HomeMy WebLinkAboutBUDGET AND FINANCE AGENDA 10-14-13central
Sanitary District
SPECIAL MEETING OF THE
CENTRAL CONTRA COSTA
SANITARY DISTRICT
BUDGET AND FINANCE COMMITTEE
Chair McGill
Member Nejedly
Monday, October 14, 2013
3:00 p.m.
Middle Conference Room
1470 Executive Drive, Second Floor
Concord, California
INFORMATION FOR THE PUBLIC
ADDRESSING THE COMMITTEE ON AN ITEM ON THE AGENDA
BOARD OF DIRECTORS:
JAA /ESA NEJEDLY
President
DAVID R. WILLIAMS
President Pro Tem
PAUL H C4USEY
MICHAEL R. AICGILL
TAD J PILECKI
PHONE: (925) 228 -9500
FAX: (925) 676 -7211
wvvw.centralsan.org
Anyone wishing to address the Committee on an item listed on the agenda will be heard when the
Committee Chair calls for comments from the audience. The Chair may specify the number of minutes
each person will be permitted to speak based on the number of persons wishing to speak and the time
available. After the public has commented, the item is closed to further public comment and brought to the
Committee for discussion. There is no further comment permitted from the audience unless invited by the
Committee.
ADDRESSING THE COMMITTEE ON AN ITEM NOT ON THE AGENDA
In accordance with state law, the Committee is prohibited from discussing items not calendared on the
agenda. You may address the Committee on any items not listed on the agenda, and which are within its
jurisdiction, under PUBLIC COMMENTS. Matters brought up which are not on the agenda may be
referred to staff for action or calendared on a future agenda.
AGENDA REPORTS
Supporting materials on Committee agenda items are available for public review at the Reception Desk,
4849 Imhoff Place, Martinez, and on the District's website at wwn- .centralsan.org. Not every agenda item
is accompanied by written supporting material. Reports and information relating to agenda items
distributed within 72 hours of the meeting to a majority of the Committee are also available for public
inspection at the Reception Desk. During the meeting, information and supporting materials are available
in the meeting room.
AMERICANS WITH DISABILITIES ACT
In accordance with the Americans With Disabilities Act and state law, it is the policy of the Central Contra
Costa Sanitary District to offer its public meetings in a manner that is readily accessible to everyone,
including those with disabilities. If you are disabled and require special accommodations to participate,
please contact the Secretary of the District at least 48 hours in advance of the meeting at (925) 229 - 7303.
Budget and Finance Committee
October 14, 2013
Page 2
1. Call Meeting to Order
2. Public Comments
3. Risk Management
*a. Review Loss Control Report and discuss outstanding claims
Staff Recommendation: Review the report, discuss outstanding
claims and provide direction if needed.
4. Expenditures
a. Review Expenditures (Item 3.b. in Board Binder)
Staff Recommendation: Review and recommend Board approval.
5. Review the Memorandum on Internal Control and Required Communications
letter to be issued as part of the year end June 30, 2013 audited financial
statements (Attachments 2 and 3 in Item 6.a. in Board Binder)
Staff Recommendation: Review and provide input to staff if needed.
*6. Receive update on hiring consultant to review and make recommendations
concerning the District's administrative overhead calculation
Staff Recommendation: Receive the update and provide input to staff if
needed.
7. Reports and Announcements
8. Suggestions for future agenda items
9. Adjournment
* Attachment
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La
Central Contra Costa Sanitary District
October 14, 2013
TO. BUDGET AND FINANCE COMMITTEE
FROM: THEA VASSALLO, FINANCE MANAGER
SUBJECT: ADMINISTRATIVE OVERHEAD CONSULTANT REVIEW
Staff is proceeding with the Board's request to hire an outside firm to review the
District's administrative overhead methodology. Staff has referenced the California
Society of Municipal Finance Officers (CSMFO) recommendations for service providers
and has contacted Matrix Consulting Group (MCG). MCG is located in Palo Alto and
provided Union Sanitary District with a complex and detailed overhead model. MCG is
willing to audit the District's current method and will provide suggestions for
improvement with the goal of having a streamlined and less complex administrative
overhead model. Staff has also reviewed other agency administrative overhead
calculations and has found some samples that provide layman's terms and explanations
that can potentially be used in the District's new model.
