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From our "Pioneering Times" Monthly Newsletter.....

February 2009

As state aid is cut and local revenues decrease, are your indirect costs up to date? If not, you may be missing out on an important funding source.

Indirect costs are those costs that cannot be directly or exclusively assigned to one service. Enterprises often benefit from expenditures made by the general fund. The Massachusetts Department of Revenue (DOR) recommends that these indirect costs be identified and allocated to the enterprise fund using clearly established formulas to prorate the expense among departments. Pioneer Consulting Group, Inc. has completed more than 40 indirect cost studies for Massachusetts Enterprise Funds. All of our studies itemize time and expense by department, and include a percentage for fringe benefits. Employee benefits must also be accounted for in the indirect cost study.


RELATED LINKS – Governmental Accounting Standards Board – American Water Works Association – New England Water Works Association – American Institute of Certified Public Accountants

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