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