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ORANGE COUNTY <br />CONSERVATION CORPS <br />Cost Allocation Plan <br />Cost Allocation Purpose <br />D <br />www.occcorps.orq <br />The purpose of the cost allocation is to properly account for and distribute shared costs to all project/program and to <br />properly account for the true cost of each project/program. <br />Direct costs are costs that can be identified specifically with a particular project or program and are charged directly <br />to the project/program. Should sub -grouping occurs within the contract/funding/project such as In -School -Youth <br />(ISY) and Out -of -School Youth (OSY), then the direct cost will be sub -allocated based on the amount of resource <br />and time dedicated to each respective sub -group (not based on budget). Shared costs are those that have been <br />incurred for common or joint objectives and cannot be readily identified with a particular project or program. <br />Only cost that are allowable will be allocated to project/program within OCCC. <br />Cost Allocation Scope <br />Cost allocation is done on a monthly basis to ensure all share cost are allocated to all program. Share costs are <br />allocated using Corpsmembers worked hours for the month in each respective program, funding source in <br />comparison to the entire Corps or actual time allocated by management to ensure an equitable allocation of <br />resources. Should Corpsmembers worked hours for the month deemed not equitable by management, then a <br />modified base will be incorporated in addition to the Corpsmembers worked hours base. Modified base occurs <br />when there are not enough Corpsmembers work hours to equitably and fairly allocate shared expenses. This <br />occurs due to recruitment or enrollment schedule. Modified base might include actual time and actual activity on <br />the project/program. <br />Other considerations will be given by management should project/program deviates from our traditional <br />Corpsmembers hours calculation. Considerations will be determined based on the overall resource usage of the <br />program/grant. <br />Should sub -grouping occurs within the contract/fund/project such as ISY and OSY then allocated cost will be sub - <br />allocated based on resource and time dedicated to fulfill the deliverable in each respective sub -group. <br />Cost Allocation Procedures <br />Cost allocation is performed on a regularly basis. Shared costs are allocated using actual Corpsmembers worked <br />hours for the period in each program/funding source. A tracking entry is created and entered to allocate shared <br />costs to respective program/funding source. <br />1. A project/program summary hour report is generated from time clock system. <br />2. A shared cost report is generated from the accounting system. <br />3. Summarize project/program hour by project/program and determine the percentage of each. Other <br />considerations may be given to subgroup should subgrouping exists. <br />4. Summarize shared cost into each category and by line items. <br />5. Additional consideration (non -hourly based) will be given for project/program that might include a modified <br />base to reflect a more fair and equitable distribution. This occurs when there are not enough <br />Corpsmembers hours due to recruitment or timing of enrollment schedule. <br />6. Create a journal entry as needed to journalize shared cost from shared cost department into individual <br />project/program. <br />7. Staff input the journal entry into accounting system and generates a pre -posting report for approval. <br />8. Chief Financial Officer approves the pre -post report for posting. <br />1853 N. Raymond Avenue, Anaheim, CA 92801 - Phone; 714.956.6222 — Fax: 714.956.1944 <br />EXHIBIT G <br />