9220.3     ADMINISTRATION COSTS
(New 10/74)

 

These include all costs at the directorate level and the costs of the staff support organizational units.  Examples of administration costs are executive policy and planning, general administration, budgeting, accounting, personnel, business services, management analysis, training, legal, and any service units not included in the service unit costs above.

 

Administration costs will be distributed in a reasonable manner to the programs unless the agency's appropriation in the Budget Act includes Administration as a separate program.  When this cost is distributed depends on the information needs of management concerning the total cost of each program.  A distribution will be made at least annually at year-end.  In reporting the total cost of each program to management, administration costs will be stated separately.

Administration cost may be distributed to the programs either in total or by organizational units.  The distribution of administration costs may be accomplished by use of any of the following ratios:

 

1. Salaries and wages costs charged to each program
    Salaries and wages costs charged to all programs

 

2. Man-hours charged to each program
    Man-hours charged to all programs

 

3. Total costs charged to each program
    Total costs charged to all programs

 

The costs of the individual work activities which comprise the administration costs may be distributed to the programs based on the method which is most appropriate to the work activity involved.  For instance, the cost of the work activity "Personnel" might be best distributed based on direct man-hours charged to the program, while the work activity "Executive Policy and Planning" might be best distributed based on the total cost of programs.