Lesson 5 – Importance

Why Is It Important?

When developing a cost allocation plan, examine the shared expenses you have and determine which basis best fits the type of expenses to be allocated. Whatever basis you do choose should be used consistently, put in writing and be approved by your funding sources and your financial team.

For additional resources on cost allocations, refer to OMB Uniform Guidance for Government Awards, which replaced OMB Circular A-122, A-133, etc.