1. January 22, 2002 1 Allocating Central Service Agencies Expenditures

2. January 22, 2002 2 Allocating Central Service Agencies Expenditures Process uses from each central service agencies (CSAs): – Workload – Expenditures

3. January 22, 20023 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?

4. January 22, 20024 Workload Unit Cost Calculation Once the calculations are done, the data becomes part of the formula.

5. January 22, 20025 Formula Cost calculation for each function by the past year actual and budget year estimate is completed. Calculations become part of the formula.

6. January 22, 20026 Formula - continued Past Year Past Year Roll Budget YearTotal Actual Estimate Forward EstimateAllocation =-=+

7. January 22, 20027 Formula - continued Past year (PY) actual minus PY estimate equals Roll-forward plus Budget year (BY) estimate equals Total allocation

8. January 22, 20028 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

9. January 22, 20029 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.

10. January 22, 200210 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.

11. January 22, 200211 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?

12. January 22, 200212 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).

13. January 22, 200213 2004-05 Plan Roll-Forward Process 2003-04 2004-05 2005-06 2006-07 2007-08 2003-04 plan Past Year Actual 75 Past Year Estimate 50 + 25 BY Estimate 60 “85” 2004-05 Plan Past Year Actual 65 Past Year Estimate 75 - 10 BY Estimate 75 “65” 2005-06 Plan Past Year Actual 20 Past Year Estimate 60 - 40 BY Estimate 60 “20” To plan 2006-07 Plan 2007-08 Plan

14. January 22, 200214 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.

15. January 22, 200215 2004-05 Plan Roll-Forward Process 2003-04 2004-05 2005-06 2006-07 2007-08 2003-04 plan Past Year Actual 75 Past Year Estimate 50 + 25 BY Estimate 60 “85” 2004-05 Plan Past Year Actual 65 Past Year Estimate 75 - 10 BY Estimate 75 “65” 2005-06 Plan Past Year Actual 20 Past Year Estimate 60 - 40 BY Estimate 60 “20” To plan 2006-07 Plan 2007-08 Plan

16. January 22, 200216 Roll-Forward Process - continued Different types of roll-forwards: – Positive roll-forward – Negative roll-forward – Zero (0) roll-forward

17. January 22, 200217 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.

18. January 22, 200218 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.

19. January 22, 200219 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.

20. January 22, 200220 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.

21. January 22, 200221 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.

22. January 22, 200222 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.

23. January 22, 200223 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%

24. January 22, 200224 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

25. January 22, 200225 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

26. January 22, 2002 26 We hoped this helped. Please view our other presentations.