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Attachment A – Example fee calculation
The charge for any specific regulatory output should recover the full efficient cost of delivering that specific service. This section outlines the methodology used to cost one such regulatory output: “Registration of industrial chemical introducers”, broken down into business processes and activities.
Table 14 - Cost calculation: processing an ‘Application for registration’
| Regulatory output | Business process | Effort required (hrs) | Average cost per hour ($) | Cost per delivery of regulatory output ($) | Volume delivered annually | Total cost of regulatory output ($) |
|---|---|---|---|---|---|---|
| Registration of industrial chemical introducers | Maintaining register of industrial chemical introducers | 0.56 | $137.01 | $76.57 | 7,326 | $560,958 |
Table 15 breaks down the component tasks of the business process, showing the role that performs each task, the effort required to complete each task, and the cost of each task.
Table 15 - Cost calculation breakdown of the business processes for ‘Maintaining register of industrial chemical introducers’
| Business process | Activities involved | Role performing task | Hours of effort | Cost per role ($) |
|---|---|---|---|---|
| Maintaining register of industrial chemical introducers |
| Registration Support Officer | 0.36 | $48.82 |
| Registration Officer | 0.10 | $13.19 | |
| Assistant Director of Corporate | 0.10 | $13.22 | |
| Director of Corporate | 0.01 | $1.33 | |
| Total hours of effort per application | 0.56 | $76.57 | ||
Table 16 breaks down the component tasks performed by the Registration Support Officer showing the hours of effort required to complete the tasks, the cost per hour of the role, which produces the cost of the task.
Table 16 - Cost calculation breakdown of ‘Registration Support Officer’
| Activities | Role performing task | Role cost per hour ($) | Hours of effort per task | Cost per task ($) [Role cost per hour] x [Hours of effort per task] |
|---|---|---|---|---|
Responding to enquiries from registrants Manual processing of hard copy registration forms submitted by some registrants Payment processing Assessment and processing of write-offs/refund Maintaining integrity of register | Registration Support Officer | $137.01 | 0.36 | $48.82 |
Table 17 breaks down the cost per hour of the role Registration Support Officer.
Table 17 - Cost calculation breakdown of Registration Support Officer by direct and indirect cost
| Role | Direct cost per hour ($) | Indirect cost per hour ($) | Total cost per hour ($) |
|---|---|---|---|
| Registration Support Officer | $68.33 | $68.68 | $137.01 |