CITY OF LOS ANGELES, CALIFORNIA Cost Allocation Plan 39 ...clkrep.lacity.org/onlinedocs/2016/16-1345_misc_11-23-2016.pdfCITY OF LOS ANGELES, CALIFORNIA Cost Allocation Plan 39 For

CITY OF LOS ANGELES, CALIFORNIA

Cost Allocation Plan 39 For Central Services and Fringe Benefits

(With Independent Auditor's Report)

For the Fiscal Year Ended June 30, 2015

Certified Public Accountants

CITY OF LOS ANGELES, CALIFORNIA Cost Allocation Plan 39

For Central Services and Fringe Benefits For the Fiscal Year Ended June 30, 2015

Table of Contents

Page(s)

Independent Auditor's Report ................................................................................................................. l

Central Services Cost Allocation Plan 39 Schedule of Salary Base, Allocated Costs, and Rates by

Department to be Applied in Fiscal Year 2016-2017 ..................................................................... 3

Central Services Cost Allocation Plan 39 Schedule of Salary Base, Allocated Costs, and Rates

Including Overtime by Department to be Applied In Fiscal Year2016-2017 ............................................................................................................... 6

Fringe Benefits Cost Allocation Plan 39 Schedule of Salary Base, Allocated Costs, and Rates by

Department to be Applied in Fiscal Year 2016-2017 ..................................................................... 9

Fringe Benefits Cost Allocation Plan 39 Schedule of Salary Base, Allocated Costs, and Rates

Including Overtime by Department to be Applied In Fiscal Year2016-2017 ............................................................................................................. 12

Notes to Schedules ................................................................................................................................ 15

ITIGO Certified Public Accountants

Century City

Los Angeles

Newport Beach

Oakland

Sacramento

San Diego

Independent Auditor's Report San Francisco

Walnut Creek

Honorable Members of the City Council City of Los Angeles, California

Woodland Hills

We have audited the accompanying Central Services and Fringe Benefits Schedules of Salary Base, Allocated Costs and Rates by Department and Schedules of Salary Base, Allocated Costs and Rates Including Overtime by Department (Schedules) of the City of Los Angeles, California (City) Cost Allocation Plan 39 for the fiscal year ended June 30, 2015, and the related notes to the Schedules as listed in the table of contents.

Management's Responsibility for the Schedules

Management is responsible for the preparation and fair presentation of the Schedules in accordance with Title 2 in the Code of Federal Regulations (CFR), Subtitle A, Chapter II, Part 225, "Cost Principles for State, Local, and Indian Tribal Governments" (formerly Office of Management and Budget Circular A-87); this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the Schedules that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on the Schedules based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Schedules are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Schedules. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the Schedules, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the Schedules in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the Schedules.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the Schedules referred to above present fairly, in all material respects, the Central Services and Fringe Benefits Salary Base, Allocated Costs, and Rates by Department and Salary Base, Allocated Costs, and Rates Including Overtime by Department for the City Cost Allocation Plan 39 for the fiscal year ended June 30, 2015 in accordance with the basis of accounting described in Note 1.

Macias Gini & O'Connell LLP 777 S. Figueroa Street, Suite 2500 Los Angeles, CA 90017 www.mgocpa.com

Emphasis of Matters

Basis of Accounting We draw attention to Note 1 to the Schedules, which describes the basis of accounting. The Schedules were prepared by the City on the cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Changes in Cost Centers and Cost Categories As discussed in Note 4 to the Schedules, certain cost centers and cost categories were updated from the prior year's Cost Allocation Plan 38 to more accurately reflect the allocation of costs to the proper organizational units and to accommodate the inclusion of allowable, but previously unrecovered costs. Our opinion is not modified with respect to this matter.

Restriction on Use

This report is intended solely for the information and use of City management, City Council, others within the City, and the U.S. Department of Housing and Urban Development, and is not intended to be and should not be used by anyone other than these specified parties.

H..ad.$ G·;/ i Q'Co;;.d/ (_§p Los Angeles, California November 23, 2016

2

AGING

CITY OF LOS ANGELES, CALIFORNIA Central Services Cost Allocation Plan 39

Schedule of Salary Base, Allocated Costs, and Rates by Department

Based on the Fiscal Year Ended June 30, 2015 To be Applied in Fiscal Year 2016-17

DEPARTMENT/Cost Center Salary Base Allocated

Costs

Balance of Department

Special Fund (Title V)

$ 2,929,434

1,473,541

$ 633,683

ANIMAL SERVICES

BUILDING & SAFETY

CITY ADMINISTRATIVE OFFICER (CAO)

Petroleum Admin. , Proprietary, Capital Projects (Phy. Plant)

Disaster Grants Coordination

CITY ATTORNEY Criminal

Direct Billed - User's Site (Proprietary Depts.)

Direct in City Space (EWDD, Hous. Auth.)

CITY CLERK Elections

Special Assessment Section

CONTROLLER Direct Billed (at User's site)

Direct Billed (in City space)

CULTURAL AFFAIRS

DEPARTMENT ON DISABILITY

ECON. & WORK.FORCE DEV'MT. (was CDD) EWDD, Balance of Department

As Needed Employees

EL PUEBLO

EMERGENCY MANAGEMENT Erner. Mgt. Policy & Public Info.

