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e'TVl OF ~AN BER~1IbINO - REQUEST ()R COUNCIL ACTION
From: ANDREW GREEN, DIRECTOR OF FINANCE Subject: COST ALLOCATION PLAN
Dept: FINANCE
Date: MAY 22, 1992
Synopsis of Previous Council action:
1/29/92 Ways and Means Committee received and filed.
Recommended motion:
That the cost allocation plan prepared by Claremont College be received and filed.
liJ~;() ,
Signature
Contact person:
Andrew Green
Phone:
5242
Supporting data attached:
yes
Ward:
FUNDING REQUIREMENTS:
Amount:
Source: (Acct. No.1
(Acct. DescriDtionl
Finance:
Council Notes:
75.0262
AlIenda Item No.
'1
CITY OF SAN BERr(:RDINO - REQUEST ..:JR COUNCIL ACTION
STAFF REPORT
In December, 1991, Claremont College completed a cost allocation
plan for the city. Finance has reviewed the document and verified
its findings, and the plan is now ready to be received by the Mayor
and Council.
A cost allocation plan is an important financial report because it
identifies and documents internal servicing costs for operating
departments. Currently, the city has both servicing departments,
such as Personnel, Finance, and City Clerk, and operating
departments, such as POlice, Fire, and Parks and Rec. The cost of
running an operating department includes not only the specific
adopted departmental budget, but the costs of services from support
departments as well. This information is useful because it allows
the City to charge the full cost of providing general fund central
services to enterprise funds, internal service funds, and user fee
acti vi ties. The general fund can then be reimbursed by these
special funds for the cost of providing services to them.
The cost allocation plan documented and verified all costs for
internal servicing departments and spread them to the appropriate
operating users. The procedures used in by Claremont College are
in conformance with the Office of Management and Budget uniform
guidelines for determining indirect costs. The allocation
calculations have been computerized and can be annually updated
based on cost changed to general fund central services.
75-0264