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Pro RataOverview

Department of FinanceFiscal Systems and Consulting Unit

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What is Pro Rata?

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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)

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Pro Rata is the process that . . .

Apportions the costs of each central administrative service agency to State departments.

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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

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Pro Rata is the process that . . .

Allocates central administrative service agency’s costs to an operating departments’* funding sources.

* State departments

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What is a Central Service Agency?

Central service agency (CSA) supports the general operation of State government.

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What is a Central Service Agency?

- continued

CSA provides services to other State departments.

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What is a Central Service Agency?

- continued

CSA is defined in Government Code Section 11270.

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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

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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

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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

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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

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

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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.

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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.

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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.

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March, April, May - continued

• Another table is:

– 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.

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March, April, May - continued

• Another table is:

– 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.

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March, April, May- continued

• 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).

Update:

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June

• Training for CSAs.

• Submit Pro Rata Certification to the State Controller’s Office.

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July through December

• Plans • Budgets

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)

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Information needed to allocate expenditures

To develop Pro Rata reports, there are five types of information needed.

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Information needed to allocate expenditures - continued

• Budget data

• Fund

• Central service agencies

• Workload data

• CSA expenditures data

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Budget Data Source

From the proposed Governor’s Budget:

• Mid-year column

• Source is the Schedule 10’s• Obtained by State department and fund

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Fund

• Legislation establishing a fund is reviewed.

• Fund classification is determined.

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CSA• CSA is assigned a number or numbers.

• Assigned number is called a function number.

• Function number represents the service performed by the CSA.

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WorkloadCSA provides workload by its assigned function/s.

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Central Service Expenditure Data

• CSA provides total expenditures for all funds.

• Following chart displays CSA expenditure data.

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Central Service Expenditure Data - continued

Non-reimbursedGeneral Fund expenditures

Reimbursedexpenditures

Non-centralservice

expenditures

Central Service Agencies

Central service

expenditures

Unallowable C

SA

Total expenditures ties to:Past Yr. Actual = Year-end Fin. StatementsBudget Yr. Estimate = Governor’s Budget

LessEquals

Note: Non-reimbursed expenditures are distributed in the plan.

These expenditures are removed.

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Budget(Schedule 10)

Data

Pro RataReports

PC program allocates this data to produce:

Detail Pro Rata by Function and Fund Reports

WorkloadData

Functions ExpenditureData

Funds

Generate Reports

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CalculationDatabase 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.

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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.

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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

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Pro Rata Detail by Function Report STATE OF CALIFORNIA - - - DEPARTMENT OF FINANCE 2002-03 PRORATA DETAIL by FUNCTIONS-TRADE & COMMERCE COSTS 2000-01 2000-01 2002-03 TIME: 12:12 UNIT WORKLOAD PAST YEAR PAST YEAR ROLL-FOR BUDGET YEAR TOTAL ACTUAL ESTIMATE WARD ESTIMATE ALLOCATED

(+) (-) (=) (+) (=) 1 2920 Technology, Trade, and Commerce Agency 1 004 Finance Audits Hours 40 8,321 6,602 1,719 7,690 9,409 2 005 Finance Budgets Hours 1181 133,869 127,563 6,306 142,593 148,899 3 010 Finance CALSTARS Dollars 58513 4,019 3,966 53 3,736 3,789 4 100 Department of Information Technology Dollars 184 20,183 24,799 -4,616 21,044 16,428 5 150 CA Home Page Dollars 58513 9,854 0 9,854 3,913 13,767 6 151 State E-mail Dollars 58513 222 0 222 1,462 1,684 7 152 Network Infrastructure Dollars 58513 128 0 128 962 1,090 8 201 Controller Accounting Records 12201 55,971 54,302 1,669 56,496 58,165 9 202 Controller Claims Audits Warrants 3751 535 5,296 -4,761 540 -4,221 10 203 Controller Payroll Warrants 3634 3,360 1,941 1,419 3,392 4,811 11 204 Controller General Disbursements Warrants 3751 2,098 4,580 -2,482 1,486 -996 12 205 Controller Field Audits Hours 27 1,763 2,196 -433 1,779 1,346 13 211 Controller PPSD(Payroll)/SDD(Systems) Positions 321 18,536 25,055 -6,519 18,709 12,190 14 301 Treasurer Investment Dollars 34238653 23,293 3,641 19,652 22,997 42,649 15 302 Treasurer Item Processing Warrants 7385 254 474 -220 523 303 16 303 Treasurer Cash Mgmt. and Public Finance Dollars 58513 10,681 8,884 1,797 21,840 23,637 17 400 State Personnel Board Positions 321 10,726 6,486 4,240 11,177 15,417 18 410 Personnel Administration Positions 321 16,296 8,272 8,024 28,349 36,373 19 500 Victim Comp and Gov Claim Bd, CA Records 6 840 0 840 595 1,435 20 510 Office of Administrative Law Hours 166 32,831 11,145 21,686 35,377 57,063 21 520 State Library Dollars 58513 9,587 9,161 426 9,548 9,974 22 600 Health Benefits for Annuitants(Retired) Dollars 1167743 436,558 381,438 55,120 589,482 644,602 23 799 Bureau of State Audits Hours 817 66,402 539 65,863 69,881 135,744 24 800 Legislature Dollars 866326 222,042 167,400 54,642 211,233 265,875 25 902 PY Adjustment Dollars 0 0 -33,002 33,002 0 33,002 26 991 Misc Adjustments Dollars 0 0 -4,909 4,909 0 4,909