75,228

19,534,724 8,347,755

70,571,343 8,641 ,298

1,510,120 430,780

286,843 64,781

42,912,570 10,058,531

13,963,018 48,363

4,079,404 437,127

6,133,813 2,018,107

918,010 1,115,499

773,373 32,629

697,531 271,388

4,630,428 4,173,265

1,370,263 587,138

12,866,057 3,556,867

215,827 (13,162) *

1,148,624 (131 ,329) *

978,887 300,653

Rates

21.63%

5.11%

42.73%

12.24%

28.53%

22.58%

23.44%

0.35%

10.72%

32.90%

121.51%

4.22%

38.91%

90.13%

42.85%

27.65%

0.00%

0.00%

30.71%

*Jn some years, the total apportioned amounts may be negative because the negative carryforward amount is higher than the apportioned amounts. In such cases, the rate is set at 0.00%.

The accompanying notes are an integral part of this schedule. 3

(Continued)




DEPARTMENT/Cost Center Salary Base

FINANCE, OFFICE OF Revenue Collections

Cash Management & Street Bonds

FIRE Civilian

Sworn

GENERAL SERVICES Materials Testing

Print Shop

HOUSING+ COMMUNITY INVESTMENT Grant Funded Housing

Enforcement

Housing, Internal Administration

LIBRARY

LOS ANGELES CONVENTION CENTER

MAYOR Executive/Policy Grant Funded & Spec. Prog.

Direct in City Space

NEIGHBORHOOD EMPOWERMENT

PERSOJ\l"'NEL Custody Care (Jails)

Grant-Funded & Special Programs

PLANNING

$ 21,549,839 $ 849,386

23,725,415

341,206,034

6,708,222 2,592,066

16,891,819

24,636,430

8,732,218

60,437,929

1,251,097

6,308,896

5,264,741

NIA

1,925,243

4,980,076

888,592

23,456,271

Allocated Costs

10,385,439

549,090

4,785,750

78,097,992

2,667,431 1,350,783

1,502,248

1,748,951

3,177,956

11,973,433

26,604

4,276,907

5,327,873

NIA

2,427,059

367,825

486,038

8,094,032

POLICE Civilian 123,430,513 20,503,779 Sworn (Police Officers) 879,986,486 157,789,653


Rates

48.19% 64.65%

20.17%

22.89%

39.76% 52.11%

8.89%

7.10% 36.39%

19.81%

2.13%

67.79% 101.20%

NIA

126.07%

7.39%

54.70%

34.51%

16.61%

17.93%

(Continued)




DEPARTMENT/Cost Center Salary Base

PUBLIC WORKS DEPARTl\.1ENT Board Office Direct: Pub. Svcs. $ 734,069 $

Contract Administration Construction Inspection 21,014,380

Engineering Clean Water Infrastructure 29,671,264

Development Services 8,720,270

Mobility 13,030,325

Public Bldgs. & Open Spaces 12,987,092

Sanitation Solid Waste Program 84,926,581 Wastewater/Flood Control I 04,050,591

Street Lighting 18,045,674

Street Services (St. Maintenance) 66,981,508

RECREATION AND PARKS 119,433,639

TRANSPORTATION 103,496,656

zoo 15,143,734

Allocated Costs

653,321

1,745,654

6,794,086

1,344,435 1,766,636

l,233,985

78,020,819

32,777,143

6,601,080

51,174,967

40,784,980

27,374,565

4,894,060


Rates

89.00%

8.31%

22.90%

15.42%

13.56%

9.50%

91.87%

31.50%

36.58%

76.40%

34.15%

26.45%

32.32%

CITY OF LOS ANGELES, CALIFORNIA Central Services Cost Allocation Plan 39 Schedule of Salary Base, Allocated Costs,

And Rates Including Overtime by Department Based on the Fiscal Year Ended June 30, 2015

To be Applied in Fiscal Year 2016-17

Salary Base Overtime Including Allocated

DEPARTMENT/Cost Center Salary Base Salaries Overtime Costs Rates

AGING Balance of Department $ 2,929,434 $ 6,656 $ 2,936,090 $ 10,655 0.36% Special Fund (Title V) 1,473,541 1,473,541 0.00%

ANIMAL SERVICES 19,534,724 19,240 19,553,964 1,096,680 5.61%

BUILDING & SAFETY 70,571,343 7,787,971 78,359,314 760,586 0.97%

CITY ADMINISTRATIVE OFFICER (CAO) Petroleum Admin., Proprietary,

Capital Projects (Phy. Plant) 1,510,120 52 1,510,171 54,915 3.64% Disaster Grants Coordination 286,843 286,843 9,645 3.36%

CITY ATTORNEY Criminal 42,912,570 6,209 42,918,779 831,061 1.94% Direct Billed - User's Site (Proprietary Depts.) 13,963,018 76 13,963,094 0.00% Direct in City Space (CDD, Hous. Auth.) 4,079,404 6,210 4,085,615 57,511 1.41%

CITY CLERK Elections 6,133,813 448,317 6,582,130 220,949 3.36% Special Assessment Section 918,010 49 918,059 215,851 23.51%

CONTROLLER Direct Billed (at User's site) 773,373 13,582 786,955 0.00% Direct Billed (in City space) 697,531 5,243 702,774 35,369 5.03%

CULTURAL AFFAIRS 4,630,428 19,325 4,649,752 815,319 17.53%

DEPARTMENT ON DISABILITY 1,370,263 12,035 1,382,297 17,928 1.30%

ECON. & WORKFORCE DEV'MT. (was CDD) EWDD, Balance of Department 12,866,057 63,134 12,929,191 439,837 3.40% As Needed Employees 215,827 215,827 0.00%

EL PUEBLO 1,148,624 17,998 1,166,622 (4,686) * 0.00%

EMERGENCY MANAGEMENT Em. Prep. Policy & Public Info. 978,887 8,710 987,598 34,888 3.53%

* In some years, the total apportioned amounts may be negative because the negative carryforward amount is higher than the apportioned amounts. In such cases, the rate is set at 0.00%.


