Services · Foundational

Indirect Cost Recovery Policy

IDP

Develops an indirect cost recovery policy covering eligible cost pools, allocation bases, calculation frequency, approvals, donor restrictions and reporting.

What changes

More reliable financial data, better reporting, stronger audit readiness and improved system-enabled finance operations.

What you get

Indirect Cost Recovery Policy, approved by SMT or Board IDP001
Indirect cost pool mapping and recovery rate calculation model IDP002
Proposal budgeting guidance note with donor cap handling and exception log IDP003
Indirect cost allocation journal template and recovery monitoring schedule IDP004

What has to come first

COAChart of accounts analysis and review Recommended

Cost pools and allocation entries depend on a coherent chart of accounts and cost centre structure
NAHNeeds Assessment Report - National Head Quarters or NABNeeds Assessment Report - Branch/District Recommended

Needs assessment findings establish the cost structure and finance maturity baseline the policy builds on

Who is involved

From the National Society's side. This is what the engagement asks of your people.

Your own staff work alongside the adviser throughout, so this is a commitment of their time as well as the Centre's. Ask in the request and you are given the day estimate per role before anything is signed.

Role	What they do
HNS Secretary General / Senior Management Team	Sponsor; approves approach and policy
Head of Finance / grants finance	Policy owner and implementer
Programme managers and proposal development teams	Apply recovery rates in budgets
Donor / grants focal point	Donor compliance and negotiation
HR / ICT / Administration	Inputs to the indirect cost base
Board / Finance Committee / RAC	Oversight and approval
External auditors	Review compliance and allocation basis

How it is measured

Indicator	Target	Evidence
Policy approved by HNS leadership within target time of kick-off	12 weeks	Approval minutes; signed policy (IDP001)
Indirect cost pools mapped and standard recovery rate documented with rationale	100% of identified pools	Rate calculation model and assumptions note (IDP002)
New proposal budgets apply the approved rate after rollout	At least 90% of proposals submitted	Finance sign-off records against the guidance note (IDP003)
Under or over recovery monitored and reported to SMT	Quarterly	Monitoring schedule and SMT reports (IDP004)

Tools

4 of 4 ready to download.

IDP001 Indirect Cost Recovery Policy Policy DOCX
IDP002 Indirect cost pool mapping and recovery rate calculation model Template XLSX
IDP003 Proposal budgeting guidance note with donor cap handling and exception log Guidance XLSX
IDP004 Indirect cost allocation journal template and recovery monitoring schedule Template XLSX

Standards

IFRS / GAAP accounting standards
GFDC Operational Framework (intake, triage, service workflow)
Cost recovery and functional budgeting framework
HNS finance manual, accounting policies and close procedures
Donor agreements and reporting requirements
External audit management letters and prior year adjustments
HNS chart of accounts and cost centre structure

Describe the problem, not the service

You do not need to know which of the 124 to ask for.

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