36-110-Resolution No. 80-201 Recorded 10/15/1980AL 36t' a U3
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
A Resolution Adopting Cost E 0
Accounting Guidelines for ) 100 r
Deschutes County ) SOS 1� 7980
flFScfy ' C PA.
RESOLUTION NO. 80-201 COUNT), ON
WHEREAS, Chapter 869, Oregon Laws 1979, provided that the
Executive Department, State of Oregon, would develop model cost
accounting guidelines for public agencies that perform public im-
provements using their own equipment or personnel; and
WHEREAS, Deschutes County may adopt the model guidelines;
now, therefore,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
DESCHUTES COUNTY, OREGON, as follows:
Section 1. That the cost accounting guidelines for
public agencies developed by the Executive Department, State of
Oregon, marked Exhibit A, attached hereto and by this reference
incorporated herein, be adopted as the cost accounting guidelines
for Deschutes County, Oregon.
Section 2. That a certified copy of this Resolution be
filed with the Executive Department, State of Oregon.
DATED this JAUXay of 4047�_ , 1980.
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
ROBERT• •
ATTEST:
w
TAMMY J. I RD ON
Recording Secretary
RESOLUTION NO. 80-201, PAGE 1
E X H I B I T A VOL SMAGE 1,11
COST ACCOUNTING GUIDELINES
I. NUMERIC CODING SYSTEM
A numeric coding system for accounting purposes should be developed.
Each project will be assigned an account number.
Entities with automated accounting systems are encouraged to establish
cost centers for accumulating project costs. Many related costs may
be incurred long before construction actually begins. Project accounting
codes are, therefore, essential to ensure that all chargeable costs are
recorded.
II. PERSONAL SERVICES COSTS
A. The use of detailed time records is a fundamental requirement
for accurately accumulating labor costs. Employe time records
should provide information at an hourly level for type of
activity and by project.
B. The costs of employe vacation, sick leave, all other employer
paid insurance and/or retirement benefits, and all other employer
paid benefits should be reflected in hourly charge rates. Workers'
Compensation costs used in this calculation shall be based on
actual rates paid.
C. Travel time to and from the job site should be charged to the
project.
III. MATERIALS
A. Materials issuance from inventory or stores for use on a particular
project should be documented by requisition forms.
B. Direct material purchases for use on a specific project should be
documented by purchase orders and invoices.
C. Costs of other supplies not directly chargeable to a specific
project should be considered in overhead calculation. See Section V.
IV. EQUIPMENT USAGE RATES
A. Agencies may develop internal usage rates based on depreciation
schedules, investment cost (ORS 279.023(3)), and operating costs
such as fuel, oil, and repairs.
B. Agencies may use widely accepted rate schedules such as those used
by the Oregon State Highway Division for "external" work such as
force account or price agreement.
EXHIBIT A, PAGE 1
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d
VOL 36PAGE 112
V. OVERHEAD AND RELATED COSTS
A. All general administrative and other "overhead" expenses directly
or indirectly applicable to construction activities should be identi-
fied and charged. The use of formula or percentage charge rates is
acceptable if those rates are supported by documentation. Documen-
tation would consist of workpapers showing the rationale and compu-
tations for allocating general administrative expenses.
B. Accounting principles require the capitalization of a wide range of
ancillary costs. Examples are engineering, legal and other pro-
fessional fees, acquisition costs, freight and transportation, and
site preparation.
VI. FINANCIAL REPORTING
The final project costs will be closed to the appropriate ledger account.
Public agencies are encouraged to prepare cost reports on completion of
each project.
7/1/80
EXHIBIT A, PAGE 2