January 22, 2002 1

Allocating Central ServiceAgencies Expenditures

January 22, 2002 2

Allocating Central ServiceAgencies Expenditures

• Process uses from each central service agencies (CSAs):

– Workload – Expenditures

January 22, 2002 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?

January 22, 2002 4

Workload Unit Cost Calculation

Once the calculations are done, the data becomes part of the formula.

January 22, 2002 5

Formula

• Cost calculation for each function by the past year actual and budget year estimate is completed.

• Calculations become part of the formula.

January 22, 2002 6

Formula - continued

Past Year Past Year Roll Budget Year Total Actual Estimate Forward Estimate Allocation=- =+

January 22, 2002 7

Formula - continued

Past year (PY) actual minus PY estimate equals

Roll-forward plus

Budget year (BY) estimate equals

Total allocation

January 22, 2002 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

January 22, 2002 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.

January 22, 2002 10

Formula - continued

Past Year Past Year Roll- Budget Year Total Actual Estimate Forward Estimate Allocation

=- =+

From the plan of two years ago, this was the budget year

estimate.

Amount calculated for

the past fiscal year.

Past Yeardifference

(actual – estimate)

Amount calculated forthe current fiscal year. It becomesthe past year estimate in the plan

two years hence.

Total by each function and for all functions

for the State

department.

January 22, 2002 11

Formula - continued

Past Year Past Year Roll- Budget Year Total Actual Estimate Forward Estimate Allocation

=- =+

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

Data source from the presentation How does the Calculation Work?

January 22, 2002 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).

January 22, 2002 13

2004-05 Plan

Roll-Forward Process 2003-04 2004-05 2005-06 2006-07 2007-08

2003

-04

pla

n Past Year

Actual

75

Past Year

Estimate

50

+ 25

BY Estimate

60“85”

2004

-05

Pla

n

Past Year Actual

65

Past Year

Estimate

75

- 10BY

Estimate

75 “65”20

05-0

6 P

lan

Past Year

Actual

20

Past Year

Estimate

60

- 40BY

Estimate

60“20”

To pla

n 200

6-07

Plan

2007

-08

Pla

n

January 22, 2002 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.

January 22, 2002 15

2004-05 Plan

Roll-Forward Process 2003-04 2004-05 2005-06 2006-07 2007-08

2003

-04

pla

n Past Year

Actual

75

Past Year

Estimate

50

+ 25

BY Estimate

60“85”

2004

-05

Pla

n

Past Year Actual

65

Past Year

Estimate

75

- 10BY

Estimate

75 “65”20

05-0

6 P

lan

Past Year

Actual

20

Past Year

Estimate

60

- 40BY

Estimate

60“20”

To pla

n 200

6-07

Plan

2007

-08

Pla

n

January 22, 2002 16

Roll-Forward Process - continued

• Different types of roll-forwards:

– Positive roll-forward– Negative roll-forward– Zero (0) roll-forward

January 22, 2002 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.

January 22, 2002 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.

January 22, 2002 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.

January 22, 2002 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.

January 22, 2002 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.

January 22, 2002 22

Fund Allocation

• Total allocated in the Pro Rata Detail 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.

January 22, 2002 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%

January 22, 2002 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

January 22, 2002 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

January 22, 2002 26

We hoped this helped. Please view our other presentations.