CBOC

Item 7.1

January 10, 2005

Item 7.1 Staff Report - Define process and structure to limit Measure F administrative outlays to valid expenses.

We will track all administrative oversight time directly related to individual projects on a project tracking system and report expenditures against the program staffing budget, by fund, by employee, by site, and by project. Department overhead, materials and equipment, shall be allocated across the appropriate funds based on the percentage of the total payroll charged against those funds. We will include the review of the Measure F portion of these expenses in the performance auditors yearly scope of work. Procedures for itemizing and tracking these costs shall be in accordance with the California Cost Accounting Policies and Procedures.

A copy of the California Cost Accounting Policies and Procedures manual is available for your review.