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2. SCOPE OF SERVICES AND SCHEDULE ♦a♦ Using the City's organizational structure, budget and staffing information, and what we have learned from Caltrans review of the 2014/2015 project, MGT will fine tune the basic structure of the cost allocation plan, identifying central service (or allocating) departments and operating (or receiving) departments. Central service functions will be determined based on timesheets, assignments, activities, or other allowed methods. Once staff members and their corresponding salaries are distributed Into functions, other department costs such as materials and supplies will also be distributed into the same functions. This task breaks a department Into central service functions, and cost pools which can then be allocated throughout the organizational structure using meaningful, measurable, and auditable allocation bases. • •° • • •° • Determine an appropriate allocation base for each function In each central service department. This determination will serve as the basis for allocating the allowable costs In each function to the recipients of the service. Project consultants will request corresponding transaction data from central service department personnel. Central service departments will allocate costs to all departments and funds. This allocation methodology ensures the fairest and most accurate distribution of costs as opposed to a methodology that singles out particular departments or funds for maximum allocation. Process the draft cost allocation plan using the MGT proprietary cost allocation software. The cost allocation plan will include summary and detail reports. Summary reports in the cost allocation plan will provide information on the dollar amounts allocated from each central service department to every receiving department. The detailed reports in the cost allocation plans provide information on the expenditures, allowable costs, Incoming costs, personnel distribution, functions, and allocation bases for every central service department. MGT's proprietary cost allocation software Incorporates a double step-down methodology, is technical and detailed, has a self -auditing feature, and has been used for over 250 cost allocation plans in the past five years - many submitted for federal and state approval. The Microsoft Windows -based software is written in a relational database and uses Microsoft Excel as a report writer. This platform provides unlimited flexibility in calculating, formatting, and reporting information. Charts and graphs can be used to explain and Illustrate allocation Information. Statistical Information is automatically produced that compares allocation totals to receiving departments (funds) from year to year, The project director and the project consultant will undertake an internal review process to raise the accuracy of the cost allocation plans and ensure city personnel do not waste time reviewing substandard or incomplete work. Additionally, the MGT proprietary cost allocation software automatically generates self -auditing schedule that reconciles the sum of all central service department expenditures to the sum of all allocated costs. 40*** MGT CITY OF SANTA ANA, CALIFORNIA I MARCIA 8, 2018 PAGE 14 CONSULTING GROUP RFP NO. 18-0231 1 PROPOSAL FOR COST ALLOCATION PLAN / ISF ALLOCATION SIUDY