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Home My WebLink AboutConduct Cost Auocation Plans Augusta Richmond GA DOCUMENT NAME: C!X\C\U L-r CCf::>-\: ~ot\~ ~'O\)S DOCUMENT TYPE: P-C)~ YEAR:C\' BOX NUMBER: tJl\ FILE NUMBER: \~\d\ NUMBER OF PAGES: ffi I I I I I I D I U I I I I I I o I I I I I I U I I I I I I I I I I I I I I I TABLE'OF CONTENTS SECTION PAGE LETTER OF TRANSMITTAL STATEMENT OF UNDERSTANDING ......................... ...... .......................... 1 DESCRIPTION OF APPROACH.....................,..,........................................ 2 PROJECT OBJECTiVES............................... ................................,............ 4 METHODOLOGY AND WORK PLAN ......................................................... 6 NEW GRIFFITH COST SYSTEM ................................................................ 14 PROJECT MANAGEMENT AND STAFFING............................................. 16 COST PROPOSAL... .............. ........, ....................................."".................... 19 APPENDICES References Detailed Resumes D I B I I I I I I I I I I I I I I I I LETTER OF TRANSMITTAL . ......~..-.... I..."".....:. ~!'1;"'., ~.:......I'....... . ~ %:! ~w ~ i ~mJj!,!:~. I .... ....-........ ....-. - - .-.- - - .. ~-- - --- - ---- I Officers I Glenda Battle President Decatur County Randy Poynter First Vice President I Rockdale County Jim Parker Second Vice President Cnattooga COunty George W. 'Bubba' Bird. III I Third Vice President Candler County Executive Director Jerry R. Griffin D Board of Managers Clarence Brown Bartow County Glen Gooch I Union County F. Wayne Hill Gwinnett County Wendell Dawson Oconee County I Martha McDaniel Spalding County Ira Hicks Peach County Walker Norman I Lincoln County Walt Rosso Chattahoochee County J, Don McCranie Dodge County I Joe Rivers Chatham Count\l' Benjamin Hayward Mitchell County John 'Wink' Strickland I Clinch County Brenda Chapman Stephens County Fredrick Head Butts County I Sherrill Stafford Houston County William Madden Madison county Kenneth Turner Wilkinson County n Jackie Holder . B1eckley County Nelson Greene Ware County I Michael Hightower Fulton County Larry Justice Bibb County W. Vincent Settle. III Ware County I Joyce Blevins McDuffie County GII Barrett Dougherty County I J. B. Jones Lumpkin County Charles Kent Tift County Hugh Logan I Athens.Clarke County Jim Gillis. Jr. Treutlen County Gary Moore County Attorney I Glynn County Joseph Brown County Administrator Liberty County I Patty Johnston County Clerk Lamar County ~ Association County Commissioners of Georgia 50 Hurt Plaza. Suite 1000 Atlanta. Georgia 30303 (404) 522-5022 FAX (404) 525-2477 May 9, 1997 Mr. Charles R. Oliver, Administrator Augusta/Richmond County Consolidated Government 530 Greene Street Augusta, Georgia 30911 Dear Randy: For over eighty years, the Association County Commissioners of Georgia has provided a number of services to the county governments of Georgia. With the explosive growth of the unincorporated areas as well as recent changes in the intergovernmental system, county government has been forced to take on many added responsibilities, which has greatly increased the need counties have for professional services in the areas of cost allocation plans, human resource management, disaster grants management, and service cost evaluation. Recognizing this need, ACCG sought out a highly qualified firm which specializes in providing assistance to the public sector that could provide, on a cost effective basis, many of the management services needed by counties. ACCG also wanted to be there to represent the county's interest in the product developed by the consultant. Following this search, the ACCG Board of Managers entered into an agreement with David M. Griffith & Associates, Ltd. (DMG) under which the firm will provide certain management services to counties, from its Fulton County offices, on a reduced cost basis. It is under this agreement that we submit the attached proposal. ACCG is pleased to submit this proposal to provide Cost Allocation Plans for Augusta/Richmond County utilizing the services of DMG as subcontractor. As you review this proposal you will find information which clearly demonstrates the capability of DMG to provide the services outlined, as well as a scope ,of the work we are proposing. If you have any questions about the specifics of this proposal, please give Don Carter or J.C. McBee a call at (404)874-6696. Sincerely, ~\(9.+- Jerry R. Griffin Executive Director cc: Donald A. Carter, Vice President David M. Griffith & Associates, Ltd. I I I I I I I I I I I I I I I I I I I STATEMENT OF UNDERSTAND~NG i" ~'I' ~ ~..~~ ".. ;!! ~ . ~ ~ ! lii ,: I I I I I I I I I I I I I I I I I I I STATEMENT OF UNDERSTANDING Augusta/Richmond County Consolidated Government (County) is seeking to determine the most fair and equitable means for the allocation of central service overhead costs to its user departments. The work plan described in this proposal is designed to provide the County with management tools needed to assure that full costs are identified for all fund activities and charged their fair share of actual overhead costs as utilized. The approach and type of work" plan described in the following pages has been. developed over a 20-year period and reflects our experiences with regard to determining administrative overhead costs in thousands of local governments. Our experience, from conducting over 25 cost. plans annually by our Atlanta office and 1,800 nationally, allows the DMG staff to offer the greatest level of knowledge in determining the most appropriate method of allocating indirect costs for the County and of guaranteeing the organization's defense of those methods at the federal, state, and local level. DMG extends to Augusta/Richmond County Consolidated Government its most sincere commitment to provide services as outlined in our work plan and satisfactorily complete the project within the desired time frame. @ 1997, David M. Griffith & Associates, Ltd. Page 1 Augusta/Richmond County Cost Allocation Plans Association County Commissioners of Georgia I I I I I I I I I I I I I I I I I I I DESCR~PTION OF APPROACH ~~I..i. ~oo I I I I I I I I I I I I I I I I I I I DESCRIPTION OF APPROACH Many Counties are unaware of opportunities for recovering County expenditures which support the administration of Federal programs. Under OMS Circular A-87 guidelines, local governments are allowed to be reimbursed for these administrative and support costs. Augusta/Richmond County spends considerable revenue to provide central services such as accounting, purchasing, personnel, etc. to County departments. The OMS A- 87 Circular provides a costing methodology which, if carefully followed, results in a more comprehensive identification of central services cost and the benefits provided to Federal programs and County departments. If other departments administer Federal programs, and the programs benefit from the central services provided to the department, then the Federal government will pay its fair share of the County's cost of providing these services. The determination of the indirect costs of programs, activities, and services in government may have benefits beyond the recovery of Federal funds from grant programs. For example, the County administers funds which must be self-sustaining from operating revenues. Sy determining the indirect costs which support these funds, charges for services provided by the General Fund can be better supported and recovered. In addition, other departments or operations may need to know their total costs (direct and indirect) in order to establish user fees, permits, contract rates, professional hourly rates, and costs of special services. Approximately 1,800 cities and Counties nationwide are currently developing these plans with DMG assistance and will recover substantial sums of money. Many Federal programs have agreed to a policy ofpaying Federal participation in these funds to local governments if they prepare the required plan. Throughout the nation, more cities and Counties have selected David M. Griffith & Associates to prepare their cost allocation plans than aU other firms combined. @ 1997, David M. Griffith & Associates, Ltd. Augusta/Richmond County Cost Allocation Plans Association County Page 2 Commissioners of Georgia I I I I I I I I I I I I I I I I I I I DESCRIPTION OF APPROACH In preparing the plan, our firm will employ our copyrighted software, the New Griffith Cost System II. This program was developed by our firm to provide the most efficient identification of indirect costs. Previous versions of the Griffith Cost System were unique in that they provided for a double iteration in the allocation of costs. The New Griffith Cost System II allows as many as 9 step downs. While the allocation of costs usually will not change significantly after 4 or 5 steps, tailoring the number of step down iterations to the client's specific needs allows us to. provide the most accurate reallocation of costs possible and the maximization of any internal or external recovery. @ 1997, David M. Griffith & Associates, Ltd, Augusta/Richmond County Cost Allocation Plans Association County Page 3 Commissioners of Georgia I I I I I I I, I I I I I I I I. I I I I PROJECT OBJECTIVES 1"'1" ~' ~' I ......'.. ~....r,;.. '.....,............ .... ~"..c.. , I..i,..~.