(Continued)




Salary Base Overtime Including

DEPARTMENT/Cost Center Salary Base Salaries Overtime

FINANCE, OFFICE OF Revenue Collections $ 21,549,839 $ 33,065 $ 21,582,904 Cash Management & Street Bonds 849,386 849,386

FIRE Civilian 23,725,415 1,537,620 25,263,035 Sworn 341,206,034 170,329,450 511,535,484

GENERAL SERVICES

Materials Testing 6,708,222 974,039 7,682,261 Print Shop 2,592,066 116,592 2,708,658

HOUSING +COMMUNITY INVESTMENT

Grant Funded Housing 16,891,819 13,997 16,905,816 Enforcement 24,636,430 19,546 24,655,976 Housing, Internal Administration 8,732,218 7,434 8,739,652

LIBRARY 60,437,929 24,189 60,462,118

LOS ANGELES CONVENTION CENTER 1,251,097 74 1,251,171

MAYOR Executive/Policy 6,308,896 6,308,896 Grant Funded/Spec. Prog. 5,264,741 5,264,741 Direct in City Space NIA NIA N/A

NEIGHBORHOOD EMPOWERMENT 1,925,243 1,240 1,926,483

PERSOJ\.'NEL Custody Care (Jails) 4,980,076 305,668 5,285,744 Grant-Funded & Special Programs 888,592 888,592

PLANNING 23,456,271 375,097 23,831,368

POLICE Civilian 123,430,513 4,075,974 127,506,487 Sworn (Police Officers) 879,986,486 85,565,421 965,551,907


Allocated Costs Rates

$ 204,111 0.95%

13,777 1.62%

892,765 3.53%

17,031,594 3.33%

310,094 4.04% 104,571 3.86%

32,114 0.19% 37,215 0.15%

23,656 0.27%

4,469,898 7.39%

4,117 0.33%

181,639 2.88%

170,160 3.23%

NIA NIA

5,068 0.26%

6,454 0.12%

27,488 3.09%

3,678,884 15.44%

2,259,387 1.77%

24,013,533 2.49%

(Continued)




Salary Base Overtime Including

DEPARTMENT/Cost Center Salary Base Salaries Overtime

PUBLIC WORKS DEPARTMENT Board Office Direct: Pub. Svcs. $ 734,069 $ 9,786 $ 743,855

Contract Administration Construction Inspection 21,014,380 884,464 21,898,844

Engineering Clean Water Infrastructure 29,671,264 53,341 29,724,605 Development Services 8,720,270 186,079 8,906,349 Mobility 13,030,325 185,494 13,215,819 Public Bldgs. & Open Spaces 12,987,092 6,781 12,993,874

Sanitation Solid Waste Program 84,926,581 8,445,251 93,371,832 Wastewater/Flood Control 104,050,591 4,208,593 108,259,184

Street Lighting 18,045,674 1, 101, 196 19,146,870

Street Services (St. Maintenance) 66,981,508 8,234,570 75,216,079

RECREATION AND PARKS 119,433,639 1,796,077 121,229,716

TRANSPORTATION 103,496,656 15,317,279 118,813,935

zoo 15,143,734 127,124 15,270,859



$ 56,018 7.53%

56,481 0.26%

3,126,143 10.52% 143,277 1.61% 139,402 1.05% 108,227 0.83%

7,126,098 7.63% 7,683,921 7.1 0%

455,985 2.38%

11 ,326,753 15.06%

4,363,680 3.60%

4,132,848 3.48%

394,876 2.59%

CITY OF LOS ANGELES, CALIFORNIA Fringe Benefits Cost Allocation Plan 39



Salary Base Salary Base Allocated DEPARTMENT/Cost Center (Standard) fl J (Special) 111 Costs Rates 111

AGING Balance of Department $ 2,832,336 $ 2,929,434 $ 1,652,227 48.50% Special Fund (Title V) 1,473,541 1,473,541 410,739 27.87%

ANIMAL SERVICES 19,236,960 19,534,724 11,741 ,292 57.90%

BUILDING & SAFETY 68,983,692 70,571,343 38,852,556 49.65%


Capital Projects (Phy. Plant) 1,510,120 1,510, 120 715,572 40.86% Disaster Grants Coordination 260,810 286,843 147,301 49.80%

CITY ATTORNEY Criminal 42,912,570 42,912,570 20,804,408 46.12% Direct Billed - User's Site (Proprietary Depts.) 13,963,018 13,963,018 6,251,526 42.41 % Direct in City Space (CDD, Housing Authority) 4,079,404 4,079,404 1,875,465 43.61 %

CITY CLERK Elections 4,946,011 6,133,813 2,274,819 48.40% Special Assessment Section 918,010 91 8,0 10 506,115 58.65%

CONTROLLER Direct Billed (at User's site) 773,373 773,373 441,034 51.11% Direct Billed (in City space) 697,531 697,531 383,863 49.11%

CUL TIJRAL AFFAIRS 3,315,358 4,630,428 2,553,328 59.78%

DEPARTMENT ON DISABILITY 1,370,263 1,370,263 725,414 45.95%

ECON. & WORKFORCE DEV'MT. (was CDD) EWDD, Balance of Department 12,866,057 12,866,057 6,650,395 51.69% As Needed Employees 215,827 215,827 55, 117 20.32%

EL PUEBLO 960,967 1,148,624 76,495 7.24%

EMERGENCY MANAGEMENT Em. Prep. Policy & Public Info. 905,104 978,887 347,046 37.09%

[l] The Fringe Benefits "Salary Base (Special)" is used to calculate the fringe benefits rates for Medicare, Workers' Compensation, and Unemployment Insurance. The "Salary Base (Standard)" is used to calculate the fringe benefits rates for all other fringe benefits. The Fringe Benefits rates above are a weighted combination of the two calculations.


