Cost allocations

Case assignment expectations:
Below are several required readings on the topic of cost allocation. You are to read and review these readings and answer the questions below the readings in an integrated essay.
US Army Corps of Engineers - Walla Walla Project retrieved August 17, 2009 from:
US Army Corps of Engineers
Walla Walla District
1. Introduction
1.1 Scope
The purpose of this Cost Allocation Chapter is to examine a range of possible cost allocation approaches that could be used to distribute costs of the proposed alternatives. The primary purpose of allocating project costs is to identify repayment responsibility with respect to cost recovery, cost sharing, or both (as may be required). This chapter does not recommend a preferred approach at this time. However the cost implications of the approaches are shown using the preliminary construction costs and the unrecovered Federal investment.
1.2 PURPOSE
From a Federal perspective, cost allocations are made to derive an equitable distribution of project costs among authorized project purposes, or those proposed for authorization. Laws and regulations requiring reimbursement or cost-sharing generally specify recovery of costs incurred for the service or function. Cost allocation is, therefore, required for most Federal multipurpose projects having reimbursable purposes.
The cost allocation is an essential part of the multipurpose planning process where cost-sharing will be required. It provides information needed to determine the magnitude and share of estimated project costs that are reimbursable. This information is essential to the tests of financial feasibility and plan acceptability. During subsequent planning and construction, it provides the information required for allocating actual expenditures and insures that cost accounts are maintained consistent with the plan formulation and allocation principles.
The authorizing document for the Lower Snake River projects, PL 79-14, designated the Federal Power Commission (now FERC) as the agency responsible for defining the allocation of costs to the authorized purposes of navigation and hydropower. The Final Cost Allocations were completed by FERC in 1965 for Ice Harbor, and 1984 for Lower Monumental, Little Goose, and Lower Granite. FERC completed the allocation studies based on data and preliminary allocations done by the Corps of Engineers. Any new cost allocations for these projects will be coordinated with FERC.
It has been Corps policy not to request reallocation of storage and/or project costs unless a major reformulation of a project is required. Such a reformulation might include the addition of a new purpose, deletion of a purpose, a major change in apportionment of storage among purposes already authorized, or a major change in project scope. Any of these actions would require Congressional authorization. Since some of the actions that may be recommended in this Feasibility Report (FR) would meet this criteria, authorization by Congress will be required. The Congressional authorization could contain directive language concerning the allocation of costs. In the absence of such directive language, the Corps of Engineers' administratively developed procedures will be utilized to allocate the project costs.
2. ALLOCATING COSTS
2.1 ASSUMPTIONS
Both Drawdown and Flow Augmentation alternatives could possibly affect the existing cost allocations. Draw Down because of the possible deletion of an authorized purpose (navigation and hydropower), and Flow Augmentation because of the possible major change in apportionment of storage. Implementation of the Draw Down alternative would likely result in new cost allocations being considered for all the projects being proposed for breaching (Lower Granite, Little Goose, Lower Monumental, and Ice Harbor). A change in the existing allocations would not only affect how implementation costs are allocated, but also the existing debt on the projects. Because the economic benefits at these multi-purpose projects would be significantly altered between purposes, they can be considered for new cost allocations. The following table displays which alternatives are likely to require new cost allocations.
Table 1
Alternatives Requiring New Cost Allocations
Alternatives New Cost
Allocations
Necessary

A-1 Existing Condition - Base Case
A-2a Maximum Transportation
A-2b w/Maximized Transport (High Cost)
A-2c w/Maximized Transport (Low Cost)
A-2d Adaptive Migration
A-3 Dam Breaching
A-6a W/ In-River Migration and Additional MAF
A-6b w/In-River Migration & Zero Augmentation
A-6d w/In River Migration and 427 AF No
No
No
No
No
Yes
Yes
No
No
Approaches to cost allocation will be quite different depending on the alternative recommended. As long as the measures do not significantly effect the current authorized purposes, the costs would be allocated to mitigation according to the existing joint-use percentages. Historically, costs for fish transportation and bypass measures have been defined as mitigation. It is assumed similar alternatives like transportation and fish bypass improvements would also be assigned to mitigation and cost shared according to the original joint-use percentages. Therefore, it is expected that new cost allocations would only be necessary for Draw Down and Flow Augmentation. The following table shows the construction joint-use percentages for the lower Snake River projects as established by the initial allocations.
Table 2
Joint-Use Percentages for Construction Costs by Project Purposes
Projects Percent
Allocated
to Power Percent
Allocated to
Navigation

Lower Monumental
Ice Harbor
Little Goose
Lower Granite 94.1
78.6
93.3
98.4 5.9
21.4
6.7
1.6
2.2 METHODOLOGY
Alternatives being considered for this Feasibility report could be described as either mitigation or restoration of endangered salmon runs. Enhancement was also considered as a possible description of some of the alternatives. However because enhancement implies an improvement of salmon runs beyond pre-project historical levels, and current Corps policy does not support priority funding for enhancement projects, enhancement was dropped as a possible description.
