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Allocating Central Service Agencies Expenditures

This process involves allocating expenditures from each central service agency based on workload and calculations for both past year actual and budget year estimate. The formula determines the total allocation.

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Allocating Central Service Agencies Expenditures

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  1. Allocating Central ServiceAgencies Expenditures

  2. Allocating Central ServiceAgencies Expenditures Process uses from each central service agencies (CSAs): Workload Expenditures

  3. Allocating Central ServiceAgencies Expenditures- continued • Calculations are completed for all functions for both the past year actual and the budget year estimate. • For the calculation, view the presentation How Does the Calculation Work?

  4. Workload Unit Cost Calculation Once the calculations are done, the data becomes part of the formula.

  5. Formula • Cost calculation for each function by the past year actual and budget year estimate is completed. • Calculations become part of the formula.

  6. - = + = Formula - continued Past Year Past Year Roll Budget Year Total Actual Estimate Forward Estimate Allocation

  7. Formula - continued Past year (PY) actualminus PY estimate equals Roll-forward plus Budget year (BY) estimate equals Total allocation

  8. - = + = Formula - continued Past Year Past Year Roll Budget Year Total Actual Estimate Forward Estimate Allocation PY actual minus PY estimate equals Roll-forward plus BY Estimate equals Total allocation

  9. Formula - continued • The presentation, How Does the Calculation Work? shows how the calculation for the PY actual and the BY estimate is developed. • Let’s take a closer look at the formula and see how it works.

  10. - = + = Formula - continued Amount calculated for the past fiscal year. Past Year difference (actual – estimate) Total by each function and for all functions for the State department. Past Year Past Year Roll- Budget Year Total Actual Estimate Forward Estimate Allocation Amount calculated for the current fiscal year. It becomes the past year estimate in the plan two years hence. From the plan of two years ago, this was the budget year estimate.

  11. - = + = Formula - continued Using the data calculated for Function 201 (from the presentation How Does the Calculation Work?), the formula would work like this: 91 minus 2 equals 89 plus 92 equals 181 Past Year Past Year Roll- Budget Year Total Actual Estimate Forward Estimate Allocation Data source from the presentation How does the Calculation Work?

  12. Formula - continued • Next (Roll-forward process) slide shows the effect of smaller estimates and larger estimates compared to actual (past year) costs. • Review the first line of the next slide. This line is for the 2003-04 plan. This line shows a PY actual of 75, a PY estimate of 50 (from the plan of two years ago), a roll forward of 25, a BY estimate of 60, with the total allocated of 85 (25 + 60).

  13. Roll-Forward Process 2003-042004-05 2005-06 2006-07 2007-08 2004-05 Plan Past Year Actual 75 + 25 Past Year Estimate 50 2003-04 plan BY Estimate60 To plan 2006-07 Plan “85” BY Estimate 75 Past Year Estimate 75 - 10 Past Year Actual 65 2004-05 Plan “65” 2007-08 Plan - 40 Past Year Estimate 60 Past Year Actual 20 2005-06 Plan BY Estimate 60 “20”

  14. Formula - continued • Roll-forward process slide shows the effect of smaller estimates and larger estimates compared to PY actual costs. • Review the third line. This line shows a budget year estimate of 60 from the 2003-04 plan. In the 2005-06 plan, the 60 becomes the past year estimate amount.

  15. Roll-Forward Process 2003-042004-05 2005-06 2006-07 2007-08 2004-05 Plan Past Year Actual 75 + 25 Past Year Estimate 50 2003-04 plan BY Estimate60 To plan 2006-07 Plan “85” BY Estimate 75 Past Year Estimate 75 - 10 Past Year Actual 65 2004-05 Plan “65” 2007-08 Plan - 40 Past Year Estimate 60 Past Year Actual 20 2005-06 Plan BY Estimate 60 “20”

  16. Roll-Forward Process - continued • Different types of roll-forwards: • Positive roll-forward • Negative roll-forward • Zero (0) roll-forward

  17. Roll-Forward Process - continued • Positive roll-forward occurs when the PY actual is greater than the PY estimate, creating a positive roll-forward amount. • Positive roll-forward is added to the BY estimate to increase the total amount allocated for the budget year.

  18. Roll-Forward Process - continued • Negative roll-forward occurs when the PY actual is less than the PY estimate, creating a negative roll-forward amount. • Negative roll-forward amount is subtracted from the BY estimate to reduce the total amount allocated for the budget year.

  19. Roll-Forward Process - continued • Zero (0) roll-forward seldom occurs. • There is always a difference, either positive or negative. • Only the BY estimate is shown as the total amount allocated.

  20. Total Allocated • Total allocated for a State department is the sum of: • Each function (Each function added across.) • All functions (Each column added down.) • Report displaying the total allocated is the Detail by Function report. • Report is produced for any State department having workload allocated to it.

  21. Total Allocated - continued • Total allocated amount is due by the department, if not for other adjustments. • For Pro Rata, this is the Fund Allocation adjustment. • For SWCAP, this is the federal fund adjustment. See the presentation SWCAP Recoveries and the manual titled ICRP Manual.

  22. Fund Allocation • Total allocated in the Pro RataDetail by Function report is adjusted by the State department’s funds. This adjustment is based on the proportion of each fund’s net State operations within the State department.

  23. Fund Allocation - continued Example: • State department 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 $1000 100%

  24. Fund Allocation - continued Example: • Total allocated (all functions for the State department) in our example was $66,006.00. Using the percentage for each fund to calculate the amount per fund. Fund 1 $ 400 40% 26,402.40 Fund 2 300 30% 19,801.80 Fund 3 300 30% 19,801.80 Total $1000 100% $66,006.00 Note: 66006 times 40% equals 26402.40

  25. Fund Allocation - continued Using the previous example: • State department’s funds are distributed between billable and non billable. Fund 1 is billable, funds 2 and 3 are non billable. Fund Detail report would be: • Billable: Fund 1 $26,402.40 Total $26,402.40 • Non-Billable: Fund 2 $19,801.80 Fund 3 19,801.80 Total $39,603.60 • Total Billable and non-billable $66,006.00

  26. We hoped this helped. Please view our other presentations.

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