NCJ Number
54091
Date Published
1978
Length
7 pages
Annotation
THE METHODOLOGY USED IN CHARGING BACK DATA-PROCESSING COSTS TO A NUMBER OF POLICE JURISDICTIONS USING THE SAME SYSTEM IS DESCRIBED.
Abstract
THE METROPOLITAN POLICE DEPARTMENT (MPD) OF WASHINGTON, D.C., HAS BEEN A KEY FIGURE IN THE DEVELOPMENT, MAINTENANCE, AND OPERATION OF THE COMPUTERIZED WASHINGTON AREA LAW ENFORCEMENT SYSTEM. THE COMPUTER FACILITY SERVES 23 LAW ENFORCEMENT JURISDICTIONS AND 6 MULTIPLE DISTRICT OF COLUMBIA AGENCIES IN A QUASI-CRIMINAL JUSTICE INFORMATION SYSTEM. VARIED PROCEDURES OF FINANCIAL MANAGEMENT AMONG JURISDICTIONS, VARIED FINANCIAL AND LABOR INPUTS INTO THE SYSTEM FROM THE USERS, AND THE NEED TO EQUALIZE ANNUAL PAYMENTS ON A SYSTEM WHOSE PARTS HAVE BEEN PURCHASED ON A STAGGERED BASIS ARE SOME OF THE PROBLEMS ENCOUNTERED IN DEVISING A METHOD OF INSURING BILLING AND PAYMENT FOR MATERIALS, COMPONENTS, AND SERVICES REQUIRED TO OPERATE THE MPD COMPUTER FACILITY. THE PACE/KOMMAND PACKAGE WAS SELECTED AS THE BASIC COMPUTERIZED JOB-ACCOUNTING SYSTEM WHICH BEST MET REQUIREMENTS. SPECIAL NEEDS AND VARIATIONS IN THE USER JURISDICTIONS COULD BE REPRESENTED IN THE OVERALL ALGORITHM FOR COMPUTING EXACT CHARGEBACK COST. DIRECT, INDIRECT, AND OVERHEAD COSTS CAN BE REFLECTED IN THE COMPUTERIZED PROCESS, AND EQUITABLE CHARGING IS ACHIEVED WHEN ENTERED PROPERLY IN THE COST FACTOR TABLE. TO ISOLATE REAL-TIME COST, TWO DISTINCT COST CATEGORIES WERE DEFINED. FIRST, ALL COSTS OF COMPONENTS AND SERVICES IN THE REAL-TIME NETWORK OCCURING BEYOND THE 3705 COMMUNICATIONS CONTROLLER ARE BILLED DIRECTLY TO THE INDIVIDUAL USER BY THE VENDOR OF DEDICATED COMPONENTS, AND IN THE INSTANCE OF SHARED RESOURCES, THE USER IS BILLED FOR REIMBURSEMENT FOR AN APPORTIONED SHARE OF THE COST OF THE ITEM. SECONDLY ALL OTHER OPERATIONAL (NOT DEVELOPMENTAL) COSTS OF THE REAL-TIME SYSTEM ARE REPRESENTED THROUGH THE COST FACTOR TABLE AND ACCUMULATED IN THE GROSS COST OF THE REAL-TIME JOB AS KNOWN TO THE OPERATING SYSTEM. SUBSEQUENTLY, BY USE OF PERCENTAGES DEVELOPED AS A RELATIONSHIP BETWEEN THE NUMBER OF REAL-TIME TRANSACTIONS, A PROPORTIONATE AMOUNT OF THE OVERALL COST OF RUNNING THE SYSTEM IS ASSIGNED TO EACH USER. THESE COSTS ARE ADDED TO THE PACE SYSTEM COMPUTED BATCH COST AND ARE USED AS THE BASIS FOR NEGOTIATING THE FORTHCOMING YEAR'S BUDGET FIGURES AND PROCESSING AGREEMENTS. (RCB)