Summary for 'agency' = 2920 (26 detail records)

TOTALS: Technology, Trade, and Commerce Agency 1,088,369 815,829 272,540 1,264,804 1,537,344 Percent 100.00% 100.00% 100.00% 100.00% 100.00%

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Pro Rata Fund Report

Once the function process is completed, the total allocated for the State department is allocated to funds.

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Pro Rata Fund Report - continued

Fund Report displays the billable and non-billable funds for a State department.

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Pro Rata Detail by Fund Report - continued

STATE OF CALIFORNIA - - - DEPART OF FINANCE TIME: 12:19 PM 2002-03 PRORATA DETAIL by FUNDS_TRADE & COMMERCE AGENCY DEPARTMENT 2000-01 2000-01 COSTS 2002-03 FUND STATUS PAST YEAR PAST YEAR ROLL- FORWARD BUDGET TOTAL ACTUAL ESTIMATE YEAR ALLOCATED FUND NUMBER NAME OF FUND ESTIMATE 1 2920 Technology, Trade, and Commerce Agency Billable

1 0145 Commerce Marketing Fd 1,972 1,909 63 2,291 2,354

2 0535 Main Street Program Fd CA 1,116 107 1,009 1,297 2,306

3 0649 Infrastructure & Economic Dev Bank 45,134 13,136 31,998 52,451 84,449 Fd CA

4 0695 Grant And Loan Collection Account 112 577 -465 130 -335

5 0801 Small Business Dev Center Fd CA 4,576 4,445 131 5,317 5,448

6 0809 Export Finance Fund 16,759 16,593 166 19,476 19,642

7 0824 Export Promotion Acct CA 9,375 9,116 259 10,894 11,153

TOTAL BY FUND TYPE-- BILLABLE OR NONBILLABLE 79,044 45,883 33,161 91,856 125,017 Nonbillable

8 0001 General Fd 928,710 658,957 269,753 1,079,262 1,349,015

9 0123 Rural Economic Development Fund 2,811 2,610 201 3,267 3,468

10 0393 Job Creation Investment Fd 4,770 8,952 -4,182 5,544 1,362

11 0440 Petro. Undergrd Storage Tank Finan. 15,175 27,173 -11,998 17,635 5,637 Acct

12 0521 Rural Econ Devlpmt Infrastructure 7,254 6,987 267 8,430 8,697 Rev Bond

13 0828 Hazardous Waste Reduction Loan 2,394 2,342 52 2,782 2,834 Acct

14 0890 Trust Fd Federal 22,859 25,219 -2,360 26,565 24,205

15 0918 Small Business Expansion Fd 16,108 29,027 -12,919 18,719 5,800

16 0922 Economic Development Grant & 9,244 8,679 565 10,743 11,308 Loan Fd

TOTAL BY FUND TYPE-- BILLABLE OR NONBILLABLE 1,009,325 769,946 239,379 1,172,947 1,412,326

TOTAL OF ALL FUNDS 1,088,369 815,829 272,540 1,264,803 1,537,343

Percent 100.00% 100.00% 100.00% 100.00% 100.00% Summary for 'agency' = 2920 (16 detail records)

B= BILLABLE FUNDS (AMOUNT TO BE TRANSFERRED BY THE STATE CONTROLLER'S OFFICE) N=NONBILLABLE FUNDS

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Function and Fund Reports - continued

Pro Rata (and SWCAP) reports are available at:http://www.dof.ca.gov/fisa/proswcap/proswcap.htm

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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.

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SpecialFunds

GeneralFund

FirstQuarter

August 15SecondQuarter

November 15

ThirdQuarter

February 15FourthQuarterMay 15

Department Fund Pro Rata Charge

Example:

Each quarter, equal amounts by fund, are transferred automaticallyby the State Controller’s Office.

Quarterly amount transferred.

0820 0017 $1,690,360

$422,590

TRANSFER PROCESS - continued

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We hoped this helped. Please view our other presentations.

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