Non-Profit Cost Allocation Plan Strategies
Crafting an Effective Plan to Distribute Direct and Indirect Expenses
Recording of a 110-minute CPE webinar with Q&A
This teleconference will prepare accounting advisors to work effectively with non-profit organizations on a comprehensive approach to create a cost allocation plan that meets the goals of internal NPO management and the requirements of outside government agencies and donors.
- Purpose of cost allocation plans
- Identify, accumulate and distribute allowable direct and indirect costs under sub-grants and contracts
- Identify allocation methods used to distribute costs
- Include plan for allocating joint costs
- Support with formal accounting methods in order to substantiate propriety of eventual charges
- May be required by internal management, government agencies, donors
- Two types of cost allocation plans
- Indirect cost plans
- Allocate organization-wide and central services costs to individual departments
- Plans to allocate costs within a department to grants and other final cost objectives
- Including both indirect costs and department administrative costs
- Elements of cost allocation plan
- Organization chart
- Description of services provided and their relevance
- Expense items
- Methods of distributing expenses to benefiting cost objectives
- Other elements
- Relevant accounting guidance
- OMB Circular A-87
- OMB Circular A-122
- Shortcomings in the guidance
The panel will explore these and other important aspects of cost allocation plans:
- The potential value of CAPs: Meeting requirements of agencies and donors, helping with internal budgeting, and promoting equitable sharing of costs.
- The two categories of CAPs: Understanding the individual goals and features of indirect and service cost plans.
- The key features of CAPs: Knowing how to present organizational charts, descriptions of types of services and expense items, methods to distribute expenses to benefiting cost objectives, etc.
- The principles in creating a CAP: Balancing detail with simplicity, aiming for replicability, using the simplest organizational structure necessary to allocate costs.
- The relevant accounting guidance for CAPs: Where OMB Circulars A-87 and A-122 can offer some help, despite their shortcomings.
Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.
Outsourcing Senior Manager
Her work involves management and accounting consulting, and supervision of compilations, for non-profit clients. Before... | Read More
Her work involves management and accounting consulting, and supervision of compilations, for non-profit clients. Before joining Raffa in 2006, she was finance director for an international non-profit organization. She previously served for five years on the AICPA's Steering Committee for its national non-profit conference.Close
She launched her firm, which specializes in non-profit advisory work, in 1991. She has more than 25 years of financial... | Read More
She launched her firm, which specializes in non-profit advisory work, in 1991. She has more than 25 years of financial management experience for non-profit and for-profit organizations.Close
Henry & Horne
She specializes in audits of non-profit organizations and closely held businesses.| Read More
She specializes in audits of non-profit organizations and closely held businesses.Close