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<br />j i'" <br /> <br /> <br />City of Redwood City, California <br />Response to Request for Proposal For <br />Overhead Cost Allocation Plan <br /> <br />This step utilizes a feature in the MGT proprietary cost allocation software not available <br />in most other cost allocation plan software. The MGT proprietary cost allocation <br />software has the ability to analyze, display, and allocate the indirect costs of each central <br />service department in great detail. This detail facilitates review, explanation, and <br />understanding of incoming costs which leads to reduced errors, fewer reruns of reports, <br />and the ultimate acceptance and approval of the cost allocation plans. <br /> <br />8. Develop allocation bases for central service department functions. <br /> <br />Determine an appropriate allocation base for each function in each central service <br />department. This determination will serve as the basis for allocating the allowable costs <br />in each function to the recipients of the service. Project consultants will request <br />corresponding transaction data from central service department personnel. <br /> <br />Central service departments will allocate costs to all City funds. This allocation <br />methodology ensures the most fair and accurate distribution of costs as opposed to a <br />methodology that singles out particular departments or funds for maximum allocation. <br /> <br />9. Process draft cost allocation plan. <br /> <br />Process the draft cost allocation plan using the MGT proprietary cost allocation <br />software. The cost allocation plan will include summary and detail reports. The summary <br />report in each cost allocation plan provides information on the dollar amounts allocated <br />from each central service department to every receiving department. The detailed <br />reports in the cost allocation plan provide information on the expenditures, allowable <br />costs, incoming costs, personnel distribution, functions, and allocation bases for every <br />central service department. <br /> <br />The MGT proprietary cost allocation software incorporates a double step-down <br />methodology, is technical and detailed, has a self-auditing feature, and has been used for <br />over 250 cost allocation plans in the past five years-many submitted for federal and state <br />approval. <br /> <br />The Microsoft Windows-based MGT proprietary software is written in a relational <br />database and uses Microsoft Excel as a report writer. This platform provides unlimited <br />flexibility in calculating, formatting, and reporting information. Charts and graphs can be <br />used to explain and illustrate allocation information. Allocation information is <br />automatically produced that compares allocation totals to receiving departments (funds) <br />from year to year. <br /> <br />10. Conduct quality control and internal review of the draft cost allocation plan. <br /> <br />The project manager and the project consultant will undertake an internal review <br />process to raise the accuracy of the cost allocation plan and ensure City personnel do <br />not waste time reviewing substandard or incomplete work. <br /> <br />Four quality assurance measures are followed within every engagement. The project <br />manager will undertake the first measure. This consultant will maintain a high level of <br />communication with City personnel. Examples of communication include monthly status <br /> <br />MGT <br /> <br />3 <br /> <br />Of AME Ii! CA, I NC- <br />