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23 Table 3.3. Example allocation of support activity expenditures to line activities. Allocation of Support Activity Expenditures Total Support Line Activities Mix Deicer Training Management Stores Activity Allocation Crack sealing $5,618 $42,135 $7,022 $54,775 Deicing $250,000 $112,359 $842,697 $140,449 $1,345,506 Sign washing $3,371 $25,281 $4,213 $32,865 Striping $78,652 $589,887 $98,315 $766,854 Totals $250,000 $200,000 $1,500,000 $250,000 $2,200,000 Note: Some totals rounded to the nearest dollar. activities. The allocation calculation is performed for each valid In order to ensure the validity of the full cost calculation, combination of line and support activities--that is, for each X there are a number of key issues that must be considered. For in Table 3.2. The support activity allocation is equal to: example: ($LAIQ $ASLA ) $SAIQ If enterprise expenditure data is obtained from a CAFR or other financial report, care must be taken to ensure that all Where expenditure categories are fully accounted for and that no $LAIQ = line cost of line activity in question, expenditures are double counted. $ASLA = line cost of all supported line activities, and If enterprise expenditure data is extracted from an FMS, it $SAIQ = cost of support activity in question. is important to understand whether any expenditures are For example, the allocation of the mix deicer support activ- automatically allocated, and if so, which ones, on what ity to deicing equals basis, and to which other expenditures they are allocated. ($10,000,000 $10,000,000 ) $250,000 = $250,000. Classification of Enterprise Expenditures Once all of the enterprise expenditures have been gathered, 3.3 Step 3: Gather and Classify they must be categorized as line, support, or special/pass- Enterprise Programs through according to the following definitions. and Expenditures Line program. A line program is a logical grouping of simi- lar activities or projects that are primarily focused on actually Objective delivering the main work products of a state DOT. For exam- The objectives of Step 3 are to collect information on all ple, construction projects make up a construction program, and enterprise programs and expenditures and to classify them as maintenance activities and projects make up a maintenance line, support, or special/pass-through. program. Support program. A support program is one that supports the delivery of one or more line programs (e.g., agency exec- Sources of Information and utive management, information systems, human resources, Key Considerations legal, and finance). In most agencies there are multiple sources of information Special/pass-through. Many state DOTs report expendi- on enterprise program expenditures. The most common tures that do not fit nicely into either the line or support cat- sources of this data include agency and/or state financial egories (e.g., debt-related expenditures associated with past management systems and data warehouses, as well as annual bond issuance, or direct payments or pass-throughs to other agency reports. For example, a number of state DOTs prepare state and local agencies). a comprehensive annual financial report (CAFR). A CAFR Debt-related expenditures are, in most cases, the result of presents detailed financial information, including changes in agency efforts to advance larger construction programs sooner asset values, sources and amounts of revenue, expenditures than traditional revenues would permit. In this case, debt- broken down in a variety of ways, and associated notes and related expenditures have nothing whatsoever to do with commentary. Other potential sources include agency indirect the maintenance program. Furthermore, the guidance pro- cost allocation plans and reports detailing annual budgets, as vided in OMB Circular A-87 related to debt (Attachment B, cost well as budget versus expenditure reports. item 23) is that in virtually all cases it is considered unallowable