Instructions for completion of full cost recovery budget template: ACCOUNTABLE GRANTS

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1 Instructions for completion of full cost recovery budget template: ACCOUNTABLE GRANTS This guide will assist you in completing the full cost recovery budget template. It explains how to calculate the full cost of your project including an appropriate share of all relevant support services and other overheads, defined as non-project attributable costs or NPAC. You should refer to the department s eligible cost guidance to ensure the costs included are eligible for inclusion. Principles of the full cost recovery budget template (cost template) The cost template has eight steps. Follow each step in order. The steps are: Enter details about the project in the information tab 1. Enter costs on direct cost tab 2, as specified: either directly onto tab 2 or via completion of tabs 2.1 to 2.6 (if applicable). Enter your organisation s predicted NPAC in the NPAC tab 3. Enter the payment profile you expect funds to be paid to you in the payment tab 4. Enter any additional information in the notes section in each tab (if applicable). The full costs of your project and the cash surplus or deficit are calculated. Multi-partner bids lead organisation should consolidate all partner costs onto one aggregate cost template, completing the tabs in the same order as above. The variance tab 5 should be completed when the cost template is resubmitted at project review points. The individual tabs together with the variance tab must be updated. Each step is explained in more detail in the following pages. The following principles apply to the cost template: Enter values in local currency. Enter costs inclusive of non-recoverable taxes but exclusive of reclaimable input tax. Do not include match funding. If this is required it will be by exception. Enter or select information within yellow cells. Do not enter information in greyed or blank cells. Do not alter formula. If there is an error, contact the department. If other is selected in any category enter details in the notes section. Budget monthly in year one and annually thereafter, using resource accounting. Budget for inflation where appropriate and detail in the notes section 01 August 2018 Page 1

2 1 Information tab 1 Table one captures the basic project information: Enter the name of your organisation or the name of the joint venture. Enter the name of your organisation if you are completing the template as a downstream delivery partner. Enter the name of the project you are asking us to fund. Enter the number of the project you are asking us to fund (if known). Enter the month and year the project is expected to commence. Enter the month and year the project is expected to end. Enter the total project cost and grant surplus from tab 2. Select the country or region the project will support. You should select other if your project is multi-country or the country is not listed. If you select other enter details in the notes table. Select the thematic sector the project will support. You should select other if your project is multi-sector or the sector is not listed. If you select other, details should be entered in the notes section. Enter the version number using the department s naming convention; the original budget is 1.0, the proposed but not approved budget revision is 1.1, and the approved budget revision is 2.0 etc. Enter the month and year the budget revision was submitted for approval (if applicable). Enter the name of the person that prepared the cost template. Enter any supplementary information in the notes table including the rate of inflation applied. Table two summarises the information from the directly attributable costs tab 2 into overall project spend by cost category. This is for internal use only. You are not required to enter any information. Table three should be completed by the lead organisation, providing information at summary level of SME (small and medium-sized enterprises) status by partner. SMEs are defined in the EU recommendation 2003/361 and the definition takes into account the following three criteria: - staff headcount - annual turnover - annual balance sheet total. The main factors determining whether an enterprise is an SME are: (a) staff headcount and (b) either turnover or balance sheet total, as per the following table current as at July 2018: Company category Staff headcount Turnover or Balance sheet total Medium-sized < m 43 m Small < m 10 m Micro < 10 2 m 2 m 01 August 2018 Page 2

3 Directly attributable costs tab 2 The cost template categorises project costs as: Direct project costs or directly attributable project costs. Non-project attributable costs (NPAC). Grant surplus. Local government taxes payable on grant, as applicable. The project costs are separated into pre-defined individual budget line items. You should not alter the budget line items. The budget line items are allocated a cost category: Frontline project delivery. Programme management. Programme support and administration. This is for internal use only. You should not alter the selection. To complete the cost template: Enter the costs either on the directly attributable tab 2 or on the tab indicated on the cost template: o o If entering directly on tab 2 profile the cost of all budget line items monthly in year one and annually for all remaining years. The year one total and the project term total will automatically calculate. If entering on an indicated tab, the project term total will automatically populate. You must still profile the total project term cost monthly in year one and annually for all remaining years. Enter the name of the responsible partner delivering the goods or service. If there are multiple partners enter multiple and enter details in the notes table. Select if the responsible partner is an SME. Select if the responsible partner is a local supplier. The project to contract value percentage, budget line sub-totals and total project cost will calculate automatically. 1.1 Frontline project delivery The following budget line items should be entered directly on tab 2: Transport of commodities. This includes port handling, truck rental, international shipping and similar expenditure. (Note that Drivers salaries should be included within other travel in tab 2.5). Storage of commodities. Training and associated costs for beneficiaries or participants. Other disbursement costs. Advocacy and research costs*. Other frontline delivery costs*. 01 August 2018 Page 3

