January 22, Allocating Central Service Agencies Expenditures

January 22, Allocating Central Service Agencies Expenditures Process uses from each central service agencies (CSAs): – Workload – Expenditures

January 22, Allocating Central Service Agencies 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, Workload Unit Cost Calculation Once the calculations are done, the data becomes part of the formula.

January 22, 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, Formula - continued Past Year Past Year Roll Budget YearTotal Actual Estimate Forward EstimateAllocation =-=+

January 22, Formula - continued Past year (PY) actual minus PY estimate equals Roll-forward plus Budget year (BY) estimate equals Total allocation

January 22, Formula - continued Past Year Past Year Roll Budget YearTotal Actual Estimate Forward EstimateAllocation =- = + PY actual minus PY estimate equals Roll-forward plus BY Estimate equals Total allocation

January 22, 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, Formula - continued Past Year Past Year Roll- Budget YearTotal 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 Year difference (actual – estimate) Amount calculated for the current fiscal year. It becomes the past year estimate in the plan two years hence. Total by each function and for all functions for the State department.

January 22, Formula - continued Past Year Past Year Roll- Budget YearTotal 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 minus2 equals89 plus 92 equals 181 Data source from the presentation How does the Calculation Work?

January 22, 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 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 ( ).

January 22, Plan Roll-Forward Process plan Past Year Actual 75 Past Year Estimate BY Estimate 60 “85” Plan Past Year Actual 65 Past Year Estimate BY Estimate 75 “65” Plan Past Year Actual 20 Past Year Estimate BY Estimate 60 “20” To plan Plan Plan

January 22, 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 plan. In the plan, the 60 becomes the past year estimate amount.

January 22, Plan Roll-Forward Process plan Past Year Actual 75 Past Year Estimate BY Estimate 60 “85” Plan Past Year Actual 65 Past Year Estimate BY Estimate 75 “65” Plan Past Year Actual 20 Past Year Estimate BY Estimate 60 “20” To plan Plan Plan

January 22, Roll-Forward Process - continued Different types of roll-forwards: – Positive roll-forward – Negative roll-forward – Zero (0) roll-forward

January 22, 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, 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, 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, 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, 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, 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, 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 $ % Fund % Fund % Total $ %

January 22, Fund Allocation - continued Example: Total allocated (all functions for the State department) in our example was $66, Using the percentage for each fund to calculate the amount per fund. Fund 1 $ % 26, Fund % 19, Fund % 19, Total $ %$66, Note: times 40% equals

January 22, 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, Total $26, Non-Billable: Fund 2 $19, Fund 3 19, Total $39, Total Billable and non-billable $66,006.00

January 22, We hoped this helped. Please view our other presentations.