How the alternatives are characterized would change the way the costs are allocated. Mitigation measures are joint-use costs allocated based on the original firm cost allocations. Joint-use costs are assigned to those facilities that serve more than one purpose. Currently, barging of juvenile fish and bypass measures at the projects are considered mitigation actions. Restoration measures by comparison would be allocated solely to ecosystem restoration.
The unrecovered Federal debt is comprised of investment costs allocated to power for the four lower Snake Projects (Lower Granite, Little Goose, Lower Monumental, and Ice Harbor). Total remaining debt as of the end of 1998 was approximately $479 million for construction of the dams and $271 for the Lower Snake River fish hatcheries and fish mitigation. The Bonneville Power Administration repays this debt to the Federal government from power revenues. The four lower Snake projects began producing power between 1962 and 1975.
For illustrative purposes, the unrecovered Federal debt is considered part of the implementation costs and is allocated according to the requirements for mitigation or restoration for the Draw Down Alternative. At this point however, it is not clear what obligation, if any, BPA would have to repay this out-standing debt in the event the dams are breached. BPA's obligation would likely be determined based on legal opinion, congressional direction, and negotiation.
2.3 FLOW AUGMENTATION
The Flow Augmentation alternative is also likely to impact the current operations of a number of projects. Because these changes in operation are likely to be significant, a number of Federal projects would also be considered for new cost allocations. No detailed studies have been completed to estimate how the costs for these projects would be reallocated. However if the original cost allocations were reanalyzed, fewer costs would be allocated to irrigation and power and more to ecosystem restoration. All of the projects that would be considered for cost re-allocations as a result of Flow Augmentation are Bureau of Reclamation projects, and are listed in the following table.
Table 3
Projects That May require Cost Re-Allocations as a Result of the Flow Augmentation Alternative
USBR Projects

Jackson Lake
Palisades
Ririe
American Falls
Minidoka
Anderson Ranch
Arrowrock
Lucky Peak
Cascade
Deadwood
Owyhee
3. APPROACHES TO ALLOCATING COSTS FOR DRAWDOWN
It should be recognized that when Congress provides the authorizing legislation for any of the alternatives being investigated in this feasibility report, they can designate what cost allocation or cost sharing approach they so wish. As such, the possible alternative approaches to allocating costs are infinite. This section, however, presents two possible approaches for allocating Draw Down costs that follow the current administrative guidelines.
3.1 COST SHARE AS MITIGATION
Under this option the cost of the Drawdown would be treated as a mitigation cost. The concept of this option is that the construction and operation of these projects for the hydropower and navigation purposes has resulted in declining wild salmon and steelhead stocks that represent an unmitigated loss that has accrued to the projects. If the Drawdown alternative is recommended for implementation as a mitigation project, it would be on the basis that it is the most effective mitigation, or only effective mitigation for this loss. Therefore, the cost of achieving this mitigation is properly assigned back to the project purposes that necessitated the mitigation. This has been the approach for recent fish and wildlife measures at Columbia and Snake River dams. An issue is whether costs should be allocated to project purposes that have been eliminated.
The costs would be allocated based on existing joint use percentages. Nearly 90% of the cost would be allocated to hydropower and repaid to the U.S. Treasury by BPA through collections from power customers. The navigation purpose would be allocated 10% of the cost and these costs would be Federal and not recoverable. The remaining unrecovered hydropower debt on the Lower Snake River dams would continue to be paid to the U.S. Treasury through collections from power customers. Any operation and maintenance costs associated with the Draw Down alternative (for example maintenance of the locks and remaining dam in caretaker status) would be allocated to the hydropower and navigation purposes and shared as the operation and maintenance costs of these purposes are shared.
If one assumes that breaching of the dams is an additional or new feature for mitigation purposes, costs should be allocated as joint-use construction costs. The joint-use cost percentages would be the basis for this allocation. The tables below estimate how the unrecovered debt and implementation and O&M costs would be allocated for the Draw Down alternative (A-3).