4 The following budget line items should be entered on the tab number indicated: Beneficiary or participant commodities on tab 2.1. Beneficiary or participant disbursements on tab 2.2. This includes cash transfers and grant disbursements. Exclude transfer costs associated with making the disbursement. Monies provided by the department as a fund should be detailed under fund management costs e.g. a challenge fund. You should refer to the department s eligible cost guidance to ensure the costs included are eligible for inclusion. Instructions on completing tab 2.1 are in section 2 of this guidance. Instructions on completing tab 2.2 are in section 3 of this guidance. *Input detailed description in the notes table. 1.2 Capital expenditure All budget line items should be entered on tab 2.3. You should refer to the department s eligible cost guidance to ensure the costs included are eligible for inclusion. Instructions on completing tab 2.3 are in section 4 of this guidance. 1.3 Project team The following budget line items should be entered directly on tab 2: Project team recruitment costs. Other project team costs*. The remaining budget line items should be entered on tab 2.4. Drivers salaries should be included in Travel tab 2.5 and Staff costs relating to monitoring and evaluation should be included within the monitoring and evaluation cost category directly on tab 2. You should refer to the department s eligible cost guidance to ensure the costs included are eligible for inclusion. Instructions on completing tab 2.4 are in section 5 of this guidance. *Input detailed description in the notes table. 1.4 Travel All budget line items should be entered on tab 2.5. Travel, subsistence and accommodation costs associated with monitoring and evaluation should be included within the monitoring and evaluation cost category directly on tab 2. Drivers salaries should be included in other travel. You should refer to the department s eligible cost guidance to ensure the costs included are eligible for inclusion. Instructions on completing tab 2.5 are in section 6 of this guidance. 01 August 2018 Page 4

5 1.5 Monitoring and evaluation All budget line items should be entered on tab 2*. The costs should clearly link to the monitoring and evaluation plan in the narrative proposal. Include travel, subsistence and accommodation costs. You should refer to the department s eligible cost guidance to ensure the costs included are eligible for inclusion. *Input detailed description in the notes table. 1.6 Fund management costs The following budget line items should be entered on tab 2: Fund value. Programme management unit*. Fund management team recruitment costs. Other fund management costs*. The remaining budget line items should be entered on tab 2.6. You should refer to the department s eligible cost guidance to ensure the costs included are eligible for inclusion. Instructions on completing tab 2.6 are in section 7 of this guidance. *Input detailed description in the notes table. 1.7 Other direct costs All budget line items should be entered on tab 2. Input a detailed description in the notes table for: Responsible partner management fee. Other direct costs. You should refer to the department s eligible cost guidance to ensure the costs included are eligible for inclusion. 1.8 Non-project attributable costs (NPAC) Information should be entered on tab 3. Instructions on completing tab 3 are in section 8 of this guidance. 1.9 Grant surplus This budget line should be entered directly on tab 2 with full justification explained in the notes box. Note that any amount included here is in addition to NPAC, the latter being a separate calculation. Please also note that entering a cash surplus will affect the commerciality of your grant application and you may be challenged Local government taxes payable on contract value Ignore this budget line which is for commercial contract funding bids only. 01 August 2018 Page 5

6 1.11 Funding profile and cash surplus or deficit This budget line should be entered on tab 4. The cash surplus or deficit will calculate automatically. Input details in the notes table confirming how any cash deficit will be met. Instructions on completing tab 4 are in section 9 of this guidance. 01 August 2018 Page 6