Staff - Recommended Goal and Scope of Work
Goal:
• Easy to calculate and understand annual model for in -house staff calculation of
administrative overhead
Scope of Work for Outside Firm:
• Review and audit the District's current matrix (full cost recovery model) and make
suggestions for improvements
• Ensure that items included in the District's calculation meet Generally Accepted
Accounting Principles (GAAP), Governmental Accounting Standards Board
(GASB), and Office of Management and Budget (OMB -A87) allowable items
• Provide an itemized list of allowable and unallowable expenses under Federal
and State grant programs
• Provide direction for staff to prepare a second model that is grant compliant
• Provide recommendations on how to account for hot -topic items such as Other
Post - Employment Benefits (OPEB), depreciation, vehicle maintenance, and debt
service
• Discuss pros and cons of using multiple administrative overhead rates, such as
the District's current three -year phase -in percent for external billings and full cost
recovery percent for internal charges to capital projects
• Provide sample calculations and comparisons of recommended methods
Please provide staff with any suggested modifications to the goal or scope of work. The
scope of work should be finalized prior to engaging an outside firm.
Matrix Consulting Group
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welcome to MCG
about MCG
what we do
who we are
employment
client survey
contact us
02OU ►Cara WrmAtlne r+ap
about the matrix consulting group
The Matrix Consulting Group provides a wide range of analytical services to
local and state governments. We are dedicated to working closely with our
govemment clients to provide detailed analysis which leads to the implemen-
taticin of needed change. Key elements of our approach to providing consuh-
ing services to government Include the following:
• Principals manage and serve as field analysts on each of our projects.
• All of our consultants are experienced governmental analysts, with
experience ranging from 10 to 30 years.
• Our methodologies are designed to prove to our clients and the public
that an operational issue exists and dial an alternative will improve
service delivery and/or cost effectiveness.
• We are specialists, not generalists. Each of our consultants has
experience conducting scores of management studies for every
governmental function.
• We maximize field time recognizing [hat our clients' operational issues
am in their offices, not ours.
• We take pride In meeting project schedules while exceeding the
objectives associated with every project we conduct.
• We have a personal commitment to assist our clients in implementing
appropriate solutions to organizational and operational issues.
Page 1 of 1
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The goal of the
Matrix Consulting Group
is to provide solutions to
• our clients' management,
staffing and operational
concems
Our staff ut lize
approaches which
• recognize the unique-
: ness of our clients'
problems while bringing
to these problems the
experience gained from
• other jurisdictions.
We believe that our
principal mission is to
provide detailed,
Objective and practical
solutions which our
clients can Implement
without further study.
http: / /www.matrixcg.net/ 10/9/2013
Matrix Consulting Group
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Page 1 of 1
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overhead cost allocation plans
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welcome to MCG
The Matrix Consulting Group offers a reasonable and defensible basis for
criminal justieo and
about MCG
establishing the cost of administrative support provided to third parties,
dotontion systom
ulllily funds, Internal services, grant programs, special revenue or
planning
what we do
enterprise funds, as well as for recovery of indirect casts via budgeting
fire and omorgoney
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• OMB A -B7 Compliant Cost Allocation Plans: We adhere to the
omorgoney
Federal Office of Management and Budget's Circular ON A -87
communications
guidelines for indirect cost allocation, as well as Generally Accepted
and E•911
employment
Accounting Principles.
community dovolopmont
client survey
• Full Budget Cost Allocation Plans. These plans follow the
Infrastructuro
guidelines of OMB A -87 In theory and methodology, but allow for
maintonanco and
inclusion of more costs than a A-87 compllant plan.
engineering
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Members of our team have performed hundreds of cost allocation plan
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analyses over their careers We tale; extra care to ensure that all parties
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impacted by cost allocation plans understand and accept the results
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http: //www.matrixcg.net/ 10/9/2013