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~~ <br />iz,a~ c~ <br />r< c~ <br />PRM uses federally approved guidelines and generally accepted indirect costing methods to identify and calculate <br />these levels of costs. The cost allocation process is used to allocate citywide indirect costs throughout the city <br />government structure. The development of the cites cost allocation plan is the first step in calculating the full <br />cost of city services. This document will be key to all other cost calculations made in the study. Departmental <br />and program indirect cost rotes are also calculated to determine the level of departmental indirect costs used to <br />support a direct city service. Once the indirect costs are calculated, the data is integrated into the PRM user <br />fee software and combined with the direct cost analysis to form a full cost calculation. <br />The steps involved in a full cost of services study include: <br />Including the allocations from the city's currently developed cost allocation plan <br />a. Costs allocated -ensure all indirect costs are being allocated for use in a user fee study <br />b. Citywide indirect costs -city prepared calculations <br />c. Department/Program-wide indirect costs -PRM calculations <br />2. Development of a User Fee Study <br />a. Identification/inventory of all user fee related services <br />b. Review fee structures in various departmenu (fixed fee vs. hourly razes vs. Nexus approach <br />in building inspection) <br />c. Calculation of the direct cost of each user fee service <br />f. Salary cost of direct staff supplying service <br />ii. Fringe benefits <br />iii. Direct services and supplies <br />d. Full Cost Identification <br />i. Integrate indirect cost data from the cost allocation plan <br />ii. Integrate direct cost data <br />e. Subsidy Analysis <br />