12 CAPTURE. COSTTREE 2016 Q3 ISSUE
ROLL CALL
Update employee labor schedules
When using a labor distribution, don’t forget to adjust the salaries, time per departmental function, and add/remove any changes to the employees in your CSDs.
Make source documentation clean and available
Have source material for all expenditures being charged, employee time, adjustments, revenues, and allocation bases with dates and with the human source and the system that generated them.
Include your organization chart
Make sure the agency-wide org chart for your department/fund structure is included and signed.
Consider one-time carry-forward adjustments
In addition to your regular carry-forward adjustments, consider including a one-time adjustment if you know there will be large projects this year. This will flatten your carry-forward true-up in two years.
Post preparation review:
Verify that all functions are charging 100%
Check your formulas and make sure that all your functions across all CSDs are allocating 100% of the costs.
Compare your Summary of Charges to the prior years’. Do the variances make sense? Do the charges make sense overall?
Compare to last year’s plan
Negatives in summary
Check to see if there are any negative charges flowing through the summary. If so, validate that you understand why and justify. In most cases, there should not be a negative allocation indicating you should give back funds.
Include a reconciliation schedule to describe all incoming revenues and costs applied to the expenditures. This will streamline your audit.
Include thorough reconciliation of revenues and adjustments to CSD expenditures
Don’t use negative allocation units
Never include a negative allocation; this skews the bases, and it does not make sense to allocate a “negative” service. Make negative allocations zero.