Title
Information Technologies Department advising the Board of reduced revenue for the department’s Fiscal Year 2013-14 Budget as a result of a change in accounting practices and in accordance with Board of Supervisors Policy B-1, Budgetary Control and Responsibility.
Body
BUDGET SUMMARY:
Mainframe Charges $1,780,292
Network Charges $1,522,100
PC Support Charges $ 561,271
Total Budgeted Revenues $3,863,663
Total Projected Revenues $0
Change to IT Net County Cost $3,863,663 (increased NCC)
Savings in General Fund Depts -2,893,007
Total Change To General Fund $ 970,656
Background
The County’s Information Technologies (IT) Department provides Mainframe, Network and PC Support services to all County departments. The annual cost for these services is approximately $3.8 million. Historically, these costs have been direct-billed to each department on a monthly or quarterly basis. The charges to departments result in a corresponding offsetting revenue or intrafund transfer in the IT Department budget.
In July, 2013 the IT Director and Assistant IT Director participated in a meeting with representatives from the California State Controller's Office, the Chief Administrative Office and the County Auditor-Controller's Office to discuss the methodology used for calculating and billing IT services for Mainframe and Network Infrastructure support. In that meeting, the State Controller's Office indicated that the methodology which had been in place for many years was no longer supported and directed the County to develop and provide revised methodologies for their Office to review and approve.
Since that meeting, staff from IT, the Chief Administrative Office and the County Auditor-Controller's Office have engaged in a number of discussions to determine appropriate revisions to the cost applied methodologies associated with these IT functions. As part of those discussions, staff defined the services and support within each IT function and conc...
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