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<br /> <br /> <br /> <br /> EXHIBIT A <br /> <br /> <br /> Project Scope and Expectations <br /> The City has requested a Full Cost an OMB A-87 cost allocation plan. <br /> A cost allocation plan is an accounting document that identifies citywide indirect costs and then <br /> distributes those costs to the benefiting departments, divisions and programs. <br /> Benefits to users of the cost plan are: <br /> _ Determination of full costs for General Fund supported operations and activities. <br /> _ Determination of full costs for external charging (user fees, hourly rates, billing rates) <br /> - Knowledge of full costs (lease/buy decisions, outsourcing, etc.) <br /> Cost allocation plans are a series of c mplex calculations that require an understanding of each <br /> jurisdiction's financial reports, administrative structure and operational services and programs. <br /> Perhaps above all else, a cost allocation plan must adhere to GAAP guidelines and principles. <br /> GAAP has one over-arching requirement: the cost allocation plan must provide a distribution of <br /> costs that is fair and equitable to all recipients of the centralized administrative and support <br /> services irrespective of the potential for reimbursement. <br /> The common perception of preparing Full Cost allocation plan is that there is a set of concrete <br /> rules applied categorically in every situation. This perception, however, is not reality. Therefore <br /> our work approach and methodology i corporates not only a deep understanding of GAAP but <br /> also the practical applications of the principles and guidelines relative to each jurisdiction and <br /> unique situation. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> 9 <br />