Cost Allocation Narrative

Cost allocation was created to ensure that federal funds are used solely for programs and that no other federal funds may be used for any other purpose. Grantees who have more than one funding source will find this information useful for making sure that each program bears its appropriate share of the costs. Note: The resource is currently under review.

Cost Allocation in Head Start

Learn about Cost Allocation, direct and indirect costs, categorizing shared costs, and a step- by-step process for developing a cost allocation plan

Cost Allocation

Cost allocation is the process of assigning the shared cost of an item or service to two or more programs—and it's a key element of the Fiscal Management System. Organizations use cost allocation to ensure that costs are shared equitably across different funding sources and programs.