October 3rd, 2017

Cost Codes and COFARS

Cost Codes Discuss why Cost Codes should be combined/separated for: Engineering Office/Engineering Field Specific projects Miscellaneous work Resource for Discussion: State Aid Accounting Manual Introduction – Chart of Accounts Overview Chapter 15 Construction Costing Engineering: “Any further breakdown or reporting will be at the county’s option” What are some practical guidelines? 11/7/2018

Inventory

Inventory Inventory Management: How do you determine price per unit of measure? How do you track use of inventoried items? Snow and Ice Control Materials: Salt and Sand inventory or spread? What criteria do you use to determine whether or not to inventory an item? What is needed/required by SAF? Other questions – points of discussion? Resource for Discussion: State Aid Accounting Manual Introduction/Task Force/State Aid Finance Team Section & Chapter 13 Inventory Management This was the chat discussion during the webinar: Morrison County has all signs in inventory on cost accounting. What happens if you only need, for example, a stop sign, but the post is remaining on the roadside? do you use half the dollar amount then for the inventory withdrawal? The posts all have a separate inventory number also. I must have misunderstood: it sounded like the spreadsheet which is kept separately had signs and posts as a complete unit price. Is that an incorrect understanding? I have inventory numbers for all signs but I just charge the posts to unallocated roads. So then to clarify: the signs are posted to the individual road, but the posts are posted to unallocated roads. Is that a correct understanding? Yes, the signs get charged to the roads as they are pulled from inventory and the posts get spread by mileage like all our other unallocated roads costs do. I believe that the signs and posts are kept in the cost accounting system is the complete price of all signs and posts, the spreadsheet has all of the individual data We put all costs to salt and sand to the 3x unallocated and spread at the end of the year by gravel road mileage 10% and bituminous miles at 90%. When we sell the salt to customers we credit the dollars to the 3x so as not to double charge. Faribault County inventories cutting edges Hubbard County inventories edges. Mille Lacs inventories cutting edges. Itasca County - we inventory cutting edges and bits separately Morrison inventories cutting edges Mn Petroleum annually checks the tanks for calibration. We have a fuel facility here at Hubbard. We have a tank monitoring system. We have fuel master too. Fuel does expand and contract though so you will always be off monthly up to even 75 gallons. We use Phoenix system for our fuel and all of our vehicles have their own cards that keep track. We have the City vehicles and the Sheriff Dept and our County vehicles and the TMT use our gas. Faribault County has inventory on the books Could you charge it as an "authorized contribution"? We charge the time as work for others even if we don't bill for the usage. Faribault County does not use "dummy employees" Hubbard has used a dummy employee number. We have also used what Gloria said by adding and subtracting hours and dollars to create any entry we need. New Roads doesn’t need labor hours now to put in equipment hours or miles. 11/7/2018

Fixed Assets/Equipment

Fixed Assets/Equipment How to establish rental rate How to use Fixed Asset Report to assist in establishing rental rate for like equipment Fixed Asset Management (Replacement Schedules) Trade-ins Marking a unit sold This was the chat discussion during the webinar: Rental rates are determined once a year for Hubbard. We also review our rates annually. Usually after the annual report is completed. We have set our prices high enough because we have so many contractors trying to make a living that we have eliminated most private work outside the County departments. We do not want to compete with them. We used to do a lot more for Townships and private driveways. New Roads has an area for 3 different rates. Mille Lacs County has discontinued doing work for others. We only assist townships if there is an emergency. There are so many private contractors that are providing that service to the townships and small cities. Some of our larger townships have purchased their own equipment. It has made life so much easier. What does "project specific" mean to you? Yes, thanks You have to list the projects that you think are going to create your money to go in the negative. 11/7/2018

Advances - Counties

Advance Overview M.S. 162.08, Subd 5, 6 and 7 provides counties to make advances from future year’s allocations for the purpose of expediting construction. This process not only helps reduce the construction cash balance, but also allows counties to fund projects that may have been delayed due to funding shortages. This is an interest free option. 11/7/2018

Advance Guidelines Statutory – None - Ref. M.S.162.08, Subd 5, 6 & 7. State Aid Rules – None - Ref. State Aid Rules 8820.1500. Subp 5 & 8 thru 9. State Aid Guidelines: Guidelines: http://www.dot.state.mn.us/safinance/advances/guidelines- county.pdf Advance is limited to counties last “construction” allotment. Advance amount will be reduced by any similar outstanding obligations and/or bond principal payments due. 11/7/2018

Advance Requests Check to see if State Aid Finance has received the advance. Current Year 2017 Advance requests spreadsheet http://www.dot.state.mn.us/safinance/advances/requests -county.pdf Code GREEN – LOW – Construction cash balance at acceptable level to approve anticipated advances. Advances approved on first-come, first-serve basis while funds are available. 11/7/2018

Advance Resolutions Forms & Resolutions http://www.dot.state.mn.us/safinance/formsandresolutions. html#msas The correct resolution must be used for each advance type Resolutions are good for only one calendar year Bond Principal Due and projects require only one resolution Request to Reserve Funds – guarantee funds will be held specifically for county. 11/7/2018

Advance Limitations May Be Exceeded If State Aid funds are used in lieu of federal funds for federal aid advance construction projects programmed by the Area Transportation Partnership (ATP) in the State Transportation Improvement Plan (STIP). - Repayment is made when federal funds are converted. If federal funds fail to be programmed, or the project (portion of it) is declared federally ineligible - Local agency is required to pay back the advance under a payment plan mutually agreed to between State Aid and the county. 11/7/2018

Advances An account balance must be zero and the money needs to be requested with a State Aid Payment Request before receiving an advance. To process a short payment, email project number to John Fox at john.e.fox@state.mn.us. Payments are processed in the order received by SAF and are not project specific or limited to the projects listed on the resolution. 11/7/2018