25C - AGMT INDIRECT COST ALLOC PLAN

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PROJECT UNDERSTANDING Objectives The City of Santa Ana is initiating a Citywide Indirect Cost Allocation Plan and Internal Service Funds Cost Allocation Methodology study. Through both elements, this project is intended to fulfill the following: CITYWIDE INDIRECT COST ALLOCATION PLAN Develop a full cost Citywide plan to recover General Fund costs of providing service to city departments and programs. :D Develop a plan that can be updated annually for subsequent fiscal years (e.g., 2020-21 through 2023-24). 0 Provide preliminary reporting to staff and allow for subsequent modification. Z Provide a final plan in electronic format by December 31, 2019, for the City's immediate use. Provide a Cost Allocation Policy and modify according to staff review. Consult with the City in subsequent questions, audits, or challenges. INTERNAL SERVICE FUNDS COST ALLOCATION METHODOLOGY Review the programs and services of each participating internal service fund, and identify the customers of each one. Develop the methodology for allocating the full cost of service for each internal service fund to its customers. Recommend guidelines for annual reconciliation of charges for the actual costs of service incurred. Z Provide the final methodology for each internal service fund in electronic form to allow for subsequent changes to cost and organization. Z Consult with the City in subsequent questions, audits, or challenges. GENERAL PLANNING AND REPORTING Clarify intended goals and purposes and gain understanding of City operations. Discuss perceived issues and notify of any problems. Provide periodic progress reports following a viable work plan. Submit information requests with timetable. (Please note: Rather than submit this element as a separate component, these study orientation and project management tasks are embedded throughout the ClearSource work plan for each component project. However, we wanted to acknowledge here the City's expectations for consultant performance.) Services for Review This type of project is focused on "the costs to serve," from the perspective of internal uses throughout the City's organization: What are the costs of central services within the municipal organization, and how do those costs relate to the array of direct services provided to the community? What are the cost recovery opportunities for these administrative, management, and support services of the agency? These foundational plans provide the justification for eventual full cost recovery from resources tapped outside the agency. CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA SECTION 4 25C-14