~ffl.. ' ,.",,! ~.; = ,..: ~ WIll' [I 11 I I I I I I I I I I I I I I I I I I I PROJECT OBJECTIVES There are three primary objectives of the cost allocation services offered by DMG. Each of these objectives is tied to one of the County's overall objectives -- to increase revenues to the County (or it~ General Fund) with little or no impact on vital County programs and to accurately pinpoint and cost the services between and among the various entities. ' The tasks which follow reflect these requirements. These objectives are to: -- ~ AUGUSTA/RICHMOND COUNTY OBJECTIVES Develop a cost allocation plan which confirms to OMS A- 87 and will be approved by the cognizant Federal agency, if requested. ~ Determine the appropriate charges to the County's other operations (such as enterprise funds) for purposes of charging them the full costs of services provided by central service departments. ~ Provide a summary of the County's potential indirect cost recoveries. Each of these objectives can be met with minimal cost to the County, and can potentially yield tens of thousands of dollars in revenues. . DMG will first develop a cost allocation plan in accordance with OMS Circular A- 87. This cost plan will identify the central services costs for all Federal and non- Federal grants and contracts that require costing to be based on OMS Circular A-87. . Secondly, DMG will develop the charge backs to the non-Federal programs and enterprise funds for support serVices. These funds should pay their full costs of operations because they benefit from general funded services such as payroll, building maintenance,etc. . Finally, DMG will provide the County with a summary of the County's indirect cost recovery potential and identify new strategies or procedures that could be adopted to maximize potential recoveries. @ 1997, David M. Griffith & Associates, Ltd, August8JRichmond County Cost Allocation Plans Association County Page 4 Commissioners of Georgia I I I I I I I I I I I I I I I I I I I PROJECT OBJECTIVES ADDITIONAL SERVICES In addition to the aforementioned, we will also provide the following services to Augusta/Richmond County: * We will represent the County at no additional cost for a period of three years, after approval of each planirates, if the Cost Allocation Plans or indirect cost rates are audited by Federal, State, municipal,' or Board of Education representatives. * If requested, we will furnish the County with copies of all documents, materials, and work papers prepared or developed in relation to or as part of the project. * We will maintain all workpapers pertaining to the costs developed (books, documents, papers, accounting records and other evidence) and make such material available for inspection and/or audit by the County at all times from the date of the agreements for three years from the date of final approval. * We will perform special tasks related to the preparation of the various cost allocation plans, indirect cost rates, and other reports as requested by the Department of Finance. @ 1997, David M. Griffith & Associates, Ltd, Augusta/Richmond County Cost AI/ocation Plans Association County Page 5 Commissioners of Georgia I I I I I I I I I I I I I I I I . I I I METHODOLOGY AND WORK PLAN ~{1,'11f.~ ~""....'. $. d . it! ,., ~ , I I I I I I I I I I I I I I I I I I I - METHODOLOGY AND WORK PLAN The ~ollowing approach outlines the methodology and work program necessary to complete a Full Cost and Administrative/Central Services Cost Allocation Plan. . Utilize a data collection and research process that provides a total understanding of the County's operations and structure. Sound analysis during this phase will ensure comprehensive analysis in later phases. . Interaction with County officials and department personnel to assure that project developments and results are consistent with their objectives and needs. . Follow-up after delivery of completed plans to promote County staffs greater understanding and utility of information presented. Outlined in the following work plans are the tasks necessary for the County's Plans to be successfully completed. DMG will be utilizing NGCSII Cost Allocation software. This new enhanced version of the DMG Cost Allocation Plan software is currently being utilized in preparing over 1,800 County and County Cost Allocation Plans. This enhanced software and its methodology have been reviewed and approved by state and federal negotiators across, the United States. NGCSII will allow the County, should it desire, to collect the Cost Plan <;fata in a paperless environment. Also, NGCSII will accept downloads from the County's accounting and purchasing system and should allow for a more efficient process for County personnel. This work plan is concerned with those tasks necessary to develop data needed for the Full Cost and Administrative/Cenfral Services Plans. It should be noted that each task is not necessarily a mutually exclusive step in the process of completing the project. For example, the development of allocation base data (Task #8) will be conducted @ 1997, David M. Griffith & Associates, Ltd, Augusta/Richmond County Cost Allocation Plans Association County Page 6 Commissioners of Georgia I I I I I I I I I I I I I I I I I I I METHODOLOGY AND WORK PLAN throughout the project as data reports are received and interviews with County staff (Task #6) will be held throughout the period of on-site work, depending on the availability of appropriate County staff. . ................................. .... .............................-......................................... ...............,..........................,...................................,_.,......................,...... . ........ ..................... . ..............'............................,...........................,.,.........,......'.....'................. .............................................,............'...............................-..........:.:.:.........................................................................'........... ................ .. ........................................................................................................ li~tfllilillfllfiiiiiji~iiiil'l'iijij~ll!ijjJliil;lti .gR9lity'.~€R~t.Pl~9~*..~tl~y.~~~.~~pf9X(~~~!?~l9~i.'?"":':'i'.i ................. ...... ..................................:-:...:.:.:.;.:.;.;.;.:.;.;.:.:.;.:.:.:-:.;.:-:.:.;.:.;.;.:.:.;.:.:.;.:.;.:.:.:.;.:.:.:-:-:.;.:':-:-:-:';';':-:'.';'.':-:':-: . ..... .......................... ......... ......... ........................................................ .... . . .................................,..................................... ................... ..............................................................:.:.;.;...;.:...:.:.:.:.:::::::::.:::::::::::::::::::::::::::::::::::;:::;:::::::::::::::::::::::::::::;:;::::::::::::::;:::;::;:::;:::::::::::::::::::::::::::-:.;.;".'. . ........-.................................... . ....... ........ ..... ....... . INFORMATION REQUEST AND COLLECTION DMG will submit to the County, at least 30 days prior to project initiation, a detailed information request outlining the data necessary to prepare the Cost Allocation Plans. Also as part of this request, we will include. a suggested interview schedule so that County Staff can be notified far enough in advance to allow sufficient time to prepare for the consulting team's arrival and keep office disruption to a minimum. . FIELD WORK At the completion of field work, DMG will present to County Staff a status report outlining the accomplishments of the project team as it pertains to interviews completed and data gathered. If any information is still missing, or interviews not completed, we will so note for County Staff. This will allow both County Staff and the consulting team to minimize the number of additional requests for information from participating departments. . EDUCATION PROGRAMS The key to the success. of this engagement and the County's continuation of its policy regarding cost allocation is to fully inform all parties affected by this process. To ensure minimum disruption, total understanding, and plan implementation, DMG is proposing, at a minimum, the following education efforts. @ 1997, David M. Griffith & Associates, Ltd, Augusta/Richmond County Cost Allocation Plans Association County Page 7 Commissioners of Georgia I I I I I I I I I I I I I I I I I I I METHODOLOGY AND WORK PLAN ~ Workshop with Central Service Departments During the. early stages of the cost plan process, the consulting team and County Staff would meet with the Central Service Departments to explain the cost plan process. This would include project schedule; the data requested and why; and an overall education program regarding the purpose and benefit of the cost allocation plan process; This workshop can be done in a two-hour timeframe during field work. ~ Workshop with Receiving Departments . During field work, DMG. and County Staff would request that all receiving departments attend a program of similar time and content as the one described above. In addition to the educational effort regarding the purpose and benefit of cost allocation, we would also allow the receiving departments the opportunity to express their concerns andto offer suggestions for refinement to the plan. We have found these types of programs to be highly beneficial to both the consulting team and County Staff during the review of draft plans. ~ Workshop with County Management Team The consulting team's Project Coordinator, Donald A. Carter, and designated represent.atives from the County would present to the County Management Team the purpose and benefit of the County's cost allocation pro~ess and plan. The purpose of this briefing would be to reeducate the County Management Team regarding the policy implications of the County's commitment to developing full cost information for all County services. During this briefing, DMG and County Staffwould solicit input and suggestions from the County Management Team regarding their concerns and recommendations regarding improvements to the process and . . outcome. @ 1997, David M. Griffith & Associates, Ltd, Augusta/Richmond County Cost Allocation Plans Association County Page 8 Commissioners of Georgia I I I I I I I I I I I I I I I I I I I METHODOLOGY AND WORK PLAN .