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<br />RedwBml <br />GlI1~ <br />~ <br /> <br />City of Redwood City, California <br />Response to Request for Proposal For <br />Overhead Cost Allocation Plan <br /> <br /> <br />The City of Redwood City. <br /> <br />.:. Continuous improvement. Just as the City of Redwood City changes and strives to <br />improve delivery of services each year, the cost allocation project must also improve <br />each year. It is not enough to simply update the cost allocation plan each year; the <br />project must be continually reviewed for improvement in structure, format, and data <br />used to find opportunities to increase the accuracy of the project results, as well as to <br />optimize recovery, as appropriate. <br /> <br />General Methodology <br /> <br />We utilize a cost allocation plan methodology that incorporates years of experience applying <br />OMB Circular A-8? and Generally Accepted Accounting Principles (GAAP) into a systematic, <br />yet flexible, multi-step approach to raise the accuracy and acceptance of cost allocation plan <br />results. This methodology utilizes the MGT proprietary software and incorporates a double <br />step-down format for preparing a cost allocation plan. <br /> <br />Our staff is flexible in the level of involvement of City staff. <br />City staff can work very closely with the project team and <br />be actively involved in every step of the process or can be <br />moderately involved in the project and defer the day-to- <br />day project details and data collection to the consultants. <br />Either approach, or an in-between hybrid approach, will <br />lead to the same successful project results. <br /> <br />The experience of the proposed <br />project team and the proven <br />project approach means retaining <br />MGT for this project will benefit, <br />not burden, the City of Redwood <br /> <br />Regardless of the level of involvement of City staff, every step in our methodology encourages <br />and welcomes questions from City personnel. Our methodology also allows for an ongoing <br />dialogue between City personnel and the project consultants to address concerns, issues, or <br />problems, while jointly creating associated solutions. <br /> <br />Based on previous project experience, the proposed project team, which includes Mr. Jeff <br />Wakefield who successfully completed some of City's previous cost allocation plan work, will <br />anticipate and plan for the following potential problems and concerns: <br /> <br />Challenge # I <br />Understanding the project process <br />and utilizing <br />the project results. <br /> <br />Planned solution: The cost allocation process will be more than just an <br />accounting exercise. Through workshops. training sessions. meetings and <br />presentations. the project consultants will be committed to helping <br />educate both general fund and nongeneral fund City personnel on the <br />process. benefits. and applications of the project. <br /> <br />MGT <br /> <br />12 <br /> <br />Of A.MEIliCA., INC <br />