Part of the ASF policy framework, aligned with the equivalent PHIG policy. To raise a concern: see the ASF Complaints and Reporting Channel.
A cost may be charged to a grant only if it is necessary, reasonable, allocable to that grant, consistently treated and supported by documents. Owner: Board Treasurer.
Tests every cost must pass
- Necessary and reasonable for the project, at a price a prudent person would pay.
- Allocable: charged in proportion to the benefit the grant receives.
- Consistent: treated the same way whatever the funding source.
- Documented: invoice, proof of payment, approval and, for goods, proof of delivery.
- Within budget and period of the agreement.
Costs never charged to donor funds
Alcohol; entertainment; fines and penalties; bad debts; lobbying and political activity (Policy 30); personal expenses; first-class travel; costs already paid by another donor; and any cost the agreement lists as ineligible.
Shared and indirect costs
Shared costs (rent, utilities, administration) are allocated using a written cost allocation method — normally staff time or floor area — approved by the the Board Chair and applied consistently. Indirect cost recovery follows the rate the donor accepts; without an agreed rate, ASF charges only direct costs.
Timekeeping
- Staff paid from more than one funding source complete monthly timesheets showing actual hours by project, signed by the employee and approved by the line manager.
- Salaries are charged according to actual time recorded, not budget estimates; differences are corrected at least quarterly.
Currency
Foreign-currency costs are converted at the rate required by the grant agreement, or otherwise at the European Central Bank reference rate on the transaction date, applied consistently.