(Special Note: Should it be decided by the County Management Team that a presentation of this nature would be of benefit to the Commission, DMG would prepare and present this information to the County Commission based on a schedule agreed to by all parties). In addition to these educational programs, we have outlined for your review those tasks necessary to develop data needed for the. Full Cost and Administrative I Central Services Plans. The work program begins with the development of detailed cost allocation plans which comply with the provisions of OMS A-a7 and is divided into a total of sixteen tasks. Our second phase concerns the development of a cost plan using full costing concepts. Our last phase involves summarizing the results of our work and identifying indirect cost recoveries for the County. This phase is concerned only with those tasks necessary to develop the A-a7 cost allocation plan. During this phase the total costs of County departments which provide services are clearly identified and allocated to users of those services. The tasks are as follows: TASK 1. OBTAIN AVAILABLE FINANCIAL INFORMATION. This task involves obtaining copies of the various sources of financial information that identifies the County's budgeted cost for 1997. At a minimum, we will need copies of the following information: · 1997 General Budget · 1996 Actual Revenues and Expenditures TASK 2. OBTAIN AND REVIEW CURRENT ORGANIZATION CHART. This task involves reviewing the County's organization chart applicable to 1997 and comparing the chart to the year's approved budget to determine if there have been any changes. TASK 3. MEET WITH COUNTY STAFF TO CONFIRM ORGANIZATION CHANGES. This task involves meetin.g with appropriate County staff to confirm any evident changes, @ 1997, David M. Griffith & Associates, Lid, Augusta/Richmond County Cost Allocation Plans Association County Page 9 Commissioners of Georgia I I I I I I I I I I I I I I I I I I I METHODOLOGY AND WORK PLAN determine their impact on the cost plan structure, and discuss any other changes in the cost plan structure that may better serve the present and future needs of County management. TASK 4. INVENTORY FEDERAL FUNDS ADMINISTERED BY THE COUNTY. This involves surveying targeted departments to determine what Federal funds are being received, the programs that receive them, which agency administers them, and the extent of recovery of administrative costs. . This information is used as an aid in identifying the areas of greatest potential for additional cost recovery. TASK 5. ESTABLISH AND CLASSIFY PLAN COST CENTERS. The level of detail within the County's account code structure required for cost centers to be reflected in the plans will be determined. Each cost center will be classified either as a "central service" (source of indirect costs) or "receiving" (receiver of indirect costs) department for Plan purposes. From these determinations, the basic structure of the Plan will be developed using. the NGCSII software. TASK 6. INTERVIEW CENTRAL SERVICE STAFF. Interviews with managers of appropriate County staff will be scheduled and held to carefully determine what variety of distinct administrative functions may exist within a single administrative cost center. The best rationale for distributing the administrative unit's costs across those internal functions and the best available statistical indicator to be used for allocating each function's costs to user cost centers will also be identified. TASK 7. RECORD ADMINISTRATIVE COSTS. Budgeted costs of each administrative cost center for the fiscal year ending December 31, 1997 will be recorded and distributed by functional activity using the New Griffith Cost System. TASK 8. DEVELOP ALLOCATION BASE DATA. This task of the project involves the analysis of a diverse variety of statistical reports and other information collected as the best available indicators of relative levels of administrative support provided by adm.inistrative units to their respective' users. Depending upon the level of cost center detail reflected in these reports, allocation base data will be summarized or extrapolated to correlate with the level of detail upon which the Plans will be structured. Follow-up discussions with appropriate County staff will be necessary to complete this task. @ 1997, David M. Griffith & Associates, Ltd. Augusta/Richmond County Cost Allocation Plans Association County Page 10 Commissioners of Georgia I I I I I I I I I I I I I I I I I I METHODOLOGY AND WORK PLAN TASK 9. REVIEW ADMINISTRA TlVE COST CENTERS FOR COSTS RECOVERED BY DIRECT BILLINGS, BUDGET TRANSFERS, ETC. Occurrences of reimbursements to administrative units directly to the General Fund, which may not be readily apparent from financial records reviewed will be determined. These costs will be examined and appropriate adjustments of allocable costs will be made. TASK 10. SUPERVISE AND VERIFY DATA ENTRY. The Project Manager will be responsible for supervising and verifying the accuracy and completeness of data entered into the New Griffith Cost System. Advanced data editing and verification capabilities' are major enhancements incorporated into the current DMG software. TASK 11. REVIEW FIRST DRAFT OF THE PLAN. The Project Manager will carefully review the summary and detail schedules for accuracy and clarity of presentation. This analysis will be presented in worksheet form to appropriate County staff to assist their review of the first drafts. TASK 12. PRESENT FIRST DRAFT AND WORKPAPERS TO THE COUNTY. The desired number of copies of the first draft of the Cost Plan will be presented to the County along with the comparative analysis described above. This task includes time devoted to receiving and responding to. questions and comments received from County staff during their review of the draft plan. During this period of review, all workpapers used in the preparation of the plan will be available to the County staff upon request. TASK 13. REVISE PLAN TO FINAL FORM AND PRESENT TO COUNTY. Following completion of the County's review of the draft plan and receipt of any requests for changes, plan data will be revised and five (5) copies will be presented to the County. TASK 14. SUBMIT AND NEGOTIATE A-87 PLAN, IF REQUIRED. Within two weeks of completion of the cost plan, DMG, on behalf of Augusta/Richmond County, will submit to the County's cognizant Federal agency copies of the A-a? Plan for their review, if necessary. The plan shall be documented with comprehensive work papers which will become the property of the County. Also, DMG will defend the plan against any audit for a three year period at no cost to the County. @ 1997, David M. Griffith & Associates, Ltd. Augusta/Richmond .County Cost Allocation Plans Association County Page 11 Commissioners of Georgia . - I I I I I I I I I I I I I I I I I I I METHODOLOGY AND WORK PLAN - Special Note: Unlike our competitors, DMG has never failed to successfully negotiate an A-87 Cost Plan with the appropriate State or Federal agencies. - TASK 15. FINAL ApPROVED PLAN BY. COGNIZANT AGENCY, IF REQUIRED. DMG will furnish to the County Staff five (5) copies of the completed cost allocation plan which has been accepted by the cognizant agency, with figures and narrative included. TASK 16. INSTRUCTION FOR COUNTY STAFF. DMG will provide instruction for the County Staff to insure proper implementation of the plan as prepared. This phase of the work involves costing services provided to non-Federal programs, such as enterprise funds. Therefore, the cost principals of OMB A- 8? need not be used and substitution of full cost principals will be necessary. TASK 1. CONVERT PLAN TO "FULL COST" PLAN. Our first task in this phase will be to convert the A-a? plan to one which (1) expenses capital outlays, (2) includes certain general government operations, (3) allows interest expense on building and equipment, and (4) uses all,ocation bases which may not be acceptable to Federal negotiators. The plan will then be re-run and reviewed with your staff. Five (5) copies of the plan will be provided to the County's Finance Director. TASK 2. DETERMINE CHARGES TO ENTERPRISE FUNDS AND NON-FEDERAL SOURCES. This task will center upon developing billings to enterprise funds but will also provide estimates of increased revenues from new or increased user fees, licenses, permits, and contract costing. These estimates will direct you to the areas where further cost analysis would appear to be justified for increasing revenue from these sources. @ 1997, David M. Griffith & Associates, Ltd. Augusta/Richmond County Cost Allocation Plans Association County Page 12 Commissioners of Georgia I I I I I I I I I I I I I I I I I I METHODOLOGY AND WORK PLAN Following our completion of the various cost plans, we will provide the County's Finance Director with a letter identifying the results of our work. We will also provide a review of the County's data collection worksheets,. allocation bases, indirect cost pools, and methods of distributing costs. Further, we will identify strategies and procedures that could be adopted by the County and result in additional indirect cost recoveries in future years. @ 1997, David M. Griffith & Associates, Ltd. Augusta(Richmond County Cost Allocation Plans Association County Page 13 Commissioners of Georgia . . '1 I I I I I I I I I I I I I I I I I I NEW GRIFFITH COST SYSTEM I". '.If'" ~m ~~ ~. _1;:-~&i ."'.'.~ '.'. ".. E.. ..... ' . , B W ~ .