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Department of FinanceFiscal Systems and Consulting Unit

Pro Rata/SWCAP Training forCentral Service Agencies

2016-17 Plan

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Agenda

• Central Service Agency/Functions

• Central Service Costs Allocation

• Definition of Workload

• Definition of Expenditures• Workload and Expenditure Spreadsheets

• Data Analysis

• Transmittal Instructions

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Course Objectives

To understand:

• Cost Allocation Plan Development

• How to complete workload and expenditure spreadsheets

• CSA/FSCU analysis

• Due dates

What is a Central Service Agency (CSA) Cost?

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Central Service Agency CostsState Administrative Manual Section 8753Central 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.

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Central Services

Function Code

Central Service Workload Unit Source

Finance (DOF)

004 Audits Audit Hours DOF/OSAE

005 Budgets Budget Hours DOF/Admin

011 Fiscal Systems & Consulting Unit

State Ops $ DOF/Sch. 10

California Technology Agency

105 CA Dept of Technology State Ops $ DOF/Sch. 10

Financial Information Systems for California

110Financial Information System for California (SWCAP only)

State Ops $ DOF/Sch. 10

State Controller’s Office (SCO)

201 Accounting & Reporting Transactions SCO

202 Claim Audits Warrants SCO

203 Payroll Warrants SCO

204 General Disbursements Warrants SCO

Central Services

Function Code

Central Service Workload Unit Source

State Controller’s Office (SCO)

205 Field Audits Audit Hours SCO

211 Personnel/Payroll Services Division and Information Systems Division

Positions SCO

State Treasurer’s Office (STO)

301 Investment (Pro Rata Only) Interest Earned SCO

302 Item Processing Warrants SCO

303 Treasury/Security Mgmt and Public Finance Division

State Ops $ DOF/Sch. 10

400 State Personnel Board (SPB) Positions SCO

410California Human Resources (CalHR) formerly DPA

PositionsSCO

510 Office of Admin Law (OAL) Review Hours OAL

520 CA State Library (CSL) State Ops $ DOF/Sch.10

Central Services

Function Code

Central Service Workload Unit Source

600Health Benefits (HB) for Annuitants (Retired Employees)

HB Costs for Active Employees

SCO/PERS/CalHR

601Dental Benefits (DB) for Annuitants' (Retired Employees)

DB Costs for Active Employees

SCO/PERS/CalHR

602Health Benefits (HB) for CA State Universities (Retired Employees)

HB Costs for Active Employees

SCO/PERS/CalHR

Department of Justice (DOJ)

605 Legal (SWCAP Only) Attorney Hours DOJ

607 Tort Liability (SWCAP Only) Attorney Hours DOJ

700 Secretary for CA Health & Human Services Agency

(Weighted avg of State Ops for depts within the Agency)

State Ops/Sch.10

799 California State Auditor Audit Hours CA State Auditor

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Central Services

Function Code

Central Service Workload Unit Source

800 Legislature (Pro Rata Only)Sum of Past Actual Costs for Functions 004-799

DOF/FSCU

805Legislative Counsel Bureau

(Pro Rata Only)Sum of Past Actual Costs for Functions 004-799

DOF/FSCU

810Governor’s Office (Pro Rata Only)

Sum of Past Actual Costs for Functions 004-799

DOF/FSCU

815Office of Planning & Research (Pro Rata Only)

Sum of Past Actual Costs for Functions 004-799

DOF/FSCU

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Central Service Costs Allocation

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The Pro Rata Plan & the SWCAP Plan

• 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.

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The Pro Rata Plan & the SWCAP Plan -- continued

• The Plan distributes CSA costs to each state department based on workload.

• The total allocation for each department is calculated using the formula below. PY is prior year and BY is budget year.

PY PY Roll - BY Total Actual Estimate Forward Estimate Allocation

– = + =

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The Pro Rata Plan & the SWCAP Plan -- continued

• In Pro Rata, a department’s allocation is then further allocated to each fund within the department.

• In SWCAP, since only Federal funds are billable, the Federal portion is calculated using the department’s ratio of Federal funding to their total State Operations amount.

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The Pro Rata Plan & the SWCAP Plan -- continued

Funds are classified as billable or nonbillableFor Pro Rata:

• Billable funds:

Funded by special revenue sources such as fees, licenses, penalties, assessments, interests, etc.

• Nonbillable funds: General FundFederal FundsSpecial Deposit Fund

For SWCAP, only federal funds are billable. 14

Pro Rata /SWCAP ReportsCSA Reported Workload Data

PY Actual

SWCAP

Reports

CSA Cost Allocation

CSA Reported Expenditure Data

PY Actual and BY Estimate

Budget Data (Schedule 10

download)

Miscellaneous Agencies

Reported Data

Pro Rata

Reports

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What is Workload?

Workload

• Each function code represents a specific type of workload.

• Workload is obtained from a variety of sources and can be from more than one CSA.

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Workload - continued

• Hours

• Transactions

• Warrants

• Positions

• State Operations

• Interest earned

• Other

What are Expenditures?

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Expenditure Data

• Actual Expenditures (only State Ops):

– General Fund (GF)– Central Service Cost Recovery Fund (CSCRF)

• Expenditures excluded in plan development:– Reimbursements– Non-CSA Expenditures/Other Funds

– Unallowable costs (Title 2 Code of Federal Regulations, Part 200)

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• Reimbursed CSA expenditures are excluded because they represent services the CSA provided and which they received reimbursement.

