Uniform Guidance and Cost Allocation - Maile Pa'alani.pdf

The document provides a comprehensive overview of Subpart E of the Cost Principles, focusing on cost allocation compliance with the Uniform Guidance. It covers topics such as allowable costs, factors affecting cost allowability, reasonable costs, allocable costs, applicable credits, prior written approval, collection of unallowable costs, and adjustment of indirect cost rates. The importance of classifying costs as direct or indirect, direct costing methods, and indirect cost rates are also highlighted. The document emphasizes fair cost allocation among funding sources, considerations for grants with limitations on administrative costs, and involving program managers in cost allocation decisions. It provides insights on direct costs, direct allocation plans, distribution codes, cost pools, and methods for allocating costs. Additionally, it explains the difference between a 10% indirect cost rate and a standard indirect rate, as well as the negotiation and approval process for indirect cost rates.