7 2 Commodities tab 2.1 Table one captures the details of any commodities you will purchase. For each commodity you will purchase: Enter a detailed description. Enter the supplier name (if known). Enter the estimated quantity. Enter the estimated average unit cost (commodity value). The total will calculate automatically. It will auto-populate tab 2. Enter any supplementary information in the notes table. 01 August 2018 Page 7

8 3 Disbursements tab 2.2 Table one captures the details of any disbursements you will make. You should exclude fund disbursements. For each disbursement you will make: Enter the disbursement type. Enter the name of any disbursement partner. Enter the estimated number of ultimate beneficiaries. Enter the estimated average unit cost (disbursement value). Exclude any disbursement costs associated with the transfer. The total will calculate automatically. It will auto-populate tab 2. Enter any supplementary information in the notes table. 01 August 2018 Page 8

9 4 Capital expenditure tab 2.3 Table one captures the details of any capital expenditure you incur. You should include rental and hire purchase expenditure incurred in lieu of any purchase. You should include a reasonable maintenance fee if a pre-owned asset will be used to deliver the project. For each item of equipment used to deliver the project: Select the equipment categorisation from the list of options. Select the funding method from the list of options. Select the description from the list of options. Enter a detailed description. Enter the estimated quantity. Enter the estimated average unit cost. The total will calculate automatically. Table two summarises the information from table one into equipment categorisation. You need to refresh/ update the information in the pivot table: Select any cell within the pivot table. Select refresh within pivot table tools. The totals will calculate automatically. It will auto-populate tab 2. Enter any supplementary information in the notes table. 01 August 2018 Page 9

10 5 Project team tab 2.4 Table one captures the details of the project team. Include team members engaged by the lead organisation and responsible partner(s). This includes contractors. You should exclude drivers salaries. You should exclude costs associated with monitoring and evaluation staff. For each team member: Select the job family from the list of options. If a team member works across more than one job family the team member should be listed separately under each job family. If you are unable to estimate the split then you must allocate that individual s time to the job family attracting the lower rate. Select the job title from the list of options. If non-allocable is selected your departmental contact will discuss appropriate allocation. Select the technical discipline from the list of options. This is only required if you selected technical advisor as the job family. Select the framework band from the list of options. This is only required if your application or bid is via a framework. Enter the team member s name. Select the number of years experience the team member has from the list of options. Select the project term the team member will work on the project for from the list of options. Select the project phase the team member will work on from the list of options. If a team member works across multiple phases the team member should be listed separately under each phase. Select the country the team member will be based in from the list of options. Enter the estimated number of days the team member will work in year one. Enter the estimated number of days the team member work in the remaining project term. Enter the name of the responsible partner engaging the team member. Table two captures the daily remunerated rate for team members engaged by the lead organisation. For team members engaged by the lead organisation: Enter the daily remunerated rate gross of all employer on costs (pension/ni). This rate will be used to calculate the total project team cost. The annualised salary will calculate automatically. Table three captures the daily remunerated rate for team members engaged by the responsible partner. For team members engaged by the responsible partner: Enter the daily remunerated rate gross of all employer on costs (pension/ni). This rate will be used to calculate the total project team cost. The annualised salary will calculate automatically. Table four captures the project team total cost. This is based on the daily remunerated rate for staff of the lead organisation and the responsible partner. The totals will calculate automatically. It will auto-populate the direct costs tab August 2018 Page 10

11 Table five summarises the information from table four into job families. You need to refresh/ update the information in the pivot table: Select any cell within the pivot table. Select refresh within pivot table tools. The totals will calculate automatically. It will auto-populate tab 2. Enter any supplementary information in the notes table. 01 August 2018 Page 11

12 6 Travel tab 2.5 Table one captures the details of any travel costs incurred. You should exclude costs associated with monitoring and evaluation staff. For each identical journey: Select the locality of travel from the list of options. Select the departure country from the list of options. Select the arrival country from the list of options Select the mode of transport from the list of options. Enter the unit base. Enter the estimated quantity. Enter the estimated average unit cost. The total will calculate automatically. Table two summarises the information from table one into locality of travel. You need to update the information in the pivot table: Select any cell within the pivot table. Select refresh within pivot table tools. The totals will calculate automatically. It will auto-populate tab 2. Table three captures the details of any accommodation costs incurred. You should exclude costs associated with monitoring and evaluation staff. For each identical accommodation type: Select the project term from the list of options. Select the country the accommodation is located within from the list of options. Select the type of accommodation from the list of options Enter the unit base. Enter the estimated quantity. Enter the estimated average unit cost. The total will calculate automatically. It will auto-populate tab 2. Table four captures the details of any subsistence costs incurred. You should exclude costs associated with monitoring and evaluation staff. For everyone: Select the project term from the list of options. Select the country the subsistence rate relates to from the list of options. Enter the number of individuals who will receive that subsistence rate. Enter the unit base. Enter the estimated quantity. Enter the estimated average unit cost. The total will calculate automatically. It will auto-populate tab 2. Enter any supplementary information in the notes table. 01 August 2018 Page 12