Expenditure Data – continued

• Unallowable CSA expenditures are identified in federal regulation (Title 2 Code of Federal Regulations, Part 200)Some examples:

Fines, PenaltiesCost of Assets $5,000 and upLawsuits against the federal government

Expenditure Data - continued

Actual Expenditures $ XXXX

Less:

Reimbursements $ XX

Non-CSA Expenditures/Other Funds XX

Unallowable Costs* XX -XXX

Adjusted Actual Expenditures** $ XXXX

* SWCAP only

** Distributed in CSA cost allocation plans

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Workload Spreadsheets

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Workload Requirements

What you need:

• Workload Data Checklist

• Workload spreadsheet

• Crossover table

Workload Data Checklist

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Workload

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Comparison Non-Reimbursed

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Pre-populated by FSCU

Autofill from prior worksheet

Comparison Reimbursed

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Pre-populated by FSCU

Autofill from prior worksheet

Department Hours

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Uniform Codes Manual (UCM)

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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.

Crossover

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Crossover Example

Orig Agcy Original Agency Name

ProRata Pro Rata Agency

1110 Consumer Affairs - Regulatory Boards, Department of 1110 Consumer Affairs - Regulatory Boards, Department of

1111 Dept. of Consumer Affairs - Bureaus, Prog. Div. 1110 Consumer Affairs - Regulatory Boards, Department of

1120 California Board of Accountancy 1110 Consumer Affairs - Regulatory Boards, Department of

1130 California Board of Architectural Examiners 1110 Consumer Affairs - Regulatory Boards, Department of

1140 State Athletic Commission 1110 Consumer Affairs - Regulatory Boards, Department of

1150 Bureau of Automotive Repair (Moved to 1111) 1110 Consumer Affairs - Regulatory Boards, Department of

1160 Board of Barber Examiners (Moved to 1111) 1110 Consumer Affairs - Regulatory Boards, Department of

1165 Board of Barbering and Cosmetology, State (Moved to 1111) 1110 Consumer Affairs - Regulatory Boards, Department of

1170 Board of Behavioral Sciences 1110 Consumer Affairs - Regulatory Boards, Department of

1180 Cemetery Board (Moved to 1111) 1110 Consumer Affairs - Regulatory Boards, Department of

1190 Bureau of Security & Investigative Serv. (Moved to 1111) 1110 Consumer Affairs - Regulatory Boards, Department of

1200 Bureau of Security & Investigative Serv.( Moved to 1111) 1110 Consumer Affairs - Regulatory Boards, Department of

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Crossover to 0000

Orig.Pro

Rata UCM Title

3880 0000Payment of Interest on PMIA Loans – Resources - DOF USE ONLY

3882 0000General Obligation Bonds – Resources - DOF USE ONLY

3884 0000State Mandated Local Costs – Resources - DOF USE ONLY

3886 0000Miscellaneous Adjustments – Resources - DOF USE ONLY

3945 0000 Payment of Interest on PMIA Loans - DO NOT USE

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Crossover Table

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

Description Verification

• Along with your workload spreadsheets you will receive a Description Verification document.

• Function descriptions are required in the SWCAP package that is submitted annually to the federal government.

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Description Verification - continued

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Description Verification - continued

• We ask that you verify the descriptions are correct. If necessary, make any required changes to the document.

• Complete reviewer’s name and date, and save your changes.

• Email the document back to us along with the Workload file.

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Expenditures Spreadsheets

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What You Need

• Expenditure Data Checklist

• Expenditure spreadsheets (actual and estimated)

• Expenditure supporting schedules (only some departments)

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Expenditure Spreadsheets

• Expenditure Data Checklist

• Actual Expenditures* (must agree with the year-end financial statements)

• Estimated Expenditures*

• Comparison tab

*enter data in white cells only

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Expenditure Data Checklist

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Actual Expenditures

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Estimated Expenditures

Comparison Tab

• The comparison tab compares expenditure data from the prior year.

• Ten percent or less is an acceptable growth rate.

• Please provide explanation for changes (+/-) beyond 10 percent for both actual and estimated expenditures.

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Comparison

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Federal Requirement(Support Schedule)

• Certain CSAs must complete additional financial statements to support actual expenditures.

• Expenditure schedules provide a breakdown of cost items reported in the SWCAP plan.

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Adjustments for Assets

• Tangible and intangible assets of at least $5,000 are treated as an Unallowable Cost subtracted from CSA expenditures

• Straight-line depreciation method applied to assets at least $5,000 and added to CSA expenditures.

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Your Responsibility•Check for accuracy/post correctly•Explain any variances► Workload explanation is needed only if total

workload changed by more than plus or minus 10 percent.

► Expenditure explanation is needed for any change of more than plus or minus 10 percent.

•Send support documentation if required•Call us immediately if workload or

expenditure data submitted needs to be changed

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Transmittal Instructions• The workload and expenditure worksheets must

be reviewed and approved by the departmental budget officer.

• Departmental budget officer must email completed workload spreadsheet(s) by and expenditure spreadsheet(s) by the specified deadlines. – To: fiproswp@dof.ca.gov– Email subject line must include: Function code,

“Workload” or “Expenditure”, and 4 digit department/agency code

e.g., F204 – Workload – 0840 (SCO)

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References and Contact

• ProRata/SWCAP website address:– Variety of information:

http://www.dof.ca.gov/accounting/fscu/pro_rata-swcap/

• E-mail address:– Send questions to:

fiproswp@dof.ca.gov