Services · Scale-Up

Indirect Cost Recovery Calculation

IND

Calculates indirect cost recovery using agreed cost pools, drivers, donor restrictions and allocation methodology, supported by calculation schedules.

What changes

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

What you get

ICR rate calculation workbook with built-in validation and sensitivity checks IDC000
Indirect cost pool mapping worksheet (accounts and cost centres to pool) IDC001
Allocation base calculator by project and fund IDC002
Rate memo and approval record IDC003
Proposal budgeting guidance note with donor exceptions tracker IDC004
Periodic allocation journal template with reconciliation checklist IDC005

What has to come first

IDPIndirect Cost Recovery Policy Recommended

The Indirect Cost Recovery Policy sets the pool rules, rate governance and refresh cycle the calculation implements
COAChart of accounts analysis and review Recommended

A clean chart of accounts and cost centre structure underpins the pool and base mapping
NAHNeeds Assessment Report - National Head Quarters or NABNeeds Assessment Report - Branch/District Recommended

Needs assessment findings establish the cost recovery baseline and the gaps the model must address

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 Head of Finance / grants finance	Owns the model and rate setting
Programme managers and proposal development team	Apply rates to budgets
Donor and grants focal point	Compliance and donor negotiation support
HR, ICT and Administration	Contribute indirect cost pool data
Senior Management and Board finance committee	Approve final rate(s) and assumptions
External auditors	Review methodology and audit trail, where applicable
GFDC delivery team	Builds the model and advises

How it is measured

Indicator	Target	Evidence
Evidence-based ICR rate(s) approved by HNS leadership	Within 8 weeks of kick-off	IDC003 approval record; SMT or Board finance committee minutes
Calculation fully traceable to source data	100% of pool and base figures reconciled to the trial balance or approved budget	IDC000 validation checks; IDC001 and IDC002 mappings
Approved rate applied in new proposal budgets	All proposals from the effective date use the approved rate or a documented exception	IDC004 exceptions tracker; sample of submitted proposals
Under/over recovery monitored and reported	Quarterly report issued within 4 weeks of quarter end	IDC005 reconciliation; quarterly recovery report

Tools

6 of 6 ready to download.

IDC000 Indirect Cost Recovery Calculations Tool XLSX
IDC001 Indirect cost pool mapping worksheet (accounts and cost centres to pool) Template XLSX
IDC002 Allocation base calculator by project and fund Template XLSX
IDC003 Rate memo and approval record Template DOCX
IDC004 Proposal budgeting guidance note with donor exceptions tracker Template XLSX
IDC005 Periodic allocation journal template with reconciliation checklist Template DOCX

Standards

IFRS / GAAP accounting standards
GFDC Operational Framework (intake, triage, service workflow)
Cost recovery and functional budgeting framework
Donor agreements and reporting requirements
HNS budgeting policy and budget vs actual reporting procedures
External audit management letters and prior year adjustments
HNS chart of accounts and cost centre structure
HNS Indirect Cost Recovery Policy and cost allocation procedures

Describe the problem, not the service

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

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