8753 CENTRAL SERVICE COSTS
(Revised 2/99)
Central service costs are those amounts expended by central service departments and the Legislature for overall administration of state government and for providing centralized services to state departments. These functions are necessary for state operations and are centralized to provide efficient and consistent statewide policy and services. Central service departments are:
| Department of Finance |
Department of Justice |
| State Controller's Office |
Agency Secretaries |
| State Treasurer's Office |
Bureau of State Audits |
| State Personnel Board |
Legislature |
| Department of Personnel Administration |
California State Library |
| Board of Control |
Health Benefits For Annuitants |
| Office of Administrative Law |
Department of Information Technology |
Central service costs are funded by General Fund appropriations made to each central service department. The central services benefit all funds/departments. For equity, GC Sections 11270–11277 and 22828.5 provide for the sharing of central service costs by funds other than the General Fund. This cost sharing process is titled formally as "General Administrative Costs" but is known more commonly as "Pro Rata". See explanation in SAM Section 8754.
In addition to administering the Pro Rata central service costs sharing, the DOF, Fiscal Systems and Consulting Unit (FSCU), prepares a Statewide Cost Allocation Plan (SWCAP) each year. SWCAP is a cost allocation plan which distributes central service costs to all departments. SWCAP contains only those central services which the federal government holds to be allowable for federal funding purposes. Therefore, differences exist in the central service costs contained in the two plans.
The central service functions included in Pro Rata and SWCAP are listed below
Central Service Plans
| Central Service Function |
Pro Rata
Only |
SWCAP
Only |
Both |
| Finance: |
|
|
|
| Audits |
|
|
X |
| Budgets |
|
|
X |
| California Accounting and Reporting System (CALSTARS) |
|
|
X |
| Department of Information Technology |
|
|
X |
| Controller’s Office: |
|
|
|
| Accounting |
|
|
X |
| Claims Audits |
|
|
X |
| Payroll |
|
|
X |
| General Disbursements |
|
|
X |
| Field Audits |
|
|
X |
| Retirement Warrants |
X |
|
|
| Personnel/Payroll Systems and Development |
|
|
X |
| County Cost Plan |
|
X |
|
| Treasurer’s Office: |
|
|
|
| Investment |
X |
|
|
| Banking |
|
|
X |
| Cash Management and Trust Services |
X |
|
|
| Personnel Board |
|
|
|
| Personnel Administration |
|
|
X |
| Board of Control |
|
|
X |
| Administrative Law |
|
|
X |
| California State Library |
|
|
X |
| Health Benefits for Annuitants (Retired) |
|
|
X |
| Secretary-California Health and Human Services Agency |
|
|
X |
| Secretary-Youth and Adult Correctional Agency |
|
|
X |
| Secretary-State and Consumer Services Agency |
|
|
X |
| Secretary-Business, Transportation, and Housing Agency |
|
|
X |
| Secretary-Resources Agency |
|
|
X |
| Bureau of State Audits |
|
|
X |
| Department of Justice |
|
X |
|
| Legislature |
X |
|
|
The costs of the above central services are apportioned on the basis of services provided. To do this, FSCU determines the most appropriate workload base for each central service. Actual workload units are accumulated for each department. Then, central service costs are apportioned to the departments/funds on the basis of these workload units.
