SERVICE
CHARGE INSTRUCTIONS
INTRODUCTION
The
service charges are administrative fees authorized by Florida Statutes 215.20
through 215.25 and charged on all assessable trust funds and assessable
revenue unless specifically exempted. These
fees are paid every quarter or more often if the agency chooses.
In 1941 services charges were assessed on only a few trust funds and at
the rate of only 3 percent. Changes were made to the Florida Statutes
in 1988
and all trust funds were added except those that were specifically exempt.
These exemptions are listed in Florida Statute 215.22.
There are a few other references that exempt a trust fund or a specific
revenue located in other statutes. Some
agencies are completely exempt, but if a fund within these agencies was paying
the service charge before then, the agency will continue to pay on that fund
only.
The legislature designated the Department of Financial Services to establish
the rules and procedures with the approval of the Executive Office of the
Governor. Although that section of
the Administrative Code was repealed in 1996, the same rules continue to be
used.
SERVICE CHARGE REPORT OF REVENUE
This
report is placed in the Report Distribution System (RDS) on the 15th
day of the month following the end of the quarter. In the fourth quarter, the
report will not be available until after the year-end closing around the third
week of July. Each agency should
verify the accuracy of the report before doing the calculations.
Occasionally there are problems with the update of the information in
Information Warehouse (usually the interest amounts are not input properly)
and the report may be a few days late. Please
be patient and the report will be in RDS as soon as a correct version is
ready. If you are printing the
report from Information Warehouse on the 15th, all revenue and
interest should be verified.
REVENUE
It
is important for many reasons for the revenue to be recorded in the proper
category when it is received. Assessable
revenue (for example fingerprinting fees) received from individuals recorded in
an exempt category does not relieve the agency of its responsibility for
paying the service charge on this revenue.
All back service charges (including previous years) will be due and
payable on any revenue that has not been specifically exempted and has not
paid the service charge. If the
error is not discovered for a few years, the amount owed could be larger than
the account could afford at one time. If there is any doubt as to the assessable status of any type
of revenue it is better to ask for a ruling.
Please address these requests to Molly Merry, Bureau Chief, Bureau of
Accounting, Department of Financial Services, Room 414 Fletcher Building.
You can email her at molly.merry@fldfs.com.
The
service charge report of revenue has exempted those categories that are
usually exempt from the service charge. One
column will list a year to date, all inclusive, amounts that will include the
exempt categories, but the other two columns will not include the amount for
the exempt categories. Sometimes
a category that is usually exempt will have assessable revenue, and this
revenue should be added to the total assessable revenue total at the bottom of
the report and identified. For
example, some funds receive transfers from the Department of Highway Safety and
Motor Vehicles (DHSMV). These
transfers are recorded in the 001500 or 001600 category that is usually exempt
and only the year to date amount is given.
If you wish to calculate the service charge on a quarterly basis, then
the total amount at the end of the previous quarter needs to be subtracted
from the current total to get the amount for the quarter that needs to be
added.
The
following categories are usually exempt.
CATEGORY
LONG TITLE
000106
COUNTY FEE FOR ADMINISTRATIVE COSTS
000108**
MARKETING ORDER ASSESSMENT
000109
REIMBURSEMENT FOR CLIENT CUSTODIAL
CARE
000119 FEES COLLECTED AS AGENT
000121
FEES TO COUNTY HEALTH DEPARTMENTS
000124
Article V Fees - DFS
000125
ARTICLE V FEES - GENERAL REVENUE
000326
CONSTITUTIONAL GASOLINE TAX
000333
