Apply Overhead and Cost Allocations

Allocation rules distribute shared or indirect costs to grants and other reporting dimensions. Configure each rule from the governing grant terms and apply it consistently for the applicable period.

Overhead and indirect costs

An overhead rule should identify:

• The approved percentage or rate
• The allocation base, such as eligible direct costs, salaries, or another approved measure
• Included and excluded accounts or cost categories
• The applicable grant, program, funding source, and effective dates
• Any ceiling, limitation, or exception required by the award

Cost allocation methods

Configured rules can allocate costs across grants, projects, programs, departments, funds, or other reporting dimensions. The organization may use fixed percentages, activity measures, eligible direct costs, headcount, usage, or another documented methodology permitted by the grant.

Allocation process

1.  Confirm the allocation rule, rate, base, effective period, and eligible grants.

2.  Review the source costs included in the calculation and exclude ineligible amounts.

3.  Calculate the allocation and review the proposed distribution.

4.  Approve and post the allocation through the applicable GoldFinch accounting process.

5.  Retain the calculation, source references, rule version, and approval evidence for reporting and audit support.

Control considerations

Restrict changes to approved allocation rules and use effective dates when a rate changes. Reports should distinguish direct costs, allocated costs, and overhead so reviewers can trace each amount to its calculation and source records.

Configuration note: Grant-management features require an appropriate Salesforce-native grant-management application and configuration. GoldFinch Accounting supplies the related accounting, purchasing, expenditure, billing, and reporting functions.