HomeMy WebLinkAboutIR 7426 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7426
tea{casr�o To the Mayor and Members of the City Council OCIUBER 31, 1989
tz
Subject:
INDIRECT COST CHARGES ON THE TEXAS DEPARTMENT
OF HEALTH LOCAL SERVICE CONTRACT
HISTORICAL
For many years, extending back at least to the fifties,
the Texas Department of Health has supported the City of
Fort Worth' s public health activities through contacts,
grants, and personnel . This support has been for a
variety of services including maternity care, pediat-
rics, tuberculosis control , special nutrition for women,
infants, and children (WIC) , and other health services.
Historically, the City Council has waived indirect cost
on several of these contracts. This allowed all dollars
received from the Texas Department of Health to be used
for direct health services.
RECENT COUNCIL DIRECTION
During this past summer, the City Council directed that
all grants and contracts which allowed indirect cost
should have them assessed. As a result of this direc-
tion, the public health department will be applying
allowable indirect cost against all Texas Department of
Health (TDH) grants and contracts 1989-90 using the
approved indirect cost rate.
FISCAL AND SERVICE IMPLICATIONS
The loss of $235, 794 to indirect cost from Texas Depart-
ment of Health contract attachments 2, 3, 4, 8 and 11
( community health, maternal and child health, tuberculo-
sis control , women, infants, children program) will
result in a reduction of 11 . 55 FTE service positions.
Attachment 11 which is the WIC program is a reimburse-
ment contract. The City is reimbursed on a monthly
schedule based on the numbers of clients seen. Since it
is a reimbursement program the decrease in staffing and
service that will result from the application of indi -
rect cost is not a fixed number. However, the Public
Health Department estimates that a loss of' 6 FTE (5
clerks, 1 nutritionist ) will result during the course of
the fiscal year.
To offset the lost of these grant funded services, staff
recommends that the City Council approve supplemental
appropriations to the Public Health Department equiva-
lent to the amount of new indirect cost ( Attachment
2, 3, 4 , 8, and 1J ) collected on the 1989-90 Texas Depart-
ment of Health contracts which increases estimated
receipts to the general fund.
-ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7426
�ARTtMtO To the Mayor and Members of the City Council OCTOBER 31, 1989
INDIRECT COST CHARGES ON THE TEXAS DEPARTMENT
Subject: OF HEALTH LOCAL SERVICE CONTRACT
Such monies would be drawn from the Increased estimated
general fund revenues. This will result in no net
increase in general fund expenditures for the City. it
will however result in an increase in general fund sup
ported positions and an equal decrease in grant fund
supported positions for the public health department.
Failure to offset the effect of the new indirect cost
collection will result in the termination of a minimum
of ten grant supported employees during fiscal 1989-90
and the discontinuation of the health services they
provide. The adoption of the additional indirect cost
will also result in an increase in workload in the grant
accounting division.
00*1 Staff wishes to obtain Council direction as to whether
to proceed with this plan so that the contracts can be
returned to the Texas Department of Health for execu-
tion. If the Council concurs with this recommendation,
the M&C for the TDH contracts will be submitted for
approval in the following week.
-Mvid Ivory
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS