Department of Finance Fiscal Systems and Consulting Unit - PowerPoint PPT Presentation

1 / 62
About This Presentation
Title:

Department of Finance Fiscal Systems and Consulting Unit

Description:

Department of Finance Fiscal Systems and Consulting Unit Pro Rata/Statewide Cost Allocation Plan Overview 2012 * Depts are required to recover full costs when goods ... – PowerPoint PPT presentation

Number of Views:153
Avg rating:3.0/5.0
Slides: 63
Provided by: DEPTO162
Category:

less

Transcript and Presenter's Notes

Title: Department of Finance Fiscal Systems and Consulting Unit


1
Department of FinanceFiscal Systems and
Consulting Unit
  • Pro Rata/Statewide Cost Allocation Plan
  • Overview 2012

2
Agenda
  • Introduction/Overview
  • What is Pro Rata and SWCAP
  • States Full Cost Recovery Policy
  • Define Central Service Agency Cost
  • Central Service Cost Allocation
  • Reports
  • Budgeting for Pro Rata/SWCAP
  • Recoveries

3
Full Cost Recovery Policy
4
Full Cost Recovery Policy
  • The state policy is for departments to recover
    full costs whenever goods or services are
    provided for others.
  • The full cost includes all cost attributable
    directly to the activity plus a fair share of
    indirect costs.

5
Full Cost Recovery Policy
  • GC 11010 When billing other entities, state
    agencies supported by the General Fund are
    required to include an administrative cost
    factor.
  • SAM 8752 Departments providing goods or
    services to others will recover full costs. This
    applies to all departments regardless of funding
    sources and in all cases unless a department is
    specifically exempted by law.

6
Elements of Full Cost
  • Direct Costs - directly assignable to a program
  • Salaries and wages
  • Equipment
  • Operating expenses (not included in use allowance
    calculations)
  • Travel expenses incurred to carry out the federal
    award

7
Elements of Full Cost
  • Indirect Costs - not directly assignable to a
    program
  • Departmental (overhead) costs assigned to many
    programs
  • Executive staff
  • Information technology
  • Accounting staff
  • Budget staff
  • Other

8
Elements of Full Cost
  • Statewide indirect costs
  • Fair share of costs incurred by central
    administrative service agencies.
  • Pro Rata (special funds)
  • SWCAP (federal funds)

9
Elements of Full Cost
10
Elements of Full Cost
  • Direct Costs (DC) XXXX
  • Indirect Costs (IC)
  • a) Departmental XX
  • b) Statewide
  • Pro Rata XX
  • or
  • SWCAP XX XXXX
  • Total Costs (TC) XXXXX
  • DC IC TC (full cost)

11
  • What is a Central Service Agency (CSA) Cost?

12
Central Service Agency Costs
  • State Administrative Manual Section 8753
  • Central service costs are those amounts expended
    by central service departments and the
    Legislature for overall 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.

13
Central Services
Function Code Central Service Workload Unit Source
Finance (DOF) Finance (DOF) Finance (DOF) Finance (DOF)
004 Audits Audit Hours DOF/OSAE
005 Budgets Budget Hours DOF/Admin
010 CALSTARS State Ops DOF/Sch. 10
California Technology Agency California Technology Agency California Technology Agency California Technology Agency
105 CA Technology Agency State Ops DOF/Sch. 10
Financial Information Systems for California Financial Information Systems for California Financial Information Systems for California Financial Information Systems for California
110 Financial Information System for California (SWCAP only) State Ops DOF/Sch. 10
State Controllers Office (SCO) State Controllers Office (SCO) State Controllers Office (SCO) State Controllers Office (SCO)
201 Accounting Transactions SCO
202 Claim Audits Warrants SCO
203 Payroll Warrants SCO
204 General Disbursements Warrants SCO

14
Central Services
Function Code Central Service Workload Unit Source
State Controllers Office (SCO) State Controllers Office (SCO) State Controllers Office (SCO) State Controllers Office (SCO)
205 Field Audits Audit Hours SCO
211 Personnel/Payroll Services Division Positions SCO

State Treasurers Office (STO) State Treasurers Office (STO) State Treasurers Office (STO) State Treasurers Office (STO)
301 Investment (Pro Rata Only) Interest Earned SCO
302 Item Processing Warrants SCO
303 Cash Mgmt/Public Finance State Ops DOF/Sch. 10

400 State Personnel Board (SPB) Positions SCO
410 California Human Resources (CalHR) Positions SCO
510 Office of Admin Law (OAL) Review Hours OAL
520 CA State Library (CSL) State Ops DOF/Sch.10

15
Central Services
Function Code Central Service Workload Unit Source
600 Health Benefits (HB) for Annuitants (Retired) HB Costs for Active Employees SCO/PERS/DPA
601 Dental Benefits (DB) for Annuitants' (Retired) DB Costs for Active Employees SCO/PERS/DPA

Department of Justice (DOJ) Department of Justice (DOJ) Department of Justice (DOJ) Department of Justice (DOJ)
605 Legal (SWCAP Only) Attorney Hours DOJ
607 Tort Liability (SWCAP Only) Attorney Hours DOJ

Agency Secretaries Agency Secretaries Agency Secretaries Agency Secretaries
700 705 Wtd Avg. of State Ops. for the Depts. they oversee Wtd Avg. of State Ops. for the Depts. they oversee State Ops/Sch.10

799 Bureau of State Audits (BSA) Audit Hours DOF/FSCU

16
Central Services
Function Code Central Service Workload Unit Source
800 Legislature (Pro Rata Only) Sum of Past Actual DOF/FSCU
805 Legislative Counsel Bureau (Pro Rata Only) Sum of Past Actual DOF/FSCU
810 Governors Office (Pro Rata Only) Sum of Past Actual DOF/FSCU
815 Office of Planning Research (Pro Rata Only) Sum of Past Actual DOF/FSCU


17
Central Service Cost Allocation
18
The Plans
  • Central service costs are allocated through Pro
    Rata for special funds and through SWCAP for
    federal funds.
  • We refer to this allocation process as the Pro
    Rata Plan and the SWCAP Plan.
  • Plans are created two years before they actually
    take effect. For the 2013-14 year Plan, we begin
    in January of 2011 and the Plan is completed in
    September of 2012.

19
Information Needed to Allocate Central Service
Costs
  • Budget data
  • Workload data
  • CSA expenditures data

20
Budget Data Source
  • The January 10 Governors Budget Mid-year column.
  • When developing the 2013-14 year plan we use the
    2012-13 Governors Budget that is released
    January 10 of 2012.
  • We get this data electronically and we refer to
    it as the Schedule 10 download.

21
(No Transcript)
22
Workload
  • CSA provides workload data for each function.
  • We receive this data in July and it is based on
    actual workload for the fiscal year just ended.
  • For the 2013-14 year plan, we will use the actual
    workload from 2011-12.

23
Central Service Expenditure Data
  • Expenditure data is received from the CSA in
    August.
  • We receive actual expenditures and budget year
    estimated expenditures.
  • Actual expenditures must agree with the year-end
    financial statements.
  • For the 2013-14 plan we would use the actuals
    from 2011-12.

24
Central Service Expenditure Data - continued
  • Estimated expenditures must agree with the amount
    shown in the Governors Budget for the next
    fiscal year. (how is this, 13-14 GB data is not
    available in August of 2012)
  • For the 2013-14 Plan the budget estimates would
    be for 2013-14.

25
Central Service Expenditure Data - continued
  • CSA expenditures are adjusted for
  • Reimbursed expenditures
  • Unallowable CSA expenditures
  • Non-CSA expenditures

26
Central Service Expenditure Data - continued
  • Reimbursed CSA expenditures are excluded because
    they represent services the CSA provided and
    which they received reimbursement.
  • Including reimbursed expenditures would be
    doubling of charges to State departments.

27
Central Service Expenditure Data - continued
  • Unallowable CSA expenditures are
  • Excluded from plan
  • For SWCAP, identified in federal circular A-87
    and ASMB C-10
  • Some examples
  • Fines
  • Penalties
  • Lawsuits against the federal government

28
Central Service Expenditure Data - continued
  • Non-CSA expenditures are
  • Unallowable
  • Excluded from the plans

29
Central Service Expenditure Data - continued
Total CSA expenditures XXXX
Less
Reimbursements (XXX)
Non-central service (XX)
Unallowable (X)

Allowable non-reimbursed expenditures XXX
Expenditures distributed in the plan Expenditures distributed in the plan
30
Calculations
  • The calculation distributes CSA costs to each
    state department based on workload.
  • In Pro Rata, a departments allocation is then
    further allocated to each fund within the
    department.
  • In SWCAP, since only the Federal fund is
    billable, the Federal portion is calculated using
    the departments ratio of Federal funding to
    their total State Operations amount.

31
Pro Rata Fund Allocation
  • Example
  • State department XXX, has three funds. State
    Operations amount for each fund is shown below.
    Percentage is of each fund to the total fund
    amount
  • per fund
  • Fund 1 400 40
  • Fund 2 300 30
  • Fund 3 300 30
  • Total State Ops 1000 100

32
Pro Rata Fund Allocation - continued
  • Example
  • The total allocated to the department is 50,000.
    Using the percentage for each fund, calculate the
    amount per fund.
  • Fund 1 400 40
    20,000.00
  • Fund 2 300 30
    15,000.00
  • Fund 3 300 30
    15,000.00
  • Total 1000 100 50,000.00

Note 50,000 times 40 equals 20,000.00
33
Pro Rata Fund Allocation - continued
  • Using the previous example
  • State departments funds are distributed between
    billable and non billable. Fund 1 is billable,
    funds 2 and 3 are non billable.
  • Billable
  • Fund 1 20,000.00
  • Total Billable 20,000.00
  • Non-Billable
  • Fund 2 15,000.00
  • Fund 3 15,000.00
  • Total Non-billable 30,000.00
  • Total Billable and non-billable 50,000.00

34
SWCAP Allocation - continued
  • Example
  • The total allocated to the department is 50,000.
  • The departments Federal funding ratio is

559 167,240

.003342

The SWCAP amount is
35
(No Transcript)
36
(No Transcript)
37
Pro Rata Transfers
  • In June, Finance certifies to the State
    Controllers Office (SCO) the billable funds.
  • Certification informs the SCO to transfer from
    the appropriation or directly from the fund.

38
Pro Rata Transfers - continued
  • Quarterly, SCO transfers funds from
  • State department appropriation.
  • Directly from a fund.
  • All transferred funds are deposited in the
    General Fund.

39
Pro Rata Transfers - continued
  • Transfers are an automatic process.
  • SCO sends each State department a journal entry
    notifying them of the transfer.
  • Pro Rata analyst receives a copy of the transfer.

40
Pro Rata Transfers - continued
  • Each State department
  • Records the transfer.
  • Reconciles the transfer with SCO.
  • Notifies SCO of any discrepancies.

41
Calculation - continued
  • Pro Rata
  • 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




42
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)

43
Pro Rata/SWCAP Process
CSA Cost Allocation
Pro Rata Reports
SWCAP Reports
44
Reports
45
Central Service Cost Allocation
  • Pro Rata
  • Allocate costs to departments by function
  • Distribute departments total allocation to each
    fund based on the funds proportion of total
    funding
  • Classify each funds cost as billable or
    nonbillable
  • SWCAP
  • Allocate costs to departments by function
  • Distribute departments total allocation to
    federal fund based on its proportion of total
    funding
  • Federal fund is only billable fund

46
Budgeting for Pro Rata
47
Budgeting for Pro Rata
  • Pro Rata Assessment Sheet (green sheet)
  • Does not include amounts less than 1,000 or
    negative amounts.
  • Finance budget analysts complete the assessment
    sheets for billable funds only.
  • Finance budget analysts forwards assessment
    sheet(s) to the departments for certification.

