1986-04 Establishing Policy of Indirect Cost Accounting for the KIB Utility Funds.KODIAK ISLAND BOROUCTT
ORDINANCE NO. 86-04
AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ESTABLISHING POLICY OF
INDIRECT COST ACCOUNTING FOR THE KODIAK ISLAND BOROUGH UTILITY FUNDS.
WHEREAS, the Utility Funds should properly reflect all costs
attributed to those funds for correct rate determination of users, and
WHEREAS, the lack of the method of allocation for all of these
charges was not formally documented by the findings and recommendation of our
recent audit.
NOW THEREFORE, BE IT ORDAINED, that Title 13 Section 01 of the
Kodiak Island Borough Code is hereby amended to add:
13.01.199 Indirect Costs
Indirect costs will be allocated to the various capital improvements
projects based on a reasonable formula to be developed by the Borough
Engineer. The formula as developed will be approved by the Mayor and
implemented by the Finance Director. Indirect cost so allocated will be
posted to the accounting system of the project not less frequently than
quarterly (monthly preferred).
A. Projects under construction indirect cost allocation for projects
under construction will be by a reconcilable formula developed by
the Borough Engineer, approved by the Mayor and implemented by the
Finance Director.
B. Completed projects Completed projects are closed out from the
capital improvements fund and are capitalized into the respective
Utility Fund. Thereafter the services provided by the General Fund
to water and sewer type funds will be accomplished on a reimbursable
basis. This will be through a reasonable allocation process
developed and implemented by the Finance Director after approval by
the Mayor.
PASSED AND APPROVED by the Kodiak Island Borough Assembly this 6
day of February, 1986.
KODIAK ISLAND BOROUGH
By
By
orough Mayor
I
12,/,
residing Officer
First Reading, Approval Date: 2 Janu 1986
Second Reading, Public Hearing, Approval Date: 6 February 1986
6 February 1986
Passage Date:
Effective Date: Upon Passage