~ ;?t "" I I I I I I I I I I I I I I I I I I I NEW GRIFFITH COST SYSTEM DMG's proprietary software system, New Griffith Cost System II (NGCSII), will be utilized to prepare the Cost Allocation Plans. As we discuss the software system in more detail, keep in mind that this system has been used to conduct hundreds of such plans. NGCSII is an integrated cost allocation software system developed by DMG to specifically meet the needs of OMB Circular A-8? Its flexibility and range of features make it equally useful for producing Full Cost Allocation Plans, departmental cost allocation plans, and a variety of other fee-related studies. NGCSII is an enhanced version of our earlier cost plan software, NGCSII, which was released in November 1989. NGCSII features easy-to-follow, worksheet-format data entry screens for organizing plan cost centers at the fund, division, or activity level, depicting actual or budgeted costs by cost object and compilation of statistical allocation bases. NGCSII utilizes a compiled C-Ianguage program routine to calculate dollar allocations of cost and procedures detail and summary reports in an ASCII text format. NGCSII provides for an initial cross-allocation with a step-down second allocation among central service functions. The. cross-allocation option. provides for greater accuracy in the accounting of costs, whereas the step-down methodology results in greater flexibility in recovery maximization. Our system has been reviewed and approved by co.st negotiators for the following federal agencies: · Department of labor · Department of Health and Human Services · Department of Housing and Urban Development · Environmental Protection Agency · Department of Justice @ 1997, David M. Griffith & Associates, Ltd. Augusta/Richmond County Cost Allocation Plans Association County Page 14 Commissioners of Georgia I I I I I I I I I I I I I I I I I I I NEW GRIFFITH COST SYSTEM · Department of Education NGCSII operates on any IBM-compatible personal computer with DOS, 512 Kb RAM and a hard disk. NGCSII will operate on any IBM compatible PC that meets the configuration requirements outlined above. @ 1997, David M. Griffith & Associates, Ltd. Augusta/Richmond County Cost Allocation Plans Association County Page 15 Commissioners of Georgia I I I I I I I I I I I I I I I I I I I PROJECT MANAGEMENT AND STAFFING 1,\ ~~ ;~ i ll..' \!i. ~ ~ K.' i .II t4 b . I I I I I I I I I I I I I I I I I I I PROJECT MANAGEMENT AND STAFFING DMG's approach to project management is designed to ensure the highest level of success and economy for our clients. In this section of the proposal, DMG will discuss its project management philosophy, the particular project management structure, and project staffing that will be utilized for this engagement. ................................................................................... ...................................-...................:.:...:...............................-..,........... ..,......................... . .............. . ...................... ........... ...... ....... ........................................ ..!.!M~~~~:~mi~;E.............. al3lW()$(1).~I8I~r) ,.....,......................'................,..'.......:.....:.............:.....:..,..:..,............... ~:}~{:~:)~{<:}>>)~{;;::::;::::::::.::::::::::.:...:... ..... .. Because of our competitors' limited size or lack of senior technical personnel, they are required to respond to clients needs or questions from all areas of the country. This creates unnecessary travel expenses and more importantly, delays in responding to clients needs or questions after the project is completed. It is DMG's practice to place strong technical support near our clients. This project will be. managed and directed from. the Atlanta Office. This office is staffed with ten professionals and three support positions. Additionally, our computer support and analysis is located in Atlanta. This allows for immediate access to data or client information. Since DMG will view its working relationship with the County as a continuing one, no limits will be placed on the number of follow-up visits the County may require for successful project completion. DMG will always be responsive to any request for . assistance by the County. DMG will be utilizing a Project Coordinator who will be responsible for all phases of the project. Because of this approach, we have been able to respond to timetables and project objectives that would strain most firms' resources. @ 1997, David M. Griffith & Associates, Ltd. Association County Page 16 Commissioners of Georgia Augusta/Richmond County Cost Allocation Plans I I .1 I I I I I I I I I I I I I I I I PROJECT MANAGEMENT AND STAFFING All members of the Project Team assigned to this engagement have extensive experience in managing multiple projects and have participated in the preparation of numerous Cost Allocation Plan projects. Due to the scope of this project and the proposed time frame for its completion, assignment of Project Team members to other engagements will be minimized. In fact, at no time over the duration of this contract will DMG reassign project personnel unless so requested by the County. The Project Team assigned to this engagement will include the following DMG professionals. :::H:::::HH Donald A. Carter, Regional Vice President. His :::PROdECT:: background includes over 26 years experience in the public eOaRDIN-<<mOR sector as a senior manager and an advisor to local :iiiX///ii/ir):f;//i);if:/~i//if{fri//i~/ii//:::i:::;::: government appointed and elected officials. Mr. Carter has :~::::::::::::::: ::::::::::::::::: ::::::::::::::::::: ::::::: ::::::: ::: :::::::::.:.:-:-..... ....... . . . ..... .... .. H'''' ............, recently been assigned to the Atlanta Office of DMG as the Regional Vice President. He moves to Georgia from the Tallahassee, Florida office of DMG, where he was the Vice President in charge of the Cost Allocation and General Consulting practices. During the past two years he has served as Project Director on over 60 major cost plan engagements for state and local government agencies. In the past three years, Mr. Carter has been Project Coordinator on over 100 A-8? and Full Cost Allocation Plans. These have included the counties of Lee, Broward, Polk, Pasco, and Pinellas and the Counties of Tampa, Jacksonville, Pensacola, Tallahassee, West Palm Beach, Boca Raton, Coral Springs, Hollywood, Tamarac, Hialeah, Miami, Cape Coral, and Sarasota. He has also served as Project Director for over 35 Florida counties and 6 state agencies in the development of A-8? Cost Allocation Plans. This has included the development and successful negotiation of every plan submitted for cognizant review. Mr. Carter received his Bachelor' of Business Administration (BBA) Degree from Campbell University, Buies Creek; North Carolina and his Master of Business @ 1997, David M. Griffith & Associates, Ltd. , Augusta/Richmond County Cost Allocation Plans Association County Page 17 Commissioners of Georgia I I I I I I I I I I I I I I I I I I I PROJECT MANAGEMENT AND STAFFING Administration (MBA) Degree from the Maxwell School of Business at Syracuse University, Syracuse, New York. During this period, Mr. Carter will continue to direct several other on-going major projects within the State of Georgia. However, this schedule will in no way interfere with the successful and timely completion of this engagement. J.C.McBee, CPA - Project Manager. As Project Manager, Mr. McBee brings to this engagement extensive experience in the. preparation of OMB Circular A-8? and Full Cost Allocation Plans. Mr. McBee has prepared over 350 cost allocation plans for state and local governments since joining DMG in February, 1.984. Mr. McBee, a CPA, is a Vice President in the Atlanta Office and is responsible for all cost allocation plans prepared by the office. The Atlanta office has clients in states of Georgia, Alabama, Mississippi, and Tennessee and our current clients include both state and local governments. Mr. McBee has negotiated cost plans with Federal negotiators from the Departments of Health and Human Services, Housing and Urban Development, Agriculture, Commerce, Interior, .Environmental Protection Agency and National Science Foundation. Troy Tangen, CPA, Senior Consultant. Mr. Tangen was formerly an auditor with the Office of Auditor General for the State of Florida. Mr. Tangen has been with DMG since November, 1991 and has prepared over forty cost allocation plans for state and local governments. Mr. Tangen has prepared cost plans for many Georgia governments including Fulton County, Cobb County, Chatham County, County of Albany, County of Marietta and Liberty County. He has also been involved in developing billing rates for state computer centers and telecommunications systems for the states of Alabama, Mississippi, and Georgia. @ 1997, David M. Griffith & Associates, Ltd. Augusta/Richmond County Cost Allocation Plans Association County Page 18 Commissioners of Georgia I I I I I I I I I I I I I I I I I I I COST PROPOSAL 1:<>< II ~~ i q,,-~%) ~" ~, i\~ ~.' ~.:.. .:.. fI\l ffii ,,, Ii ,-::; ;;:- I I I I I I I I I I I I I I I I I I I COST PROPOSAL DMG will complete all tasks identified in Phases I through III of the Work Plan for a fixed fee of $2?,OOO. This fee includes all travel and production related expenses. In addition, DMG will provide similar services for the next three (3) years at a fixed fee of $25,000 per year. @ 1997, David M. Griffi~h & Associates, Ltd. Augusta/Richmond County Cost Allocation Plans Association County Page 19 Commissioners of Georgia I I I I I I I I I I I I I I I I I I I APPENDICES I.<'~.. I' ~'I ..~. &".7 :..~.; ~."..: ittj- '." . . ffj ~ ~ W fh j I I I I I I I, I I I I I I I I I I I I REFERENCES I':.-'.'I.'.I.~......'..'.< ii ~~...I........ ~~~..~~. ~ ~ '" ~ .