DEFINITION:  This is an index of the cost per unit of service provided by B&AO, setting Jan 2008 at 100. The cost is determined by allocating payroll to one of four “units”. The units are the number of advances, lines of accounting entries, matched lines in a reconciliation, and “other” which represents unallocated payroll. The cost/unit is standardized to start at 100, then averaged.

ANALYSIS:  At the end of June 2011, the index was at 63, meaning that services provided are 37% cheaper now than they were at the beginning of 2008. The index breakdown is: Accounting entries (75), Advances (97), reconciliations (18), other (61)

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