The Allocation Management Module for Abila MIP

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Abila MIP Allocations Management

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Today’s Conversation – Cost AllocationIs your organization still handling this complex process manually?

We see too many organizations still doing allocation calculations in Excel…..

• ..which then requires that you manually enter the calculated split of costs at end of month once you use Excel to calculate the actual splits….

• …and of course, anytime Excel is used, there is margin for error


Cost Allocation can be a “Brain Buster”


But, it can be reasonably simple….with proper planning…

The requirements of Cost Allocation for Federal/State Grants?

• Are simply that the allocation plan is both written and it is reasonable to your organization

• And, clearly needs to have positive cost/benefit relationship relative to the work required to effectively administer the plan


Do we need to “Re-Boot” your process?

Here are some signs that might indicate the need to totally re-structure….

• Allocating costs based on grant budgets?• Clearly a no-no in the federal grant world….

• Do you have only one or two pools?• Or are there eight or ten…….??

• Are you calculating the splits on spreadsheets?• And, then making manual entries to spread the

costs?


What does your Annual Review Process look like?

As your organization changes, and new programs/grants/departments are added….

• You need to review your Cost Allocation methodology…

• That review should be an annual process ---- just like budgeting• In fact, it should be a part of your annual budget

process..

• Allocation plan should have annual board presentation and approval…


Can we gain more automation of our monthly allocation process?

How many various bases of allocation do we utilize?

What is the periodicity of our allocations – i.e. Monthly/Quarterly/Annually?

Who is responsible for the audit trail of the allocation process?

Are those records kept on paper, or stored electronically?

Areas of Annual Review of Allocation Process Documentation….


Create a Distribution Code for each Basis of Allocation Use the distribution code at transaction entry

Create codes for cost pools which each have a different Basis of Allocation

At end of month, create journal entries using the distribution codes to move costs from the pool to the grants/programs/departments to which you wish to allocation shared costs

But the Most Efficient???

Utilize the Allocation Management Module to automate your allocation process

With Abila MIP --- there are three possibilities for effecting your Allocation Plan…


So, let’s take a look at automating your Cost Allocation Process…

The Abila MIP Allocation Management Module does a Fine Job of handling this complex process.

Some organizations have only one Allocation Code ---others have many.

Typical organizations I work with in this area have two or three codes.

Very complex organizations are likely to have more, as there are lots of moving parts

How much Setup is there with this Module??


Almost at a minimum, organizations have these two:

Administration Where basis is typically direct charge hours by grant, or direct

charge wages, taxes, and benefits by grant

Facilities Where basis is typically square footage utilization by grant

We are in the Electronic Age……Yes?

Complexity (meaning more allocation codes) is typically added in scenarios where there are multiple locations that don’t provide services under every grant the organization administers


First --- We set up the codes we need: Roadmap: Maintain | Allocation Codes

Create a New Code --- and Make Entries on Each Tab as on the following slides

Second --- We set the Calculation Information needed by the System

Third --- Click Calculate - then Review the Calculation Worksheet

Let’s Review the Tabs for Allocation Codes


Review of Ease of Allocation Code Setup


Creation and Setup Tab of Allocation Code


Pool Tab


Recipient Tab


Method Tab


Create Calculation ID……

Roadmap – Activities | Process Allocations


Provide Rules for Calculation ID

On the Allocation Codes Tab –• Important to know: If you have multiple Allocation

Codes, you can “stack” them in this calculation!

• Amounts From/To are looking at the Pool Tab• Balances From/To are looking at the Recipient Tab


Click the Calculation Icon at Bottom of Page


Once you have a Calculation ------


If All Agrees?


In Subsequent Months/Quarters?


Audit Trail Necessary Documentation:


So – In Summary -----


The Benefits of Automating your Allocation Process?


And Definitely -----..-----


Thank You For Attending!

Jeannie Huckstep, CPA, CITPNet@Work - Nonprofit Applications Practice DirectorPhone: (417) 447-0005Email: [email protected]

Q & A

Software

The Allocation Management Module for Abila MIP