Cost Allocation Services

Service Overview

Accurately allocating costs across programs, grants, and funding sources is one of the most technically demanding compliance obligations for government and nonprofit organizations. Errors in cost allocation can lead to disallowed costs, audit findings, and lost reimbursements. Our cost allocation services help organizations build defensible, well-documented cost structures that satisfy federal requirements and support financial sustainability.

Key Features

• Indirect cost rate proposal development and negotiation support
• Cost allocation plan development for federal and state programs
• Review and updating of existing cost allocation methodologies
• Documentation of allocation bases and supporting rationale
• Financial structure reviews for multi-funded organizations
• Reimbursement support and cost recovery analysis

Benefits

• Defensible cost allocation structures that satisfy federal reviewers
• Improved cost recovery and maximized allowable reimbursements
• Reduced risk of disallowed costs and audit exceptions
• Clear documentation supporting allocation decisions
• Staff understanding of how to apply and maintain the cost structure

Our Process

1. 1
   Review of current cost allocation approach and funding structure
2. 2
   Analysis of shared costs, allocation bases, and indirect cost pools
3. 3
   Development of the cost allocation plan or indirect cost proposal
4. 4
   Documentation of methodology, rationale, and supporting data
5. 5
   Submission support and response to reviewer questions
6. 6
   Annual review and updating as needed