which do not require purchase orders and therefore are most difficult to control.
At this point it is projected that regular operating expense accounts such as the above will be critically short in funds with which to meet monthly billings by the end of the fiscal year. The Chancellor's Office has rejected a requestfrom the college to transfer funds from student application fees which would have covered almost all of the projected shortages and has required that the college use any current available balances in operating expense funds to meet its bills.
As a consequence of these conditions, we must now require that no further purchase orders calling on existing operating expense balances be processed. The only exceptions to this order will be made on the basis of emergency needs which are supported by memoranda directed simultaneously to both of our offices which both of us will review after any available balance has been identified.
We regret these circumstances most sincerely, but we have no alternative but to meet the legitimate claims of the creditors of the college before authorizing additional expenditures.