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Pro Rata Overview

Department of Finance Fiscal Systems and Consulting Unit. Pro Rata Overview. What is Pro Rata?. Pro Rata is the process that . . . Recovers for the General Fund the central administrative service agencies’* costs incurred in providing central administrative services to departments.

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Pro Rata Overview

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  1. Department of FinanceFiscal Systems and Consulting Unit Pro RataOverview

  2. What is Pro Rata?

  3. Pro Rata is the process that . . . Recovers for the General Fund the central administrative service agencies’* costs incurred in providing central administrative services to departments. *Commonly known as central service agencies (CSA)

  4. Pro Rata is the process that . . . Apportions the costs of each central administrative service agency to State departments.

  5. Pro Rata is the process that . . . Allocates the costs of each central administrative service agency to operating departments* using the operating departments’* workload. * State departments

  6. Pro Rata is the process that . . . Allocates central administrative service agency’s costs to an operating departments’* funding sources. * State departments

  7. What is a Central Service Agency? Central service agency (CSA) supports the general operation of State government.

  8. What is a Central Service Agency?- continued CSA provides services to other State departments.

  9. What is a Central Service Agency?- continued CSA is defined in Government Code Section 11270.

  10. Central Service Agencies are: Department of Finance (Finance) Department of Information Technology Department of General Services for: California Home Page State E-mail System Network Infrastructure

  11. Central Service Agencies are: - continued • State Controller’s Office • State Treasurer’s Office • State Personnel Board • Department of Personnel Administration • California Victim Compensation and Government Claims Board

  12. Central Service Agencies are: - continued Office of Administrative Law California State Library Health Benefits for Retired Annuitants Department of Justice Bureau of State Audits Legislature

  13. Central Service Agencies are: -continued State Agencies Secretaries: Health and Human Services Youth and Adult Correctional State and Consumer Services Business, Transportation, and Housing Resources

  14. Let’s see how the Pro Rata plan is developed.

  15. February Obtain budgetary data (Schedule 10 data) for each State department by: State department Amount Data is from the mid-year column of the Governor’s Budget.

  16. March, April, May Develop the data for various tables to be used in the plan. Agency (State department number and name) Fund (Fund number and name) Data source is the Uniform Codes Manual and the proposed Governor’s Budget.

  17. March, April, May- continued Another table is: Splitdol, which has: State department (4-digit number) Fund number Amount by fund Data source is the proposed Governor’s Budget.

  18. March, April, May - continued Another tableis: Function, which has: Amounts by each function for budget year estimate and past year actual. Amounts adjusted for unallowable expenditures, reimbursements, and non-central service expenditures. Data source is CSA expenditures.

  19. March, April, May - continued Another tableis: Past Year Estimate tables There are four of these tables, each with a unique purpose. Data they contain: State department Function Amount Data source is from the Pro Rata and SWCAP plans of two years ago.

  20. March, April, May- continued Update: Website for workload and expenditures. Spreadsheets for such changes as State departments’ numbers, names, and fiscal years. Training for Pro Rata, SWCAP, and ICRPs (Indirect Cost Rate Proposals).

  21. June Training for CSAs. Submit Pro Rata Certification to the State Controller’s Office.

  22. July through December Work on the Pro Rata and SWCAP: Training to: • Budget Analysts (Finance) • State departments: • Pro Rata • SWCAP (Statewide Cost Allocation Plan) • ICRPs (Indirect Cost Rate Proposals) Plans Budgets

  23. Information needed to allocate expenditures To develop Pro Rata reports, there are five types of information needed.

  24. Information needed to allocate expenditures - continued Budget data Fund Central service agencies Workload data CSA expenditures data

  25. Budget Data Source From the proposed Governor’s Budget: Mid-year column Source is the Schedule 10’s Obtained by State departmentand fund

  26. Fund Legislation establishing a fund is reviewed. Fund classification is determined.

  27. CSA CSA is assigned a number or numbers. Assigned number is called a function number. Function number represents the service performed by the CSA.

  28. Workload CSA provides workload by its assigned function/s.

  29. Central Service Expenditure Data CSA provides total expenditures for all funds. Following chart displays CSA expenditure data.

  30. Central Service Expenditure Data - continued Central service expenditures Non-reimbursedGeneral Fund expenditures Unallowable CSA Equals Less Non-central service expenditures Note:Non-reimbursed expenditures are distributed in the plan. Reimbursedexpenditures Central Service Agencies Total expenditures ties to: Past Yr. Actual = Year-end Fin. Statements Budget Yr. Estimate = Governor’s Budget These expenditures are removed.

  31. Generate Reports Functions Budget(Schedule 10)Data Funds WorkloadData ExpenditureData PC program allocates this data to produce: Detail Pro Rata by Function and Fund Reports Pro RataReports

  32. Calculation Database allocates the central service expenditures to each CSA function and funding sources for each State department, using workload data, billable and non-billable fund categories, and budget data.

  33. Calculation - continued Calculation distributes each State department’s usage of the functions. A State department’s share of these functions are reflected as total allocated expenditures.

  34. Reports Following this slide is a sample of a detail by function report. Notice . . . At the top of the report State department number and name Along the left side Function number followed by . . . Function name Workload type Allocated amounts

  35. Pro Rata Detail by Function Report

  36. Pro Rata Fund Report Once the function process is completed, the total allocated for the State department is allocated to funds.

  37. Pro Rata Fund Report - continued Fund Report displays the billable and non-billable funds for a State department.

  38. Pro Rata Detail by Fund Report - continued

  39. Function and Fund Reports - continued Pro Rata (and SWCAP) reports are available at: http://www.dof.ca.gov/fisa/proswcap/proswcap.htm

  40. SCO Certification In June, Finance certifies billable funds to the State Controller’s Office (SCO). Quarterly, the SCO transfers funds from the certified billable funds to the General Fund. The following chart shows when these transfers occur.

  41. TRANSFER PROCESS - continued SpecialFunds Each quarter, equal amounts by fund, are transferred automaticallyby the State Controller’s Office. Third Quarter February 15 FirstQuarterAugust 15 SecondQuarterNovember 15 Fourth QuarterMay 15 Example: GeneralFund Department Fund Pro Rata Charge 0820 0017 $1,690,360 $422,590 Quarterly amount transferred.

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

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