Department of Finance Fiscal Systems and Consulting Unit

1. Department of FinanceFiscal Systems and Consulting Unit Pro Rata/SWCAP Training for Central Service Agencies 2012-13 Plan

2. Agenda Central Service Agency/Functions Central Service Costs Allocation Definition of Workload Definition of Expenditures Workload and ExpenditureSpreadsheets Data Analysis Transmittal Instructions

3. Course Objectives To understand: • How to complete workload and expenditure spreadsheets. • CSA/FSCU analysis • Cost Allocation Plan Development • Due dates

4. What is a Central Service Agency (CSA) Cost?

5. Central Service Agency Costs State Administrative Manual Section 8753 Central service costs are those amounts expended by central service departments and the Legislature foroverall administration of state government and for providing centralized services to state departments.These functions are necessary for state operations and are centralized to provide efficient and consistent statewide policy and services.

6. Central Services

7. Central Services

8. Central Services

9. Central Services

10. Central Service Costs Allocation

11. Central Service Costs Allocation Pro Rata Plan Recovery of central service costs from special and certain non-governmental cost funds Statewide Cost Allocation Plan (SWCAP) Recovery of central service costs from federal funds

12. Central Service Costs Allocation SWCAP: Allocate costs to departments by function Distribute department’s total allocation to federal fund based on its proportion of total funding Federal fund is only billable fund Pro Rata: Allocate costs to departments by function Distribute department’s total allocation to each fund based on the fund’s proportion of total funding Classify each fund’s cost as billable or nonbillable

13. Central Service Costs Allocation Obtain workload and expenditure data from the CSAs: Past year (PY) actual workload data Past year actual expenditures (must tie to year-end financial statements) Budget year (BY) estimate expenditures Calculate and distribute CSA costs to state departments based on workload

14. Central Service Costs Allocation Distribute total departmental allocation Pro Rata – proportionately to all funds in the department based on each fund’s percentage of total departmental funding. SWCAP – proportionately to the federal fund based on its percentage of total departmental funding.

15. Central Service Costs Allocation (Pro Rata Only) Determine the total allocated to each fund Calculate the total allocation using the departmental allocation for each fund (PY and BY) from Step 3 and the BY estimate from two years ago (PY estimate). PY PY Roll - BY Total Actual Estimate Forward Estimate Allocation – = + =

16. Central Service Costs Allocation Classify the allocation from Step 4 as billable or nonbillable funds (Pro Rata only) Billable funds: Funded by special revenue sources such as fees, licenses, penalties, assessments, interests, etc. Nonbillable funds: General Fund Federal Funds Special Deposit Fund (SWCAP only federal fund is billable)

17. Pro Rata /SWCAP Reports CSA Reported Expenditure Data PY Actual and BY Estimate CSA Reported Workload Data PY Actual and BY Estimate Miscellaneous Agencies Reported Data Budget Data (Schedule 10s) CSA Cost Allocation SWCAP Reports Pro Rata Reports

18. What is Workload?

19. Hours Claims Transactions Warrants Positions State Operations Interest earned Other Workload

20. Workload Requirements What you need: • Workload Data Checklist • Workload spreadsheet • Crossover table

21. Workload Spreadsheet

22. Workload Data Checklist

23. Workload

24. Comparison Non-Reimbursed Autofill from prior worksheet Pre-populated by FSCU

25. Comparison Reimbursed Pre-populated by FSCU Autofill from prior worksheet

26. Department Hours

27. Uniform Codes Manual (UCM)

28. Crossover

29. Crossover Table • Workload is summarized into approximately 180 primary departments for budgeting purposes. • The crossover table is used to consolidate the workload into the primary organization code.

30. Crossover Example

31. Crossover to 0000

32. Crossover Table • If an agency is not on the crossover table or workload spreadsheet: • Check input • Research organization code • Call us • Place in “other entity”

33. What are Expenditures?

34. Expenditure Data • Actual Expenditures (only State Ops): • General Fund (GF) • Central Service Cost Recovery Fund (CSCRF) • Expenditures excluded in plan development: • Reimbursements • Non-central service expenditures • Unallowable costs

35. Expenditure Data Gross GF and CSCRF Expenditures $ XXXX Less: Non-central service expenditures $ XX Reimbursements XX Unallowable costs (Federal A-87)* XX XXX Net GF and CSCRF Expenditures** $ XXXX * SWCAP only ** Distributed in CSA cost allocation plans

36. What You Need • Expenditure spreadsheets (actual and estimated) • Expenditure data checklist • Expenditure supporting schedules • Handouts #1and 2 • Federal Circular A-87 unallowable costs • Handout #3

37. Expenditure Spreadsheets • Expenditure Data Checklist • Actual Expenditures* • Estimated Expenditures* *enter data in white cells only

38. Expenditure Data Checklist

39. Actual Expenditures

40. Estimated Expenditures

41. Federal Requirement(Support Schedule) • Certain CSAs must complete additional financial statements to support actual expenditures (Handouts 1and 2). • Expenditure schedules provide a breakdown of cost items reported in the SWCAP plan.

42. Federal Adjustment Equipment use allowance (Federal A-87): • Equipment cost over $5,000 (major) • Allowed 6.67 percent of purchase price for capital expenditures • Equipment cost under $5,000 (minor) • Allowed full amount for expenditures

43. Analysis

44. Discussion • Ten percent or less is an acceptable growth rate. • Please explain increases or decreases beyond ten percent.

45. Your Responsibility • Understand how to measure work activities. • Know impact of re-organizations (e.g., newly created or abolished entities). • Be aware of changes (system, agency codes, etc.). • Check for accuracy/post correctly. • Explain any variances exceeding plus or minus 10 percent. • Send support documentation (with workload spreadsheet) • Call us immediately if workload data submitted needs to be changed.

46. Transmittal Instructions • The workload spreadsheet must be reviewed and approved by the departmental budget officer. • Departmental budget officer must e-mail completed workload spreadsheet(s) by July 15, 2011. • To: fiproswp@dof.ca.gov • E-mail subject line must include: Function code, “Workload”, and 4 digit department/agency code e.g., F204 – Workload – 0840 (SCO) • Submit as soon as possible.

47. Summary • Focus on accuracy. • Document all 10 percent changes (plus or minus). • Workload spreadsheets must be sent no later than July 15, 2011. • Expenditure spreadsheets must be sent no later than August 5, 2011.

48. References • ProRata/SWCAP website address: • Variety of information: http://www.dof.ca.gov/fisa/proswcap/proswcap.htm • E-mail address: • Send questions to: fiproswp@dof.ca.gov

49. Contacts • Call us at (916) 445-3434 • Andrew Erias (Pro Rata) ext. 2138 • Natalie Villanueva (SWCAP) ext. 2139 E-mail: FIPROSWP@dof.ca.gov DOF Website: http://www.dof.ca.gov/