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1100 LOGGER COURT~ BUILDING D, SUITE 100 RALEIGH~ NORTH CAROLINA 27609 (919) 076-6042 April 27, 1984 Mr. Charles D. MoGinnis Cabarrus County Manager Courthouse, Box 707 Concord, North Carolina 28025 Dear Mr. McGinnis: Office of Management and Budget Publication A-8? requires that a new cost allocation plan be developed each year. Therefore, we propose to prepare your 1984 cost allocation plan update for a fee as indicated in the attached contract. Please note that we have again held your fee at the previous year's level. Our firm is continuing to expand, and we are therefore able to contain fees by allocating our overhead and fixed costs over a wider base. We are continuing to explore methods of increasing revenues by charging indirect costs to both additional federal programs and enterprise funds. We are also actively using our cost accounting expertise in the area of "user fees". Most localities are not recovering their actual costs of providing chargeable services such as inspections, planning, landfills, EMS, etc. User fee engagements which we have recently completed indicate that substantial revenues are available from these sources. To assist you in this regard, DM'G offers a program whereby we: · Provide an assessment of your ongoing and potential user fee activities to gain a perspective on the estimated level of anticipated revenues. This is a limited engagement usually taking no more than 20 - 60 hours. · If indicated, conduct a comprehensive analysis of fee service costs and revenues which will provide the full cost of each selected fee-related service. This is necesary if fees are to be related to the cost of providing a service. We are enclosing a brochure which describes our user fee