25C - AGMT INDIRECT COST ALLOC PLAN

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data accessibility and relevance in the cost allocation plan, such as work order records, inventories, and other volumetric or organizational tools. Task 3 1 Cost Allocation Model The purpose of this task is to generate the quantitative model to allocate indirect costs Citywide. Structure and detail of the final model will be dependent upon the ultimate application of its results, as a plan submitted for cognizant agency approval in compliance with OMB 2 CFR Part 225 and/or the State Controller's Office for Cost Claiming will require aspects unnecessary in applications where cost recovery is expected to be entirely internal to the agency. TASK 3.11 MODEL DEVELOPMENT ClearSource will develop an Excel -based model to distribute indirect service costs Citywide. The model is expected to identify: Z Citywide fund and accounting structure and fiscal year data for allocation outcomes :> Allocable indirect service centers Allocation bases and related distribution factors for indirect service centers Z Direct service centers Primary and secondary allocations • Resulting annual cost allocations a Resulting indirect service rates Z Resulting interfund transfers The model will establish a specific methodology for deriving overhead costs that will properly reimburse the General Fund. The model will be developed to accommodate iterations, should an internal "full cost" method be desirable in certain applications, while maintaining an iteration with decisions necessary for state/federal compliance in indirect cost reimbursement. The model will be built to accommodate change in the organization: the ability to add or remove direct and indirect costs and to adapt to a range of activities, from simple to complex. Furthermore, the model will be built to enable continuous updates, as the City elects to maintain and update its cost allocation practices in-house in future years. TASK 3.2 1 COMPARISON OF OUTCOMES ClearSource will generate a comparison of outcomes under the updated Cost Allocation Plan to prior year outcomes, including explanation for substantive differences. Task 4 1 Reporting and Tools The purpose of this task is to provide the formal documentation encompassing the work and outcomes of the study, as well as deliver the tools developed throughout the study for the City's ownership and future use. TASK 4.11 DRAFT REPORT ClearSource will prepare a narrative description of the study, describing key data and assumptions, and impacts. The report will include tables and charts to explain findings, and it will include the complete quantitative analysis as the justification for updated indirect cost allocations and associated rates and transfers. Reports will be issued in portable document format (PDF) for digital distribution and any necessary printing by the City. CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA SECTION 4 25C-17