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Policy and Procedures <br />Purpose: The purpose of creating a policy for tracking and assigning cost to <br />programs and administrative services is to provide consistency <br />and compliance with contractual regulations. <br />Policy: Costs should be allocated to grants, contracts, and other cost <br />centers on the basis of use or benefit they derive from the <br />expenditures. <br />Procedures: Class Codes are established to track cost incurred for program <br />operations directly relating to individual grants and contracts and <br />other class codes are established for administrative services. <br />Costs are allocated to the various class codes based on three <br />methods: Space Allocation, Labor Distribution, and Direct <br />Expenses. <br />Allocation plans require the approval of the Executive Director; <br />however, the Director of Finance is responsible for the <br />development and maintenance of the allocation plans. The <br />allocation plans are reviewed on a quarterly basis. The original <br />issue of each plan is filed in the Cost Allocation Manual in the <br />Finance Office. <br />Basis for Allocating Costs <br />1) Develop "Full Time Equivalent" (FTE) assignments to <br />each class codes by creating Labor Distribution worksheets <br />for each Unit. <br />2) Develop "Space Usage" floor plans for each suite occupied <br />or used by staff. Allocate space usage to the applicable <br />programs. <br />3) Determine "Direct Expense" charges for each class code by <br />using the grants and contracts schedule. <br />r: � e <br />