Title
Chief Administrative Office recommending the Board:
1) Receive information regarding the impacts of the Auditor approved methodology for spreading Public Health Division administrative costs to various Public Health programs; and
2) Provide direction to staff on the source of funding for these costs (ie. General Fund, Tobacco Settlement Fund Balance, Public Health Fund Balance).
FUNDING: Various
Body
Fiscal Impact/Change to Net County Cost: These costs currently reside in the Public Health administration program. The fiscal impact will vary depending on Board direction.
Background: On April 25, 2011 (Legistar Item 10-0990, version 9), the Board received information on Health Services and the issues surrounding the allocation of administrative costs across multiple programs. The Board directed the Chief Administrative Office to work with the Auditor-Controller to come up with an agreed upon methodology for spreading these costs. Once this methodology had been agreed upon, staff was requested to bring the information back to the Board with the specific dollar amounts associated with these costs to public health programs, specifically Animal Services and County Service Areas (CSA's) 3 and 7.
Health Services and the Chief Administrative Office prepared five scenarios after researching methodologies used in other County departments and considering the guidance from OMB A-87. In order to prepare entries to meet Year End close deadlines, Public Health Fiscal chose a methodology spreading costs to all indexes primarily based on salaries and benefits. The Auditor-Controller subsequently recommended spreading costs based on salaries only.
The difference between General Fund impact of the two methods is approximately $40,000 or less than 2% of total administrative costs. In the interest of time and efficiency, the Auditor has agreed to support Public Health’s methodology based on salaries and benefits for prior expenses, but recommends a spread based on ...
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