HomeMy WebLinkAboutOrdinance 1410ORDINANCE NO. 1410
AN ORDINANCE ESTABLISHING COST ACCOUNTING GUIDELINES
WHEREAS, Chapter 869 Oregon Laws 1979 require the
Executive Department of the State of Oregon to develop model
cost accounting guidelines for public. agencies, relating to
the performance of construction by said agencies using their
own equipment and personnel, and
WHEREAS, ORS 279.023(3) requires that whenever a public
agency intends to perform or construct a public improvement with
its own equipment or personnel, said agency shall cause to be
kept and preserved a full, true and accurate account. of all costs
of performing said work, and
WHEREAS, the city council of the City of Central Point
believes it to be in the best interests of the city to adopt
cost accounting guidelines for public agencies as developed by
the State of Oregon Executive Department dated July 1, 1980, in
order to fulfill the above requirements of state law, now, there-
fore,
THE PEOPLE OF THE CITY OF CENTRAL POINT DO ORDAIN AS
FOLLOWSt
There is hereby added to the Central Point Municipal
Code Chapter 3.00, which is to read as follows:
CHAPTER 3.00
COST ACCOUNTING GUIDELINES FOR
CONSTRUCTION OF PUBLIC IMPROVEMENTS
3.00.010 Numeric coding system. A numeric coding system
for accounting purposes should be developed. Each project will be
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assigned an account number. Entities with automated accounting
systems are encouraged to establish cost centers for accumu-
lating project costs. Many related costs may be incurred long
before construction actually begins. Project accounting codes
are, therefore, essential to insure that all chargeable costs
are recorded.
3.00.020 Personal services costs.
A. The use of detailed time records is a fundamental
requirement for accurately accumulating labor costs. Employee
time records should provide information at an hourly level for
type of activity and by project.
B. The costs of employee 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 calcu-
lation shall be based on actual rates paid.
C. Travel time to and from the job site should be
charged to the project.
3.00.030 Materials.
A. Materials issued 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 3.00..050.
3.00.040 Equipment usage rates.
A. Agencies may develop internal usage rates based on
depreciation schedules, investment costs [ORS 2.79.023(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.
3.00.050 Overhead .and related costs.
A. All general administrative and other "overhead"
expenses directly or indirectly applicable to construction acti-
vities should be identified and charged. The use of formula or
percentage charge rates is acceptable if those rates are supported
by documentation.. Documentation would consist of workpapers
showing the rationale and computations for allocating general.
administrative expenses.
B. Accounting principles require the capitalization of
a wide range of ancillary costs. Examples are engineering, legal
and other professional fees, acquisition costs, freight and trans-
portation and site preparation.
3.00.060 Financial reporting. The final project costs
will be closed to the appropriate ledger account. Public agencies
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are encouraged to prepare cost reports on completion. of each
project.
Passed by the Council and signed by me in authentication
of its passage this .,~~~day of .~. 1980.
ATTEST:
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`'~ i y corder
Approved by me this
day o f ~-
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z
1980.
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