Partnership for Advocacy in Child and Family Health (PACFAH) Project Cost Principles

Outline:  Objective  Cost principle explained  Allowable and non-allowable cost/Project policies on:  Travel and Transport  Hotel Accommodation  Per Diem

Objectives:  Understand the general cost principles.  Standard, clear and simple project guidelines on travels, hotel and Per diem.  Explore allowable and unallowable costs

Meaning Of Cost Principle: Cost of principle requires one to initially record an asset, Liabilities, or equity investment at its original acquisition cost. Three requirements -Cost must be : (Reasonable, Allocable & Allowable)

Cost Allowability: To be allowable a cost must be:  Reasonable and allocable  Conform to limitations  Consistent with policies & procedures  In accordance with generally accepted accounting principles (GAAP)  Adequately documented

Allowable Cost  Travel and Transport  Air Ticket  Economy Class  Overweight and/or over-limit charges not allowed, except where such overage is due to items required for project business.  Charges for ticket change not allowed, except where such change was for the purpose of the project needs and must have been authorized in advance.

Allowable Cost ( cont’d)  Travel and Transport (Cont’d)  Ground Transportation  Reasonable Taxi Fare for airport drop, pick ups and local transport is allowable.  Reasonable Car Rental of a midsize car is allowable. Where number of passengers so warrants, a bus could be hired.  BMGF does not cover any accident which may occur when a consultant rents a car for the project business trip. Consultants may therefore consider purchasing additional insurance cover at his/her cost, at the point renting a car.  Mileage reimbursement is allowable for use of personal vehicle at PACFaH standard rate (N25/KM).  Rail travels where available are also allowable

Allowable Cost (cont’d)  Lodging/Hotel Accommodation  The project will make arrangement for hotel accommodation for the project meetings, training, etc  Participants and project staff are required to lodge in the designated hotels provided by the project.  Where hotel is not booked, participants could present valid hotel receipt and analyzed bills for reimbursement to the limit provided for lodging.  Participants should sign their individual bills before check-out.

Hotel and Per Diem rates LocationHotel Per Diem Abuja/Lagos/Port Harcourt N15,000 N 9,500 Other State Capitals N11,000 N7,500 LGA’s N7,000 N 5,500

Non – Allowable Cost  Lost or delayed luggage and contents (work directly with the airline to recover damages)  Fees or dues for airline VIP clubs and hotel and loyalty or frequent-stayer programs  All forms of travel insurance covers (air travel and ground travels)  Air tickets upgrades and charges for unauthorized itinerary changes  Laundry or dry cleaning  ATM fees

Non-Allowable Cost (Cont’d)  Health club services and gym entrance fees  Personal travel expenses, including sundries and recreational reading, and over the counter medicines  Movies (in-room and in-flight)  Costs for personal guests  Gifts, donations, including table sponsorships

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