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SECTION 5: FIVE-YEAR FINANCIAL PLAN <br />FINAL REPORT ,/? <br />'7? <br />COST ALLOCATION <br />OPT's fully-allocated cost was calculated as part of the CTIP effort . FY 2004 data <br />were used. The cost allocation was accomplished by assigning a "cost-allocation <br />variable" to each category of operating and administrative expenses. The cost- <br />allocation variable reflects the performance measure upon which the category of <br />expense is based. For example, total expenses for driver salaries are dependent on <br />the vehicle hours of service provided, and total fuel expenses are dependent on the <br />vehicle miles of service provided. Fixed expenses, such as administrative expenses, <br />are incorporated as a fixed rate factor. Breaking down the costs into units costs <br />associated with hours, miles, and fixed expenses allows for a more accurate <br />determination of the true costs of specific services. For the sake of consistency, the <br />expense categories used are the same as those used for the annual Operating <br />Statistics report submitted by OPT to NCDOT. The cost allocation for each <br />individual category of expenses is shown in Exhibit 5-2. <br />EXHIBIT 5-2: OPT COST ALLOCATION <br /> <br />Administrative Expense Item <br />FY 2004 Cost Cost <br />Allocation <br />Variable <br />FY 2004 Data <br />Unit Cost <br />Personnel Salaries & Fringes $148,898 Fixed <br />Employee Development Fixed <br />Other $49,115 Fixed <br />Administrative Subtotal $198,013 <br /> <br />Operating Expense Item <br />Driver Salaries & Fringes $475,087 Service Hours 28,236 $16.83 <br />Other Staff Salaries & Fringes $119,513 Service Hours 28,236 $4.23 <br />Fuel / Oil $185,070 Service Miles 453,249 $0.41 <br />Vehicle Maintenance Service Miles 453,249 <br />Vehicle Insurance Service Miles 453,249 <br />Volunteers Service Miles 453,249 <br />Other Providers $33,060 Service Hours 28,236 $1.17 <br />Other Fixed <br />Operating Subtotal $812,730 <br />TOTAL $1,010,743 <br />The overall fully-allocated cost rates are as follows: <br />Fully-allocated rate per mile = $0.41 <br />Fully-allocated rate per hour = $22.23 <br />Fixed-rate cost factor = 1.24 <br />These cost factors are developed by summing the individual elements from Exhibit <br />5-2. Cost per mile is the $0.41 for fuel, which includes maintenance expenses from <br />Orange County 5-2 <br />COMMUNITY TRANSPORTATION IMPROVEMENT PLAN