Staff Section Overhead Allocation Formula

Adopted at the NCSL Executive Committee Meeting
Wilmington, Delaware, May 17, 2008.


 At the NCSL Executive Committee and LSCC meetings in Wilmington, Delaware, the LSCC proposed and the Budget, Finance and Rules Committee accepted a new formula for calculating the overhead cost allocation for staff section professional development seminars.

The new formula is in effect for seminars scheduled for 2008.  It replaces the previous formula.

A fundamental change is that the new formula does not take previous attendance at staff section seminars into account.  Under the 2008 formula, overhead allocation charges will be based upon actual attendance at the seminar.  Since that cannot be known in advance, the budget calculation will be based on the expected attendance figure that is used for seminar planning.  The actual overhead allocation will be recalculated after the seminar on the basis of actual attendance.

These are the provisions of the new formula.

  1. Each staff section will pay a fixed amount of $2,500.00 for each seminar.  This amount applies to each staff section whether the PDS is a stand-alone or whether it is joint.  (Under this rule, for example, each staff section that participates in a joint seminar will be charged $2,500.00.)
     
  2. In addition, on top of the first $2,500.00, each staff section will be charged $35.00 per paid registrant for the first 150 paid registrants.  Two provisos apply, however:
     

    a) The $35.00 add-on does not apply if total paid attendance is 40 or less.  (note:  this is not an exemption of the first 40 registrants.  The exemption only applies if total paid attendance 40 or less.  A meeting with 41 paid attendees would be charged $35.00 for all 41:  $1,435.00).

    b) The $35.00 add-on does not apply to the number of registered guests.

  3. In addition, on top of the amounts that result from those calculations, each staff section will be charged $10.00 per registrant for paid registrations (non-guests only) above 150.
     
  4. Although the overhead cost allocation has to be estimated for the budget when the meeting is being planned, the actual overhead cost allocation will be based on the actual number of registrations for the meeting, and can only be known after the meeting has occurred.
     
  5. Staff sections retain any excess revenues over meeting costs and overhead allocation charges.
     
  6. NCSL absorbs losses. (see Amendment to Overhead Allocation Formula here)

 

Example 1.

A professional development seminar budgets for attendance of 175 paid registrants exclusive of paid guest registrations.  This would be the budget calculation:

Component of Charges

Calculation

Total Amount

Base Charge

Flat amount of $2,500.00

$2,500.00

Amount due per capita:  first 150 paid registrations

150 x $35.00

$5,250.00

Amount due per capita:

Registrations in excess of first 150

25 x $10.00

$250.00

Total overhead allocation for budget

 

$8,000.00

 

Example 2.

A staff section budgets for a professional development seminar with 28 attendees.

Component of Charges

Calculation

Total Amount

Base Charge

Flat amount of $2,500.00

$2,500.00

Amount due per capita:  first 150 paid registrations

Does not apply  because total registration will be less than 40.

0

Amount due per capita:

Registrations in excess of first 150

Does not apply

0

Total overhead allocation for budget

 

$2,500.00

 

Example 3.

A staff section budgets for a professional development seminar with 55 members, five of whom are guests.

Component of Charges

Calculation

Total Amount

Base Charge

Flat amount of $2,500.00

$2,500.00

Amount due per capita:  first 150 paid registrations

50 x $35.00 ($35 fee is waived for the five guests.)

$1,750.00

Amount due per capita:

Registrations in excess of first 150

Does not apply

0

Total overhead allocation for budget

 

$4,250.00