~~~~~; I I I I I I I I I I I I I I I I I I I DMG's ATLANTA OFFICE'SCQST PLAN CLIENTS The following page include a listing of the clients that have had cost plans prepared by our Atlanta office during the past year. I DAVID M. GRIFFITH & ASSOCIATES, LTD. I COST ALLOCATION PLAN CLIENTS DURING PAST YEAR A TLANT A OFFICE I I Fulton County, GA 8 Mr. Patrick O'Connor (404) 299-2671 Note (1) Cobb County, GA 9 Mr. Virgil Moon (404) 528-1505 Note (1) Dougherty County, GA 6 Mr. Alan Reddish (912) 431-2121 Note (1) I Liberty County, GA 6 Mr. Joseph Brown (912) 876-2164 Note (1) Athens/Clarke County, GA 2 Mr. John Culpepper Note (1) I County of Atlanta, GA 12 Ms. Frances Johnson (404) 330-6473 Note (1) County of Albany, GA 9 Mr. Nelson Rushton (912) 431-2107 Note (1) I County of Montgomery, AL 12 Mr. Hugh Austin (334) 241-2025 Note (1) County of Chattanooga, TN 8 Mr. Don Bain (615) 862-6100 Note (1) Nashville/Davidson, AL 7 Mr. Bob Lackey (615) 862-6100 Note (1) I Mobile County, AL 12 Mrs. Susan Morrison (334) 690-8614 Note (1) Jefferson County, AL Mr. Joe Kerr (205) 325-5762 Note (1) I Alabama Department of 10 Mrs. Angie McRae (334) 242-7243 Mr. Jim Welch (202) 401-2808 Finance Alabama Data Systems 8 Mrs. Carolyn Courson (334) 242-3124 Mr. Jim Welch (202) 401-2808 I Management Alabama Mental Health 6 Mr. Ken Mahan (334) 242-3992 Mr. Jim Welch (202) 401-2808 I Alabama Rehabilitation Mr. Larry Jacobs (334) 281-8780 Mr. Paul Brickman (202) 708-6817 Services I Georgia Department of 8 Mr. Charles Babb (404) 656-5755 Mr. Jim Welch (202) 401-2808 Administrative Services Georgia Computer Services Mr. Bill Hobbs (404) 656-3992 Mr. Jim Welch (202) 401-2808 I Division Georgia Telecommunications Mr. George Christenberry (404) 656-6010 Mr: Jim Welch (202) 401-2808 Division I Mississippi Archives & 12 Mr. J.ohn GilQert (601) 359-6850 Mr. Brad Meager (703) 235-3061 History Mississippi Finance & . 11 Mrs. Sandra Lohrisch (601) 359-2011 Mr. Jim Welch . (202) 401-2808 I Administration Mississippi Wildlife, 8 Mr. Russell Yearwood (601) 364-2047 Mr. Brad Meager (703) 235-3061 Fisheries, & Parks I Mississippi 6 Ms. Kay Sheffield (601) 359-2908 Ms. Kathleen McKevitt (404) 730-2780 Economic/Community Development I Mississippi Information 5 Mr. Russell Ferguson (601) 354-1395 Mr. Jim Welch (202) 401-2808 Technology Services Mississippi 5 Mr. Mike Taylor (601) 354-7040 Mr. Fransico Apodara (202) 720-9850 I Agriculture/Commerce Note (1): OMS Circuler A-87. Attachmant C, Section 0.3 provides .that local govarnments that have been designad as a "major local government". are not requirad to submit their plans for Federal approval unless they are specifically requested to do so by the cognizant agency for the local government plans identified on this schedule did not request that the plans be submitted for their review and approval. I I I I I I I I I I I. I I I I I I I I I DEl AILED RESUMES ~~; ~~ ~ ' ~ ~ it !. L I I I I I I I I I I I I I I I I I I I ~ DONALD A. CARTER, CGFM DMG BACKGROUND Donald A. Carter, Regional Vice President. Mr. Carter's background includes over 27 years experience in the public sector as a senior manager and an advisor to local government appointed and elected officials. Mr. Carter has recently been assigned to the Atlanta Office of DMG as the Regional Vice President. He moves to Georgia from the Tallahassee, Florida office of DMG, where he was the Vice President in charge of the Cost Allocation and General Consulting practices. During the past two years he has served as project director on over 60 major cost plan engagements for state and local government agencies. CONSULTING EXPERIENCE Mr. Carter has. performed duties in numerous financial management positions that have provided him extensive hand-on experience in planning, programming, and budgeting of government funds. This includes the conduct of analysis necessary to defend budget requests to the satisfaction of the governing boty. Mr. Carter was selected as a senior member of a six-person task force which was commissioned to enhance the efficiency and responsiveness of a major governmental organization. Due to his background, Mr. Carter was assigned responsi- bility for the financial management organizations included in this study. Mr. Carter was instrumental in the development of a new methodology, including collection and analysis of data used in a review of the "resource management community" of an organization with over 4,000 personnel. Under his direction, the review was conducted and a new organizational structure was developed resulting in the elimination of duplicate efforts. Mr. Carter was directly responsible for the expenditures of a multi-million dollar congressionally appropriated program. Included in his responsi- bilities was the development and implementation of an accounting system that would provide the required information to the Congress. For a five- year period, he' monitored the expenditures of 17 subordinate organizations ensuring efficient and effective use of funds. In the past three years, Mr. Carter has been Project Coordinator on over 100 A-a7 and Full Cost Allocation Plans. These have included the counties of Lee, Broward, Polk, Pasco, and Pinellas and the cities of Tampa, Jacksonville, Pensacola, Tallahassee, West Palm Beach, Boca Raton, Coral Springs, Hollywood, Tamarac, Hialeah, Miami, Cape Coral, and Sarasota, He has also served as Project Director for over 35 Florida counties' and 6 state agencies in the development of A-a7 Cost Allocation Plans. This has included the development and successful negotiation of every plan submitted for cognizant review. I I I I I I I I I I I I I I I I I I I DONALD A. CARTER - Page 2 ~ DMG CONSUL liNG EXPERIENCE continue.d Additionally, Mr. Carter has conducted Service Cost Assessments as Senior Project Manager for Martin County, Alachua County, St. Johns County, Lake County, Hernando County, Bay County, Broward County, Madison County; the cities of Coral Springs, Daytona Beach, Tallahassee, Fort Lauderdale, Deland, Sunrise, Vero Beach; as well as the Florida Tax Collectors, Inc., the City of Sarasota Parking Garage Study and the City of Tallahassee Internal Service Fund Study. PROFESSIONAL AFFILlA liONS Mr. Carter is an active member of the Building Officials Association of Florida, Building Officials Association of Georgia and the Panhandle League of Cities. In addition, Mr. Carter has conducted program presentations to the Association County Commissioner, Georgia; Florida Sheriff's Association, Florida Tax Collectors Association, Florida Government Finance Officers Association, Association of Florida City Clerks and the Building Officials Association of Florida. EOUCA liON Mr. Carter received' a Bachelor of Business Administration (honors) degree, .with a minor in Accounting from Campbell University, Buies Creek, North Carolina. He received a Master of Business Administration (MBA) degree from the Maxwell School of Business. Comptrollership Program, Syracuse University, Syracuse, New York. I I I I I I I I I I I I I I I I I I I ~ J.C. MCBEE, CPA, CGFM DMG BACKGROUND CONSULTING EXPERIENCE J.C. McBee, Vice President. Mr. McBee is a Vice President with David M. Griffith and Associates, Ltd. He has been with the firm since February 1984. He is responsible for the preparation and negotiation of cost allocation plans and indirect cost proposals for state and local governments. Mr. McBee possesses substantial experience in Federal fiscal management and negotiation deriving from his experience with David M. Griffith and Associates, and his former appointments as a negotiator with the HHS Division of Cost Allocation and as a Supervisory Auditor with the HHS Audit Agency. . COST ALLOCATION PLANS. Mr. McBee has prepared over 350 cost allocation plans for state and local governments. Included in this total are 27 State-Wide Cost Allocation Plans for the states of Alabama, Georgia, Mississippi, and West Virgini?, and indirect cost rate proposals. He has also acted as a technical advisor for State-Wide . Cost Allocation plans prepared for the state of Oklahoma and the Virgin Islands. Mr. McBee has negotiated the cost plans with Federal negotiators from Health and Human Services, Housing and Urban. Development, Agriculture, Commerce, Interior, Environmental Protection Agency, and National Science Foundation. AUDIT DEFENSE. Mr. McBee has assisted in audit defense preparations for the West Virginia Department of Finance and Administration, Alabama Risk Management Division, and the Mississippi Department of Finance and Administration. FEDERAL COST NEGOTIATOR. Mr. McBee worked four years as a negotiator with the HHS Division .of Cost Allocation. He was responsible of reviewing and negotiating. cost 'allocation plans and indirect cost rates with universities and non-profit agencies, state and local governments, and hospitals within an ,eight state region. These responsibilities also required a detailed knowledge of Circulars A-87, A-21 , and OASC-10. During his last year with HHS Division of Cost Allocation, Mr. McBee was appointed the Acting Director of the Division. FEDERAL AlJDITOR.. Mr. McBee worked ten years as an auditor with the HHS Audit Agency. . He was involved in numerous audits of universities, state and local governments, and Medicare and Medicaid intermediaries. These audits required a detailed knowledge of various Federal program and regulations including the Medicare and Medicaid programs, various Welfare programs, OMB Circulars A-87 and A-21 and OASC-10. I I I I I I I I I I I I I I I I I I I J.C. MCBEE - Page 2 ~ DMG PROFESSIONAL AFFILlA liONS Mr. McBee is a member of the American Institute of Certified Public Accountants, Georgia Society of Certified Public Accountants, and the Georgia Government Finance Officer's Association. EOUCA liON Mr. McBee. received a Bachelor of Science in Accounting from Carson- Newman College in Jefferson City, Tennessee. He is a Certified Public Accountant in the State of Georgia. I I I I I I I I I I I I I I I I I I I TROY TANGEN, CPA, CGFM .