Sec. 106.811. - Method of allocation.

The Director of Finance and Administration shall develop rates applicable to the operating departments and activities for allocating indirect costs to be charged to using departments and activities associated with direct services rendered. Such rates shall be formulated by grouping the indirect costs of the operating department or activity into functional costs pools which shall be distributed to or divided among the units of such operating department or activity by means of a base which shall measure the relative degree of benefit which the operational units derived from the pool. The Director shall identify all activities and their attendant costs, incorporate those costs allocated to the operating department or activity, classify all activities performed and attendant costs as being either direct or indirect, eliminate all unallowable costs, classify the indirect costs which benefit subunits of the operating department or activity in significantly different proportions into functional cost pools, select the appropriate base for distribution of each classified pool to the benefitting departments and activities and calculate an indirect cost rate for each operating department or activity by relating the total indirect costs of each operating department or activity to that department's or activity's direct cost base. (Ord. 77-691-638, § 2; Ord. 83-591-400, § 1; Ord. 2016-140-E , § 16) Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization. Note— Former § 126.811.