Keeping Out of Harm’s Way: Compliance for Cost Allocation Plans
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Keeping Out of Harm’s Way: Compliance for Cost Allocation Plans

Just because state and local governments have in place sophisticated cost allocation plans doesn’t guarantee they will avoid getting into trouble with the federal government. Author Brian Fimple points out that state and local entities have three ways for recovering costs: directly, indirectly, or through billing. The internally prepared billing side of cost allocation is where the most trouble lies. For example, a state could inadvertently overcharge the federal government — a situation with huge monetary repercussions and potential political fallout.



 

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