PRODUCTION
Development of Schedule 5 within DETR has taken
account of two factors:
(a) That one of the aims of resource accounting
(and budgeting) is to improve the amount of financial information
available to managers; and
(b) That within DETR there is a high degree
of devolution of financial responsibility, supported both by Centres
of Financial Expertise in the line and by Finance Directorate
centrally.
Procedures to produce Schedule 5 have involved:
(a) Developing mechanisms for attributing
support service costs (e.g., Finance, Legal, Personnel) and overheads
(e.g., accommodation, utilities);
(b) Identifying the main objective or objectives
which policy colleagues support; and
(c) Assessing the extent to which the DETR
accounting system (ASP) can aggregate the financial data to produce
Schedule 5.
Support service and overhead costs are collated
against each policy objective, so that managers can see the total
costs of delivering their objectives. Each policy objective underpins
one of DETR's main objectives, so summing these gives the total
cost of delivering DETR's main objectives.
Cost Attribution
Following merger, DETR had two different systems
of attributing costs which have now been replaced with a single
system. It is proposed that this will be used for calculating
costs of support services and overheads for any internal charging
process; for costing services provided by DETR which are used
by Agencies and for any Fees and Charges purposes, although detailed
discussions are continuing. Various mechanisms for charging are
being considered according to the service provided. Direct charged
services (e.g., Internal Consultancy Unit) will probably be on
the basis of the time expended; accommodation on the basis of
the cost/m2 and indirect services costed on a per capita
or other appropriate unit cost basis. The service costs will take
account of inter-service costs (e.g., Personnel support for Finance).
Programme
Programme costs will be attributed directly
to the policy objective they support and, hence, the appropriate
DETR main objective. This enables cross cutting costs (e.g., Transport
policy development aimed at curbing CO2 emissions)
to be attributed to the appropriate DETR main objective.
In developing these mechanisms the intention
has been to provide managers with useful information over which
they have some control without placing disproportional burdens
on them to provide, maintain and interpret the information.
Timetable
Development of the cost attribution system for
support services is due to be completed in July and a detailed
proposal for producing Schedule 5, by September. Implementation,
including any modification of DETR's accounting system (ASP),
is planned from January 1999.