Table 4
Mitigation - Allocated Investment Costs and Unrecovered Debt
Option A-3 Preliminary Costs - Allocated by Purpose
(000's)
Purpose Investment Cost Unrecovered Debt

Hydropower
Navigation
Non-Reimbursable Costs 875,334
86,572
6,826 750,000
0
0
TOTAL 968,732 750,000
Source: Section 3.10, Implementation and Avoided Costs (Table 1)
Table 5
Mitigation - Allocated O&M Costs
Option A-3 Preliminary O&M Costs - Allocated by Purpose
(000's of 1998 Dollars)
Purpose Operation and Maintenance Cost

Hydropower
Navigation 4,375
481
TOTAL $4,856
Source: Section 3.10, Implementation and Avoided Costs (Table 7)
3.2 COST SHARE AS RESTORATION
Under this option, the cost of the Drawdown alternative would be shared as an ecosystem restoration cost and would require a non-Federal cost sharing sponsor. Remaining unrecovered hydropower debt on the Lower Snake River dams would also be included as a restoration cost. Any operation and maintenance costs associated with the Drawdown alternative (for example maintenance of the locks and remaining dam in caretaker status) would be financed 100% by a non-Federal sponsor. Section 210 of the Water Resources Development Act of 1996 established the non-Federal cost share for environmental protection and restoration as 35% non-Federal with operation and maintenance of the ecosystem restoration project being 100% non-Federal.
However, there may be precedent for 50% non-Federal cost sharing for ecosystem restoration activities which result in adverse impacts to purposes of an existing Federal project as in the case of the Kissimmee River Restoration and Everglades and South Florida Ecosystem. The operation and maintenance costs of the restoration remain non-Federal.
If one assumes that breaching of the dams is a restoration measure, costs could be allocated solely to this purpose. Because Drawdown results in a single project purpose (ecosystem restoration), all costs should be allocated to this new project purpose. The tables below estimate how the unrecovered debt and implementation and O&M costs would be allocated for the Draw Down alternative (A-3) assuming restoration is the sole purpose.
Table 6
Restoration - Allocated Investment Costs and Unrecovered Debt
Option A-3 Preliminary Costs - Allocated to Ecosystem Restoration
(000's)
Purpose Investment Cost Unrecovered Debt

Ecosystem Restoration 968,732 750,000
TOTAL 968,732 750,000
Source: Section 3.10, Implementation and Avoided Costs (Table 1)
Table 7
Restoration - Allocated O&M Costs
Option A-3 Preliminary O&M Costs - Allocated to Ecosystem Restoration
(000's of 1998 Dollars)
Purpose Operation and Maintenance Cost

Ecosystem Restoration $4,856
TOTAL $4,856
Source: Section 3.10, Implementation and Avoided Costs (Table 7)
3.3 FINANCIAL ANALYSIS
If all costs were allocated to ecosystem restoration, there would also be an issue of cost sharing for this purpose. A non-Federal sponsor would need to be identified for cost sharing. A non-Federal interest is a legally constituted body with full authority and capability to perform the terms of its agreements and to pay damages, if necessary, in the event of failure to perform. The non-Federal share of the implementation costs and unrecovered debt would be 35%. The non-Federal sponsor would also be responsible for 100% of operation, maintenance, and replacement costs for a restoration project. The following table displays the cost sharing portions for the Federal and non-Federal sponsor if the action is determined to be restoration.
Table 8
Restoration - Unrecovered Debt Investment Cost
Option A-3 Preliminary Costs - Allocated to Ecosystem Restoration
(000's)
Sponsor Investment Cost Unrecovered Debt

Federal (65%)
Non-Federal (35%) 629,676
339,056 487,500
262,500
TOTAL 968,732 750,000
Source: Section 3.10, Implementation and Avoided Costs (Table 1)
Table 9
Restoration - O&M Costs - Cost Sharing for the Federal and Non-Federal Sponsor
Option A-3 Preliminary O&M Costs - Allocated to Ecosystem Restoration
(000's of 1998 Dollars)
Purpose Operation and Maintenance Cost

Non-Federal (100%) $4,856
TOTAL $4,856
Source: Section 3.10, Implementation and Avoided Costs (Table 7)
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City of Seattle Budget for 2009 - 2010 retrieved August 17, 2009 from:2009 Adopted and 2010 Endorsed Budget
-695-
Central Service Departments and Commissions
2009-2010 Cost Allocation Factors
Central Service Department Cost Allocation Factor
Office of Arts and Cultural Affairs Negotiated MOA*
City Auditor 2006 and 2007 audit hours by department
Civil Service Commission 2003-2007 number of cases by department
Mayor's Office 100% General Fund or by MOA*
Office of Civil Rights 2006-2007 cases filed by department
Office of Intergovernmental Relations Staff time and assignments by department
Office of Sustainability and Environment 2009-2010 Work Plan
Office of Policy and Management 100% General Fund or by MOA*
Office of Economic Development 100% General Fund or by MOA*
Fleets and Facilities Department Various factors and allocations. See Appendix B(1) for
details on services, rates, and methodologies.
Department of Executive Administration
(DEA) and Department of Finance
Various factors and allocations. See Appendix B(2) for
details on services, factors, and methodologies.
Department of Information Technology Various factors and allocations. See Appendix B(3) for
details on services, rates, and methodologies.
Law Department
2006-2007 hours by department for Civil Division; Public
and Community Safety Division is charged 100% to the
General Fund.
