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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 />Methodology <br />This document is a "Central Service Cost Allocation Plan" and an "Indirect Rate Proposal" as defined in OMB <br />Circular A-87. <br />The development of the Federal Central Service Cost Allocation Planuses the following steps: <br />1.Determine the total budget-basis expenditures of all funds within the City structure (Exhibit H). <br />2.Identify central service organizations and operating organizations, including departmental administration <br />divisions, and allocate total budget-basis expenditures to them (Exhibit G). <br />3.Reduce thetotal cost of central service organizations and departmental administration divisions by direct <br />program costs, general costs of government, and other unallowable costs listed in Circular A-87 to arrive <br />at resident allowable costs (Exhibit D). <br />4.Determine the statistical basis for allocation for each central service organization and departmental <br />administration division (Exhibit D). <br />5.Determine the total actual indirect costs by adding the fixed asset usage allowances from Exhibit E.2 to <br />the resident allowablecosts (Exhibit D). <br />6.Allocatethe costs of the central service organizations to the operating organizations using the <br />predetermined bases forallocation (Appendix 1.1 -1.25). <br />7.Allocatedepartmental administration division costs to the other operating organizations on the basis of <br />personnel services (Appendix 1.26 –1.30). <br />8.Summarize allocations by operating organization and add divisional indirect costs and fixed asset usage to <br />provide total indirect costs allocated (Appendix 1.0). <br />9.Dividethe total indirect costs allocated for each operating organization by the net personnel service costs <br />for each operating organization to arrive at the proposed indirect rate for the indicated year (Exhibit F). <br />Personnel service costs are based on the operating organizations’ actual personnel service costs (direct <br />wages and fringe benefits) less their divisional personnel service costs. <br />ii <br />