Cost Recovery Modeling

Zero-line budgeting is the core to knowing the true costs of operating a program, service, or facility. However, when indirect and overhead cost centers are entered into the equation, many organizations lose sight and effectiveness within budgets and related service models. An agency must strike a balance on true cost recovery without making the process too complex and more costly to monitor and implement than actual yields being generated from the cost recovery modeling.

Come explore the opportunities to create a unique and effective recipe to initiate a genuine and comprehensive cost recovery approach for your organization.

Basic

  • Creation and definition of cost recovery value-driven zone designations

  • Inventory of current program and service portfolio and charting of cost recovery zones

Intermediate

  • Development of cost recovery rates and levels by zone designations

  • Alignment of current program and service portfolio into consensus-built cost recovery zones

  • Define preliminary cost recovery calculations with percentage designations per zone

Advanced

  • Staff workshop for training and orientation of cost recovery programs and platforms

  • Creation of budget development worksheet template to effectively weave the cost recovery designations into related programming and service operational budgets and fee structures

  • Full final report of findings, results, and recommendations to ensure consistent and sustainable implementation

Explore a sound, simple yet effective structure and means to achieve true cost recovery when pricing and budgeting for your respective programs, products, and services. A simple platform of end user metrics when analyzing the cost benefit factors to the value provided will yield a cost recovery model easy to justify to governing boards, effective to understand and implement by staff and make your budget and finance leader very happy. This opportunity will provide current budget and pricing practices and approaches and align them with a cost recovery model customized specifically for your community, customer base and philosophies embraced by the decision makers of the organization.