Legislative Department
City Clerk's Office based on number of Legislative items;
Central Staff and Legislative Assistants on assignments; City
Council 100% General Fund or by MOA.*
Department of Neighborhoods Customer Service Bureau estimate by staff time.
Personnel Department Various factors and allocations. See Appendix B(4) for
details on services, factors, and methodologies.
State Examiner (State Auditor) 75% by Summit rows of data; 25% by Adopted 2008 FTEs
Emergency Management 2008 Adopted Budget dollar amount
*Memorandum of Agreement (MOA) on charges
Cost Allocation
2009 Adopted and 2010 Endorsed Budget
-696-
FLEETS AND FACILITIES DEPARTMENT BILLING METHODOLOGIES – B(1)
Service Provider Org Service Provided Billing Methodology Billing
Method
Fleet Services
Vehicle Leasing A2212 - Vehicles owned by,
and leased from,
Fleet Services
- Vehicles owned
directly by utility
departments
- Calculated rate per month based on
lease-rate components for vehicle
depreciation, replacement inflation,
routine maintenance, and overhead.
- Calculated rate per month based on
lease-rate components but charged for
overhead only as outlined in MOU
with utility.
Rates
Rates
Motor Pool A2213 As needed daily or
hourly rental of City
Motor Pool vehicle
Actual Motor Pool-vehicle usage based on
published rates. Rates differ for car vs.
van/truck and have hourly or mileage
minimum and maximum rates.
Rates
Vehicle
Maintenance
A2221 - Vehicle
Maintenance labor
- Vehicle parts and
supplies
- Actual maintenance hours used for
vehicle maintenance services not
included in vehicle lease rate, billed at
$98.00 per hour for all maintenance
labor.
- Actual vehicle parts and supplies used
for vehicle maintenance services not
included in vehicle lease rate billed at
cost plus 14% mark-up for tires and
25% mark-up for other maintenance
parts and supplies.
Rates
Rates
Fueling Services A2232 Vehicle fuel from Cityoperated
fuel sites
Actual price per gallon of fuel consumed
plus 20 cents per gallon mark-up at
unattended sites and 68 cents per gallon
mark-up for tanker fuel service.
Rates
Facility Services
Real Property
Management
A3322 Office & other building
space
- Total costs of Property Management
Services by sector divided by rentable
square-foot by space type equals
rentable square-foot rate.
- Schedule 1 rate = $34.34
- Schedule 2 rate = $7.24
Cost
Allocation to
Departments
and General
Fund
Real Property
Management
A3322 Office & other building
space
Service agreements with commercial
tenants, building owners and/or affected
departments.
Direct Charges
Building
Maintenance
A3323 Crafts Services:
- Plumbing
- Carpentry
- HVAC systems
- Electrical
- Painting
- Regular maintenance built in to office
space rent and provided as part of
space rent.
- Non-routine services charged directly
to service user(s) at $100 per hour.
Rates
Cost Allocation
2009 Adopted and 2010 Endorsed Budget
-697-
FLEETS AND FACILITIES DEPARTMENT BILLING METHODOLOGIES – B(1)
Service Provider Org Service Provided Billing Methodology Billing
Method
Fleet Services
Janitorial Services A3324 Janitorial services Janitorial services included in Schedule 1
rate charges in certain downtown
buildings.
Internal
transfer – costs
are collected
as part of
building space
rent
Parking Services A3340 Parking services Monthly parking costs for City vehicles
are charged to department based on actual
use. Hourly parking vouchers are sold to
departments in advance of use, as
requested. Vouchers for private tenants
and personal vehicles of City staff are sold
on monthly and hourly bases, as requested.
Rates
Warehousing
Service
A3342 - Surplus materials
- Records storage
- Material storage
- Paper and handling
- Data delivery
- Special deliveries
- Commodity type, frequency,
weighting by effort and time
- Cubic feet and retrieval requests
- Square-footage of space used
- Paper usage by weight
- Volume and frequency of deliveries
- Volume, frequency, and distance of
deliveries
All
Department
Cost
Allocation
Mail Messenger A3343 Mail delivery Actual pieces of mail delivered to client
during 20+ day sample period
Cost
Allocation to
Six Funds
Technical Services
Capital Programs A3311 - Project
management
- Space planning and
design
- Move coordination
- Project management hours billed at
prevailing hourly rate ($150 per hour),
determined by dividing division
revenue requirement by annual
forecast of project management
billable hours.
Rates
Real Estate Services A3313 Real estate transactions
including acquisitions,
dispositions, appraisals,
etc.
Historical percentage of net operating
budget after deducting resale expense, cost
of service for CIP projects, and cost of 2
FTE dedicated to property disposition and
master planning work related to City
property in the neighborhoods.