TAXES COLLECTED AS AGENT
000335
Slot Machine Tax Receipts
000503
INTEREST DEPOSITS IN GENERAL REVENUE
000504 INTEREST - FEDERAL
000600
EMPLOYEE AND EMPLOYER CONTRIBUTIONS
000601
SUPPLEMENTAL BENEFITS PLAN
CONTRIBUTIONS
000602
PRETAX BENEFIT PROGRAM
000700
US GRANTS
000701
FEDERAL DISASTER RELIEF
000710
US GRANTS DIRECT TO CHD
000720
FEDERAL CHILD CARE FOOD PROGRAM
000799
U.S. GRANTS - INDIRECT
000801
LOCAL GOVERNMENT CONTRIBUTIONS
000810
CITY OR COUNTY GRANTS -
NO SERVICE CHARGE
001000
STATE GRANTS
001010
STATE GRANTS - NO SERVICE CHARGE
001110
OTHER GRANTS - NO SERVICE CHARGE
001204
RESTITUTION
001225
ARTICLE V FINES, FORFEITURES, &
JUDGMENTS-GENERAL REVENUE
001300
SECTION 215.20 (1) AND (2) GR SERVICE
CHARGE
001301
MOTOR FUEL SERVICE CHARGE
001303
SECTION 215.20(3) SERVICE CHARGE
001304
LOCAL OPTION GAS TAX SERVICE CHARGE
001305
DOCUMENTARY STAMP TAX SERVICE
CHARGE
001306 MOTOR VEHICLE RENTAL SURCHARGE FEE
SVC CHARGE
001500*
TRANSFERS
001510
TRANSFER OF FEDERAL FUNDS
001511
DEPT OF REVENUE - MAINTENANCE
001512
TR FROM SALES TA/LOCAL ½ CENT SALES
TAX
001514
MOTOR VEHICLE LICENSE FEES - TRANSFERS
001516
MOTOR VEHICLE LICENSE FEES - ADVANCE
001517
STATEWIDE COST ALLOCATION TRANSFER
001599
TRANSFER OF FEDERAL FUNDS - INDIRECT
001600*
DISTRIBUTION - TRANSFERS REQUIRED BY
LAW
001601
SEVERANCE TAX OIL & GAS
001602
SEVERANCE TAX SOLID MATERIAL
001603
INSURANCE PREMIUM TAX
001604
DOCUMENT STAMP TAX
001607
COMMUNICATIONS SERVICES TAX
TRANSFER
001608
INTANGIBLE TAX
001609
SEVERANCE TAX
001610
PARI-MUTUAL WAGERING TAX
001611
ALCOHOLIC BEVERAGE LICENSES
001612
CIGARETTE TAX
001615
TR FROM DOCUMENTARY STAMP TAX/ST
INFRA FD
001625 ARTICLE V TRANSFERS REQUIRED -
GENERAL REVENUE
001632
TRANSFER FROM SLOT MACHINE REVENUES
001800
REFUNDS
001801
REIMBURSEMENTS
001825
ARTICLE V REFUNDS - GENERAL REVENUE
001902
SALE OF LOTTERY TICKETS
001903*
SALES OF GOODS/SERVICES TO STATE
AGENCIES
002000
SALE OF INVESTMENTS
002103
RENT FROM STATE AGENCIES
002200
SALE OF BONDS/REVENUE CERTIFICATES
002300
REPAYMENT OF LOANS
002400
UNEMPLOYMENT COMPENSATION
002500
COLLECTIONS OF FEDERAL AND/OR STATE
TAXES
002700
FIRE CONTROL AND FORESTRY
ASSESSMENT
002800
SECURITY/ESCROW DEPOSITS
002801
INSURANCE RECOVERIES-FIRE LOSSES
003000
RECEIPTS FROM SBA-EXCLUDING
003100
TRANSFERS BETWEEN GAAFR FUNDS
WITHIN FID
003105
CASH TRANSFER BETWEEN SAME FIDS
003600
UNCLAIMED PROPERTY RECEIPTS
003700
PRIOR YEAR WARRANT CANCELLATIONS
003800
12 MONTH OLD WARRANTS (12 MO VOID)
004000
OTHER NON-OPERATING RECEIPTS
004700
REPAYMENT OF REVOLVING FUNDS
004801 SALES OF DATA PROCESSING SVCS TO
STATE AGENCIES
004900
FLAIR/CMS REPLACEMENT LOAN PROCEEDS
005000
SUSPENSE
005001
CIT - OTHER DEPARTMENTAL DEPOSITS
005030
FORFEITED BOND PROCEEDS
005800
PREMIUMS PAID BY STATE AGENCIES
005810
STATE PROPERTY INSURANCE REVENUE
005900
CLIENT DEPOSITS
006000
TRANSFERS FROM GENERAL REVENUE
007000
UNIVERSITY DEVOLUTION PAYROLL CASH
009884
RESERVE FOR FEDERAL FUNDING OPS
*The
transfer category is usually exempt, but transfers received
from 76-74-2-488001,
73-74-2-636001, 41-74-2-601001, and
73-74-2-733001 are assessable.
**Market
orders are assessable at 3%.
***Sale of data processing outside state government is
assessable.
REFUNDS
The report has subtracted
all refunds. If some of these
refunds were given on revenue that was never assessed a service charge, then the
amount of these refunds should be added back to the total assessable revenue.
For example, if you receive federal funds that were recorded in category
000700, any refund of these funds would be added back to the total revenue.
EXEMPTIONS
All exemptions must relate
to Florida Statute 215.22 or have an exemption letter from EOG as allowed in 215.24,
F.S.
A few exemptions are given in other statutes and this statute should be
referenced in the explanation of the exemptions. The Department of Financial
Services is responsible for determining if a type of revenue qualifies for an
exemption referred to in the statutes. All
exceptions to the total assessable revenue stated on the report must be
identified in writing. This is
usually done on the report sheet for the trust fund.
