63I-4-203 - Board accounting method.
63I-4-203. Board accounting method.
The board by rule made in accordance with Title 63G, Chapter 3, Utah AdministrativeRulemaking 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 activityin a manner similar to how a private enterprise identifies the total actual cost to the privateenterprise, 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 vehicledepreciation 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 acommercial activity if the agency were required to pay federal, state, and local taxes to the sameextent as a private enterprise engaging in the commercial activity.
Enacted by Chapter 147, 2008 General Session