Cost
Allocation to
Relevant
Funds
Cost Allocation
2009 Adopted and 2010 Endorsed Budget
-698-
DEPARTMENT OF EXECUTIVE ADMINISTRATION (DEA)
AND DEPARTMENT OF FINANCE (DOF)
COST ALLOCATION METHODOLOGIES – B(2)
Service Provider Org Service Provided Billing Methodology
Department of Executive Administration
Executive Management
for DEA
C8108,
C8109,
C8170
Provide administrative
services and policy
direction for the department
Composite percent of all other Dept. of
Executive Administration cost allocations
Risk Management C8160 Provide liability claims and
property/casualty program
mgmt., loss prevention/
control and contract review
Percent of actual number of claims paid
over the past five years (2003-2007)
Accounting/Payroll C8210 - Central accounting
- Citywide payroll
- Percent of staff time per department
- 2008 Adopted Budget FTEs
Technology C8410 Desktop computers and
small capital equipment
Composite percent of other DEA cost
allocations
Applications C8420 Maintain and develop City
Information Technology
(IT) applications
Project and staff assignments; allocated to
six funds plus FFD and DoIT
Summit C8480 Maintain and develop the
City's accounting system
System data rows
Human Resource
Information System
(HRIS)
C8481 Maintain and develop the
City's personnel system
Weighted number of paychecks for active
employees and retiree checks per year
Construction &
Consultant Contracting
C8711 - Provide contracting
support and admin.
- Minority Business
Devel. Fund admin.
- 2006-2007 number of Contract Awards
(50%) and dollar amount of Contract
Awards (50%) to major users
- 100% General Fund
Purchasing C8721 Provide centralized
procurement services and
coordination
Percent of staff time and assignments by
department
Treasury Operations C8312 Bank reconciliation,
Warrant issuance
Staff time, voucher counts
Cost Allocation
2009 Adopted and 2010 Endorsed Budget
-699-
DEPARTMENT OF EXECUTIVE ADMINISTRATION (DEA)
AND DEPARTMENT OF FINANCE (DOF)
COST ALLOCATION METHODOLOGIES – B(2) (cont.)
Service Provider Org Service Provided Billing Methodology
Department of Executive Administration (cont.)
Special Assessment
District Admin.
C8312 Business Improvement
Area (BIA) fiscal
management
100% General Fund
Investments C8320 Investment of City funds Percent participation in the investment
pool.
Remittance Processing C8330 Processing of mail and
electronic payments to
Cash Receipt System
Number of Transactions
Parking Meter
Collections
C8340 Collection of parking meter
revenue
100% General Fund
Animal Control C8560 Animal care and animal
control enforcement
100% General Fund
Spay and Neuter Clinic C8570 Spay and neuter services
for pets of low-income
residents
100% General Fund
Revenue and Licensing C8510 Collection and enforcement
of City taxes and license
fees
100% General Fund
Consumer Affairs C8550 - Verify accuracy of
commercial weighing
and measuring devices
- Enforcement of Taxi
Code
100% General Fund
Department of Finance
Finance CZ615 City financial policies,
planning, budget, and
controls
Staff time and assignments
Financial Advisor CZ120 Advisory Committee and
special debt management
analysis
2003-2007 Number of Bond Sales
Debt Management CZ620 Debt financing for the City 2003-2007 Number of Bond Sales
Except as noted, DEA and DOF charges are generally six-fund allocated to the General Fund, SCL, SPU, SDOT,
DPD, and Retirement.
Cost Allocation
2009 Adopted and 2010 Endorsed Budget
-700-
DEPARTMENT OF INFORMATION TECHNOLOGY (DOIT)
COST ALLOCATION METHODOLOGIES – B(3)
Program Org Allocation Formula Departments Affected
Data Backbone and
Internet Services
D3308 Percent of adopted budget Six/funds
Data Network
Services
D3308 Billed on use of services; hourly rates for
service changes; connection charge for all
central campus offices except SCL
All departments except SCL,
SPL
Enterprise
Computing Services
D3301 Allocated to customer departments based
on pages printed, devices supported,
number of batch jobs, number of
gigabytes, number of units of cabinet
storage, and number of CPUs
Participants
Messaging,
Collaboration, and
Directory Services
D3302 Allocated to customer departments based
on number email addresses (and
BlackBerry units, where applicable)
All departments except SPL
Mid-Range
Computing Services
(Server Support)
D3303 Allocated to customers based on number of
email addresses, number of CPUs, number
of applications, number of operating
systems, and number of Citrix accounts
Participants
Technical Support
Services (Desktops)
D3304 Allocated to customer departments based
on number of desktops and printers
Participants
Service Desk D3310 Allocated to customer departments based
on number of email addresses
Participants
Telephone System
Services
D3305 Telephone rates; IVR: funded based on
historical usage
Telephone Rates: All
departments
IVR: Participants
Radio Network D3306 Radio network access fee; monthly charge
for leased equipment
Access fee: Police, Fire,
SPU, Seattle Center
Monthly lease charge:
Participants
Communications
Shop
D3307 Labor rates Police, Fire, SPU, Seattle
Center; other departments
may select this service
Telecommunications
Engineering &
Project Management
D3311 Labor Rates Optional
Citywide Web Team D4401 Percent of adopted budget Six/funds
Cost Allocation
2009 Adopted and 2010 Endorsed Budget
-701-
DEPARTMENT OF INFORMATION TECHNOLOGY (DOIT)
COST ALLOCATION METHODOLOGIES – B(3) (cont.)
