4-80 ALLOCATED CENTRAL ADMINISTRATION

POLICY

It is Agency policy to set aside a percentage of each department’s total operating budget for Allocated Central Administration.  For each program that is delivered by the Agency, the Director of Finance will ensure that the budget prepared for the program includes a percentage of its total operating budget as Allocated Central Administration costs.

PROCEDURE

Each program delivered by the Agency will have a percentage of its total operating budget set aside for Allocated Central Administration (ACA) costs.  For new programs, the ACA is based on ten percent of the total expenses.  The ACA in some historical contracts has declined below ten percent. ACA costs are those that are not specifically associated with any one program, but are incurred on behalf of the Agency as a whole.  Such costs include payroll, human resources, common area utilities/maintenance, management, board, accounting and communications and information technology.  Any expenses that can logically be assigned to a specific program will be allocated directly to that program.  For example, if that program no longer existed, then the expense would not be incurred. 

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