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Q. What kinds of benefits have communities realized due to FCA?

Communities have understood the following benefits by using FCA:

• Rates or tipping fees are set right and fairly.

• Budget requirements are secured with clear data.

• Privatization queries are answered on the basis of complete cost data.

• More services are accessible at less money.

In Los Angeles, California, the mayor was worried about the cost of solid waste management, so the city starts moving towards FCA. Throughout that system, it has been able to set benchmarks, make evaluation, and identify efficiencies. FCA permits the city to find out how it can do superior with its current programs.
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The city of Phoenix, Arizona, is one more example. A few years ago, the city begins using FCA and challenging with the private sector for solid waste services in various parts of the city. In the early bid rounds, the private sector won. The public sector obtains its new accounting information and firm that it had to do better. The city then acknowledged some areas where competence could be enhanced and won back some of the bids.

Sacramento County, California, also realize new efficiencies in the area of compilation. The county was allowing for changing from a manual, two-person collection system to an automated, one-person collection system. The public in support of the two-person system, but the cost was excessive. The county skilled the public about the one-person system and describe that if it worked, they might acquire a rate decrease for that service. With the new service, the county can keep rates down and steady them over the last three years.

Sacramento County also used FCA to modify the level of service offered for pickup of recyclables and compostable. The county decisive that weekly collection services were very costlier for the services render. The county is currently implicated in a pilot program that is examining every-other-week collection in its place. The county estimates that it can save $1.3 million in this particular program with this modification.

In Columbia, Missouri, FCA permits the public works department to perform meaningful cost comparisons in performance measurements with other cities and track performance from year to year. Columbia has used FCA to efficiently assess the impact new programs have on rates and to set rates to guarantee financial constancy.

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M9554930

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