HomeMy WebLinkAboutIR 7391 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7391
To the Mayor and Members of the City Council July 6, 1989
Subject: COLLECTION OF INDIRECT COSTS ON
W-B–CM—HEALTH DEAR ART ANTS
The Public Health Department currently has 19 grants federal ,
state and private local sources to supplement the City general
fund monies. Indirect costs are charged on six of these grants .
Historically, the collection of indirect costs has been waived on
the remainder of the grants to support program activities .
The impact of implementing D. H. 963, which centralizes the
recommendation of a waiver or reduction of the approved indirect
cost rate to the Office of Management Services, could adversely
affect program services provided by the health department through
grants . To understand this potential impact a description of the
grant programs is given below.
TEXAS DEPARTMENT OF HEALTH
Sixteen of the nineteen grants received by the Public Health
Department are funded by the Texas Department of Health, Local
Health Services Contract . The funding of all the attachments to
this contract totals $1 ,892 ,881 . Indirect costs in the amount of
op, $71 ,375 are collected on si-x of the fifteen State grant
attachments. If indirect costs were collected on the remaining
attachments, at the last approved rate of 19. 40%, $199, 960 would
be collected. Collection of indirect cost charges would reduce
funds available to support staff resulting in a reduction of 4. 5
Full Time Employees (FTE) in the Maternal/Child Health Program,
17 FTE reduction of a Laboratory worker , 2 . 2 FTE in the
Tuberculosis program, and 7b FTE in the Women, Infants , Children
(WIC) Program.
A downward spiral in program operations begins in the WIC program
with the loss of personnel . Reduction of WIC program staff would
result in a decrease in the number of participants who could be
certified each month. Caseload generates funding in that the
program is reimbursed per participant certified.
The number of food packages issued to participants would also be
reduced impacting the local economy negatively. For example, in
March 1989, the WIC program served 9, 576 individual participants .
The food packages issued to these participants when redeemed in
local grocery stores put $351 ,612 into the local economy during
March 1989.
The WIC program strictly categorizes charges as Nutrition
Education or Administrative. Indirect costs cannot be charged
► against nutrition education. As administrative costs increase it
becomes difficult to meet the requirement of spending twenty
percent of the budget on nutrition education . Waiver of
indirect costs on the WIC program would be essential in order for
the program to continue to operate.
-ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7391
page Z OT 3
�ogiupr�� To the Mayor and Members of the City Council July 6, 1989
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Subject: COLLECTION OF INDIRECT COSTS ON PUBLIC HEALTH
DEPARTMENT GRANTS
FEDERAL GRANTS
Other grants in the Public Health Department on which indirect
costs are waived are the Air Pollution Program from the
Environmental Protection Agency and the Health Services for the
Homeless from the US Department of Health/Human Services .
In the Air Pollution Program collection of indirect costs would
reduce program staffing by 1 FTE.
In the Homeless Program indirect costs are counted as a portion
of the required local agency contribution.
PUBLIC HEALTH DEPARTMENT GRANTS - FY 88-89
SUMMARY OF IMPACT
A
m 19. 40%
0 19. 40% Current
u Potential Indirect Impact
n Indirect Cost on Program
Ott FTE Title t Cost Collected
I I Community/Rural 17, 088 - 0 State Salaried
2 6. 5 Community/Rural 165, 360 32, 079 - i FTE Clinic Nurse
3 10 Maternal /Child 132, 154 25,637 - 1 . 5 FTE Clerk 11
3a 5 Maternal /Child 79, 562 14, 271 - 2 FTE CSA
4 3 Lab 61 , 935 12, 015 - . 7 Lab Worker
5a - Lab 12, 450 - - - Reimburse for
Tests
6 1 Refugee 19, 285 - 2, 998 -
7 2 Outreach 47,058 - 6, 380 -
8 1 TB Control 14, 196 - - - State Salaried
9 10 TB Extended 220, 170 35,693 2 LVN
9a I TB Extended 28, 872 5,601 .20 FTE PHN
10 4 STD 87,960 - - - State Salaried
11 1 STD 57,655 - 7, 393
Ila - STD 4, 265 654 - -
12 22 WIC 586,650 74,010 7 FTE - 5 clerks
2 nutritionist
13 . 5 STD - HIV/AIDS 15, 192 - 2, 464
14 2 AIDS 104, 483 15, 471 -
15 7 AIDS/HERR 238, 546 - 36, 669, -
77 1 ,892, 881 199,960 71, 375 14. 4 FTE
Homeless 173, 569 25,633 contributed as City
support to program
Opp, Air Pollution 129, 697 18, 123 - I FTE
TWC 12, 362 1, 975
1 Adolescent Male 13, 809 - -
Outreach
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7391
Rage 3 of-3---
To the Mayor and Members of the City Council
"Soft? July 6, 1989
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Subject: COLLECTION OF INDIRECT COSTS ON PUBLIC HEALTH
DEPARTMENT GRANTS
To summarize, the impact of charging indirect costs on the Texas
Department of Health, Local Health Services Contract would force
reduction of 14 . 4 FTE and also impact the local economy
negatively. Collection of indirect costs on the federal programs
would require an increase in general funds to meet the required
local program match.
The City Council has approved the waiver of the collection of the
indirect cost for each of the grants referenced above at the time
the Council authorized the acceptance of each grant . Unless
otherwise directed by the City Council , staff will continue to
use the same criteria in recommending the waiver of the indirect
cost .
DOUGLAS HARMA4
CITY MANAGER
-ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS