10/6/1982 - Laserfiche WebLink

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p OCT 61982 To the Honorable Board of County Commissioners Indian River County, Florida Dear Sirs: mayZimaw CvOW Public Acc ou" 211 North 11tr and A►rnue Et Bo131arh 5 ,66da 32013 1981 We would like to take this opportunity to conf irm our understanding of the arrangements made with Indian River County regarding the nature and extent of Management Advisory Services we will provide to the County. The objectives of the engagement are to: Develop and prepare an internal overhead rate for the allocation of general government administrative and overhead costs to all user departments in both the general and all other funds; - Develop a methodology for the implementation and use of the overhead rate; and Develop instructions and train designated County personnel in their use for the subsequent maintenance of the overhead rate. The internal overhead rate generated can be used by the County for a variety of uses such as: . The development of fees for enterprise fund operations; Justification of charges from the general fund to utility and internal service funds; and The realistic reflection of overhead costs in all departments to demonstrate to management, elected officials, and the citizenry the true cost of operations by function. The.end-products to be provided to Indian River County are: Internal Overhead Rate Report. This report identifies the method used and assumptions made in the development of the rate. The report provides a schedule detailing the impact of the application of the rate by department, function and fund. The schedule can be incorporated in total or in part into the budget process depending on the desire and needs of the Board of County Commissioners; Procedure for the use of the rate. A written procedure to be used by the County personnel in the monthly application of the rate. This procedure will identify the logical order of events to take place in the application of the overhead rate to the various departments and functions; and Procedure for the maintenance of the internal overhead rate. • A written set of procedures to be used by the County personnel in the annual update of the internal overhead rate. In addition, a copy of key working papers will be provided, so that the employee(s) designated to the maintenance task will have formats, working papers design and forms at their disposal for subsequent annual updates. A work shop will be held at the conclusion of the engagement for the training and instruction of the designated maintenance personnel. 87