Workplan - Support Costs

Question 1

“Is there any different support cost rate among NGOs and INGOs? Is there any limited SC rate for INGO?
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Answer 1

Support cost is from 0-12%. The actual rate paid depends on what rate the department negotiates with the IP based on what the activities in the workplan are.

Question 2

The question about the Support Cost, usually the maximum support cost is 7%, what would be your recommendation if the IP asks to have it higher e.g. 10% explaining that during Covid-19 there are IT expenses like Internet charges but presenting it as a separate activity is not possible due to the fact that no separate bill for Internet is possible to obtain. Would it be possible to agree for 10% with the proper Note to the File or a Letter from the IP.

Answer 2

Support cost to an NGO partner can be up to 12%. The guidance note to IPs during COVID gave more flexibility for our IPs to charge us for COVID related expenses, such as internet charges. It should not be a separate activity, rather, it should be added as an expense under the programmatic activity it relates to.

Question 3

“Do we need to do a note to file for Support Costs above 7% but less than 12%?
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Answer 3

Yes - the auditors required we made this a requirement.

Question 4

“Hello, on the support cost, how do we determine if we give 8 of 10 or 12, or lower, ie 5%?
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Answer 4

It depends on the type of activities and the negotiation skills of the person doing the negotiation. It is very much a case by case basis. Some activities don’t incur many costs to the IP (short in nature, mostly salary costs and they apportion costs, etc.)

Question 5

“Another question on the support cost, if the IP uses 2 different fund codes, is it possible to have different support cost for each fund, for example for one fund 7% but for another 10%. If yes, should the Note to the File explain 10% only or should it include the explanation for 10% and also the different percentage.
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Answer 5

Support cost to an NGO partner can be up to 12%. It is not possible to have separate support cost rates based on fund code. There needs to be one support cost rate for the entire workplan.