13 7 Fund management team tab 2.6 Table one captures the details of the fund management team. Include team members engaged by the lead organisation and responsible partner(s). This includes contractors. For each team member: Select the job family from the list of options. If a team member works across more than one job family the team member should be listed separately under each job family. If you are unable to estimate the split then you must allocate that individual s time to the job family attracting the lower rate. Select the job title from the list of options. If non-allocable is selected your departmental contact will discuss appropriate allocation. Select the technical discipline from the list of options. This is only required if you selected technical advisor as the job family. Select the framework band from the list of options. This is only required if your application or bid is via a framework. Enter the team member s name. Select the number of years experience the team member has from the list of options. Select the project term the team member will work on the project for from the list of options. Select the project phase the team member will work on from the list of options. If a team member works across multiple phases the team member should be listed separately under each phase. Select the country the team member will be based in from the list of options. Enter the estimated number of days the team member will work in year one. Enter the estimated number of days the team member work in the remaining project term. Enter the name of the responsible partner engaging the team member. Table two captures the daily remunerated rate for team members engaged by the lead organisation. For team members engaged by the lead organisation: Enter the daily remunerated rate gross of all employer on costs (pension/ni). This rate will be used to calculate the total project team cost. The annualised salary will calculate automatically. Table three captures the daily remunerated rate for team members engaged by the responsible partner. For team members engaged by the responsible partner: Enter the daily remunerated rate gross of all employer on costs (pension/ni). This rate will be used to calculate the total project team cost. The annualised salary will calculate automatically. Table four captures the project team total cost. This is based on the daily remunerated rate for staff of the lead organisation and the responsible partner. The totals will calculate automatically. It will auto-populate the direct costs tab 2. Table five summarises the information from table four into job families. You need to update the information in the pivot table: 01 August 2018 Page 13

14 Select any cell within the pivot table. Select refresh within pivot table tools. The totals will calculate automatically. It will auto-populate tab 2. Enter any supplementary information in the notes table. 01 August 2018 Page 14

15 8 NPAC tab 3 (Please refer to Annex 1 for tips to ensure your calculated NPAC total is fair and reasonable). Here you set out how your organisation s NPAC are to be shared amongst your organisation s projects. As it is expected that the most common way to calculate NPAC will be by using the Direct Project Expenditure method, NPAC tab 3 has been pre-populated to guide you through this method and Tables 1 4 will guide you through the process. Table 5 calculates the annual NPAC apportionment: Enter an approximate annual inflationary uplift. Enter the estimated annual apportionment against each project year. Multi-partner bids lead organisation should enter partner totals where indicated. The total will calculate automatically. The annual apportionments will auto-populate tab 2. Enter any supplementary information in the notes table. 01 August 2018 Page 15

16 9 Funding tab 4 Table one captures the profile of payments made by the department to you over the project term. We recognise that this is an estimate and payment structures may be unclear at bid or application stage. The information is used to calculate any cash deficit: Enter the payment reference number. This may be a milestone number or a simple numerical value i.e. ascending from 1 through to the relevant final payment number. Enter the outcome number (if applicable). Enter a detailed description of the rational for payment e.g. achievement of milestone. Select the expected project phase the payment will be made. Enter the financial year the payment is expected to be made. Enter the expected payment value. The total will calculate automatically. It should reconcile to the total project cost including local government taxes. It will auto-populate tab 2. The project percentage will calculate automatically. Enter any supplementary information in the notes table. 01 August 2018 Page 16

