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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Being Direct: Shared Cost Recovery through Direct Cost Allocation

Being Direct: Shared Cost Recovery through Direct Cost Allocation

When federally funded organizations incur shared costs that benefit multiple funding awards it can be difficult to determine how much to charge each award for those costs. Allowable methods of shared cost recovery vary, and organizations weigh factors such as size,...

Employee Retention Credit: What Your CAA Needs to Know

Employee Retention Credit: What Your CAA Needs to Know

The Employee Retention Credit (the “Credit”) was enacted on March 27, 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the first major COVID-19 pandemic relief package. The purpose of the Credit was to help employers…