1. January 22, 2002 1 What are Expenditures?

2. January 22, 20022 What are Expenditures? Expenditures are General Fund expenditures from central service agencies (CSA) used in the Pro Rata and Statewide Cost Allocation Plans (SWCAP).

3. January 22, 20023 Central Service Expenditure Data Expenditures are received from the CSA in August. Actual expenditures must agree with the year-end financial statements. Estimated expenditures must agree with the amount shown in the Governor’s Budget for the next fiscal year.

4. January 22, 20024 Central Service Expenditure Data - continued Let’s look at central service expenditures and how these expenditures are included in the Pro Rata and SWCAP plans. The following slides identify the expenditures and explain the expenditures included in the plans.

5. January 22, 20025 Central Service Expenditure Data - continued Central service expenditures - all funds. Circle represents the total expenditures from all funds for a CSA.

6. January 22, 20026 Central Service Expenditure Data - continued Total of all funds of the CSA’s expenditures must tie as shown below: Central Service Agencies Total expenditures ties to: Past Yr. Actual = Year-end Fin. Statements Budget Yr. Estimate = Governor’s Budget Central service expenditures - all funds.

7. January 22, 20027 Central Service Expenditure Data - continued CSAs expenditures are: Central service expenditures Reimbursed expenditures Non-central service expenditures Non-central service expenditures Reimbursed expenditures Central service expenditures

8. January 22, 20028 Central Service Expenditure Data - continued Non-central service expenditures are not included in the plans. These expenditures may be from the General Fund or other funds. These expenditures support the overall operation of the CSA and their own operation. Non-central service expenditures Reimbursed Expenditures Central Service Expenditures

9. January 22, 20029 Central Service Expenditure Data - continued Non-central service expenditures are unallowable. These CSA expenditures do not benefit State departments. Non-central service expenditures Reimbursed Expenditures Central Service Expenditures

10. January 22, 200210 Central Service Expenditure Data - continued Reimbursed expenditures are for services performed by the CSA for other State departments. These expenditures are not included in the plan. Non-Central Service Expendit ures Reimbursed expenditures Central Service Expenditures

11. January 22, 200211 Central Service Expenditure Data - continued Reimbursed expenditures are excluded. Otherwise, State departments would be charged twice for expenditures already reimbursed to the CSA. Non-Central Service Expendit ures Reimbursed expenditures Central Service Expenditures

12. January 22, 200212 Central Service Expenditure Data - continued Central service expenditures are expenditures incurred by the CSA to perform work for State departments. Without these expenditures, the State departments’ would have to perform the work. Non-Central Service Expendit ures Reimbursed Expenditures Central service expenditures

13. January 22, 200213 Central Service Expenditure Data - continued Central service expenditures are adjusted for non- central service work. These General Fund expenditures are necessary for the CSA’s operation. Non-Central Service Expendit ures Reimbursed Expenditure s Central service expenditures

14. January 22, 200214 Central Service Expenditure Data - continued Central service expenditures are adjusted for unallowable expenditures. Unallowable expenditures are identified in federal circular A-87 and ASMB C- 10. Some examples are: Fines Penalties Lawsuits against the federal government Non-Central Service Expendit ures Reimbursed Expenditures Central service expenditures Unallowable CSA expenditures Less

15. January 22, 200215 Central Service Expenditure Data - continued Once all adjustments are made, the remaining non-reimbursed CSA General Fund expenditures are distributed in the plan. This is reflected in the illustration in the next slide.

16. January 22, 2002 16 Central Service Expenditure Data - continued Non-reimbursed General Fund expenditures Reimbursed Expenditures Non-Central Service Expenditures Central service expenditures Unallowable CSA expenditures Less Equals Note: Non-reimbursed expenditures are distributed in the plan.

