Expenses that directly relate to a program or service are applied directly to that program, but there are instances where expenses need to be allocated across two or more expense categories. An example would be if you have grant awards where there are employees work on multiple awards or purchases of supplies are used across multiple expense categories. An assessment of your allocation methodology should be made at the start of each fiscal year.
Expense Type Allocation Method
Salaries & wages Time sheets Employee insurance, benefits, etc. Based on salaries and wages allocation Supplies Based on usage or percentage Building rent, maintenance, utilities, janitorial Square footage Vehicle and travel Expense or time reports of employees involved Depreciation Based on asset usage or percentage of usage
0 Comments
Leave a Reply. |
AuthorWe want to keep you abreast of news that could possibly affect your business. Posts will be added accordingly. Stay informed! Archives
January 2021
Categories |