Program Org Allocation Formula Departments Affected
Community
Technology
D4403 Cable Subfund External customers
Office of Cable
Communications
D4402 Cable Subfund Constituents
Seattle Channel D4404 Cable Subfund All departments
Technology
Leadership and
Enterprise Planning
D2201 Percent of adopted budget Six/funds
Project Management
Center of Excellence
D2201 Percent of adopted budget Six/funds
Project Management
Project Support
D2201 Percent of adopted budget Participants
Department
Management,
including Vendor
and Contract
Management
D1101 Based on percent of each Fund's
contribution to overall DoIT revenue
recovery
Six/funds
Cost Allocation
2009 Adopted and 2010 Endorsed Budget
-702-
PERSONNEL DEPARTMENT
COST ALLOCATION METHODOLOGIES – B(4)
Service Provider Org Service Provided Billing Methodology
Commercial Driver's
Licenses
N1230 - CDL administration # of CDLs by Department
Alternative Dispute
Resolution
N1145 - Mediation and
facilitation
- Conflict resolution
training
2008 Adopted Budget FTEs
Police and Fire
Examinations
N1150 Administer exams for
potential fire and police
candidates
General Fund allocation and participant
fees
Training Development
and EEO (TDE)
N1160 - Administer employee
training and recognition
programs
- Consulting
2008 Adopted Budget FTEs
Employment N1190 Recruit for open positions
2008 Adopted Budget FTEs
Benefit Administration N1240 Administer Citywide health
care insurance programs
2008 Adopted Budget FTEs
Human Resources N1311 Provide policy guidance for
Citywide personnel issues
2008 Adopted Budget FTEs
Director's Office N1315 Provide policy guidance for
Citywide personnel issues
2008 Adopted Budget FTEs
Information
Management
N1360 Maintain Citywide
personnel information
2008 Adopted Budget FTEs
Contingent Workforce
Program
N1370 Administer temporary,
work study, and intern
programs
2008 Adopted Budget FTEs
Management Services,
Finance and Technology
N1390 Provide finance, budget,
and technology services
2008 Adopted Budget FTEs
Classification and
Compensation
N1430 - Design and maintain
classification and pay
programs
- Determine City
position titles
Number of Job Classifications
Labor Relations N1440 - Administer labor
statutes
- Negotiate and
administer collective
bargaining agreements
and MOUs
Number of Represented Positions
Cost Allocation
2009 Adopted and 2010 Endorsed Budget
-703-
PERSONNEL DEPARTMENT
COST ALLOCATION METHODOLOGIES – B(4) (cont.)
Service Provider Org Service Provided Billing Methodology
Personnel Department-Administered Subfunds
Deferred Compensation N1220 Administer deferred
compensation (457
Retirement Plan) for City
employees.
Service fee charged to program
participants.
Industrial Insurance
(Safety and Workers'
Compensation)
N1230
and
N1250
Collaborate with the
Washington State
Department of Labor and
Industries, manage medical
claims, time loss,
preventative care, and
workplace safety programs.
Supported by the Industrial Insurance
Subfund, billing is based on actual usage
and pooled costs are based on three years
of historical usage/data.
Cost Allocation
2009 Adopted and 2010 Endorsed Budget
-704-
Central Service Cost Allocations by paying funds – Informational Only
These transfers reflect reimbursements for general government work performed on behalf of certain revenue
generating departments.
Summit
Account Interfund Transfers 2009 Proposed 2010 Proposed
DEA/DOF 16,045,606 16,749,029
Personnel 7,008,254 7,347,671
Miscellaneous 13,482,936 13,999,242
Total 36,536,796 38,095,942
Interfund Transfers for DEA/DOF
541990 SCL 5,305,883 5,536,334
541990 SPU 4,994,851 5,210,602
541990 SDOT 2,962,474 3,089,624
541990 DPD 1,153,635 1,199,762
541990 Retire 537,487 558,120
541990 Other 1,091,276 1,154,588
Total IF Transfers for DEA/DOF 16,045,606 16,749,029
Interfund Transfers for Personnel
541990 SCL 1,898,278 1,950,614
541990 SPU 1,526,817 1,569,079
541990 SDOT 972,939 999,390
541990 DPD 455,645 468,272
541990 Retire 11,562 11,900
541990 Other 2,143,012 2,348,416
Total IF Transfers for Personnel 7,008,254 7,347,671
Interfund Transfers for Misc.