(Continued)




Salary Base Salary Base DEPARTMENT/Cost Center (Standard) 111 (Special) fll

FINANCE, OFFICE OF Revenue Collections $ 21 ,218,114 $ 21,549,839 Cash Management & Street Bonds 849,386 849,386

FIRE Civilian 23,706,193 23,706,193 Sworn 341,206,034 341,206,034

366.673,668 I** GENERAL SERVICES Materials Testing 6,708,222 6,708,222 Print Shop 2,592,066 2,592,066

HOUSING+ COMMUNITY INVESTMENT Grant Funded Housing 16,618,018 16,891,819 Enforcement 24,351,426 24,636,430 Housing, Internal Administration 8,675,862 8,732,218

LIBRARY 57,723,535 60,437,929

LOS ANGELES CONVENTION CENTER 1,225,627 1,251,097

MAYOR Executive/Policy 6,302,381 6,302,381 Grant Funded/Spec. Prog. 5,247,368 5,247,368 Direct in City Space NIA NIA

NEIGHBORHOOD EMPOWERMENT 1,785,589 1,925,243

PERSONNEL Custody Care (Jails) 4,047,205 4,980,076 Grant-Funded & Special Programs 888,592 888,592

PLANl'<'ING 22,837,367 23 ,456,271

POLICE Civilian 122,665,107 123,430,513 Sworn (Police Officers) 882,817,084 882,817,084

908,938.427 I**

Allocated Costs Rates 111

$ 12,036,826 53.14% 401,430 43.75%

13,282,205 46.33% 249,668,583 69.85%

3,357,886 49.98% 1,317,894 50.77%

8,384,308 47.65% 11,818,578 45.73% 4,365,548 47.53%

35,248,064 55.49%

1,047,387 79.32%

1,909,627 43 .22% 1,913,439 49.38%

NIA NIA

1,045,237 56.56%

2,303,016 52.20% 478,881 49.86%

14,574,479 49.20%

74,931 ,025 59.13% 588,672, 796 65.62%

[I] The "Fringe Benefits Salary Base: Special" is used to calculate the fringe benefits percentages for Medicare, Workers' Compensation and Unemployment Insurance. The "Salary Base: Standard" is used to calculate the fringe benefit rates for all other fringe benefits. The Fringe Benefits rate is a weighted combination of the two above calculations.

** A special rate base is computed for Police and Fire Pensions. This base is used to compute the percentage for the Fire and Police Pension line. See Note 3 in the Notes to the Schedules.


(Continued)




Salary Base Salary Base DEPARTMENT/Cost Center (Standard) [II (Special) 111

PUBLIC WORKS Board Office Direct: Pub. Svcs. $ 734,069 $ 734,069

Contract Administration Construction Inspection 20,418,119 21,014,380

Engineering Clean Water Infrastructure 29,671 ,264 29,671,264 Development Services 8,720,270 8,720,270 Mobility 13,030,325 13,030,325 Public Bldgs. and Open Spaces 12,987,092 12,987,092

Sanitation Solid Waste Program 79,671,877 84,926,581 Wastewater/Flood Control 102,214,567 104,050,591

Street Lighting 16,483 ,647 18,045,674

Street Services (St. Maintenance) 65,408,749 66,981,508

RECREATION AND PARKS 90,439,148 119,433,639

TRANSPORTATION 99,850,495 103,496,656

zoo 13,898,184 15,143,734

Allocated Costs Rates 111

$ 430,759 55.55%

11,627,955 49.30%

15, 176,854 47.13% 4,391,320 46.34% 6,496,405 45.84% 6,501 ,460 46.04%

49,271,491 55.37% 58,939,393 51.55%

9,947,214 51.55%

39,494,155 53.23%

80,051 ,569 85.17%

60,655,866 56.16%

8,393,366 57.54%

[l] The Fringe Benefits "Salary Base (Special)" is used to calculate the fringe benefits rates for Medicare, Workers' Compensation, and Unemployment Insurance. The "Salary Base (Standard)" is used to calculate the fringe benefits rates for all other fringe benefits. The Fringe Benefits rates above are a weighted combination of the two calculations.



Schedule of Salary Base, Allocated Costs, And Rates Including Overtime By Department Based on the Fiscal Year Ended June 30, 2015


Salary Base Salary Base Including

DEPARTMENT/Cost Center (Special~ Overtime Overtime

AGING Balance of Department $ 2,929,434 $ 6,656 $ 2,936,090 Special Fund (Title V) 1,473,541 1,473,541

ANIMAL SERVICES 19,534,724 19,240 19,553,964

BUILDING & SAFETY 70,571,343 7,787,971 78,359,314


Capital Projects (Phy. Plant) 1,510, 120 52 1,510,172 Disaster Grants Coordination 286,843 286,843

CITY ATTORNEY Criminal 42,912,570 6,209 42,918,779 Direct Billed - User's Site (Proprietary Depts.) 13,963,018 76 13,963,094 Direct in City Space (CDD, Hous. Auth.) 4,079,404 6,210 4,085,614

