NCJ Number
95349
Journal
FBI Law Enforcement Bulletin Volume: 53 Issue: 7 Dated: (July 1984) Pages: 20-23
Date Published
1984
Length
4 pages
Annotation
Ways that police managers can obtain cost information needed for an efficient and effective administration are outlined, based on a report published by the National Institute of Justice on police cost analysis.
Abstract
NIJ surveyed 50 police agencies and found that over half rated their cost analysis capability as either fair or poor. Only 27 percent said they used cost information to examine the merits of alternative strategies for meeting their objectives. While almost all police agencies routinely monitor crime rates and other statistics, they rarely track the costs of police services on a regular basis. Depending on the level of complexity required, a cost analysis plan will include the following steps: measuring direct personnel costs by computing the time required to deliver the service and calculating the cost of that time in salaries and fringe benefits; determining direct nonpersonnel costs such as equipment; and tracking the indirect costs of utilities, data processing, and other support functions. The final steps in the analysis involve calculating the total cost of a service and reporting it in a format decisionmakers can understand and use. Such data can be used for planning expenditures, assessing alternatives, and justifying expenses. They also reveal critical relationships among individual budget items. The article includes a sample cost analysis proposal of a burglary prevention program and examples of cost analyses undertaken by four different police departments. One department conducts periodic analyses of particular services such as domestic calls or bank escorts, while others have used cost data to obtain compensation for their work at special events and to help decide whether to buy, lease, or rent unmarked police cars. One footnote is given.