Nearly five years after the Office of Management and Budget (OMB) issued the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), there continues to be significant misunderstanding of and confusion around the use of cost allocation plans and indirect cost rates. To help clarify what the Uniform Guidance does and does not require of federal grant recipients, CAPLAW has issued the following set of frequently asked questions assembled from consultations we received. This resource addresses the recovery of shared costs through cost allocation plans and indirect costs using indirect cost rates. It also highlights key differences between the two methods of cost recovery in an effort to assist a grantee in deciding which methods are best suited for its Community Action Agency (CAA).
Cost Allocation Toolkit
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,...