CITY CLERK Elections 6,133,813 448,317 6,582,130 Special Assessment Section 918,010 49 918,059

CONTROLLER Direct Billed (at User's site) 773,373 13,582 786,955 Direct Billed (in City space) 697,531 5,243 702,774

CULTURAL AFFAIRS 4,630,428 19,325 4,649,753

DEPARTMENT ON DISABILITY 1,370,263 12,035 1,382,298

ECON. & WORKFORCE DEV'MT. (was CDD) EWDD, Balance of Department 12,866,057 63,134 12,929,191 As Needed Employees 215,827 215,827

EL PUEBLO 1,148,624 17,998 1,166,622

EMERGENCY MANAGEMENT Em. Prep. Policy & Public Info. 978,887 8,710 987,597



$ 76,986 2.62% 225,175 15.28%

1,348,424 6.90%

2,61l , 155 3.33%

22,500 1.49% 4,840 1.69%

1,288, 118 3.00% 367,628 2.63% 112,423 2.75%

238,420 3.62% 19,997 2.18%

16,651 2.12% 14,489 2.06%

138,072 2.97%

20,060 1.45%

656,172 5.08% 48,373 22.41%

33, 164 2.84%

28,101 2.85%

(Continued)





DEPARTMENT/Cost Center (Special) Overtime Overtime

FINANCE, OFFICE OF Revenue Collections $ 21 ,549,839 $ 33,065 $ 21 ,582,904 Cash Management & Street Bonds 849,386 849,386

FIRE

Civilian 23,706, 193 1,537,620 25,243,813 Sworn 341 ,206,034 170,329,450 511 ,535,484

GENERAL SERVICES Materials Testing 6,708,222 974,039 7,682,261 Print Shop 2,592,066 116,592 2,708,658

HOUSING + COMMUNITY INVESTMENT Grant Funded Housing 16,891,819 13,997 16,905,816 Enforcement 24,636,430 19,546 24,655,976 Housing, Internal Administration 8,732,218 7,434 8,739,652

LIBRARY 60,437,929 24,189 60,462,118

LOS ANGELES CONVENTION CENTER 1,251 ,097 74 1,251 ,171

MAYOR Executive/Policy 6,302,381 6,302,381 Grant Funded/Spec. Prog. 5,247,368 5,247,368 Direct in City Space NIA NIA NIA

NEIGHBORHOOD EMPOWERMENT 1,925,243 1,240 1,926,483

PERSONNEL Custody Care (Jails) 4,980,076 305 ,668 5,285,744 Grant-Funded & Special Programs 888,592 888,592

PLANNING 23,456,271 375,097 23,831,368

POLICE Civilian 123,430,513 4,075,974 127,506,487 Sworn (Police Officers) 882,817,084 85,565,421 968,382,505



$ 1, 132,491 5.25% 16,076 1.89%

770,320 3.05% 35,691 ,417 6.98%

152,146 1.98% 97,842 3.61%

328,969 1.95% 646,759 2.62% 177,027 2.03%

1,787,359 2.96%

284,663 22.75%

122,746 1.95% 120,038 2.29% NIA NIA

99,251 5.15%

147,008 2.78% 29,608 3.33%

483,055 2.03%

8,022,542 6.29% 80,816,153 8.35%

(Continued)





DEPARTMENT/Cost Center (Special) Overtime Overtime

PUBLIC WORKS DEPARTMENT

Board Office Direct: Pub. Svcs.

Contract Administration Construction Inspection

Engineering Clean Water Infrastructure Development Services Mobility Public Bldgs. and Open Spaces

Sanitation Solid Waste Program Wastewater/Flood Control

Street Lighting

Street Services (St. Maintenance)

RECREATION AND PARKS

TRANSPORT A TlON

zoo

$ 734,069 $ 9,786 $ 743,855

21,014,380 884,464 21,898,844

29,671,264 53,341 29,724,605 8,720,270 186,079 8,906,349

13,030,325 185,494 13 ,215,819 12,987,092 6,781 12,993,873

84,926,581 8,445,251 93,371,832 104,050,591 4,208,593 I 08,259, 184

18,045,674 1,101 ,196 19,146,870

66,981 ,508 8,234,570 75,216,078

119,433,639 1,796,077 121 ,229,71 6

103,496,656 15,317,279 118,813,935

15,143,734 127,124 15,270,858



$ 24,126 3.24%

563,432 2.57%

667,976 2.25% 192,566 2.16% 285,115 2.16% 284,192 2.19%

5,776,581 6.19% 4,052,715 3.74%

539,884 2.82%

4, 110,169 5.46%

9,314,727 7.68%

7,060,152 5.94%

547,333 3.58%


Note 1 - Accounting Policies

For Central Services and Fringe Benefits Notes to Schedules

For the Fiscal Year Ended June 30, 2015

The City of Los Angeles (City) prepares its Cost Allocation Plan (CAP) in accordance with Title 2 in the Code of Federal Regulations (CFR), Subtitle A, Chapter II, Part 225, "Cost Principles f or State, Local, and Indian Tribal Governments" (formerly Office of Management and Budget Circular A-87).

