Cost Allocation Plan - Budget Division

Closed November 22, 2022, 03:00 PM

  • Reference number91804-005.0
  • StatusOpen
  • SummaryThe City of Kalamazoo, Michigan, is soliciting proposals for annual detailed full and actual cost allocation plans for fiscal years ending 2022, 2023 and 2024. The City will hire one (1) Consultant to prepare the cost allocations plans specified in this Request for Proposals.

91804-005.0 Proposals Submitted(PDF, 8KB)

91804-005.0 RFP Document(PDF, 370KB)

The City of Kalamazoo, Michigan, is soliciting proposals for annual detailed full and actual cost allocation plans for fiscal years ending 2022, 2023 and 2024. The City will hire one (1) Consultant to prepare the cost allocations plans specified in this Request for Proposals. It is the intent of this solicitation that the Consultant works with the City to develop methodologies and procedures that will optimize potential indirect cost and service recovery.

The City has contracted with an outside consultant for its annual cost allocation plans and that contract has now ended. However, many processes have changed in recent years, so the methodologies behind the allocation basis need to be re-examined. The City is on a calendar-year fiscal year and has a number of funds to which central service costs need to be allocated. In addition, the City is requesting additional cost allocation plans, all to be calculated on an annual basis and which are detailed below.

The City currently uses the following financial systems: Eden and BS & A. These systems provide comprehensive financial data in order to analyze and provide the cost allocation plan. The City of Kalamazoo has recently undergone a chart of accounts conversion that will impact the comparison of data from 2021 to 2022. The City of Kalamazoo has conversion files that will allow the Consultant to complete the cost allocation plan. The City of Kalamazoo will be working on a separate RFP for a new Enterprise Resource System (ERP) that may impact future years of the cost allocation plan.

Because the City is the recipient of a number of federal grants, a cost allocation plan must be compiled in accordance with 2 CFR Part 200 “Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards” (formerly OMB Circular A-87).

The following services are being sought in this Request for Proposals. The cost allocation plans are used by the City of Kalamazoo to claim indirect costs as charges against awards (grants), special revenue funds, and enterprise funds. The City of Kalamazoo receives three cost allocation plans each year as described below. Previous year plans can be found on the City of Kalamazoo’s website under “Cost Allocation Plans”.

     A. Full cost allocation plan for City central services, compliant with generally accepted accounting principles, including:

          a. Cost allocation of administrative services including: management, financial services, and records

          b. Cost allocation of facilities and maintenance

          c. Cost allocation of 311 customer service calls

          d. Cost allocation of City machinery and vehicular equipment

          e. Cost allocation of the Public Safety Department administrative expenses to the City’s Public Safety divisions

          f. Cost allocation of the City’s Information Technology Department to the various funds of the City

     B. Full cost allocation federal plan, compliant with 2 CFR part 200

          a. Identification of grant overhead for application to Federal Grants

     C. Full cost allocation of the Public Services Administration, compliant with generally accepted accounting principles, including:

          a. Cost allocation of administrative services including: management and financial services that benefit Public Service divisions

          b. Cost allocation of the Utility Services that benefit Public Service divisions

          c. Cost allocation of Public Services Administration Building(s) including depreciation and maintenance

          d. Identifying overhead costs related to Miss Dig services to non-city entities