This contract amendment will be funded by General Fund dollars budgeted for preparation of the cost allocation plan.
The Office of the Auditor-Controller is responsible for preparing the annual OMB 2 CFR Part 225 (OMB A-87) Cost Allocation Plan for approval by the State Controller. Most Governmental units provide services, such as accounting, purchasing, computer services, motor pools, and fringe benefits to operating departments and agencies on a centralized basis. Since federal rewards are normally performed within the individual operating departments and agencies, there needs to be a process whereby central service costs can be identified and assigned to benefiting departments and agencies on a reasonable and consistent basis. The Cost Plan provides that process.
The Cost Plan is a required document that identifies, accumulates, and allocates billing rates based on allowable costs of services provided by a governmental unit to its departments and agencies. The costs of these services may be allocated of billed to benefiting agencies.
Due to the County's complexity, operational changes, staffing and budgetary constraints, the Office of the Auditor-Controller determined it was necessary to hire outside expertise to review the cost allocation plan to improve and maximize the County's reimbursable costs. In September of 2007, Capital Accounting Partners, LLC was awarded the contract to prepare the Cost Allocation Plan for Contra Costa County.
The amendment to the contract is necessary to allow Capital Accounting Partners to prepare Cost Allocation Plans for approval by the State to maximize the County's reimbursable costs.
Not approving contract amendment will delay the preparation of the Countywide Cost Allocation Plan, and consequently impact departments claiming reimbursable costs.