The costs allocated in the Central Services and Fringe Benefits CAPs, except for pension and retirement costs (See Note 3), represent the actual costs incurred in fiscal year 2014-2015 as reported in the City's basic accounting system, Financial Management System (FMS), adjusted by the "carryforward" amounts as described below. Costs reported in FMS are accounted for on the cash basis method of accounting. Actual costs incurred during fiscal year 2014-2015 are then added to "carryforward" amounts, which represent the difference between the costs theoretically recovered in fiscal year 2014-2015 and the costs entitled to be recovered in fiscal year 2014-2015. The sum of the actual and carryforward costs (i.e., total allocated costs) is divided by departmental salary bases (see Notes 2 and 3) to calculate overhead rates for each department's cost center (see Note 4). Overhead rates are calculated for "direct" departments, which are departments that do not provide services to other City departments, and for "support" departments with direct cost objectives. Overhead rates of support departments are only calculated for the "direct" component of such departments.

Overhead rates presented in the accompanying schedules will be negotiated with the U.S. Department of Housing and Urban Development (HUD), the City's CAP cognizant agency . Final overhead rates to be applied in fiscal year 2016-2017 will be developed, and approved by HUD based upon this negotiation process. During fiscal year 2015-2016, HUD contracted with the U.S. Department of Health and Human Services (HHS) to negotiate the overhead rates. It is expected HHS will continue to perform the negotiation of the City's CAP for fiscal year 2016-2017.

Note 2 - Central Services CAP - Salary Bases and Overhead Rates

The Central Services overhead rates are calculated and presented under two different methods:

• The first method utilizes a denominator of total salaries excluding overtime.

• The second method uses a denominator of total salaries including overtime.

Total salaries include salaries for all City employees included in each department's respective cost centers. The overhead rates determined using total salaries excluding overtime are utilized for a majority of grant projects. For certain Federal and/or State projects, overhead rates using total salaries including overtime are allowed. Overtime rates were created with overtime costs in the salary base; costs allocated included gas (natural gas utility), petroleum products, water & electricity, and communication lease.

Note 3 - Fringe Benefits CAP - Salary Bases and Overhead Rates

The Fringe Benefits overhead rates are calculated and presented under two different methods:

• The first method utilizes three salary bases:

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For the Fiscal Year Ended June 30, 2015 (Continued)

Note 3 - Fringe Benefits CAP - Salary Bases and Overhead Rates (Continued)

1) The standard Fringe Benefits salary base, which does not include overtime, and represents total salaries subject to retirement. Salaries subject to retirement equal total salaries less parttime and temporary employees' salaries.

2) The special salary base that is equal to the standard Fringe Benefits salary base unless the amount of part-time and temporary employees ' salaries exceed 0.5% of the total salary base, in which case the salary base is then adjusted to include salaries for all employees (total salaries), including part-time and temporary employees.

3) The fringe benefit salary base for Retirement Benefits for civilian employees is arrived at differently from all other cost elements. The information source used for that cost pool is the latest Budget Estimate for the coming fiscal year. To calculate the Retirement portion of the Fringe Benefit rate, the salary base (denominator of rate formula) must be from the same time period as the cost information (i.e. the upcoming fiscal year). Since all other salaries are based on actual payroll from the previous fiscal year, the salary base for Retirement must be prepared separately. The source of those civilian salaries is the Budget Estimate information provided by the City Administrative Officer. Note: for the Economic and Workforce Development Department, the actual salaries were used because they have a significant amount of off budget salary expense. Also, the Mayor and Council include as needed salaries.

• The second method uses a denominator of the special salary base plus overtime.

The overhead rates determined using the standard salary base, special salary base, and the fiscal year 2016-2017 proposed salary base are utilized for a majority of grants projects. For certain Federal and/or State projects, overhead rates using a salary base including overtime are allowed. Overtime rates were created with overtime costs in the salary base. Costs allocated included Workers' Compensation, Medicare, and Unemployment.

The Fringe Benefits overhead rates computed with salary bases, which do not include overtime, are determined by calculating the Fringe Benefits rates for each individual cost pool (i.e., retirement, pensions, health insurance, etc.) and aggregating such rates to determine the final Fringe Benefits overhead rate for each department/cost center presented in the accompanying schedule. These individual cost pool rates, except for those relating to Medicare, Workers' Compensation, and Unemployment, are calculated by dividing the individually allocated cost pool costs by the standard Fringe Benefits salary base. The Medicare, Workers ' Compensation, and Unemployment individual cost pool rates are calculated by dividing the allocated Medicare, Workers' Compensation, and Unemployment costs by the special salary base.

As in the prior year's CAP, Fire and Police Pension System costs are based on estimated rather than actual amounts. The Fire and Police Pension System is the City's pension system for all sworn police, fire, and paramedic employees. The City contributes to the Fire and Police Pension System in conformance with the requirements of the City Charter, Articles 17, 18, and 35. This estimate represents the pension costs in the City's fiscal year 2016-2017 Budget. Historically, actual expenditures have

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Note 3 - Fringe Benefits CAP - Salary Bases and Overhead Rates (Continued)

approximated the budgeted amount. A budget-based estimate is used rather than using actual costs from the two-year fiscal year, because the method of determining the amount of pension contribution to be paid by the City is based on actuarial computations and investment performance results, which may vary dramatically from year to year. Therefore, this cost is not at all well predicted by the actual costs from the prior fiscal periods.

To be consistent with the estimate used for the pension costs, the City used an estimate for the Police and Fire sworn salary rate base for the Pension cost pool in the Fringe Benefits rate computation. This salary estimate is based on the salaries in the City's fiscal year 2016-2017 Budget.

Note 4 - Cost Centers and Cost Categories

Cost centers and cost categories are constantly reviewed for changes and updates in order to more accurately allocate costs to the proper organizational units, and to accommodate the inclusion of allowable but heretofore unrecovered costs.

