Our expert Cost Allocation Plan (CAP) services help local governments distribute indirect costs accurately, ensure compliance with 2 CFR Part 200 and state guidelines, and unlock grant reimbursements, promoting fair resource use and long-term financial health.
What Is Cost Allocation Plan Preparation?
A Cost Allocation Plan (CAP) is a documented methodology for distributing indirect costs, such as administration, facilities, and IT across departments, programs, and funds in a fair and defensible manner.
In California, CAPs must comply with the State Controller's Office (SCO) handbook and federal 2 CFR Part 200 (Uniform Guidance) for grant-eligible entities, ensuring costs are allowable, reasonable, and allocable.
At GCP, we go beyond basic preparation-analyzing trends, "what if" scenarios, and changes to create robust plans that support audits, grant reimbursements, and internal equity. Our services cover full cost CAPs, indirect cost rates, and booking fees, helping agencies like yours achieve accurate allocations for enterprise funds, grants, and operations. With over 200 California cities and 40 counties as clients (including 24 of the state's 25 largest agencies) we bring proven expertise to navigate CAP complexities and enhance fiscal sustainability.
Key Benefits of Cost Allocation Plan Preparation
Equitable Cost Distribution
Allocate indirect costs fairly across departments and programs, reducing disputes and supporting grant funding.
Customized Methodologies
Tailor allocation bases (e.g., personnel, square footage) to your agency's needs, including multi-tiered plans for complex structures.
Grant and Reimbursement Maximization
Develop compliant plans under 2 CFR Part 200 to secure higher federal/state reimbursements, as in our work with Santa Ana (agency-wide allocations).
Long-Term Sustainability
Build repeatable processes that enhance fiscal health, limit retained earnings in internal funds, and support strategic budgeting.
Audit Readiness and Compliance
Ensure defensibility with SCO and OMB guidelines, protecting against reviews and enabling internal certifications.
Our Proven Process
Cost Identification
Review direct and indirect costs, central services, and allocable bases per SCO and 2 CFR Part 200 guidelines.
Allocation Methodology
Develop equitable bases (e.g., FTE, square footage, expenditures) and calculate rates for departments/funds.
Documentation and Review
Prepare detailed schedules, multi-tiered plans if needed, and ensure compliance with OMB/SCO standards.
Submission and Approval
Guide internal certifications or SCO/Board approvals, including audit support.
Implementation and Monitoring
Integrate into budgets, monitor retained earnings, and update annually for sustainability.
Real Results: Case Studies
Sonoma County, CA
Led by Brad Wilkes we developed a robust CAP that optimized allocations for public safety and regional facilities, leading to improved resource efficiency and compliance.
City of Santa Ana, CA
Cindy Sconce oversaw agency-wide CAP and Indirect Cost Rate for public works, distributing admin costs across enterprise and general funds for grant support.
City of Turlock, CA
Cindy Sconce prepared Transit CAP and Citywide CAP, including Engineering Indirect Cost Rate, ensuring federal compliance.
City of Modesto, CA
Cindy Sconce handled Transit Indirect Cost Rate, aiding accurate allocations for transportation programs.
Santa Barbara County, CA
Cindy Sconce reviewed and approved Indirect Cost Rates for internal use, certifying fees for multiple departments.
Meet Our Cost Allocation Plan Experts
Brad Wilkes
Founder with 40+ years, integrating CAPs with user fees for agencies like the City of Inglewood.
Brad Wilkes Bio
Brad Burgess
Leadership in costing studies, including CAP development for sustainable solutions.
Brad Burgess Bio
Jeff Wakefield
Prepared first CAP in 1989 for Santa Maria, with ongoing federal plans.
Jeff Wakefield Bio
Cindy Sconce
Providing CAP analyses for the integration into Caltrans indirect cost rates, user fees, SB 90 reimbursement and other services.
Cindy Sconce Bio
Ruben Rivas
Supported CAP analyses in user fee studies, ensuring indirect cost accuracy.
Ruben Rivas Bio
Mark Carpenter
Brings 36+ years of expertise to craft audit-ready cost allocation plans for optimal resource distribution.
Mark Carpenter Bio