Mendocino supervisors direct staff to develop plan to pursue A‑87 cost recovery for non‑general funds

The Mendocino County Board of Supervisors voted unanimously Dec. 16 to direct the executive office and the auditor‑controller to work with departments to identify which non‑general fund budget units — including grants and certain county services — can carry federally accepted A‑87 cost‑allocation charges and to return with a plan for phased implementation.

Supporters said full cost recovery will make budgeting more consistent and transparent. “I view this as a starting point for the county to move towards full cost recovery,” Supervisor Klein said, adding that the patchwork of past arrangements had left some departments paying different shares for the same services.

Opponents and cautious colleagues pressed for more documentation before billing. “I can't support this without some underlying documentation,” Supervisor Williams said. He asked staff to provide the supporting detail behind two line items on the presented schedule — $29,304 and $40,195 — and requested a clear appeal/review process for any disputed charges. Auditor‑Controller Shamice Kubison responded that the cost plan is produced from departmental inputs and time studies and that the office can provide supporting breakdowns; she also noted that some categories are reviewed closely by the state and that special districts are generally disallowed from being billed under A‑87 by statute or code.

The Board’s direction ordered the executive office and the auditor’s office to collaborate with departments to:

- Produce a prioritized list showing which grants, programs or budget units are allowable to be billed A‑87 charges and which are disallowed; - Provide supporting documentation and line‑item backing for material sums that board members request to review; and - Propose a phased or staged implementation and outreach plan so affected entities have time to review invoices before any billing.

Auditor Kubison said the office already provides invoices and supporting schedules annually to affected units and that the figures are subject to discussion and adjustment. She invited board members and department staff to work with the auditor’s office on spot checks and follow‑up questions.

The Board voted to approve the motion to direct staff to return with the proposed implementation plan and documentation; the motion carried unanimously.