Government Cost Allocation & Rate-Setting SME

The Government Cost Allocation & Rate-Setting Subject Matter Expert serves as the senior public-sector advisor for our public sector client’s Cost of Service Study. This role provides specialized expertise in government financial management, cost recovery methodologies, indirect cost allocation, activity-based costing, rate development, and public-sector budgeting practices. The SME works closely with the Principal Consultant, Cost of Service & Financial Analysis to validate methodologies, review assumptions, assess funding implications, and ensure recommendations align with established government accounting and rate-setting practices. The SME provides independent quality assurance and strategic guidance while helping ensure outputs are defensible, auditable, and suitable for executive, legislative, and oversight review.

• Provide subject matter expertise related to state government budgeting, cost recovery, and financial management practices.
• Advise on public-sector funding models, shared-service organizations, enterprise service providers, and fee-for-service environments.
• Support application of government financial management best practices throughout the engagement.
• Assist in interpreting financial, operational, and policy considerations that may impact agency rate decisions.

• Review and validate proposed cost allocation methodologies and assumptions.
• Advise on allocation approaches for direct, indirect, shared-service, and overhead costs.
• Evaluate cost pool structures, allocation drivers, and attribution methodologies.
• Ensure allocation methodologies are transparent, supportable, and aligned with accepted government accounting practices.

• Review current rate structures and rate-setting methodologies.
• Assess cost recovery models and funding adequacy.
• Advise on the relationship between service costs, revenues, and rate sustainability.
• Validate recommendations related to rate adjustments, cost recovery improvements, and financial sustainability.

• Review forecasting assumptions related to labor costs, inflation, technology expenditures, contract costs, and budget adjustments.
• Advise on public-sector financial risks and cost volatility considerations.
• Validate sensitivity analyses and long-term financial forecasting approaches.
• Support development of risk ratings and sustainability assessments for agency programs and services.

• Perform independent review of key analyses, findings, and recommendations.
• Participate in executive review sessions and stakeholder workshops as required.
• Review draft reports, executive briefings, and presentation materials.
• Ensure conclusions are defensible and supported by documented assumptions and data sources.
• Provide expert briefing support or executive-level guidance if requested by the agency.

• Bachelor's degree in Accounting, Finance, Public Administration, Economics, Business Administration, or a related discipline.
• Fifteen or more years of experience in government finance, rate setting, cost allocation, cost recovery, or public-sector financial management.
• Demonstrated experience leading or advising on cost-of-service studies, indirect cost allocation models, or government rate studies.
• Deep understanding of state government budgeting and financial governance practices.
• Experience developing and evaluating cost allocation methodologies and cost recovery frameworks.
• Experience supporting executive leadership, oversight bodies, or legislative stakeholders.
• Exceptional communication, facilitation, and executive presentation skills.

• CPA, CGFM, MBA, MPA, or equivalent professional credential.
• Experience supporting statewide shared-service organizations, enterprise service providers, utilities, transportation agencies, or large government agencies.
• Experience with activity-based costing, indirect cost rate development, and governmental chargeback models.
• Experience supporting legislative, audit, inspector general, or oversight reviews.
• Familiarity with technology service organizations and internal service fund environments.