10. The Cost Allocation Process
The purpose of cost allocation is to divide shared costs in such a way that the appropriate amount, based on the relative proportion of total resources used, is charged to each applicable program and funding source. One important outcome of the process is the assurance that the same cost is never charged to more than one funding source. Of course, costs defined as ineligible by OMB – or explicitly excluded by HUD or a local funder – can never be reimbursed by a federal grant.