9202     DOCUMENTATION OF COST ALLOCATION METHODOLOGY
(New 8/94)

 

All state agencies will document their cost allocation procedures and methods in a Cost Allocation Plan (CAP).  Refer to a sample format on SAM 9202 Illustration.  Each CAP will contain detailed information regarding the costs being allocated, the allocation method, and the following additional information:

1. The frequency of allocating various costs to programs.
2. The rationale for selecting an allocation base.
3. How  often the allocation base is evaluated to determine its continued accuracy.
4. Anticipated changes in the bases used to allocate costs.

All CAPS should be supported by appropriately cross-referenced working papers, updated periodically, and retained in state agency files for reference and for audit purposes. Special requirements apply to Indirect Cost Rate Proposals (ICRP) and CAPS from state agencies that receive federal funds.  See SAM Section 8752-8757.