§ 63I-4a-205. 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, including:

(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, including:

(i) vehicle maintenance and repair;

(ii) a marketing, advertising, or other sales expense;

(iii) an office expense;

(iv) a cost of an accounting operation, including 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.

Renumbered and Amended by Chapter 325, 2013 General Session