STATE DEPARTMENT OF REHABILITATION

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COST ALLOCATION METHODOLOGY Cost allocation is the process of assigning to two or more programs the costs of an item shared by the programs. The goal is to ensure that each program bears its fair share, and only its fair share, of the total cost of the item. A cost allocation plan is a written account of the methods used to allocate costs to the programs occupying the AJCC's. The requirement to allocate the costs of shared resources can be met by using logical and rational methods to ensure that each program is paying only its fair share of the cost of an item used in common, and that no program is subsidizing another. Generally, the methods used to allocate a shared cost should be the simplest, most straightforward way of allocating this type of cost fairly. Complex, highly detailed methods should be avoided when a simple one will achieve the objective. Methods, rules or formulas that use percentages or fractions of cost items are acceptable. Accordingly, shared costs will be based upon the square footage occupied in the AJCC. COMPREHENSIVE AJCC Santa Ana W/O/R/K CENTER 1000 E. Santa Ana Blvd., Suite 200 & Suite 220 Santa Ana, CA 92701 AJCC Partners Co -located at the AJCC: Location of all partners is detailed in AJCC Partner's Location (Attachment 1). INFRASTRUCTURE FUNDING AGREEMENT The Infrastructure Funding Agreement (IFA) contains the infrastructure costs budget that is an integral component of the overall AJCC operating budget. The other component of the AJCC operating budget consists of applicable career services, shared operating costs, and shared services, which are considered additional costs. While each of these components covers different cost categories, an operating budget would be incomplete if any of these cost categories were omitted, as all components are necessary to maintain a fully functioning and successful local AJCC delivery system. Therefore, the Local Boards, and AJCC partners negotiate the IFA, along with additional costs when developing the operating budget for the local AJCC system. The overall AJCC operating budget is included in this MOU Phase II (Attachment 3). IFAS are a mandatory component of the local MOU, described in WIOA sec. 121(c) and 20 CFR 678.500 and 678.755. Similar to MOUs, the Local Board may negotiate an umbrella IFA or individual IFAS for one or more of its AJCC. AJCC infrastructure costs are defined as non -personnel costs that are necessary for the general operation of the American Job Center, including, but not limited to: • Rental of the facilities; • Utilities and maintenance; • Equipment, including assessment -related products and assistive technology for individuals with disabilities; and • Technology to facilitate access to the American Job Center, including technology used for the center's planning and outreach activities. 12