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to classify debt expenditures as an enterprise support program 3.4 Step 4: Allocate a Portion
allocable to maintenance because this would falsely increase the of Enterprise Support
allocation of enterprise support expenditures to line activities. Expenditures to the
Direct payments or pass-throughs to other state or local Maintenance Program
government agencies, unlike construction and maintenance
programs, do not involve DOT personnel administering, over- Objective
seeing, or performing work, nor do they benefit the agency in The objective of Step 4 is to establish the relationship
any way. The classification of direct payments or pass-throughs between enterprise support and line programs in order to
as a line program would falsely reduce the allocation of enter- allocate an appropriate portion of enterprise support expen-
prise support expenditures to line activities. ditures to the maintenance program.
The examples described, or any similar expenditures, must
be excluded from the calculation. The full cost determination
process therefore identifies a third category of enterprise expen- Sources of Information and
ditures, special/pass-through, and any expenditure identified as Key Considerations
such is indeed excluded. The best source of information regarding the relationships
In most cases, the classification of a program is obvious between enterprise support and line programs is the agency's
from its name; however, program descriptions provided in personnel. This can be supplemented by documentation about
agency annual reports and budget documents can guide the agency programs, which can usually be found in agency annual
classification where there is any question. reports and budget documents.
As with Step 2, a key consideration for this step in the
Illustrative Example process is the objective that the full cost determination process
be as practical as possible. To satisfy this objective, it is recom-
Table 3.4 lists the set of enterprise programs, total expendi- mended that unless a particular enterprise support program is
tures, and classification of programs as line, support, or unambiguously associated with only a subset of the line pro-
special/pass-through for the example. In this case, the equip- grams, it should be associated with all line programs. The full
ment fund is classified as special/pass-through because it rep- cost calculations for both Alabama DOT and Washington State
resents all expenditures associated with the agency vehicle fleet, DOT, documented in Appendix A of the attachment, include
which are in turn charged in their entirety to the line programs real-world examples of enterprise support programs that
through rental rates. In this case, classifying the equipment support only a subset of line programs. In the case of Alabama
fund as a special/pass-through expenditure ensures that these DOT, there are separate central office administration and geo-
charges are not double counted. graphically focused (division and district) supervisory expen-
For the purposes of this example, therefore, total line pro- ditures for both the construction and maintenance programs.
gram expenditure is $127,500,000, total support program In the case of Washington State DOT, its program H, Program
expenditure is $8,000,000, and $7,500,000 associated with the Delivery Management and Support, only provides support to
equipment fund is excluded from the calculation. its Maintenance, Preservation, and Improvement programs.
Table 3.4. Example classification of enterprise programs
and expenditures.
Program Name Type Total Expenditure
Maintenance Line $20,000,000
Construction Line $100,000,000
Traffic operations Line $2,500,000
Public transportation Line $5,000,000
Subtotal $127,500,000
Administration Support $5,000,000
Program delivery support Support $3,000,000
Subtotal $8,000,000
Equipment fund Special/pass-through $7,500,000
Total $143,000,000
