A Case Study of IT Chargeback in government Agency

A Case Study of IT Chargeback in government Agency

Dana Edberg (University of Nevada, Reno, USA) and William L. Kuechler Jr. (University of Nevada, Reno, USA)
DOI: 10.4018/978-1-59904-411-8.ch002
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Abstract

In 1997 the Nevada Legislature mandated the formation of an IT division for the Nevada Department of Public Safety (NDPS). Prior to this time the 14 separate divisions within the department had carried out their own IT functions. The legislature also mandated that the full, actual costs for the IT Department would be allocated to the divisions on the basis of use, a form of IT funding known as “hard money chargeback”. Complicating the issue considerably is the legal prohibition in Nevada of commingling funds from multiple sources for any project, including interdivisional IT projects. Five years after its creation, there is a widespread perception among users that the IT Division is ineffective. Both the IT manager and the department chiefs believe the cumbersome chargeback system contributes to the ineffectiveness. This case introduces the concept of chargeback, and then details an investigation into the “true costs of chargeback” by the chief of the NDPS’s IT Division.

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