9244     SAMPLE COST ALLOCATION PROCESS
(New 10/74)

 

This section provides agencies with an example of a cost allocation process.  9244 Illustrations 1 through 4 show costs allocated to programs.  Agencies will allocate costs to the program level required by their program budget.

 

Each agency will ensure that all costs have been allocated by reconciling the total costs allocated with the total expenditures reflected in the Appropriation Expenditures account (including accrual expenditures) in the General Ledger at June 30.

 

Agencies in preparing their program budget will use the total amounts allocated to each program as the starting point in computing their budget for the current year and budget year.  SAM Section 6000 et seq. provides the guidelines for preparing the budget.