In the Expenditures Table you are entering the costs for the Structure Item that you are going to allocate to the Receiving Structure Items.
Expenditures represent the money that an Agency spends to pay for the services or functions within its department. Expenditures generally include employee salaries and benefits, supplies and services, equipment maintenance and any rent or lease costs from facilities that are not owned by the Agency.
Open the Expenditures table in the workspace by expanding the Structure Item in the left hand Navigation Menu and clicking the View icon to the right of the Expenditures menu item.
When you navigate to the Expenditures table there will already be two lines in the table with the names “Salaries” and “Benefits.” In these rows can be used to combined rows of multiple salaries or benefit expenditures into one row in your final report. This feature is optional -- you can provide whatever granularity of data you would like.
In the upper right corner, click the “+” icon to add a new row and then fill out the needed data.
Name - This is the Name of the Expenditure as it will appear on your final report.
Dist Type - This is the way in which the Expenditure will be spread across the functions. There are six different ways to distribute the expenditure: LABOR ( Labor Distribution), SAL (Salary), PROP (Proportional), DISA (Disallow), ADJP (Adjustment Prop), and ADJS (Adjustment Salary).
LABOR - This distribution option is only available on the Salaries Expenditure row. The LABOR Distribution allows you to use a Labor Distribution to spread your salary costs. To learn more about Labor Distribution see its related article.
SAL - If an expenditure is set to SAL it will spread the amount across the functions in whichever way the Salaries expenditure row is distributing its costs.
PROP - The PROP distribution is used to proportionally distribute the expenditure across the functions by entering the desired proportion into each Function Column.
DISA - Using the DISA distribution type will include the expenditure on the report, but will not be allocated to the other Structure Items.
ADJP/ADJS - Adjustments are used to account for expenditures that are incurred by one Structure Item, but you will want to show up in another Structure Item. An example would be banking fees that are paid for out of non-departmental but you want to distribute them in your treasury department. These adjustments will help the auditor know that it is not part of your financial statements for this particular Structure Item when they try to reconcile to your expenditure report, but it is relevant to this Structure Item so you spread the cost below the line.
Include in CFR - Uncheck this checkbox if this expenditure is not allowable under the 2 CFR part 200 Uniform Guidance. When you run a 2 CFR part 200 compliant report this expenditure will show on the report as a DISA distribution and the costs will not be allocated to the other RIs.
Total - This is the dollar amount of the expenditure.
Gen Admin - Stands for General Administration. This column is used for departmental administration expenditures for which you cannot be identified as relating to the Structure Item’s functions.
- Function Columns - There is one Function column for each Function of the Structure Item. They are intended to enter the proportional amount that you would like to attribute to that particular Function for the given expenditure. For example, if there are 2 functions in a given department then you need to show the distribution of each expenditure to the 2 functions. In our example if the expenditure should be distributed 70% to recruitment and 30% to labor relations then you would enter a “70” in the recruiting column and “30” in the labor relations column. The system will then spread that particular expenditure on the the respective ratio of values in each function. You could also enter dollar amounts instead of the 70/ 30 if you had that data.
The expenditures will appear on the X.4 schedules of every chapter of the cost plan in a 2 CFR part 200 and X.3 schedule of every chapter in a Full Cost Plan. (X will actually be the chapter i.e. in our example above we are in the eighth central support department therefore it appears as 8.3 in the heading). (Black arrow)
Expenditure Output
The above sheet is the output file from the actual printed cost plan that is generated from the inputs into the system for Expenditures.
Heading: The expenditures will appear on the X.4 schedules of every chapter of the cost plan in an 2 CFR Part 200 Plan and X.3 schedule of every chapter in a Full Cost Plan. (X will actually be the chapter i.e. in our example above we are in the eighth central report item therefore it appears as 8.3 in the heading). (Black arrow)
Amount Column: The amount column coincides with the Amount column in the input screen. (Pink arrow)
Total Percentage: The percentage you see under each function is generated by the system depending on the spread of the Salaries. The system either pulls this percentage from the Labor distribution if the Dist Type is set to SAL, or it is created by the input specified in each function for a PROP distribution election. Either way the system will create the percentage and report it here. (Blue arrow)
Expenditures: The accounts under the Services and Supplies are all lines in the input screen with a SAL, PROP or DISA distribution type. (Orange bracket)
Cost Adjustments: All DISA distribution types that appear in the orange brackets will also appear under “Cost Adjustments” as an offset amount. You need only enter the amount once - the system will automatically add the offsetting amount to the “Cost Adjustments.” This feature is for all items that are not further spread in the plan; for example, fixed assets or capital expenditures.
The remaining accounts under “Cost Adjustments” are for the accounts you entered with either an ADJP or ADJS distribution type. These accounts are for dollars that are not part of the actual expenditure reports of that specific department but are relevant to the department (you bring dollars in from another place). Selecting ADJP or ADJS will indicate to an auditor the department is to be excluded in the reconciliation to financial statements. These costs are spread to the functions and become part of the “Full Cost” of service. These lines are often used in 2 CFR part 200 to take unidentified revenues “off the top” and reduce expenditures. (Green Bracket) In the example above, a few staff salaries were added to the department from a different division because they support this department and their functions, but their particular department is not a central support department therefore they are added here to spread these unique costs.
Data: The dollar amount shown under each function is generated by the system and is dependent on your distribution type selection. For all lines designated as SAL distribution, the dollar cost for each function is based on the percentage at the top indicated by the (blue arrow) multiplied by the total amount for that line – the resulting amount appears under the function for that particular line item. For all lines designated as PROP distribution, the dollar cost for each function is based on the relative percentage created from the values manually entered for each function multiplied by the total amount for that line – the resulting amount appears under the function for that particular line item. All data in the (purple brackets) is a representation of these calculated costs based on your inputs.
Reallocate Admin: This is the sum of the “General Admin” column and is distributed to each of the functions based on the spread you indicated on the Fund, Department or Division row. You can either spread it based on the Salary distribution OR you can spread it on the TOTAL expenditures per function. The system will generate a percentage based on all functions (excluding the General Admin function) and redistribute the cost of General Admin to each of the functions as a departmental level of overhead. (Brown Arrow)