Service Costing and Fee Studies

"This may strike many readers as odd, but most governments have no idea how much it costs to deliver the services they offer. Even if they can give you a budget figure for each service, it typically excludes indirect costs, such as administrative overhead, capital costs and employee fringe benefits. How can one even establish an appropriate subsidy if one doesn't know the cost of a service?"
- Gaebler & Osborne, Reinventing Government, pp.216-217, 1992

RCS Experience

Like all RCS studies, only partners who have decades of experience will be working with you. This means that we will not send out a junior employee with less experience to do the actual work.

RCS does not expect you to do our work for us. We will not give you time allocation forms to fill out and get back to us. Instead, RCS will sit down with your staff to determine the best way to allocate the service costs. We will have a series of meetings with each department so that they buy into each step of the process.

Management Tool

RCS uses staff's estimate of service units to be performed in a fiscal year to determine the Total Staff Time spent on all services. This allows us to account for 100% of the time of 100% of the staff, which in turn allows the final report to be used as a "business plan" for the department. Including service units can support the need for additional staff or be an early warning that staff reductions will be necessary.

This information can empower the department to provide the budget office with estimated revenues by "product" rather than having the budget office prepare the estimate based on the trend in gross revenues.

The experience of RCS staff will also lead to identification of services where there is no existing fee structure.

Learn more about Service Costing

Contact us for a quote or to see a sample report!