January 22, 2002 1 What are Expenditures?. January 22, 20022 What are Expenditures? Expenditures are General Fund expenditures from central service agencies

January 22, 2002 1

What are Expenditures?

January 22, 2002 2

What are Expenditures?

Expenditures are General Fund expenditures from central service agencies (CSA) used in the Pro Rata and Statewide Cost Allocation Plans (SWCAP).

January 22, 2002 3

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.

January 22, 2002 4

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.

January 22, 2002 5


Central service expenditures

- all funds.


- all funds.

Circle represents the total expenditures from all funds for a CSA.

January 22, 2002 6


Total of all funds of the CSA’s expenditures must tie as shown below:

Central Service AgenciesTotal expenditures ties to:

Past Yr. Actual = Year-end Fin. Statements

Budget Yr. Estimate = Governor’s Budget


- all funds.


- all funds.

January 22, 2002 7


CSAs expenditures are: • Central service

expenditures• Reimbursed

expenditures• Non-central service

expenditures

Non-centralservice

expenditures

Reimbursed

expenditures


January 22, 2002 8


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-centralservice

expenditures

Rei

mbu

rsed

Expe

nditu

res

Central Service Expenditures

January 22, 2002 9


Non-central service expenditures are unallowable. These CSA expenditures do not benefit State departments.

Non-centralservice

expenditures

Reimburs

ed

Expenditure

s


January 22, 2002 10


Reimbursed expenditures are for services performed by the CSA for other State departments. These expenditures are not included in the plan.

Non-CentralService

Expenditures

Reimbursed

expenditures


January 22, 2002 11


Reimbursed expenditures are excluded. Otherwise, State departments would be charged twice for expenditures already reimbursed to the CSA.

Non-CentralService

Expenditures

Reimbursed

expenditures


January 22, 2002 12


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-CentralService

Expenditures

Reimburs

ed

Expenditure

s

Central service

expenditures

January 22, 2002 13


Central service expenditures are adjusted for non-central service work. These General Fund expenditures are necessary for the CSA’s operation.

Non-CentralService

Expenditures

Reimbursed

Expenditure

s

Central service

expenditures

January 22, 2002 14


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-CentralService

Expenditures

Reimbursed

Expenditures

Central service

expenditures

Unallowable CSA

expendituresLess

January 22, 2002 15


• 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.

January 22, 2002 16


Non-reimbursedGeneral Fund expenditures

ReimbursedExpenditures

Non-CentralService

Expenditures

Central service

expenditures

Unallowable C

SA

expenditures

LessEquals

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

January 22, 2002 17


Let’s review what the previous slides illustrated.

January 22, 2002 18


• CSA expenditures are adjusted for:

– Reimbursed expenditures

– Unallowable CSA expenditures

– Non-CSA expenditures

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.


January 22, 2002 20

• Unallowable CSA expenditures are:– Excluded from plan– Identified in federal circular A-87 and

ASMB C-10

Some examples:FinesPenalties Lawsuits against the federal government


January 22, 2002 21

• Non-CSA expenditures are:– Unallowable– Excluded from the plans


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.


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.


January 22, 2002 24


What would all of this look like on one slide?

Well, let’s see.

January 22, 2002 25


Non-reimbursedGeneral Fund expenditures

Reimbursed

expenditures

Non-centralserviceexpendituresCentral 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

LessEquals

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

These expenditures are removed.

January 22, 2002 26


• It may look complicated, but remember, only these expenditures are allocated in the plans:– Adjusted CSA expenditures – CSA net General Fund expenditures

January 22, 2002 27

Total CSA expenditures $ XXXXLess:

Reimbursements (XXX)Non-central service (XX)

Unallowable (X)

Allowable non-reimbursed expenditures $ XXX Expenditures distributed in the plan


Another look at adjusted expenditures.

January 22, 2002 28


CSA provides its total expenditures for all funds.

January 22, 2002 29


Each CSA is provided a unique spreadsheet. A spreadsheet excerpt is shown on the following slides.

January 22, 2002 30


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 99,773,339Other funds 0 0

Unallowable expenditures A-87 1,121

Adjusted estimated expenditures General Fund 878,000 99,773,339

January 22, 2002 31


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.

January 22, 2002 32


• 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.

January 22, 2002 33

• Plans are developed, utilizing expenditure and workload from each CSA.

• Next slide identifies the various components used to develop the plans.


January 22, 2002 34

Budget(Schedule

10)Data

SWCAPReports

Pro RataReports

A program allocates expenditures and workload to

produce -

Various Pro Rata and SWCAP reports.

WorkloadData

FunctionsExpenditure

DataFunds

Generate Reports

January 22, 2002 35

We hoped this helped. Please view our other presentations.

Documents

January 22, 2002 1 What are Expenditures?. January 22, 20022 What are Expenditures? Expenditures are General Fund expenditures from central service agencies