~ DMG BACKGROUND Troy Tangen, Senior Consultant. Mr. Tangen is a Senior Consultant with David M. Griffith & Associates, Ltd. His background includes over seven years experience with state and local governments as both a consultant and auditor. CONSULTING EXPERIENCE Mr. Tangen's primary responsibilities include the development, preparation, and negotiation of cost allocation plans, proposals, and rates in accordance with applicable costing principles and Federal Regulations (Office of Management and Budget Circular A-8?, "Cost Principles for State and Local Governments.") Mr. Tangen has prepared approximately 100 cost allocation plans for state and local governments. These cost allocation plans are utilized for the identification of allowable indirect costs associated with programs funded with Federal and/or state funds, and have been negotiated with Federal negotiators from Commerce, Housing and Urban Development, and the Interior. Mr. Tangen has performed several cost of service .studies for state and local governments. He has determined the full cost of services (including the direct cost of operations and allocated overhead costs) and computed cost-based user fees for local government operations such as solid waste disposal, facilities. maintenance, and shared city/county services. He has also developed cost allocation plans to compute the cost of incarcerating prisoners in local government jail facilities and housing U.S. Marshal prisoners in these .facilities. Mr. Tangen has prepared cost allocation plans for the development of chargeable rates for state data processing and telecommunication internal service funds. Cost allocation plans for rate development purposes have been prepared for the Alabama Data Systems Management and Telecommunications Divisions, the Georgia Telecommunications Division, and the Mississippi Information Technology Services agency. .Mr. Tangen has also assisted in the review and assessmemt of cost allocation procedures performed by the Georgia Computer Services and Telecommunications Divisions. Mr. Tangen's primary responsibilities include the development, preparation, and negotiation of cost allocation plans, proposals, and rates in accordance. with ap.plicable costing principles and Federal Regulations (Office of Management and Budget Circular A-8?, "Cost Principles for State and Local Governments.") I I I I I I I I I I I I I I I I I I I TROY TANGEN - Page 2 ~ DMG CONSULTING EXPERIENCE continued Mr. Tangen has prepared approximately 100 cost allocation plans for state and local governments. These cost allocation plans are utilized for the identification of allowable indirect costs associated with programs funded with Federal and/or state funds, and have been negotiated with Federal negotiators from Commerce, Housing and Urban Development, and the Interior. Mr. Tangen has performed several cost of service studies for state and local governments. He has determined the full cost of services (including the direct cost of operations and allocated overhead costs) and computed cost-based user fees for local government operations such as solid waste disposal, facilities maintenance, and shared city/county services. He has also developed cost allocation plans to compute the cost of incarcerating prisoners in local government jail facilities and housing U.S. Marshal prisoners in these facilities. Mr. Tangen has prepared cost allocation plans for the development of chargeable rates for state data processing and telecommunication internal service funds. Cost allocation plans for rate development purposes have been prepared for the Alabama Data Systems Management and Telecommunications Divisions, the Georgia Telecommunications Division, and the Mississippi Information Technology ServiGes agency. Mr. Tangen has also assisted in the review and assessment of cost allocation procedures performed by the Georgia Computer Services and Telecommunications Divisions. Mr. Tangen worked for the State of Florida Office of the Auditor General, where he conducted numerous financial, compliance, and operational performance audits for various state agencies, colleges, and universities. Mr. Tangen was the Auditor-In-Charge of the Department of Legal Affairs (Attorney General's Office), which included the responsibilities of audit plan and program development, staff supervision, workpaper review and compilation, and audit report preparation. He also had OMB Circular A- 128, A-133,and Yellow Book audit assignments with the Florida Department of Education, Universities Board of Regents, State Board of Community Colleges, Florida State University, and Tallahassee Community College. Additionally, Mr. Tangen has had consulting experience with the Small Business Institute in cooperation with the Small Business Administration, and worked as an accountant for General Electric Government Services on contracts with the U.S. Air Force. I I I I I I I I I I I I I I I I I I I TROY TANGEN - Page 3 ~ DMG PROFESSIONAL AFFILIATIONS Mr. Tangen is a member of the American Institute of Certified Public Accountants, the Association of Government Accountants, and the Georgia Government Finance Officer's Association. EOUCA TION Mr. Tangen is a Certified Public Accountant (CPA) licensed in the states of Georgia and Florida, in addition to being a Certified Government Financial Manager (CGFM). Mr. Tangen received a Bachelor of Science degree with majors in Accounting and Finance from Florida State University. He als'o received a Master of Business Administration (MBA) from Florida State University. --,. - '. - - -~" -. - -. - ... . .. i-- - ._:..:.# "7\'. - -- .................. - - ---.--.... --....... - -- ~ --~~- ,i4.ssociation Count'! Cornnlissioners of Georgia ~': ~;~!f: cl?z~. ~u!ce :eGC: ':'c:'.,J '7~J~::.- ".~::.-:; 't June 3, 1997 . CO\.lNi~ '" \!:i't j\.R\ct\Mg:,~ OFfICE ~O~\N\SiR"i '1 . . . \ . Mr. Charles R. Oliver, Ad!TIinistrator Augusta/Richmond County 530 Green Street Augusta, Georgia 30911 Dear Mr. Oliver: Enclosed please find two copies of the contract to provide professional consulting services to Augusta/Richmond county through DMG. After reviewing, please sign and return one copy to me. If you have any questions feel free to contact me. I am looking forward to working with you. Sincerely, ~.- -. t--- Mike Stewart Director of Financial Service ~~ \. ~ ~:\" ~\- cp'U\c~ o~~o'f:'f: ..1,~ .c:, . ~\c~ ~o~ ~'\~ ~~ . ~~'U ,:\~c:, t' "'o~ j~\\ ~ ~ ~1 /J~"'t'l . ~o CO cE ,,\c~~o<<s Of~ ~\.lGU~~s"'t?p.."'tO ,,01'<' .. .. AGREEMENT TO PROVIDE PROFESSIONAL CONSULTING SERVICES TO AUGUSTA/RICHMOND COUNTY THIS AGREEMENT, entered into this ~L day ,1997 and effective immediately by and between Association County Commissi ers of Georgia (hereinafter called the "Consultant") and Augusta/Richmond County (hereinafter called the "County"), WITNESSETH THAT: q " WHEREAS, the County has programs which it operates with outside funding, and WHEREAS, the County supports these programs with support services paid from appropriated funds, and . . WHEREAS, outside users may pay a fair share of these costs if supported by an approved . cost allocation plan, and WHEREAS, the Consultant can provide personnel knowledgeable and experienced in the requirements of developing and negotiating such governmental cost allocation plans, and WHEREAS, the County desires to engage the Consultant to assist in plan preparation. NOW THEREFORE, the parties hereto mutually agree as follows: 1. Emplovment of Consultant. The County agrees to engage the Consultant and the Consultant hereby agrees to perform the following services. 2. Scope of Services. The services to be performed hereunder are set forth in Exhibit A . attached hereto and incorporated herein by reference. 3. Time of Performance. The services to be performed hereunder shall be undertaken and completed in such sequence so as to assure their expeditious completion and best carry out the purposes of the agreement. 4. Term of Contract. This contract is for 1 997 and at the County's option may be extended for three one-year extensions, through the year 2000. 5. Compensation. The County agrees to pay the Consultant a sum not to exceed $27,000 for all services described in Exhibit A in year one (1). This amount includes reimbursement for expenses. Consultant agrees to complete the project and all services provided herein for said sum. Subsequent year services will be charged a sum not to exceed $25,000. Payment is due in full within thirty days following submission of the invoices. 6. Method of Payment. Payment will be made by the County to the Consultant of the agreed upon amount in Paragraph 4. Consultant will submit an invoice for: 50% upon delivery of draft report and 50% upon delivery of final report. 7. ChanQes. The County may, from .time to time, require changes in the scope of the services to be performed hereunder. Such changes, which are mutually agreed upon by and between the County and the Consultant, shall be incorporated in written amendment to this agreement. . .. . 8. Services and Materials to be Furnished bv the County. The County shall furnish the Consultant with all available necessary information, data, and materials pertinent to the execution of this agreement. The County. shall cooperate with the Consultant in carrying out the work herein, and shall provide adeqLiate .Iiaison between the Consultant and other agencies of the County government. The County will produce photocopies of required documents at its own expense. 9. Termination of AQreement. The County shall have the right to terminate this Agreement for cause by giving written notice to the Consultant of such termination and specifying the effective date thereof, at least five (5) days before the effective date of such termination. Consultant shall be entitled to compensation for services rendered and accepted by the County through the effective date of termination. 10. Information and Reports; The Consultant shall, at such time and in such form as the County may require, furnish such periodic reports concerning the status of the project, SUCh statements, certificates, approvals, and copies of proposed and executed plans. and claims and other information relative to the project as may be requested by the County. The Consultant shall furnish the County, upon request, with copies of all documents and other materials prepared or. developed in relation with or as part of the project. 11. Records and Inspections. The Consultant shall maintain full and accurate records with respect to all matters covered under this agreement. The County shall have free access at all proper times to such records and the right to examine and audit the same and to make transcripts therefrom, and to inspect all program data, documents, proceedings, and activities. 