What is a cost allocation plan?
A cost allocation plan is a formal written plan which defines the method or methods to be used by a contractor to allocate costs which benefit more than one cost objective. The plan should identify those types or classes of costs which will be allocated and include the formula (basis) to be used in allocating the costs as well as a narrative describing the rationale and development of the formula. Supporting documentation for the development of the formula must be maintained. The plan must be logical and systematic and must be revised when circumstances relating to the plan change significantly. Budgets or revenue may not be used as a basis for allocating costs to a DSHS contract. The written plan, supporting documents, and documentation and rationale for any revisions must be maintained by the contractor and made available to DSHS financial compliance monitors upon request.
Related Questions
- Must the indirect cost rate proposal or the central service cost allocation plan be prepared centrally for each state department performing under federal grant programs?
- How do I get a copy of the most recent versions of Chapter 100, Chapter U-200 and the Cost Allocation Plan?
- Who is responsible for preparing the statewide cost allocation plan (SWCAP)?
