Finding Text
2023-009 – Lack of Documented Allocation Methodologies for Costs Charged to Federal Awards
Corrective Action: This finding is a continuation of a prior year deficiency related to the lack of
formal allocation methodologies. Management is currently drafting a cost allocation policy that
includes specific guidance on how to allocate shared costs (e.g., rent, insurance, software)
across programs, management & general, and fundraising functions.
The new policy will include acceptable bases such as square footage, staff headcount, or usage
logs and will be reviewed annually. All allocations will be supported by schedules retained with
the audit documentation.