Cost Allocation Analysis

Page Menu

Our faculty conduct one-time cost allocation studies to determine costs related to grants, contracts and other agreements with educational institutions.


We follow the principles outlined in the Office of Management and Budget (OMB) Circular A-21 or other methodologies as appropriate. Our faculty can assist your local government in developing ongoing cost allocation systems. These systems use data from your local governments’ own financial and personnel records to constantly update the cost allocation analysis.  


We can provide cost allocation for the following:

  • a grant or contract award may need a cost allocation study to provide an appropriate indirect cost rate

  • local governments that join together to provide services need to know the actual cost of providing these services. The government that is providing the service needs to accurately divide the cost between the governments who share the services.

  • for governments that don’t have special purpose tax districts, cost allocation estimates service costs being supported by tax dollars

  • governments that want to use activity-based budgeting

  • governments who want to tell elected officials and citizens the true cost of delivering a service

  • governments who need to make informed decisions about tax-supported services and programs need to know full costs of services. This includes costs of staffing, maintenance, marketing, etc.