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, . RedMlIl GllY=: ~ City of Redwood City, California Response to Request for Proposal For Overhead Cost Allocation Plan 4. Collect basic financial and operational data. Collect and review data such as organization charts, expenditure statements, budgets, personnel counts, salary reports, and transaction statistics. Project consultants will work with City personnel to develop and gather the needed data in the most efficient way possible. The review of this data will provide the structure for the cost allocation plans including the determination of "allocating" and "receiving" departments. Allocating departments are referred to as central service departments and will include, but are not limited to: accounting, purchasing, human resources, and information technology. Receiving departments will be all applicable City general fund departments or divisions and all other City non general funds. Project consultants will also identify, evaluate, and inventory federal- and state-funded City programs and internal service funds so that central service support will be properly allocated. s. Conduct department interviews. Meet with and interview each central service department to determine the allowable expenditures, services provided, chargebacks or direct bills, personnel providing the services, the recipients of the provided services, and appropriate transaction data. 6. Divide central service departments into functions. Divide the allowable costs in each central service department into functions. Functions represent distinct activities within a department. Using information gathered in Task 5, project consultants will complete Personnel Staffing Analysis (PSA) worksheets to assist in dividing departments into functions. The PSA provides a basis for the distribution of department costs into department functions. During interviews with central service departments, MGT consultants will discuss assignments and duties of City personnel. Determine and distribute departments into functions based on timesheets, assignments, activities, or other allowed methods. Once staff members and their corresponding salaries are distributed into functions, other department costs-such as materials and supplies-will also be distributed into the same functions. This task breaks a department into functional cost pools, which can then be allocated throughout the City using meaningful, measurable, and auditable allocation bases. 7. Distribute central service department costs into functions. Distribute the allowable costs in each central service department, and the incoming costs into each central service department, into the functions determined in Task 6. Incoming costs are the costs from other central service departments determined by a double step-down calculation. The distribution of allowable department costs and incoming costs will determine the total cost of providing each distinct service within each central service department. MGT 2 Of AMERICA, INC