Currently, a suballocation is used when an owning agency for a given project has the need to have assistances from other state agencies to support their efforts on the activities of the overall project as well as the need for sharing the funding of the project.
When this need arises, the owning agency of the project processes an Interunit budget transfer journal, transferring the budget authority from the owning agency to the supporting agency(s). Once the Appropriations/Segregations sub-allocation is complete the owning agency will perform another Interunit budget transfer journal to allocate the funds for the project to the supporting agency(s).
The PCIP project looks to streamline the process by establishing additional policies and process guidance. The policies and process guidance will incorporate the following principles:
- The agency who owns the project will be represented with the Project Costing Business Unit (PCBU)
- If the suballocated project work is for the same project, per the definition of a project, then there is no need for a new Project ID- the sub allocated work should be performed with the same Project ID
- The owning agency for the project will determine whether the project child budget should be established as a control or track only budget options.
- The owning agency of the project will define the activities of the project. If there are specific activities that are being fulfilled by a supporting agencies they should be part of the project budget journal sub-allocating the funds.
- If the sub-allocated project work is for the same project activities, per the definition of an activity, and the funding source does not involve a different federal grant source, then there is no need for a new Activity ID - the sub-allocated work should be performed with the same Activity ID
- The owning agency of the project will communicate the project and activities that the supporting agencies must use on their transactions
- Supporting agencies are responsible to assuring that the cost accumulated against the owning agency project and activities are following the guidelines of the project. If the project and activity are associated to a grant then the supporting agencies must also comply with the grant rules and guidance.
- Project and activities of the owning agency that cannot be used by the supporting agencies will be handled on a case by case basis.
| Owning Agency | Supporting Agency |
|---|---|
| Establish the projects and activities, and the project budget | Collaborate with the owning agency regarding activities needed for the project |
| Process the inter-agency budget journal to sub-allocate the project budget amount to the supporting agency GL business unit | Continue to be part of the inter-agency budget journal process |
| Process/request the budget journal to sub-allocate the Approp/Seg budgets when necessary | Continue to be part of the inter-agency budget journal process |
| Communicate to the supporting agency the project information that they need to use on transactions related to the owning agency project | Enter the Project ID and Activity ID on the detail transactions related to the projects that they are supporting |
| Monitor the costs being charged to their projects and reach out to supporting agencies when there are questions | Answer questions from the owning agency of the projects regarding charges to the projects/activities |
| Establish and maintain the project’s supplemental data | Answer questions from the owning agency of the projects regarding supplemental data |
Guide to Financial Operations
REV. 03/23/2022