Allocations Part II - What to do???

Darrell Songer and Allan Larson of Larson Allen, presented Part II of Allocations and Functional Reporting. They focused on how to do cost allocations which generated much discussion with the 23 attendees, who asked questions like how to treat specific administrative costs such as grant writers, accountants and audit costs, Songer and Larson provided these handouts: sample Cost Allocation Plan and the section of the AICPA Not for Profit Audit Guide on cost allocations. But the basic rule of thumb seems to be that if the adminstrative cost would still exist even after a program has been eliminated, then that administrative cost should not be allocated to the program.