What is the basis in allocating space costs or asset depreciation/use allowance?
According to 2 CFR 230 (A-122), Appendix A, Section D.3.c.1, areas that serve a single function or program shall be assigned to that function (or program). For areas that serve multiple functions (or programs) and on capital improvements and equipment used in such buildings, they “shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms.” For jointly used areas within the building such as individual meeting rooms and laboratories, the allocation basis should be (1) the benefiting functionâs employees and other users on a full-time equivalent (FTE) basis or salaries and wages of those individual functions benefiting from the use of that space, or (2) organization-wide employee FTEs or salaries and wages applicable to the benefit functions of the organization.
