ALLOCATION OF COSTS – PLAN DOCUMENTATION - 9214
(Revised and renumbered from 9203)
All state agencies/departments will document and retain their cost allocation procedures and methodology in a Cost Allocation Plan (CAP). Each CAP will contain detailed information regarding the costs being allocated, the allocation methodology, and the following information:
- The frequency of allocating various costs to programs
- The foundation for selecting an allocation base
- How often the allocation base is evaluated to determine its continued accuracy
- Anticipated changes in the bases used to allocate costs
All CAPs should be supported by appropriately cross-referenced working papers or system documentation, updated periodically, and retained for reference and audit purposes. A sample outline of a CAP is displayed below:
PROGRAM COST ACCOUNTING, COST ALLOCATION PLAN
- Purpose/Scope/General Overview
- Definitions
- Budget Structure
- Methodology
Allocation of Indirect Cost Pools-Explain the basis for the allocation of administration costs
- Include a description of costs charged to administration.
- Describe the method or methods for allocating each type of cost to programs.
- Allocation Sequence
- Program and Organization Charts in Picture Form Displaying Roll-Up Levels and Coding Schemes
Illustration 9214 displays a sample Cost Allocation Plan.
Revisions
No Revisions for this item.