8754 GENERAL ADMINISTRATIVE COSTS (PRO RATA)
(Revised 2/99)
General Administrative Costs will be referred to as Pro Rata. As mentioned in SAM Section 8753, Pro Rata is the sharing of general funded central service costs by funds other than the General Fund.
The cost of each central service is apportioned to all departments. Then, each department's total central service costs are allocated to the department's funding source(s).
The FSCU classifies funds as nonbillable or billable. In general, nonbillable funds are those whose funding source is the General Fund or a federal fund. Billable funds are funded by special revenue sources such as fees, licenses, penalties, assessments, etc.
FSCU calculates Pro Rata costs for all funds, billable and nonbillable. The total Pro Rata cost information is supplied to departments so that full departmental/program costs can be determined. The reports are available at website: HTTP://WWW.DOF.CA.GOV/FISA/PROSWCAP/PROSWCAP.HTM. Full cost information is particularly important when nonbillable funding sources provide and recover full costs for reimbursable services. See SAM Section 8756 for more information on the State's full cost recovery process.
Each year, the DOF certifies Pro Rata costs to be charged to billable funds. The certification is sent to the State Controller's Office (SCO). The SCO notifies each department of the impending Pro Rata assessments for each of its billable fund(s). Departments have thirty days from the SCO notification date to request deferral of Pro Rata charges. Departments will send all deferral requests to the SCO. The SCO will transmit one copy of the department's deferral request to the DOF, FSCU, and will defer any transfer of Pro Rata charges until a decision has been made on the deferral request.
Pro Rata assessments against billable funds are paid by SCO transfers. The SCO transfers one-fourth of each assessment at the midpoint of each calendar quarter from the billed funds to the General Fund.
Any questions concerning Pro Rata, contact DOF, FSCU, Pro Rata/SWCAP analyst.