541990 SCL 3,675,565 3,814,435
541990 SPU 3,595,740 3,732,705
541990 SDOT 3,511,941 3,646,419
541990 DPD 2,646,057 2,749,805
541990 Retire 53,633 55,878
541990 Other - -
Total IF Transfers for Misc. 13,482,936 13,999,242
Totals
SCL 10,879,726 11,301,383
SPU 10,117,409 10,512,387
SDOT 7,447,354 7,735,433
DPD 4,255,337 4,417,839
Retire 602,682 625,897
Other 3,234,288 3,503,005
Total 36,536,796 38,095,942
US Department of Human Services, Financial Accounting, Division of Cost Allocation retrieved August 17, 2009 from:
Table of Contents
Who We Are ........................................................................................................................................................................................................................v
What We Offer....................................................................................................................................................................................................................vi
Organizational Overview ............................................................................................................................................................................................... vii
Administrative Operations Service................................................................................................................................................................................vii
Federal Occupational Health Service ...........................................................................................................................................................................vii
Financial Management Service......................................................................................................................................................................................vii
Information and Systems Management Service.........................................................................................................................................................vii
Strategic Acquisition Service.........................................................................................................................................................................................vii
Customers ........................................................................................................................................................................................................................ viii
Acquisition Services........................................................................................................................................................................................................11
HHS Consolidated Acquisition Solution Operations and Maintenance ...................................................................................................................11
Negotiated Contracts.......................................................................................................................................................................................................12
Purchase Card Management..........................................................................................................................................................................................13
Simplified Acquisitions.....................................................................................................................................................................................................14
Customer Success Story: HHS' HSPD-12 Program Office.....................................................................................................................................15
Commissioned Corps Support Services.......................................................................................................................................................................17
Board for Correction.........................................................................................................................................................................................................17
Compensation Branch......................................................................................................................................................................................................18
Medical Affairs..................................................................................................................................................................................................................19
Customer Contact Centers ..............................................................................................................................................................................................21
HHS Hotline Department Information Line..................................................................................................................................................................21
PSC Contact Center ONE DHHS .................................................................................................................................................................................22
Employee Child Care Services.......................................................................................................................................................................................25
Financial Management Services ..................................................................................................................................................................................27
Accounting Services/Financial Reporting....................................................................................................................................................................27
Cost Allocation/Indirect Cost Negotiations..................................................................................................................................................................28
Customer Success Story: HHS' Centers for Medicare and Medicaid Services and Administration for Children and Families;
U.S. Department of Agriculture, Food and Nutrition Service ...............................................................................................................................29
Customer Success Story: Food and Nutrition Service, U.S. Department of Agriculture................................................................................30
Debt Collection Center Services ....................................................................................................................................................................................31
Payment Management (Grant) Services ......................................................................................................................................................................32
Payroll Accounting Services...........................................................................................................................................................................................34
Unified Financial Management System Operations and Maintenance....................................................................................................................35
Freedom of Information Act Services...........................................................................................................................................................................37
Human Resource Services..............................................................................................................................................................................................39
Equal Employment Opportunity Complaint Investigations .........................................................................................................................................39
Equal Employment Opportunity Services......................................................................................................................................................................40
Human Resource Systems ..............................................................................................................................................................................................42
Payroll Services ................................................................................................................................................................................................................43
Information Technology Services..................................................................................................................................................................................45
Information Technology Operations ..............................................................................................................................................................................45
Information Technology Security Services ..................................................................................................................................................................50
Project Management Services.......................................................................................................................................................................................51
Logistic Services ..............................................................................................................................................................................................................53
General Storage................................................................................................................................................................................................................53
Labor and Moving Services ............................................................................................................................................................................................54
Product Distribution..........................................................................................................................................................................................................55
2009 PSC Service and Product Directory TABLE OF CONTENTS
iii
Table of Contents
Occupational Health Services.......................................................................................................................................................................................57
Alternative Dispute Resolution Services ......................................................................................................................................................................57
Automated External Defibrillator Services...................................................................................................................................................................58
Clinical Services................................................................................................................................................................................................................59
Employee Assistance Program.......................................................................................................................................................................................60
Customer Success Story: The Foreign Agricultural Service ................................................................................................................................61
Environmental Health Services ......................................................................................................................................................................................62
Customer Success Story: Federal Officers Protected from Drug–Resistant Tuberculosis ...........................................................................64