In the City's fiscal year 2014-15 Budget, the Bureau of Engineering's programs were consolidated from eight programs to five programs. As City accounting records will no longer have the data to support the previous group of Engineering cost centers, and to avoid confusion when discussing CAP cost centers, the CAP is revised to match the current City Budget programs. The Bureau of Engineering cost center realignment in the CAP, using the names currently in the City Budget, is as follows:

1. Stormwater/Flood Control

2. Wastewater Facilities

3. Privately Financed & Assessment

4. Street Improvements

5. Municipal Facilities

6. General Mapping/Survey/Land Records

7. General Eng. & Street Mtc. Eng.

8. Engineering, GASP

Combined into: Clean Water Infrastructure

Combined into: Clean Water Infrastructure

Renamed: Development Services

Renamed: Mobility

Renamed: Public Building and Open Spaces

DELETED (Absorbed into above)

DELETED (Absorbed into above)

No Change: Engineering, GASP

With this consolidation, the indirect cost pool entitled "General Engineering" is deleted. The cost of this activity is much reduced from previous years, and there is no longer work order data to support its inclusion as an indirect pool.

The carryforward calculation accommodates these changes by consolidating the prior information based on the above, together with percentage allocations provided by the Bureau of Engineering.

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Note 4 - Cost Centers and Cost Categories (Continued)

In the Police Department, due to the creation of the two new indirect pools, Security Sworn and Security Civilian (transferred from the Department of General Services (GSD) in CAP 38), the City has created a new Central Services Department Administration cost pool, to maintain consistency in the way the City treats multiple cost center departments with both direct and indirect pools, and to achieve accurate allocation of costs to all Police Department cost centers.

In the City Attorney, the Civil Liability & Workers' Comp cost pool is renamed to Civil Litigation & Workers' Comp.

Note 5 - Central Services CAP- Cost Allocation Bases

The City developed a Central Services CAP to allocate indirect City overhead costs to City departments. The bases used to allocate these costs are as follows:

COST CATEGORY

Building Leases

Building Depreciation

Communications Lease

Computer Assets Depreciation

Equipment Expense Under $5,000

Equipment Depreciation

Gas (Utilities Expenditures)

COST ALLOCATION BASIS

Report of expenditures from the General Services Department (GSD) Property Management account, plus Public Works Financial Management and Personnel Services report of lease payments from special funds by department.

Based on GAAP Depreciation expenses net of federal funding and allocated to departments based on square feet occupied. Library, Recreation & Parks, and Zoo allocations have been reduced to 15% of their total depreciation (represents administrative use only).

Information Technology Agency' s report by department of leased services costs.

Based on GAAP Depreciation expenses net of federal funding by department.

Actual expenditures from department equipment accounts.

G AAP depreciation expenses net of federal funding by department.

Based on gas company billings itemized by building, then allocated by square footage occupied by each department.

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Note 5 - Central Services CAP - Cost Allocation Bases (Continued)

COST CATEGORY

General City Purposes

Insurance

Internal Service Units (ISU) Fringe Benefits

Liability Claims

Petroleum Products

Vehicle Depreciation

Water and Electricity

City Administrative Officer (CAO)

Budget

Employee Relations

General Support

Management & Policy Analysis and Department Liaison

Municipal Facilities

CAO, Internal Admin.


Equivalent personnel, all departments, reduced for proprietary departments who do not benefit from annual City audit.

Occupancy by each department in insured space, and assignment of insured equipment.

Cost of Fringe Benefits for indirect cost pools, determined by the Fringe Benefit Plan step-down report.

Based on actual payments authorized by the City Attorney.

GSD's record of usage by each department.

GAAP depreciation expenses net of federal funding by department.

Report of GSD's payments itemized by building, then allocated by square footage occupied by each department.

CAO report of staff time and effort. Five percent (5%) is allocated to "Council, City Administration."

Based on CAO timekeeping records, remainder by equivalent personnel, to all departments except Department of Water & Power (DWP).

Equivalent personnel, excluding the proprietary Departments.

CAO timekeeping records.

Average of Building Depreciation for single and multiple department uses.

Departmental analysis of administrative support provided to each cost center.

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COST CATEGORY

City Attorney

Municipal Counsel/Gen Counsel & Legislative Svcs

Civil Litigation & Workers' Compensation


City Attorney report of staff time and effort.

City Attorney report of staff time and effort for the Civil Liability Section combined with the report of Workers' Compensation claims paid.

Land Use City Attorney report of staff time and effort.

Police Division Allocated entirely to Police Department.

City Attorney, Internal Admin. Departmental analysis of administrative support provided to each cost center.

City Clerk

Council & Public Services

Records Management

City Clerk, Internal Admin.

City Ethics Commission

Controller

Accounts Payable

Budget and General Accounting

Cost Allocation Plan

Allowable portion is allocated to the Council, the Mayor, and to all departments, based on the City Clerk's report on staff time and effort. Portion serving departments are allocated based on equivalent personnel. Direct portion is allocated to "Other."

Count of boxes stored in the records center, which represents the amount of space occupied by each department's records.


Ethics Commission staff report of time and effort.

Weighted average of Payment Voucher (PV) line items, PY Receivers and Revenue Refund Line Items.

Average of transactions count distributed among all departments.

Cost pool is allocated evenly among all cost centers.

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Note 5 - Central Services CAP - Cost AHocation Bases (Continued)

COST CATEGORY

Controller (Continued)

FMS

Internal Audit

Payroll/Fiscal Systems

Single Audit

Workers' Compensation

Controller, Internal Admin.

Emergency Preparedness

City Dept. Emergency Prep. Coordination

Emergency Preparedness, Internal Admin.

