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Hernando Today

County To Examine Cost Allocations

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By MICHAEL D. BATES

Hernando Today

Published: June 3, 2008

BROOKSVILLE - Deputy County Administrator Larry Jennings on Tuesday admitted that there could be problems with the way cost allocations for county departments have been calculated, and steps are being taken to correct them.

Jennings said he plans to hold meetings in the next couple weeks with department managers and make sure the allocations put together by a Tallahassee consulting firm are correct.

"There could be some errors or problems with the data," Jennings said.

However, that is as far as it goes for now.

County Administrator David Hamilton dismissed a citizen's request for an investigation into the process.

The county's cost allocation process was brought to light in an article published Tuesday in Hernando Today.

That article showed that the county has contracted with a Tallahassee-based firm, Maximus, to prepare cost allocation plans (CAP) for departments.

The county first entered into a $10,500 contract with Maximus in September 2007 and used the firm to prepare the fiscal year 2006 CAP, according to the county finance office.

But questions have arisen as to how the cost allocation data is supplied to Maximus.
Jennings said there are multiple issues that go into cost allocations and the data that goes into the calculations varies by department. Such things as number of staffers, number of computers or square footage of buildings — all that is taken into consideration, he said.

"We have agreed that we will be looking at this data and the assumptions that are being fed into the calculations to make sure the data is correct and accurate," Jennings said.

Jennings said he will also be looking into the data Maximus used to calculate the CAP for Building Director Grant Tolbert's department.

Without raising fees, Tolbert told Hernando Today there is no way he can support his department on the $1.4 million in cost allocations to the county's general fund that Maximus is requiring of him for the current year's budget.

Tolbert's department operates as an enterprise fund, which means that his money comes from user fees paid by customers. It is not general taxpayer money.

Civic Activist Janey Baldwin inserted herself into the controversy and Tuesday asked commissioners for an outside investigation into the county's practice of using enterprise funds to help fund county government.

"This cost allocation system has run amok," Baldwin said.

She said the investigation should be expanded to look into why Assistant County Attorney Kent Weissinger's salary is paid for 100 percent through the utilities department, an enterprise fund.

However, Weissinger's time is not 100 percent devoted to the utilities department. He also works for the county planning and zoning department.

"How many times do we have to pay his salary?" Baldwin asked.

There is no blanket Florida Statute that prohibits governments from using enterprise department money to fund government operations, said Marilyn Rosetti, audit manager with the state auditor general's office.

The only exception to that is if the county has adopted an ordinance, resolution or external restriction that earmarks a specific use of that money.

Meanwhile, Circuit Court Clerk Karen Nicolai said it is important that these cost allocation studies be done. Maximus, she noted, is one of the most-recognized firms in the consulting business.

Reporter Michael D. Bates can be reached at 352-544-5290 or mbates@hernandotoday.com.

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