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Cost Allocation - Essay Example

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Due to considerable economic uncertainty affecting Seattle, the aggregate General Fund revenue estimate for the years 2008-2010 were significantly reduced (City of Seattle 5). Consequently, some additional budget cuts were necessary. While the expenditure reductions focused…
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Cost Allocation
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Download file to see previous pages The City has implemented several programs aimed to support public safety. To start with, in response to the current size of population and the habitants’ calls for police, the Police Department will have 21 new patrol officers every year and more staff on critical times. In order to fulfill the needs of more numerous staff as well as to improve its efficiency, the Police Station will be provided with additional facilities.
When it comes to human services, the main cost driver is an increased demand for such services as food assistance and emergency shelter in difficult economic times (City of Seattle 6). The City devotes a significant amount of money to the Housing First initiative, shelter and day-services programs, and food programs. Finally, given the high level of juvenile delinquency and a great number of deaths due to the availability of guns, the City will support the Seattle Youth Violence Prevention Initiative, aimed to deal with the most vulnerable youth.
These costs drivers were selected as they reflect the needs and priorities of the Seattle community. Public safety, human services, and youth violence prevention should be fully supported by the City as all of these services contribute significantly to the wellbeing of habitants. Identification of individual costs and cost drivers enables the Government to allocate adequate resources to each entity. A more uniform method of allocating costs may result in a disproportionate allocation of costs among the organizations, which would not reflect the actual needs of the society. The allocation of costs in the governmental setting, which involves complex analysis of the current economy and, thus, allows response to the priorities of the society rather than economic benefits for the companies and organizations involved.
The US Department of Human Services has a special Division of Cost Allocation (DCA), the objective of which is to ensure that indirect costs paid by the ...Download file to see next pagesRead More
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