1Process OverviewTBG

Getting started: the cost analysis process at a glance

Determine purpose

and scope

Allocate direct costs

Gather financial

data

Allocate indirect costs

Check your data

Apply this

knowledge

Process • Determine the purpose

• Define your programs

• Determine programmatic scope

• Determine relevant data to gather

• Gather data

• Modify source and format of data, where necessary

• Allocate direct costs by programs (or sites)

• Identify cost drivers

• Allocate indirect costs by programs (or sites)

• Check your analysis for both accuracy and logical soundness

• Assess the results and draw implications for your organization

• Make decisions based on data

• Identify next steps

Timeline estimate

• 2-3 days • One week to a month

• 2-3 days • One to two weeks

• One day • Depends on organization

People to involve (beyond the person conducting analysis)

• Management team

• Program directors

• Finance and HR departments

• All staff (if doing staff time interviews)

• Program or site directors

• Finance department

• Program or site directors

• Finance department

• Management team

Before you start conducting the actual analysis, make sure you:

1. Spend about one to two hours navigating through the six steps and glance over the FAQs

2. Review with care the what do I need to get started section of the FAQs

3. Read one or two case studies to understand how other organizations have used cost analysis

4. Review the process overview below

Cost analysis process: