Salaries and Benefits, Operating Services and Professional Services The increases in salaries and benefits, operating services and professional services are primarily due to the change in how the Commission reports these expenses. In the past, the Commission reported salaries and benefits, operating services and professional services directly to initiatives under the Provider Grants and Other Allocation expense. This change now reports salary and benefits, operating services and professional services expenses in the designated line item for all the Commission’s operating costs.
Consultant Services The cost related to consultants for FY 2008-09 are primarily related to the fourth Strategic Planning process and the Technical Assistance Institute.
Depreciation Depreciation expense increased from $575,911 in FY 2007-08 to $576,664 in FY 2008-09. This is due to the depreciation of the building and additional equipment and furniture purchased in FY 2008-09.
The $602,278 increase in capital assets is due to the purchase of Computers, Software and Accessories of $559,817 and purchases of Furniture & Fixtures $42,461. The depreciation expense for the fiscal year was $576,664. Additional information on capital assets can be found in Note 3 of this report.
Based on the information provided in the Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual – General Fund, the following analysis is presented:
Final Revenue Budget vs. Actual Revenue
The following information provides a summary of the primary factors that caused the variance in the actual revenue compared to the final revenue estimates:
Tobacco Taxes Tobacco tax revenue is less due to an overall decline in smoking of 3.5% and the cigarette tax increase by the Federal Government’s reauthorization of the State Children Health Insurance Program (SCHIP).
Investment Income The interest rate was higher than projected and cash available to invest was higher than originally anticipated.
Original Expenditure Budget vs. Final Expenditure Budget
The following provides a brief summary of the primary factors attributable to the increase in the final budget expenditure compared to the original budget expenditures:
Personnel Related Cost The Commission approved additional staff for Oral Health Community Development and Best Start LA (P-3) which were direct charges against the initiative allocation.
Equipment Purchase The Commission approved “One Time/Cyclical Cost” for Microsoft Licenses and Enterprise Servers.