If the agency is using a spreadsheet program to calculate the service
charge then a space for a written explanation should be provided.
Different types of exceptions must be listed separately and identified.
A total of all exceptions can be placed on the adjustment line.
CALCULATION OF
THE SERVICE CHARGE
After the total revenue has
been adjusted for all exceptions, then you can calculate the service charge
amount that is due. It is almost
always best to use the year to date revenue amount, as any errors in
calculations or payments made in previous quarters will be corrected in the
current calculation. If you
adjusted revenue in the previous quarter for an error in deposits and this error
was corrected in FLAIR then you will have to reverse the adjustment in the next
quarter if you are calculating on a quarterly basis.
It is extremely important that all exceptions to the total reported
revenue be explained in writing. If
the Department of Financial Services cannot identify the exception and audit for
validity then the exception will not be allowed.
PAYMENTS
A journal transfer should be
prepared for the total amount of the service charge for each fund within
thirty days of the end of the first three quarters.
At the end of the fourth quarter, a total of 45 days is given due to the
lateness of the report. The expense category is always 310322, and the general
revenue receipt category is 0013XX (except 001303) for the seven and three
percent service charges. The object
code will be 8807XX. For the .3
percent service charges the general revenue receipt category must be 001303 and
the object code is 8803XX. Please
allow sufficient time for the journal transfer to be audited and posted before
the deadline. If the amount of
payment is insufficient to pay the total amount of service charges due, the
Department of Financial Services will produce a manual journal transfer to pay
any outstanding amounts. It is
still the agency’s responsibility to pay the correct amount owed and within
the deadline. If your account has
insufficient unexpended release to pay the service charge, the Bureau of
Auditing will override and post the journal transfer.
If the release is not given by the Office of Planning and Budgeting by
year-end, the Department of Financial Services will request the amount needed to
zero out the release. The agency
should request additional budget as soon as it determines the amount needed to
pay the service charges for the remainder of the year.
The Department of Financial Services will also override for insufficient
cash except for the month of June. It
is the responsibility of the agency to insure there is sufficient cash in the
account to pay the service charges.
A
written explanation of any changes to the total revenue stated on the service
charge report should be attached to the voucher. An additional copy does not have to be sent to
Jim Mullins in the Bureau of Accounting. The
original will be sufficient. The
voucher will be audited and copied before it is posted.
If
there are any questions concerning the payments please contact Jim Mullins at
413-5603 (SUNCOM 293-5603) or
James.Mullins@fldfs.com.
Questions
concerning the validity of an exemption should be addressed to Kiki Evans
at 413-5725 (SUNCOM 293-5725) or
kiki.evans@fldfs.com.
GLOSSARY:
Agency Means any of the various
Departments, Divisions, Commissions, Boards, or
other
units of State Government that exercise control over the funds and
revenue sources subject to the service charge provided for in Section 215.20,
Florida Statutes.
Income
of a Gross
receipts collected and deposited in
Revenue Nature
the
State Treasury by an agency less refunds of these receipts.
Includes the interest earned on investments when the interest is
deposited in the trust fund. Interest
earned at SBA is exempt. Refunds of prior year expenditures, return of principal
on investment, monies received and held in an agent or fiduciary capacity and
revenue specifically excluded by law are not included.
Most funds will pay on grants and contract funds received from another
state agency. City and County
grants and grants and donations received from individuals or groups can only be
exempted by the Executive Office of the Governor, Planning and Budget Office.
Agent
or Fiduciary Means
that the agency receives no
Capacity benefit
from the monies and that disbursing the monies is not part of the
agencies normal duties as assigned by Florida Statutes.
If an administrative fee was collected from other than another state
agency or the federal government on these monies, the administrative fee would
be assessable revenue.
Interest
Income Means the total net gain realized from investment transactions, with the
exception of the investments with the State Board of Administration.
Interest given to General Revenue that was earned on the trust funds is
exempt. Federal funds that have been invested and the interest is to be returned
to the Federal government is also exempt. Interest
or dividends on bank accounts is usually assessable unless the interest is to be
returned to a third party. The
total net gain does not include any administrative fees paid for the investment.
Moneys
and Means
distributions, which are authorized
Income Nature
by statute to
political subdivisions.
Shared with
Distributions to political subdivisions
Political which are
appropriated in the General
Subdivisions
Appropriations Act,
but do not have a statutorily required distribution, are not “shared” with a
political subdivision. For example,
if the state collects a tax in full but a portion of that tax was due to the
counties, then the portion that is returned to the counties is shared revenue.
Statutorily Means
distributions set out in a statute
required
that requires monies, or a fixed portion
Distribution
thereof, to be returned to a unit of
local government or political subdivision.
End of Quarter Calendar dates of September 30,
December 31, March 31, and June 30.
