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HSU Policies

VP 71-4 Restriction on Further Operating Expense Expenditures 1970-71 Fiscal Year

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VP 71-4

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.


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