48
Budgeting for SWCAP(Federal Recoveries)
49
Budgeting for SWCAP
  • All departments receiving federal funds must
    budget and recover SWCAP.
  • If the federal grant limits administrative costs
    to a certain percent of the total grant, the
    amount available for administrative costs must be
    shared between departmental indirect costs and
    statewide indirect costs.
  • SWCAP Method A Calculation

Departments Total SWCAP Allocation
Departments Budgeted SWCAP

Federal Funding State Operations
X
50
Budgeting for SWCAP
  • Finance budget analyst receives SWCAP
    apportionment sheet (pink).
  • Department budget analyst, in collaboration with
    Finance budget analyst, determine if the Method
    A calculation results in an equitable budgeted
    amount, or if a Method B should be used.
  • Department certification and Finance approval is
    required.

51
Pro Rata and SWCAP
  • Departments and Finance budget analyst must
    verify that correct budgeted Pro Rata and SWCAP
    amounts are reflected on the Supplementary
    Schedule of Operating Expenses and Equipment
    (DF-300).
  • Pro Rata object code 330438
  • SWCAP object code 330439

52
Recoveries
53
Pro Rata Recoveries
  • Pro Rata Certification
  • In June Finance certifies Pro Rata billable
    assessments to the SCO.
  • SCO notifies state entities of their Pro Rata
    assessments.
  • SCO will set-up the transfers to occur
    automatically on a quarterly basis.

54
SWCAP Recoveries
  • SWCAP Plan submitted/approved to the federal
    government.
  • Methods of SWCAP Cost Recovery
  • ICRPs (Indirect Cost Rate Proposal)
  • CAP (Cost Allocation Plan)
  • PACAP (Public Assistance Cost Allocation Plan)
  • Direct billing

55
SWCAP Recoveries
  • As a general rule ICRPs, CAPs, and PACAPs are
    to be filed with the departments cognizant
    federal agency at least six months prior to the
    fiscal year that applies.
  • ICRPs, CAPs, and PACAPs must be submitted to
    the Department of Finance for approval before
    filing with the cognizant federal agency.

56
SWCAP Recoveries
  • State departments must bill the federal
    government for direct and indirect costs.
    Departments are responsible for complying with
    federal and state requirements to ensure that
    SWCAP costs can be recovered from the federal
    government.
  • Each federally funded state department must
    initiate the transfer process via a Transaction
    Request, TR form CA 504. Transfers are not done
    automatically.
  • SAM section 8755.2 explains transfers of SWCAP
    recoveries to the General Fund.

57
SWCAP Recoveries
  • Departments submit TR form CA 504, to SCO with a
    copy to FSCU and a copy to the departments
    Finance Budget analyst.
  • SWCAP transfer(s) are due within 30 days after
    the end of a quarter where a recovery occurs.
  • SWCAP recoveries are tracked, reviewed, and
    reported by FSCU.
  • State departments will be contacted for
    discrepancies.

58
SWCAP Recoveries
  • If a department has not transferred federal funds
    to the General Fund on a timely basis, Finance
    has the authority to enforce recovery by
    instructing the SCO to transfer the amount that
    should have been transferred pursuant to GC
    Section 13332.02.
  • Beginning with the 2010-11 Budget Act, Control
    Section 8.54 was added, which provides Finance
    authority to reduce a departments support
    appropriation when required transfers are past
    due or not sufficient.

59
SWCAP Recovery Process
BillFederal Fundfor Direct Plus Indirect Costs
Receipt in Federal Fund
TransferSWCAP toGeneral Fund
60
References
  • Pro Rata/SWCAP
  • Variety of information
  • http//www.dof.ca.gov/FISA/PROSWCAP/PROSWCAP.htm
  • Federal information
  • Federal Circular A-87
  • http//www.whitehouse.gov/omb/circulars/a087/a87_2
    004.html
  • Cost Principles and Procedures (ASMB C-10)
  • http//www.hhs.gov/grantsnet/state

61
Contacts
  • Phone (916) 445-3434
  • Pro Rata Analyst Andrew Erias (ext 2138)
  • SWCAP Analyst Natalie Villanueva (ext 2139)
  • E-mail FIPROSWP_at_dof.ca.gov
  • DOF Website http//www.dof.ca.gov

62
(No Transcript)
Write a Comment
User Comments (0)
About PowerShow.com