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Cost Allocation: Red Flags and Remedies

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This toolkit, created in collaboration with the National Community Action Partnership, is designed to help your Community Action Agency meet the requirements for cost allocation contained in Office of Management and Budget A-122 (OMB Circular A-122, now incorporated into the Code of Federal Regulations as 2 CFR Part 230). In order to substantiate charges to federal, state, and local grants and contracts, CAAs must develop and implement effective approaches to cost allocation. At a deeper level, every CAA needs a sound cost allocation system in order to understand what it really costs to deliver their services.

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