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ORANGE COUNTY CONSERVATION CORPS - Twa www.occcorps.org Cost Allocation Plan Cost Allocation Purpose The purpose of the cost allocation is to properly account for and distribute shared costs to all project/program and to properly account for the true cost of each project/program. Direct costs are costs that can be identified specifically with a particular project or program and are charged directly to the project/program. Should sub - grouping occurs within the contract/funding /project such as In- School -Youth (ISY) and Out -of- School Youth (OSY), then the direct cost will be sub - allocated based on the amount of resource and time dedicated to each respective sub -group (not based on budget). Shared costs are those that have been incurred for common or joint objectives and cannot be readily identified with a particular project or program. Only cost that are allowable will be allocated to project/program within OCCC. Cost Allocation Scope Cost allocation is done on a monthly basis to ensure all share cost are allocated to all program. Share costs are allocated using Corpsmembers worked hours for the month in each respective program, funding source in comparison to the entire Corps or actual time allocated by management to ensure an equitable allocation of resources. Should Corpsmembers worked hours for the month deemed not equitable by management, then a modified base will be incorporated in addition to the Corpsmembers worked hours base. Modified base occurs when there are not enough Corpsmembers work hours to equitably and fairly allocate shared expenses. This occurs due to recruitment or enrollment schedule. Modified base might include actual time and actual activity on the project/program. Other considerations will be given by management should project/program deviates from our traditional Corpsmembers hours calculation. Considerations will be determined based on the overall resource usage of the program /grant. Should sub - grouping occurs within the contract/fund /project such as ISY and OSY, then allocated cost will be sub - allocated based on resource and time dedicated to fulfill the deliverable in each respective sub - group. Cost Allocation Procedures Cost allocation is performed on a regularly basis. Shared costs are allocated using actual Corpsmembers worked hours for the period in each program /funding source. A tracking entry is created and entered to allocate shared costs to respective program /funding source. 1. A project /program summary hour report is generated from time clock system. 2. A shared cost report is generated from the accounting system. 3. Summarize project /program hour by project/program and determine the percentage of each. Other considerations may be given to subgroup should subgrouping exists. 4. Summarize shared cost into each category and by line items. 5. Additional consideration (non - hourly based) will be given for project/program that might include a modified base to reflect a more fair and equitable distribution. This occurs when there are not enough Corpsmembers hours due to recruitment or timing of enrollment schedule. 6. Create a journal entry as needed to journalize shared cost from shared cost department into individual project/program. 7. Staff input the journal entry into accounting system and generates a pre - posting report for approval. 8. Chief Financial Officer approves the pre -post report for posting. 1853 N. Raymond Avenue, Anaheim, CA 2801 ?Pline: 714.956.6222 - Fax: 714.956.1944