1. January 20, 2002 1 Pro Rata Overview Department of Finance Fiscal Systems and Consulting Unit

2. January 20, 2002 2 What is Pro Rata?

3. January 20, 2002 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. January 20, 2002 4 Pro Rata is the process that... Apportions the costs of each central administrative service agency to State departments.

5. January 20, 2002 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. January 20, 2002 6 Pro Rata is the process that... Allocates central administrative service agency’s costs to an operating departments’* funding sources. * State departments

7. January 20, 2002 7 What is a Central Service Agency? Central service agency (CSA) supports the general operation of State government.

8. January 20, 2002 8 What is a Central Service Agency? - continued CSA provides services to other State departments.

9. January 20, 2002 9 What is a Central Service Agency? - continued CSA is defined in Government Code Section 11270.

10. January 20, 2002 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. January 20, 2002 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. January 20, 2002 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. January 20, 2002 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. January 20, 2002 14 Let’s see how the Pro Rata plan is developed.

15. January 20, 2002 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. January 20, 2002 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. January 20, 2002 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. January 20, 2002 18 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.

19. January 20, 2002 19 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.

20. January 20, 2002 20 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:

21. January 20, 2002 21 June Training for CSAs. Submit Pro Rata Certification to the State Controller’s Office.

22. January 20, 2002 22 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)

23. January 20, 2002 23 Information needed to allocate expenditures To develop Pro Rata reports, there are five types of information needed.

24. January 20, 2002 24 Information needed to allocate expenditures - continued Budget data Fund Central service agencies Workload data CSA expenditures data

25. January 20, 2002 25 Budget Data Source From the proposed Governor’s Budget: Mid-year column Source is the Schedule 10’s Obtained by State department and fund

26. January 20, 2002 26 Fund Legislation establishing a fund is reviewed. Fund classification is determined.

27. January 20, 2002 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. January 20, 2002 28 Workload CSA provides workload by its assigned function/s.

29. January 20, 2002 29 Central Service Expenditure Data CSA provides total expenditures for all funds. Following chart displays CSA expenditure data.

30. January 20, 2002 30 Central Service Expenditure Data - continued Non-reimbursed General Fund expenditures Reimbursed expenditures Non-central service expenditures Central Service Agencies Central service expenditures Unallowable CSA Total expenditures ties to: Past Yr. Actual = Year-end Fin. Statements Budget Yr. Estimate = Governor’s Budget Less Equals Note: Non-reimbursed expenditures are distributed in the plan. These expenditures are removed.

31. January 20, 2002 31 Budget (Schedule 10) Data Pro Rata Reports PC program allocates this data to produce: Detail Pro Rata by Function and Fund Reports Workload Data Functions Expenditure Data Funds Generate Reports

32. January 20, 2002 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. January 20, 2002 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. January 20, 2002 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. January 20, 2002 35 Pro Rata Detail by Function Report

36. January 20, 2002 36 Pro Rata Fund Report Once the function process is completed, the total allocated for the State department is allocated to funds.

37. January 20, 2002 37 Pro Rata Fund Report - continued Fund Report displays the billable and non-billable funds for a State department.

38. January 20, 2002 38 Pro Rata Detail by Fund Report - continued

39. January 20, 2002 39 Function and Fund Reports - continued Pro Rata (and SWCAP) reports are available at: http://www.dof.ca.gov/fisa/proswcap/proswcap.htm

40. January 20, 2002 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. January 20, 2002 41 Special Funds General Fund First Quarter August 15 Second Quarter November 15 Third Quarter February 15 Fourth Quarter May 15 Department Fund Pro Rata Charge Example: Each quarter, equal amounts by fund, are transferred automatically by the State Controller’s Office. Quarterly amount transferred. 08200017$1,690,360 $422,590 TRANSFER PROCESS - continued

42. January 20, 2002 42 We hoped this helped. Please view our other presentations.

43. January 20, 2002 43