Cost Allocation Plans

Next Steps After a Fee Update

So you have just updated your fees and you are justifiably proud of this accomplishment. Now, what’s next? You could just rest on your...

CAP Changes Affecting the FBHR

As an astute governmental finance professional, you already know the impact on the Fully Burdened Hourly Rate (FBHR) caused by salary and...

Allocating Administrative Functions in Other Departments

During my time as a Finance Director I was happy with hiring the best user fee consultant for the job and letting him or her do all the...

Supporting Your Interfund Transfers

It seems that a number of cities have gotten letters from a law firm asking for the back-up detail for their interfund transfers from...

It’s time to think about updating your Cost Allocation Plan

If you use a Cost Allocation Plan (CAP) to recover General Fund costs from your Enterprise Funds, then it’s time to start thinking about...

Long-Range Financial Plans

I got a call recently from a California city interested in consultants that did long-range financial plans (LRFP). I couldn’t remember...

Cost Allocation Plan vs. Internal Service Fund

In last month’s article I wrote about what happens when you write a Program Budget and no one cares. In other words, you have identified...

To ISF or not to ISF?

Being someone who allocates costs for a living, it has become an axiom that if you can allocate costs then you do it. But is more...

Caltrans A-87 Cost Allocation Plan

Everyone has heard of the federal Office of Management and Budget (OMB) Circular A-87. And everyone feels they need an A-87 Cost...

What type of CAP should I use?

The A-87 CAP was created because our profession (Municipal Finance Officers Association, at the time) wanted overhead reimbursement on...