D
Do you have any allocated costs?
Some expenses cannot be charged entirely to CACFP because they are shared between
programs. This can apply to any of the operating or administrative costs listed. Think about
the expenses that you listed on the previous pages, are any of them shared costs?
Example 1: A sponsor operates both Example 2: Garbage services are used by
CACFP and a non-CACFP meal program and both the kitchen serving CACFP and other
purchases all foods together. The food parts of the organization. The utility cost
costs must be allocated. must be allocated.
Not every sponsor will need to allocate costs. If you are only charging food costs and some
food service supply costs to the NPFS fund and you don’t operate any other food programs
or share any of the costs with other programs, you can skip this section.
DETERMINING ALLOCATION AMOUNTS
Allocation methods will vary based on the expenses that are being allocated. Some costs,
like labor costs, can be clearly coded by program and can be based on actual amounts
charged or time spent. Other allocated costs require more calculations. Below are some
common ways that costs are allocated. Check if you use the method listed. All allocated
costs require approval from ODE CNP and non-rental or utility allocated costs must
receive specific prior written approval.
Rental or Utilities Other Allocated Costs
There are many different costs that can be
Rental or facility costs must be broken out
allocated and allocation methods will vary.
by percentage, typically by time and space.
For non-rental/utility allocations, sponsors
How often is CACFP operating at the site
must develop an equitable method of
compared to other programs and how much
allocating costs to CACFP and submit it for
space does CACFP operations take? This
approval to ODE CNP. ODE CNP will work
percentage must be calculated using the
with the sponsor to develop a system that
CACFP Annual Budget in Schedules B and C.
will be equitable.
Note: Sponsors with indirect costs should reach out to their assigned Child Nutrition
Specialist to determine the appropriate allocation method.