With increased competitive tendering and National Competition Policy, it has become essential for Councils to be able to accurately cost the delivery of individual services. At Campaspe Shire in Victoria, CivilCam, the Shire’s Public Works Business Unit, in partnership with Casala Computing, has developed a computerised activity based costing system known as FastCost.
The System enables the Unit to monitor costs of all activities on either a daily, weekly or monthly basis. It provides ready monitoring of work output including contract performance. It also manages payroll, provides unit rates for every activity undertaken and can compare these against target rates.
In addition, it can check stores issue, reduce overheads via scannable activity sheets, monitor costs of particular activities at particular locations and compare activity costs at various locations. The introduction of the system has brought major benefits to Campaspe in terms of time savings, cost saving and greater efficiency.
Rather than having to wait weeks for data relating to a previous month’s performance, information is always up to date. Particularly where large amounts of money are shifting over short periods, it enables accurate financial scrutiny on an ongoing basis. This ensures excess expenditure does not become a fait accompli. Accurate up to date costing methods make the process of tendering more efficient and less problematic.
Ralph Kop, Manager Public Works, who developed the system, said under National Competition guidelines, eventually all Councils will be expected to set up a costing system to predict and prepare costings.
“This system enables up to date costings which automatically feed into the corporate system,” he said. “It helps to provide better information on work being done in the field and how much is actually being achieved, enabling a comparison with rates and costings.”
After using it for seven months, Council has collected extensive data. This gives more options for reporting where there is a need to provide proof of actual achievements as with competitive tendering.
“Costing is an evolving, moving target under National Competition Policy but this system can track it to ground,” Ralph said.
For residents, the improved costing system means services are more efficiently delivered and at minimum cost.
For further information contact Ralph Kop, telephone (03) 5481 2200.
