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Published byErin Brenda Powers Modified over 8 years ago
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Partnership for Advocacy in Child and Family Health (PACFAH) Project Cost Principles
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Outline: Objective Cost principle explained Allowable and non-allowable cost/Project policies on: Travel and Transport Hotel Accommodation Per Diem
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Objectives: Understand the general cost principles. Standard, clear and simple project guidelines on travels, hotel and Per diem. Explore allowable and unallowable costs
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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)
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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
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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.
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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
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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.
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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
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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
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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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