17 10 Variance tab 5 This tab captures the variance between the original budget and the current budget. It should only be completed if you are resubmitting the cost template. The budget lines from tab 2 will pre-populate the variance table automatically. Enter the original budget totals when the contract or grant was awarded. The budget variance will calculate automatically. 01 August 2018 Page 17

18 ANNEX 1: Sharing NPAC Sharing your NPAC among projects on a fair and reasonable basis means: Each project s share of the NPAC is appropriate given the nature and extent of its activities (i.e., a project does not receive a share of overheads that it does not incur). There is a rational basis for the method used to share NPAC that can be justified and supported. The allocation of NPAC to the project is only an estimate. It does not have to be too detailed or time consuming. Just make sure the allocation method is fair and reasonable based on the information you have. After calculating your project s share of the NPAC you should consider if the results appear reasonable. Consider: Do the results appear reasonable from your knowledge of the project? Are the project s NPAC costs compared to the project s direct costs fair and how does this compare to other projects? Is the project s share of the organisation s entire NPAC fair and how does this compare to other project s shares? If you intend raising income for your project from other sources, we expect those sources to cover their fair share of the project s NPAC. The department will only fund its share of the project s overheads. We would not expect to fund a greater share of your NPAC than the share of your direct project costs you are asking us to fund. 01 August 2018 Page 18

19 ANNEX 2: Definitions Direct project costs: These are all the costs that are clearly and directly incurred because of the project. Typically, they include the salaries of project staff, their travel and subsistence, project materials, and all other costs easily identifiable as part of the project. Directly attributable project costs: These are all the costs that are clearly and directly attributable to the project. Typically, they include country office resources specifically allocated to the project. Disbursement partner: Experience: Expert status: An organisation engaged by the lead organisation or joint venture to make disbursements on its behalf. Years of professional experience relevant to the individual s field of expertise. International Expert: An international expert is an individual whose assignment takes place outside his/her home country or place of permanent residence. National Expert: A national expert is an individual whose assignment takes places in his/her home country or place of permanent residence. Regional Expert: A regional expert is an individual whose assignment takes place within one or more countries of the continent in which his/her home country of permanent residence exists, with the exclusion of their own home country of permanent residence. Frontline project delivery: Job family: Job classification: Long term project staff: Activities associated with delivering the project outputs or outcomes for end beneficiaries. A thorough description of the job responsibilities of a position without regard to the knowledge, skills, experience, and education of the individuals performing the role. A job family will have parity in job titles, consistent job levels within organisational hierarchy, and salary ranges determined by identified factors. These factors include market pay rates for people doing similar work in similar industries in the same region of the country, pay ranges of comparable jobs within the organisation, and the level of knowledge, skill, experience, and education needed to perform each job. It is the output of job classification A system for objectively and accurately defining and evaluating the duties, tasks, and authority level of a job. Individuals that work on the project for a cumulative period of more than 4 months. 01 August 2018 Page 19

20 NPAC: Project commodities: Resource accounting: Responsible partner: Short term project staff: Unit base: Unit cost: Non-project attributable costs. These are overhead costs that relate to the overall operations, management and identity of the delivery partner rather than to programme services. These costs are necessary for programmes to function although cannot be clearly linked to specific project outcomes and results (i.e. business expenses not including or related to direct labour, direct materials or third-party expenses that are charged directly to projects). Typically, they include overall management and employee costs, administration and support, equipment, space and premises costs, and activities that relate to the whole organisation and partly support your project, but also support your other projects. NPAC are often also called indirect, core, central or support costs. A reasonably interchangeable economic good or service that has full or substantial fungibility; for example, project inputs, operational items, non-capital assets or inventory items and project materials. The application of accrual accounting to the accounts of central government departments and pension schemes. It focuses on resources consumed over an accounting period rather than just cash spent, and relates resources consumed to departmental objectives. Any implementing partner, subcontractor or consortium member engaged by the lead organisation or joint venture to enable project delivery. Individuals that work on the project for a cumulative period of less than 4 months. A baseline for measuring the total cost of a set of units e.g. monthly rate, daily rate. The average cost is calculated using a costing method by which the value of a pool of assets or expenses is assumed to be equal to the average cost of the assets or expenses of that pool, i.e. the total value of the pool divided by the volume of the pool. 01 August 2018 Page 20