63I-4-203.   Board accounting method.
     The board by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, shall establish an accounting method that:
     (1) is similar to generally accepted accounting principles used by a private enterprise;
     (2) allows an agency to identify the total actual cost of engaging in a commercial activity in a manner similar to how a private enterprise identifies the total actual cost to the private enterprise, including the following:
     (a) a labor expense, such as:
     (i) compensation and benefits;
     (ii) a cost of training;
     (iii) a cost of paying overtime;
     (iv) a cost of supervising labor; or
     (v) another personnel expense;
     (b) an operating cost, such as:
     (i) vehicle maintenance and repair;
     (ii) a marketing, advertising, or other sales expense;
     (iii) an office expense;
     (iv) a cost of an accounting operation, such as billing;
     (v) an insurance expense;
     (vi) a real estate or equipment cost;
     (vii) a debt service cost; or
     (viii) a proportionate amount of other overhead or of a capital expense, such as vehicle depreciation and depreciation of other fixed assets;
     (c) a contract management cost; and
     (d) another cost particular to a person supplying the good or service; and
     (3) provides a process to estimate the taxes an agency would pay related to engaging in a commercial activity if the agency were required to pay federal, state, and local taxes to the same extent as a private enterprise engaging in the commercial activity.

Enacted by Chapter 147, 2008 General Session
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Last revised: Thursday, May 28, 2009