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cost allocation documentation


Cost Allocation Plans

The goal of a cost allocation plan is to ensure that an agency maximizes the recovery of general fund indirect costs from its various enterprises and other chargeable funds. The agency must have a method of identifying and distributing administrative costs that is comprehensive, well documented and fully defensible.

A cost allocation plan coupled with comprehensive overhead rates will enable the agency to achieve this goal. A secondary benefit of a cost allocation plan is that it allows the agency to determine the full cost of operating departments, divisions, programs and services, a critical component in developing appropriate fees for user driven services and for related policy decisions regarding subsidy of such services.

Key characteristics of the service provided by our staff include:

  • Our staff will gather and collect data needed at your location
  • Our staff conducts departmental interviews
  • OMB Circular A-87 Certification provided
  • Updateable electronic copy of the Overhead Cost-allocation Model is provided to the agency. The model consists of easy-to-understand spreadsheets that can be updated by your staff following our study.