17. January 22, 200217 Central Service Expenditure Data - continued Let’s review what the previous slides illustrated.

18. January 22, 2002 18 Central Service Expenditure Data - continued CSA expenditures are adjusted for: – Reimbursed expenditures – Unallowable CSA expenditures – Non-CSA expenditures

19. January 22, 2002 19 Reimbursed CSA expenditures are excluded because they represent services the CSA provided and which they received reimbursement. Including reimbursed expenditures would be doubling of charges to State departments. Central Service Expenditure Data - continued

20. January 22, 2002 20 Unallowable CSA expenditures are: –Excluded from plan –Identified in federal circular A-87 and ASMB C-10 Some examples: Fines Penalties Lawsuits against the federal government Central Service Expenditure Data - continued

21. January 22, 2002 21 Non-CSA expenditures are: – Unallowable – Excluded from the plans Central Service Expenditure Data - continued

22. January 22, 2002 22 Non-reimbursed CSA expenditures are allocated in the plans. They represent: –General Fund expenditures. –Benefit all State departments. –Net General Fund expenditures, actual and estimated. Central Service Expenditure Data - continued

23. January 22, 2002 23 Non-reimbursed CSA expenditures represent: – Actual expenditures for the fiscal year just ended Must agree with the CSA year-end financial statements. – Estimated budget year expenditures Must agree with the CSA expenditures in the Governor’s Budget. Central Service Expenditure Data - continued

24. January 22, 200224 Central Service Expenditure Data - continued What would all of this look like on one slide? Well, let’s see.

25. January 22, 2002 25 Central Service Expenditure Data - continued Non-reimbursed General Fund expenditures Reimbursed expenditures Non-central service expenditures Central Service Agencies Central service expenditures Unallowable CSA expenditures 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.

26. January 22, 200226 Central Service Expenditure Data - continued It may look complicated, but remember, only these expenditures are allocated in the plans: – Adjusted CSA expenditures – CSA net General Fund expenditures

27. January 22, 200227 Total CSA expenditures $ XXXX Less: Reimbursements (XXX) Non-central service (XX) Unallowable (X) Allowable non-reimbursed expenditures $ XXX Expenditures distributed in the plan Central Service Expenditure Data - continued Another look at adjusted expenditures.

28. January 22, 2002 28 Central Service Expenditure Data - continued CSA provides its total expenditures for all funds.

29. January 22, 200229 Central Service Expenditure Data - continued Each CSA is provided a unique spreadsheet. A spreadsheet excerpt is shown on the following slides.

30. January 22, 2002 30 Central Service Expenditure Data - continued CSA expenditures Function 500 VCGCB General Fund Other Funds FY 2003-04 Estimated expenditure total Administration distributed Undistributed administration Reimbursements 939,721 8,469,385 (8,469,385) (60,600) 120,876,178 - - (21,102,839) Subtotal 879,121 99,773,339 Other funds 0 0 Unallowable expenditures A-87 1,121 Adjusted estimated expenditures General Fund 878,000 99,773,339

31. January 22, 2002 31 Central Service Expenditure Data - continued Other funds 0 0 Unallowable expenditures A-87 1,121 Adjusted estimated expenditures General Fund 878,000 99,773,339 Adjusted estimated expenditures for General Fund are allocated.

32. January 22, 200232 Central Service Expenditure Data - continued Workload associated with non-allocated expenditures are also removed or adjusted and not allocated in the plans. If an adjustment was not made, the State departments would be partially paying for work that is unallowable, previously reimbursed or non-central service.

33. January 22, 200233 Plans are developed, utilizing expenditure and workload from each CSA. Next slide identifies the various components used to develop the plans. Central Service Expenditure Data - continued

34. January 22, 2002 34 Budget (Schedule 10) Data SWCAP Reports Pro Rata Reports A program allocates expenditures and workload to produce - Various Pro Rata and SWCAP reports. Workload Data Functions Expenditure Data Funds Generate Reports

35. January 22, 200235 We hoped this helped. Please view our other presentations.