Full Cost Accounting Study of Solid Waste Management System

GBB conducted a comprehensive Full Cost Accounting Study of the solid waste system serving the Metro Government of Nashville and Davidson County, Tennessee. Utilizing the U.S. EPA’s full cost accounting standardized forms and format developed by the Government Finance Officers Association (GFOA), GBB evaluated all Metro solid waste management system components over an intense four-month period. Performance data were gathered and evaluated for each functional component in Metro’s Division of Solid Waste Management, including administration, collection, recycling, and disposal. Hidden costs, uncompensated services, and all indirect costs were identified and appropriately allocated. Using these data, a full cost accounting model for the baseline fiscal year 2000 was created. The effort resulted in development of accurate cost data on an absolute cost, cost per ton by program and cost per customer basis, which Metro has applied in “benchmarking,” managing their system and making substantial changes and improvements, preparing sound budgets and financial forecasts, and setting accurate rates and charges to recover the full costs of their solid waste management system, as now revamped.