Organizational Development Services..........................................................................................................................................................................65
Wellness/Fitness Programs ............................................................................................................................................................................................66
Work/Life Services ...........................................................................................................................................................................................................67
Pharmaceutical, Medical, and Dental Supplies and Services................................................................................................................................69
Supply Service Center......................................................................................................................................................................................................69
Customer Success Story: Guam Memorial Hospital ...............................................................................................................................................71
Property Management Services....................................................................................................................................................................................73
Asset Management ..........................................................................................................................................................................................................73
Building Management......................................................................................................................................................................................................74
Leased Space Management...........................................................................................................................................................................................75
Property Disposal..............................................................................................................................................................................................................76
Customer Success Story: Improved Security for Disposal ofGovernment Property ......................................................................................77
Real Property .....................................................................................................................................................................................................................78
Space Acquisition.............................................................................................................................................................................................................79
Space Alterations .............................................................................................................................................................................................................80
Shredding...........................................................................................................................................................................................................................81
Regional Support Services.............................................................................................................................................................................................83
Cooperative Administrative Support Units ...................................................................................................................................................................83
Regional Support...............................................................................................................................................................................................................84
Security Services .............................................................................................................................................................................................................87
Background Investigations .............................................................................................................................................................................................87
Digital Fingerprinting and Special Agency Checks.....................................................................................................................................................88
Personal Identity Card Issuance and Homeland Security Presidential Directive 12 Services ............................................................................89
Physical Security and Emergency Operations Services............................................................................................................................................90
Security Assessments and Consultation ......................................................................................................................................................................92
Technical Support Services ...........................................................................................................................................................................................95
Conference Services........................................................................................................................................................................................................95
Departmental Forms Management................................................................................................................................................................................96
Graphic Arts and Photography Services ......................................................................................................................................................................97
Customer Success Story: HHS' Office of Disease Prevention andHealth Promotion and the Office of Minority Health ......................98
Mail Operations.................................................................................................................................................................................................................99
Printing Procurement.....................................................................................................................................................................................................100
Telecommunications Management .............................................................................................................................................................................101
Telecommunications Services......................................................................................................................................................................................102
Transportation and Travel Services ............................................................................................................................................................................105
E
Gov Travel Center of Excellence ..............................................................................................................................................................................105
Rental Vehicles................................................................................................................................................................................................................106
Subsidized Mass Transit Tickets (Transhare) ...........................................................................................................................................................107
Cost Center Codes ..........................................................................................................................................................................................................111
Index ................................................................................................................................................................................................................................. 113
2009 PSC Service and Product Directory TABLE OF CONTENTS
iv
Who We Are
The Program Support Center (PSC) has a 12-year tradition of providing support services to all components of the U.S. Department of Health and Human Services (HHS) and other Federal Government Agencies worldwide. Our broad range of over 60 product and service offerings include: administrati ve operations, health resources, information technology suppor t, financial management, occupational health, human resources, and strategic acquisitions. PSC is a shared services organization dedicated to helping our customers achieve mission-critical results. Our business approach is to listen to, understand, and respond to your needs with high-quality solutions at the lowest possible cost. We are dedicated to achieving business results the right way, with a commitment to our customers, integrity, and service.
What We Offer
- Unmatched customer service - Simplifi ed and fast access to our products and services through Interagency Agreements, Memorandums of Understanding, and Service Level Agreements - Access to subject matter experts in key administrative support services - Reduction of administrative costs, freeing assets to be allocated to your core mission objectives - A broad range of offerings to meet your support needs
We welcome the opportunity to talk to you about how PSC can play an integral role in the success of your Agency.
Organizational Overview
PSC has five service units: Administrative Operations Service (AOS), Federal Occupational Health Service (FOH), Financial Management Service (FMS), Information and Systems Management Service (ISMS), and Strategic Acquisition Service (SAS).
Administrative Operations Service
AOS provides a wide range of administrative services including: property management; security and emergency services; Equal Employment Opportunity services, policy, commemorative events, and complaint processing; and communication services as a liaison between the Defense Finance and Accounting Service and HHS employees. AOS also offers a variety of administrative services in the areas of compensation and medical affairs to active duty Commissioned Corps Officers of the U.S. Public Health Service serving in HHS and other Federal Agencies.
Federal Occupational Health Service
FOH provides comprehensive occupational health services, health and wellness programs, Employee Assistance Programs, work/life services, and environmental health and safety services.
Financial Management Service
FMS provides grant payment management services; accounting and fiscal services; debt management services; rate review, negotiation, and approvals for Departmental and other Federal grant and program activities; and fiscal advice, technical and policy guidance, and assistance in implementing new initiatives to ensure compliance with regulatory requirements. FMS also offers HHS' Center of Excellence for E-Gov Travel.
Information and Systems Management Service
ISMS provides an extensive array of information technology (IT) and technical support including: human resource systems; Freedom of Information Act implementation and records management; telecommunications services and management; Web content and publications management; IT infrastructure operations and consulting services; and maintenance of the Unified Financial Management System and the HHS Consolidated Acquisition System.
Strategic Acquisition Service
SAS provides fully integrated acquisition services to customers including: acquisition management, strategic sourcing, and the Supply Service Center.
2009 PSC Service and Product Direc