Employee Relations Board

Finance

Citywide Collections

Finance, Internal Admin.


Count of documents keyed into FMS.

Department record of audit hours.

Equivalent personnel, with no allocation to DWP.

Cost pool is allocated in two parts. One portion is allocated by actual grant funds received by departments as stated in the "Schedule of Grant Receipts and Recovered Indirect Costs." The remainder is allocated to other Controller cost centers. The split between these two portions is based on the actual documented work done by the section.

Based on a Personnel Department report of Workers' Compensation awards.


Emergency Preparedness Department report of staff time and effort.


Equivalent personnel, all departments

Based on number of active accounts in each Department as reported by the Office of Finance.


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COST CATEGORY

General Services (GSD)

Assets Management & Leasing

Building Services

Construction Projects

Fleet Services

Mail and Messenger Services

Parking Services

Supply Services

General Services, Internal Adm in.

Information Technology Agency (IT A)

IT Services

Communications Services

Telecommunications

IT A, Internal Adm in.


An average of three statistics: Building Depreciation - Single, Building Depreciation - Multiple, and Building Leases.

Based on actual costs incurred, split out by building and benefiting department.

Report of maintenance project costs from GSD Construction Division.

GSD Vehicle Management System records of service provided.

Report of postage costs maintained by General Services.

Square footage of space occupancy in City buildings having nearby City parking lots.

Proportional cost reports from GSD combining purchasing order amounts and warehousing costs.


Work order report of costs, by department.

IT A records of staff time and effort, computer connections, and radio usage.

IT A records of staff time and effort.


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Note 5 - Central Services CAP- Cost Allocation Bases (Continued)

COST CATEGORY

Mayor

Mayor, Internal Admin.

Personnel

Support Services

Workers' Comp. & Safety

Personnel, Internal Admin.

Police Department

Security Services

Public Works, Board Office

Commission & Department Management

Office of Accounting

Public Works, Board Office, Internal Admin.



Equivalent personnel, all departments with weights assigned to civilian and sworn, and allocations to DWP reduced to acknowledge that DWP provides certain support services inhouse.

Report of Workers' Compensation awards provided by Personnel Department with weights assigned to civilian and sworn.


Report from Police Department detailing staffing and contract payments for security services at City buildings. Allocated to departments based on square footage occupied in these buildings.

Equivalent Personnel allocated to Public Works Bureaus and offices only.

Equivalent Personnel allocated to Public Works Bureaus and offices only

Board Office analysis of administrative support provided to each cost center.

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Note 5- Central Services CAP - Cost Allocation Bases (Continued)

COST CATEGORY

Public Works, Contract Administration

Office of Contract Compliance

Public Works, Con Admin., Internal Admin

Pensions, Police and Fire, Overhead

City Employees Retirement System (CERS) Overhead


Contract Administration report of staff time and effort.

Bureau analysis of administrative support provided to each cost center

Full-time equivalent personnel for Fire Sworn and Police Sworn. This cost pool contains only the overhead costs allocated to Pensions. Pensions' costs are in the Fringe Benefits.

Full-time equivalent personnel excluding Police and Fire, Sworn, Airports, Harbor, and DWP. This cost pool contains only the overhead costs allocated to CERS. Retirement costs are in Fringe Benefits.

Note 6- Fringe Benefits CAP - Cost Allocation Bases

COST CATEGORY

Retirement

Pensions

Flex Benefit Program

Employee Assistance


"Salaries Subject to Retirement" as included in the Budget Estimate for all civilian employees.

"Salaries Subject to Pensions" as included in the Budget Estimate for sworn Police and Fire personnel.

Allocated to departments based on total full time equivalent personnel.

Allocated to Police and Fire Sworn cost centers based on amounts provided by Personnel. Allocated to all civilian employees based on total full time equivalent personnel.

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Note 6 - Fringe Benefits CAP - Cost Allocation Bases (Continued)

COST CATEGORY COST ALLOCATION BASIS

Ordinance Life Insurance Allocated to departments based on the amount of premiums paid.

Medicare Allocated to departments based on payroll records of Medicare payments by department.

Social Security Allocated to departments based on payroll records of Social Security payments by department. Direct departments are excluded from the allocation, except Aging Title V, EWDD As Needed, Fire and Police Sworn Employees.

Part Time, Seasonal Temporary (PST) Allocated to departments based on payroll records of PST payments by department. Direct departments are excluded from the allocation, except Aging Title V, EWDD As Needed, Fire and Police Sworn Employees.

Union Sponsored Benefits Allocated to departments based on Personnel Department records of payments by Memorandum of Understanding groups. Allocations to cost centers in multiple cost center departments are based on bargaining unit membership.

Unused Sick/Vacation Allocated to departments based on payroll records of payments by department.

Unemployment Insurance Allocation is based on Personnel Department records of claim payments.

Workers' Compensation

Hiring Hall Fringe Benefits

Personnel Department database report of claim payments per department. Allocations to cost centers in multiple cost center departments are based on equivalent personnel in office-work type cost centers. For departments with field workers, departments identify the cost center involved.

Allocated to departments based on expenditures in departmental Hiring Hall Fringe Benefits Accounts. Direct departments are excluded from the allocation.

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Documents

CITY OF LOS ANGELES, CALIFORNIA Cost Allocation Plan 39 ...clkrep.lacity.org/onlinedocs/2016/16-1345_misc_11-23-2016.pdfCITY OF LOS ANGELES, CALIFORNIA Cost Allocation Plan 39 For