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CITY OF EUGENE, OREGON <br />Federal Central Service Cost Allocation Plan <br />and Indirect Rate Proposal <br />For Fiscal Year 2013-14 <br />This Federal Central Service Cost Allocation Plan and Indirect Rate Proposal is prepared according to guidelines <br />set forth in the Office of Management and Budget's Circular A-87, as amended May 10, 2004. <br />Purpose <br />This document identifies indirect central service costs, determines a reasonable basis to allocate these costs, and <br />calculates the costs to be allocated to each operating organization. The Indirect Rate Proposal for Fiscal Year <br />2013-14is developed from these allocated central service costs. This plan computes indirect rates using Fiscal <br />Year 2011-12actuals. Federally assisted programs recognize their fair share of costs under these principles, <br />except where restricted or prohibited by law. <br />Definitions <br />The following terms are used: <br />1.Central Service Organizations--Cost centers that accumulate costs to provide services, usually <br />administrative in nature, to operating organizations. <br />--Cost centers that provide services, primarily to the general public. These also <br />2.Operating Organizations <br />include internal service funds that charge other City operations for services provided. Operating <br />organizations are classified by department. <br />--An operating organization within a department that is strictly <br />3.Departmental Administration Divisions <br />administrative in nature, supporting all other operating organizations within that department. <br />4.Divisional Indirect--A unit within an operating organization that is strictly administrative in nature, <br />supporting only that particular operating organization. <br />--A statistic that most accurately measures the relative effortexpended by acentral <br />5.Basis for Allocation <br />service organization ordepartmental administration division in supporting the work of the operating <br />organizations. <br />--Specific program expenditures within a central service organization or departmental <br />6.Direct Program Cost <br />administration division, exclusive of those in an internal service fund, which are directly chargeable to an <br />operating activity,and thereby, reduce allowable indirect costs. <br />Source of Data <br />All cost information is based on the City's audited Comprehensive Annual Financial Report for thefiscal year <br />ended June 30, 2012. It is supported in detail by the general ledger accounting system. The allocation statistics <br />come from unaudited, non-accounting data maintained in the central service organizations. <br />i <br />