Cost Allocation Plans

2 CFR Part 200

Appendix V (formerly OMB Circular A-87)

The CAP is a report which documents, calculates, and distributes all allowable administrative overhead costs to user (or operating) departments based on auditable allocation statistics that match the services provided. The purpose of the report is to calculate the cost of external administrative expenses without directly charging each operating department or changing the accounting structure of the governmental entity.


Types of Cost Allocation Plans:

  • County-Wide
  • City-Wide
  • Full-Overhead
  • Airport


The Service Package may include:

  • Conduct meetings with the appropriate County officials
  • Review ALL expenses and revenues – General / Capital Funds
  • Report to Management
  • Detailed departmental claiming instructions
  • Electronic distribution of reports and letters
  • Calculation of departmental employee benefits
  • Indirect cost rates for all Operating Departments
  • Federally approved negotiated indirect cost rates