Pro Rata (Statewide General Expenditures)/SWCAP (Statewide Cost Allocation Plan)

Pro Rata and SWCAP represent General Fund recoveries of statewide general administrative costs (i.e., indirect costs incurred by central service agencies) from special funds (Government Code [GC] sections 11010, 11270 through 11275) and from federal funding sources (GC sections 13332.01 through 13332.02), respectively.

Central service agencies (e.g., Department of Finance, State Controller’s Office, Department of Human Resources, and Legislature) provide budgeting, accounting, auditing, payroll, and other services to all state agencies and are supported by the General Fund. However, the services provided benefit not only General Fund programs but also programs supported by special funds and federal funds. Consequently, Finance uses the Pro Rata and SWCAP cost allocation and recovery process to recover a fair share of indirect costs from special funds (Pro Rata) and from federal funds (SWCAP). The amounts recovered are transferred to the General Fund.

The State Administrative Manual Sections 9210 through 9217 provides a detailed explanation of the State’s full cost recovery policy, Pro Rata, and SWCAP.

If you have any questions, contact or contact the specific analyst assigned to either Pro Rata, SWCAP, or ICRPs.