12. Subcontractor. The parties hereby acknowledge and agree that the services to be performed hereunder shall be performed by David M. Griffith & Associates, Ltd. in accordance with the terms of this agreement. 13. Accomplishment of Proiect. The Consultant shall commence, carry on, and complete the project with all practicable dispatch, in '? sound economical and efficient manner, in accordance with the provisions thereof and all applicable. laws. In accomplishing the project, the Consultant shall take such steps as are appropriate to insure that the work involved is properly coordinated with related work being carried on within the County. 14. Provisions ConcerninQ Certain Waivers. Subject to applicable law, any right or remedy which the County may have under this contract may be waived in writing by the County by a formal waiver, if, in the judgment of the County, this contract, as so modified, will still conform to the terms and requirements of pertinent laws. 15. Matters to be DisreQarded. The titles of the several sections, subsections, and paragraphs set forth in this contract are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of the provisions of this contract. 16. Completeness of Contract. This contract and any additional or supplementary document or documents incorporated herein by specific reference contain all the terms and conditions agreed upon by the parties hereto, and no other agreements, oral or otherwise, regarding the subject matter of this contract or any part thereof shalt have any validity or bind any of the parties hereto. . . . 17. When RiQhts and Remedies Not Waived. In no event shall the making by the County of any payment to the Consultant constitute or be construed as a waiver by the County of any breach of covenant, or any default which may then exist, on the part of the Consultant, and the making of any such payment by the County while any such breach or default exists shall in no wise impair or prejudice any right or remedy available to the County in respect to such breach or default. ,. 18. Personnel. The Consuitaiit represents that it has, or wili secure at its own expense, all personnel required in performing the services under this agreement. All of the services required hereunder will be performed by the Consultant or under its supervision, and all personnel engaged in the work shall be fully qualified to perform such services. 19. CopvriQht. The County acknowledges that the report format to be provided by Consultant is copyrighted. Consultant shall ensure that all copies of its report bear the copyright legend. The County agrees that all ownership rights and copyrights thereto lie with Subcontractor. The County may use the report solely for and on behalf of its operations. The County agrees that it will take appropriate action by instruction, agreement or otherwise with its employees or agents to satisfy its obligations with respect to use, copying and security of the report format. 20. Liabilitv If Audited. During the three year period following completion of the plan, the Subcontractor will undertake to respond to Federal or State negotiators' requests for information and documentation of costs contained in the cost allocation plan and indirect cost negotiation agreements in the case the plan or rates are the subject of future audit disallowances. However, subsequent to the three year period, separate invoices for fees and expenses related to such consultation will be submitted to the County. Such fees shall be based on Consultant's then prevailing fees for such assistance. All such service shall be approved in advance by the County. Any disallowances are the sole responsibility of the County. 21. Notices. Any notices, bills, invoices, or reports required by this agreement shall be sufficient if sent by the parties hereto in the United States mail, postage paid, to the addresses noted below. Association County Commissioners of Georgia Jerry R. Griffin, Executive Director 50 Hurt Plaza, Suite 1000 Atlanta, Georgia 30303 David M. Griffith & Associates, Ltd. 1280 Peachtree Street, Suite 200 Atlanta, Georgia 30309 Augusta/Richmond County Charles R. Oliver, Administrator. Augusta/Richmond County 530 GreenStreet Augusta, Georgia 30911 IN WITNESS WHEREOF, the County and the Consultant have executed this agreement as of the date first written above. ~ By: ~ C/e-or-!, TIt/f clocwnenllpplOV8d I' / . ~. ., ~. -' A/I .~IoA....t.lY'- ~-'-' ...:Jt:::~I/t....., r'(~'1tb",... - -' "l-t/!J7 . Ie Association County Commissioners. of Georgia /-- ./ ./ / By: ~~tt1 ME,THODOLOGY AND WORK PLAN The following approach outlines the methodology and work program necessary to complete a Full Cost and Administrative/Central Services Cost Allocation Plan. II Utilize a data collection and research process that provides a total understanding of the County's operations and structure. Sound analysis during this phase will ensure comprehensive analysis in later phases. .. II Interaction with County officials and department personnel to assure that project developments and results are consistent with their objectives and needs. . Follow-up after delivery of completed plans to promote County staffs greater understanding and utility of information presented. Outlined in the following work plans are the tasks necessary for the County's Plans to be successfully completed. DMG will be utilizing NGCSII Cost Allocation software. This new enhanced version of the DMG Cost Allocation Plan software is currently being utilized in preparing over 1,800 County and County Cost Allocation Plans. This enhanced software and its methodology have been reviewed and approved by state and federal negotiat6rs across the United States. NGCSII will allow the County, should it desire, to collect the Cost Plan data in a paperless environment. Also, NGCSII will accept downloadsfrom the County's accounting and purchasing system and should allow for a more efficient process for County personnel. This work plan is concerned with those tasks necessary to develop data needed for the Full Cost and Administrative/Central Services Plans. It should be noted that each task is not necessarily a mutually exclusive step in the process of completing the project. For example, the development of allocation base data (Task #8) will be conducted @ 1997, David M. Griffith & Associates, Ltd. Augusta/Richmond County Cost Allocation Plans Association County Page 1 Commissioners of Georgia METHODOLOGY AND WORK PLAN throughout the project as data reports are received and interviews with County staff (Task #6) will be held throughout the period of on-site work, depending on the availability of appropriate County staff.' . ................... . .... ...:.;.;...>..;.;.:../.....;.-:......,-..: ", ..........-;.:.....:.-......;..:-......,.:...., .. .' ......; [f&~'igilfflf~llil'fi~!I!II'll~i~r*lg1f~~~~~~11~1~11~;:rt~~~Jg~l, ..:::2~~?-~~.(~;.:~~~:~r~~:~:;...!;.~~f~!~~~::~~j:~~9y!g~.~...~~/:~~;........ ....... :.........:.:........:.:......:.......:......::.:....::::::.:...:...:..::::.:..::.:.::.:..:..................::....... .::. ... III INFORMATION REQUEST AND COLLECTION DMG will submit to the County, at least 30 days prior to project initiation, a detailed information request outlining the data necessary to prepare the Cost Allocation Plans. Also as part of this request, we will include a suggested . interview schedule. so that County Staff can be notified far enough in advance to allow sufficient time .to prepare for the consulting team's arrival and keep office disruption to a minimum. III FIELD WORK At the completion of field work, DMG will present to County Staff a status report outlining the accomplishments of the project team as it pertains. to interviews completed and data gathered. If any information is still missing,' or interviews not completed, we willso note for County Staff. This will allow both County Staff and the consulting team to minimize the number of additional requests for information from participating departments. II EDUCATION PROGRAMS The key to the success of this engagement and the County's continuation of its policy regarding cost allocation is to fully inform all parties affected by this process. To ensure minimum disruption, total understanding, and plan implementation, DMG is proposing, at a minimum, the following education efforts. @ 1997, David M. Griffith & Associates, Ltd. Augusta/Richmond County Cost Allocation Plans Association County Page 2 Commissioners of Georgia '.' METHODOLOGYAND WORK PLAN >- Workshop with Central Service Departments. During the early stages. of the cost plan process, the consulting team and County Staff would meet with the Central Service Departments to explain the cost plan process. This would include project schedule; the. data requested and why; and an overall education program regarding the purpose and benefit of the cost allocation plan process. This workshop can be done in a two-hour timeframe during field work. ? Workshop with Receiving Departments During field work, DMG and County Staff would request that all receiving departments attend a program of similar time and content as the one described above. In addition to the educational effort regarding the purpose and benefit of cost allocation, we would also allow the receiving departments the opportunity. to express their concerns and to offer suggestions for refinement to the plan. We have found these types of programs to be highly beneficial to both the consulting team and County Staff during the review of draft plans. ? Workshop with County Management Team The consulting team's Project Coordinator, Donald A. Carter, and designated representatives from the County would present to the County Management Team the purpose and benefit of the County's cost