Cost allocation can feel complicated, particularly for smaller counties where finance staff wear multiple hats, resources are limited, and sophisticated systems or dedicated cost accounting staff may not be available. This session will break cost allocation down into practical, understandable components and focus on approaches that can realistically be applied in a small-county environment.

Participants will learn how to identify central service costs, develop reasonable and supportable allocation methods, understand the difference between full cost and federal cost allocation under 2 CFR Part 200, and recognize opportunities to appropriately recover indirect costs from grants, special revenue funds, enterprise activities, and other programs. The session will also address common allocation challenges, documentation expectations, and practical ways to simplify the annual cost allocation process.

The goal is for participants to leave with a better understanding of not only how cost allocation works, but why it matters and how a well-designed cost allocation plan can support fair distribution of costs, improve cost recovery, and provide better financial information for decision-making.

CPE 1

Presenter: Michelle Garrett

Michelle Garrett is a Senior Manager with MGT and has more than 20 years of cost accounting and local government consulting experience. She specializes in cost allocation plans, indirect cost rate calculations, user fee studies, chargeback methodologies, billing rate models, and other governmental cost analyses.

Throughout her career, Michelle has worked with cities and counties across the country, including more than 75 local governments in Colorado. Her experience includes both full cost allocation plans and federally compliant cost allocation plans under 2 CFR Part 200, as well as supporting clients through state and federal review of cost allocation methodologies.

Michelle holds a Master of Accountancy from the University of Missouri and a Bachelor of Science in Business Administration with a concentration in Finance from Northern Arizona University. She brings a practical approach to cost allocation, focused on helping local governments develop methodologies that are understandable, supportable, and workable with the staff and resources they actually have.