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<br />~hc first step in tbe precess Yoi<.1S to identify stlff time spent dircctly on cach of :he user fce activities, :=a.ch staff pcrsonnvol'lcd n the uscr fee <br />services idcn:ificd :imc spent to completc each task a:sscc:iatcd wit, aH user :cc SCf'l:ces. Annual 'Iolume statistics wc..c also gzthered in order to <br />dcvelup ~o:.dl dllllUill 'lVolklodJ illformdLioll. S,dary dud benefit <.Iolldl ~ wel e d~~i;.rled to tile lime ~tiTldlC~ ~o lOIllt: up with the dire:.:: ~Laff (mt~. <br /> <br />Indirect Costs. A p~oport,onatc share of indirect cost was layered onto thc di"cct costs to calculate t1e fuly burdcncc COSt of each fee related <br />selVlc(> _ Th{'f(> are- two types of md lI'"C'Ct costs: <br /> <br />A:?:C1CY Indirect Costs: thcse are adm nistrat....e and supervisory costs buc,getcd wi:hin the particubr agency. General material and supplies costs <br />also fall in t!-is category. These costs are added to the direct cost calculations. <br /> <br />Cirvwide IndirE":r:r. emt!';: these costs stem from support received from orher C:ry departmenrs M;my of thE! r:mts th;lt suppor.: itIl city <br />program~ and se'Viccs arc bud,getcd in centT<!.l!zed ilctivities suen as Finznda Management. which p''''ov:dcs payrol budgeting and acr:ounting <br />support, ;J"d City Attorney. which provides legal services. The costs of these and Ocher cent'"illizcd services are ccnsidc"ed inarect ovemead <br />that support fec-for-service activities, as well as other programs and functions within the city. <br /> <br />As j:arc of this Study, MGT developed an indirect COSt allocaron plan that Identifies and distributes these indirect COStS to all ope:ra~jng programs <br />;md functions within tl1p. City's organiZil,jon::l1 ~""Jrfllre. The r:o~ ::IlloGltion phn T~k('s a det~:Ip.d ;approach to analyzing indirPC"t costs MGT <br />interviewed staff d.nd analyzed data w thin cact'1 central activity to de:ermine: <br /> <br />Wh:u Indirect support functions are provided (e.g. p;:ayroli, leg;ll services. building rm'nrenance. eoc) <br /> <br />2. How to ailocate centraily budgeted personnel and other operating expenses into these functions. <br /> <br />3. Wh,ch deparunenlS receive benefit from these services (e.g. payro;! services ",,"efit all deparcllencs mat have budgeted <br />staff. City Hall maintenante benefts all deparunents that are housed wid1in City Hall). <br /> <br />:lJ <br />CD <br />en <br />o <br />s: <br />5' <br />::> <br />"Uz <br />OJ 0 <br />'" . <br />CD", <br />~O <br />eno <br />o'P <br />-0 <br />w~ <br />CX>CX> <br /> <br />.. How to identify the best method of a'locClong these costs to the users (e.g. information tcchno:ogy services are allocated <br />ba~d QlIlh~ numL~r of users .U1d applications in eadt department). <br /> <br />The end result of this ana'ysis is me allocCltion of all indirect costs to all operating dcparunents Clnd prograiT'ls. The indirect costs arc <br />tIlen added co tile direa COsts to determine the full cost of gJj ciI)' operations - whether fee-related or not. This accounting <br />exerc:se is important'" that it em result 'n an increase in general fund revenues for reimbursement of support for user fee services <br />and state or federally funded pro~rams. <br /> <br />MGT <br /> <br />CT <br />,.. <br />W <br /><0 <br />2; <br />'" <br /> <br />Of A,lUll~". I~C. <br />