allocation process and plan. The purpose of this briefing would be to reeducate the County Management Team regarding the policy implications of the County's commitment to developing full cost information for all County services. During this briefing, DMG .and County Staff would solicit input and suggestions from the County Management Team regarding their concerns and recommendations regarding improvements to the process and outcome. @ 1997, David M. Griffith & Associates, Ltd. Augusta/Richmond County Cost Allocation Plans Association County Page 3 Commissioners of Georgia METHODOLOGY AND WORK PLAN (Special Note: Should it be decided by the County Management Team that a presentation ofthis nature would be of benefit to the Commission, DMG would prepare and present this information to the County Commission based ana schedule agreed to by all parties). . In addition to these educational programs, we have outlined for your review those tasks necessary to develop data needed for the Full Cost and Administrative / Central Services Plans. The work program begins with the development of detailed cost allocation plans which . comply with the provisions of OMB A-8? and is divided into a total of sixteen tasks. Our second phase concerns the development of a cost plan using full costing concepts. Our . last phase involves summarizing the results of our work and identifying indirect cost recoveries for the County. This phase is concerned only with those tasks necessary to develop the A-8? cost allocation plan. During this phase the total costs of County departments which provide services are clearly identified and allocated to users of those services. The tasks are as follows: TASK 1. OBTAIN AVAILABLE FINANCIAL INFORMATION. This task involves obtaining copies of the various sources of financial information that identifies the County's budgeted cost for 1997. At a minimum, we will need copies of the following information: · 199? General Budget · 1996 Actual Revenues and Expenditures TASK 2. OBTAIN AND REVIEW CURRENT ORGANIZATION CHART. This task involves reviewing the County's organization chart applicable to 1997 and comparing the chart to the year's approved budget to determine if there have been any changes. TASK 3. MEET WITH COUNTY STAFF TO CONFIRM ORGANIZATION CHANGES. This task involves meeting with appropriate County staff to confirm any evident changes, @ 1997, David M. Griffith & Associates, Ltd. Augusta/Richmond County Cost Allocation Plans Association County Page 4 Commissioners of Georgia METHODOLOGY AND WORK PLAN determine their impact on the cost plan structure, and discuss any other changes in the cost plan structure that may better serve the present and future needs of County management. TASK 4. INVENTORY FEDERAL FUNDS ADMINISTERED BY THE COUNTY. This involves surveying targeted departments to determine what Federal funds are being received, the programs that receive them, which agency ad.ministers them, and the extent of recovery of administrative costs. This information is used as an aid in identifying the areas of greatest potential for additional cost recovery. TASK 5. ESTABLISH AND CLASSIFY PLAN COST CENTERS. The level of detail within.the County's account code structure required for cost centers to be reflected in the plans will be determined. Each cost center will be classified either as a "central service" (source of indirect costs) or "receiving" (receiver of indirect costs) department for Plan purposes. From these determinations, the basic structure of the Plan will be developed using the NGCSII software. TASK 6. INTERVIEW CENTRAL SERVICE STAFF. Interviews with managers of appropriate County staff will be scheduled and held to carefully determine what variety of distinct administrative functions may exist within a single administrative cost center. The best rationale for distributing the administrative unit's costs across those internal functions and the best available statistical indicator to be used for allocating each function's costs . to user cost centers will also be identified. TASK 7. RECORD ADMINISTRATIVE COSTS. Budgeted costs of each administrative cost center for the fiscal year ending December 31, 1997 will be recorded and distributed by functional activity using the New Griffith Cost System. TASK 8. DEVELOP ALLOCATION BASE DATA. This task of the project involves the analysis of a diverse variety of statistical reports and other information collected as the best available indicators of relative levels of administrative support provided by administrative units to their respective users. Depending upon the level of cost center detail reflected in these reports, allocation base data will be summarized or extrapolated to correlate with the level of detail upon which the. Plans will be structured. . Follow-up discussions with appropriate County staff will be necessary to complete this task. @ 1997, David M. Griffith & Associates, Ltd. Augusta/Richmond County Cost Allocation Plans Association County Page 5 Commissioners of Georgia METHODOLOGY AND WORK PLAN TASK 9. REVIEW ADMINISTRATIVE COST CENTERS FOR COSTS RECOVERED BY DIRECT BILLINGS, BUDGET TRANSFERS, ETC. Occurrences of reimbursements to administrative units directly to the General Fund, which may not be readily apparent from financial records reviewed will be determined. These costs will be examined and appropriate adjustments of allocable costs will be made. TASK 10. SUPERVISE AND VERIFY DATA ENTRY. The Project Manager will be responsible for supervising and verifying the accuracy and completeness of data entered into the New Griffith Cost System. Advanced data editing and verification capabilities are major enhancements incorporated into the current DMG software. . TASK 11. REVIEW FIRST DRAFT OF THE PLAN. The Project Manager will carefully review the summary and detail schedules for. accuracy and clarity of presentation. This analysis will be presented in worksheet form to appropriate County staff to assist their, review of the first drafts. TASK 12. . PRESENT FIRST DRAFT AND WORKPAPERS TO THE COUNTY. The desired number of copies of the first draft of the Cost Plan will be presented to the County along with the comparative analysis described above. This task includes time devoted to receiving and responding to questions and comments received from County staff during their review of the draft plan. During this period of review, all workpapers used in the preparation of the plan will be available to the County staff upon request. TASK 13. REVISE PLAN TO FINAL FORM AND PRESENT TO COUNTY. Following completion of the County's review of the draft plan and receipt of any requests for changes, plan . . data will be revised and five (5) copies will be presented to the County. . TASK 14. SUBMIT AND NEGOTIATE A-87 PLAN, IF REQUIRED. Within two weeks of completion of the cost plan, DMG, on behalf of Augusta/Richmond County, will submit . to the County's cognizant Federal agency copies of the A-8? Plan for their review, if necessary. The plan shall be documented with comprehensive work papers which will become the property of the County. Also, DMG will defend the plan against any audit for a three year period at no cost to the County. @ 1997, David M. Griffith & Associates, Ltd. Augusta/Richmond County Cost Allocation Plans Association County Page 6 Commissioners of Georgia METHODOLOGY AND WORK PLAN - - Special Note: Unlike our competitors, DMG has never failed to successfully negotiate an A-87 Cost Plan with the appropriate State or Federal agencies. - TASK 15. FINAL ApPROVED PLAN BY COGNIZANT AGENCY, IF REQUIRED. DMG will furnish to the County Staff five (5) copies of the completed cost allocation plan which has been accepted by the cognizant agency, with figures and narrative included. TASK 16~ INSTRUCTION FOR COUNTY STAFF. DMG will provide instruction for the County Staff to insure proper implementation of the plan as prepared. This phase of the work involves costing services provided to non-Federal programs, such as enterprise funds. Therefore, the cost principals of OMS A- 8? need not be used and substitution of full cost principals will be necessary. TASK 1. CONVERT PLAN TO "FULL COST" PLAN. Our first task in this phase will be to convert the A-8? plan to one which (1) expenses capital outlays, (2) includes certain general government operations, (3) allows interest expense on building and equipment, and (4) uses allocation bases which may not be acceptable to Federal negotiators. The .plan will then be re-run and reviewed with your staff. Five (5) copies of the plan will be provided to the County's Finance Director. . TASK 2. DETERMINE CHARGES TO ENTERPRISE FUNDS AND NON-FEDERAL SOURCES. This task will center upon developing billings to enterprise funds but will also provide estimates of increased revenues from new or increased user fees, licenses, permits, and contract COStil!g. These estimates will direct .you to the areas where further cost analysis would appear to be justified for increasing revenue from these sources. @ 1997, David M. Griffith & Associates, Ltd. . Augusta/Richmond County Cost Allocation Plans Association County Page 7 Commissioners of Georgia oj METHODOLOGY AND WORK PLAN Following our completion of the various cost plans, we will provide the County's Finance Director with a letter identifying the results of our work. We will also provide a review of the County's data collection worksheets, allocation bases, indirect cost pools, and methods of distributing costs. Further, we will identify strategies and procedures that could be adopted by the County and result in additional indirect cost recoveries in future years. @ 1997, David M. Griffith & Associates, Ltd. Augusta/Richmond County Cost Allocation Plans Association County Page 8 Commissioners of Georgia , , ". / , . @ 1997, David M. Griffith & Associates, Ltd. Augusta/Richmond County Cost Allocation Plans Association County Page 9 Commissioners of Georgia