August 4, 2010 DRAFT FOR DISCUSSION PURPOSES ONLY

1. Commonwealth of Massachusetts IT Consolidation ProgramIT Finance and Budgeting Sub-committee Discussion Document August 4, 2010 DRAFT FOR DISCUSSION PURPOSES ONLY

2. Agenda • Indirect Rate Update (Kathy Sheppard – 5mins) • FY11 Billing Structure (Katy Sheppard – 20mins) • Chargeback Implementation (K. Luddy – 15mins) • “Credit” Methodology (Discussion - 20mins)

3. Indirect Rate Status Update • Final Reports submitted to Secretariats and Federal Government: • ANF, EDU, and EED on 6/30/2010 • ENV on 7/6/2010 • EOPS – in progress • OSC’s Cost Allocation Unit and MAXIMUS are currently responding to Federal questions. • Rates are available for use now.

4. FY11 Billing Structure • Assumptions: • Invoices are based on a rate methodology using the #of department FTEs or PCs • Charges for direct billing of lower subsidiary spending must be clearly attributed to the department and program charged. • It is not expected that lower-sub spending (i.e. phones, copier, supplies for helpdesk, etc.) will be billed through the chargeback methodology during FY11. • Department funding for those FTE’s or PC’s will be a determining factor for memo or chargeback billing by the Secretariat. For Example:

5. Chargeback Implementation Have you calculated the rates? Yes Do you have a formal chargeback approach? Have you communicated charges to your agencies? Let’s Talk No

6. Critical Dependencies Still Under Development