are those that can be associated specifically to a final cost objective, such as a Federal award or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily, with a high degree of accuracy.
THE
CRACKING
are things that you need to do for the sake of organizational health and operation, but don’t tie back to a specific program.
2016 Q1 ISSUE COSTTREE CAPTURE. 05
INDIRECT COST (shell)
OVERHEAD COSTS
DIRECT COST (white)
EGG
ALLOCATION: the process of assigning a cost, or a group of costs, to one or more cost objective, in reasonable proportion to the benefit provided or other equitable relationship. The process may entail assigning a cost directly to a final cost objective or through one or more intermediate cost objectives.
COST ALLOCATION PLAN: refers to a central service cost allocation plan or public assistance cost allocation plan.
DIRECT COSTS: are costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.
INDIRECT COSTS: those costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objective specifically benefitted, without effort disproportionate to the results achieved.
UNIFORM GUIDANCE 2 CFR PART 200: OMB’s guidance for cost principles and audit requirements for federal awards, including grants. This guidance supersedes the requirements from OMB Circulars A-21, A-87, A-110, and A-122 (which have been placed in 2 CFR Parts 220, 225, 215, and 230); Circulars A-89, A-102, and A-133; and the Circular A-50 on Single Audit Act follow-up.
OVERHEAD COSTS (yolk)
are very important to nonprofits, since unlike government they do not necessarily have separate buckets of funding. One needs to separate out overhead costs from indirect costs in order to gain maximum reimbursement. An overhead costs becomes a direct cost if there is only one touch between the two. For example, a supervisor that oversees a direct program would be a direct cost, as they are only a single touch away, making that an allowed cost with allocation.