General guidance about cost allocation

Page posted: 2/11/21

Throughout the report, the cost report preparer must report itemized costs, like staff salaries or office space rent. Then, the cost report preparer must allocate those costs into different cost categories.

This allocation allows the cost report preparer to connect the reported costs with the appropriate services. It also allows DHS to understand the costs to provide DWRS services. The cost report preparer must allocate all reported costs before they submit the cost report.

This section of the manual includes information about:

· Cost categories used in the cost report.

· Allocation methodologies the cost report preparer can use.