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Cost Allocation Plans, Rate Model, Identifying System Efficiencies/Leveraging Funds . TD Trivia. TD Trivia. What day will Transportation Disadvantaged Day take place on in 2013?. March 21, 2013. TD Trivia.
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Cost Allocation Plans, Rate Model, Identifying System Efficiencies/Leveraging Funds
TD Trivia • What day will Transportation Disadvantaged Day take place on in 2013? March 21, 2013
TD Trivia • True or False, A CTC should not use the rate model to determine non-emergency Medicaid transportation rates because these are set by state statutes? False
TD Trivia • How many years has the Commission been hosting the Transportation Disadvantaged Best Practices & Training Workshop? 20 Years!
TD Trivia • True or False, the rate model comprehensive budget spreadsheet tab cover two years of calculations? False – It’s 3 years
TD Trivia • Name the two best ever TD Commissioners.
Your Thoughts • What did you hope to learn in this session?
Cost Allocation Plan • Should develop plan before CTD rate model • Allocation plan should support 1st year of financial model • Any rate(s) adopted by a CTC should be supported by an exclusive cost pool made up of projected identifiable and allocable costs
Cost Allocation Plan • Should be cost-based • Assigning costs to multiple distinct cost pools (services/rates) • Amount of expenditure dependent on measure related to the provision of service • Assign number of employees to cost pool • Allocate overall costs among different cost pools • Fully allocated • Allocated indirect
General • Major classifications of costs • Administration (overhead: executive direction, administrative and clerical, finance & accounting, etc.) • Management (specific to TD program: customer eligibility, scheduling, dispatch, customer record keeping, invoicing, etc.) • Operations (direct operations: driver labor, vehicle capital and operating costs, insurance, etc.)
Methodology • Basis for allocation • Cause-and-effect • Benefits derived • Fairness, or ability to bear • Ethics • Change
Methodology • Ratio / Percentage based • % of personnel • % of benefit • Use based • Number of trips per program • Number of miles or hours • Space based • Square footage • KEEP BASIS REASONABLE!
Direct Costs • Direct program benefit • Program specific personnel • Fuel • Vehicle • Easily traceable back to specific program
Indirect Costs • Not program specific • Timeliness • Consistency • Accuracy • Audit - AID • Accumulation • Identification • Distribution method
Uncollectable Budgeted Costs • The following should not be considered for rate-making purposes: • Co-pays not paid; • No-show, no pay; • Match requirements; and • Shortfalls in other rates.
Non-Recoverable Costs • The following should not be considered for rate-making purposes: • Costs covered by federal, state, or local capital acquisition or operating subsidies; • Costs covered by co-pay/farebox revenues; • Costs covered by special contracts for service; and • Costs covered by any other special rate or revenue.
Unallowable Cost • Liquor / Lotto • Lobbying • Bad debt • Who’s gotten a speeding ticket while on work related travel? • Entertainment • Land
Allocation Model • Cost Model • Revenue • Eligibility • No duplications • Expenses • Data • Passenger miles • Passenger trips • Assign line item expense accounts • Calculate average unit costs • Document rationale for assigning costs
General • Develop a cost allocation plan for the services being priced. • Start with the latest version of the Rate Model from CTD website. Currently Ver 1.4. • Process approval from CTD staff before going to the LCB. Ideal time is around January.
Comprehensive Budget Tab1 of 2 • Enter correct fiscal period in cells H10 and H11. • Provide explanation for revenues. • Identify source of funds when not specific; • Explain changes 10% or $50,000 between any two periods. • Identify use of revenue between capital VS trips VS system subsidy; • Confirm grant funding match ratios and sources; • Explain all rows with “other”; • Identify bus pass program revenue & expenses; • Confirm expenses for fixed route service only reflect what you pay for bus passes; • Include any in-kind or contributed services;
Comprehensive Budget Tab2 of 2 • Provide explanation for revenues (continued) – • Include allocated indirect cost unless fully allocated in each line item; • Check that grant funded equipment and match is indicated in rows 175-178; • Confirm you haven’t omitted any non-grant funded depreciation expenses in row 171; • List all Contracted Transportation Service providers; and • If program revenue has been realized, notate how these gains are reinvested in the following year(s).
Budgeted Rate Base Tab • Confirm proper revenue and match by trip purchasing grants/programs have been moved to column “J” (the Rate Base). At a minimum this includes: • At least 10% match for CTD non-sponsored grant; • At least 10% match for Shirley Conroy grant; • At least 50% match for 5311 operating grants drawn down on a unit price basis; • Whatever the match is for other capital grants. • If making a rate base adjustment in cell F184, confirm use of proper positive or negative number.
Program Wide Rates Tab • Confirm the passenger mile figures you enter are the passenger mile basis you use in your billing (If you bill by the passenger mile).
What's Next? • Analyze feedback and comments from workshop. • Update Rate Model for next cycle accordingly. • Review the 2009-2013 summary report of Rate Model pricing available on CTD website (and handout).
System Efficiencies • TD bus pass program and/or flex-routes • Issue reduced fare/TD ID cards • ADA bus stop improvements • Gas vouchers • Client and volunteer mileage reimbursements • Trip scheduling criteria • Maximizing vehicle load • Fare policy and enforcement
System Efficiencies FREE LABOR!
Leveraging Funds • Use TD funds to match New Freedom grants as available • Identify in-kind matching opportunities • Corridor grants/Section 5311 • Partnerships with colleges • Vehicle sharing among recipients and sub-recipients of federal programs • More coordinated planning!
Coordination Efforts • Education and marketing efforts • Elected officials • Human Service Agencies • Customers • General Public • You have resources • CTD • UWR • CTAA • FDOT
Efficiency Activity • What is your agency’s major cost contributor? • Identify an efficiency improvement implemented to reduce costs. • Explain if the improvement was effective. • How did you get management, staff, or customer buy-in on the improvement?
