2016 Q3 ISSUE COSTTREE CAPTURE. 11
CONCLUSION
When we get to these real numbers that is when opportunity and
obligation can come together to effect real change.
This checklist will help those of you preparing the CAP and ICRP in-house to streamline your preparation, while staying in compliance and avoiding lengthy audits or, worse, refusals of payment for lack of compliance. Putting in the time and resources necessary for thorough preparation will ultimately save time and money. This is not a step-by-step preparation guide; this is meant to serve as a high-level checklist of things to consider when preparing your OMB compliant ICRP and CAP. Behold the OMB Compliant Cost Allocation Checklist:
Pre-preparation when creating the new fiscal year’s cost plan:
Review your prior department structure
Ensure that the central service departments (CSDs) still conform to the requirements of providing agency-wide support, especially if operations of the departments have changed or shifted.
Ensure that the functions within each CSD are still applicable and add any new functions if operations have changed. The more detailed your functions are, the less chance your charges will be challenged.
Review the functions with your CSD's
Review your allocation bases
Ensure that the allocation bases you have chosen are still the best available representation of the level of service provided. The most appropriate and accurate allocation bases will result in smoother audits and faster acceptance by payers.
Give the internal data providers plenty of lead-time and describe why you need what you are asking for
Notify the contacts in your various function areas who provide allocation units of what you need and when you need it. Be sure to provide context to your requests, so they have the opportunity to make improvements or changes. They may have sources of data that you are unaware of.
While preparing:
Double-check your expenditure totals
Make sure your total expenditures tie to your CAFR. A bottom line total should match and any adjustments should be included and reconciled in the CAP.
Double-check your allocation base unit totals
An extra zero will swing your allocations significantly. Double-check your totals after entry.
Don’t use negative allocation units
Never include a negative allocation; this skews the bases, and it does not make sense to allocate a “negative” service. Make negative allocations zero.
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