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CITYWIDE INDIRECT COST ALLOCATION PLAN <br />A Citywide indirect cost allocation plan provides <br />a method for recovery of central services costs <br />from the direct services of the entity. The <br />results of the plan yield many important <br />outcomes, such as: <br />Indirect rates for use in directly charging <br />staff time to accounting units (i.e., <br />programs and projects). <br />Indirect rates compliant with 2 CFR Part 200 <br />for federal, state, and local assistance <br />received by those programs and projects. <br />Interfund transfers imposed on certain <br />funds to reimburse the General Fund for <br />services provided. <br />Though not necessarily a final or complete <br />listing, the City currently identifies the following <br />central services included for recovery in its <br />indirect rates: <br />The Office of the City Manager <br />9 Human Resources <br />City Clerk <br />City Attorney <br />Finance, including Accounting, <br />Management and Support, Payroll, <br />Treasury/Customer Services, and <br />Purchasing <br />Fixed Assets, including equipment, City Hall <br />facilities, and other buildings and <br />improvements <br />INTERNAL SERVICE FUNDS COST ALLOCATION <br />METHODOLOGY <br />A methodology for allocating the costs of <br />internal service funds provides for a reasonable <br />"cost of service" means for apportioning fund <br />costs to the specific users of the fund. The <br />outcome of the methodology prepared for each <br />fund is an array of charges for services that can <br />be budgeted in each accounting unit's <br />expenditure plan, and reconciled to actual costs <br />incurred thereafter. <br />The City currently identifies the following <br />internal service funds participating in this <br />project: <br />Information Technology (Operations, <br />Telecommunications, Copier Usage, <br />Department Applications) <br />Worker's Compensation <br />Z General Liability (Insurance) <br />Employee Benefits (Operations, Health <br />Insurance) <br />Fleet (Equipment and Vehicle Maintenance, <br />Stores) <br />City Yard <br />Z Building Maintenance (Preventative <br />Maintenance, Janitorial Services) <br />Z Central Services (Photocopying, Printing) <br />Prevailing Conditions <br />For at least a decade, the City has been <br />maintaining its Citywide indirect cost allocation <br />plan internally, with a formal report <br />documenting the plan for Fiscal Year 2018-19 <br />available. Internal service fund methodologies <br />have been developed more formally by City <br />staff within the past year. <br />CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA SECTION 4 <br />