Costs

Salary top-ups and travel-related costs

Allowances for salary incentives, top-ups, travel per diems and transportation costs are not paid from grant funds unless provided for in the concept note and grant agreement. If such schemes are indispensable for service delivery, applicants should include a valid funding rationale for such incentives as part of the concept note. The assumptions tabs in the Global Fund budget template are used for this justification.

Shared costs

Shared costs are expenses that can be allocated to two or more funding sources (government, the Global Fund, other donors etc.) or different Global Fund grants on the basis of shared benefits and administrative efficiency. These costs are allowed when they are:

• verifiable from implementers’ records with evidence on “fair share” principle;
• necessary and reasonable for proper and efficient accomplishment of grant and programme objectives;
• included in the approved budget when required; and
• expensed during the grant implementation period.

The apportionment method must be clearly stipulated in the budget assumptions.

Budgeting for Project Management Unit (PMU) and other staff costs

The Global Fund budget template contains three types of assumption tabs:

1. Travel-Related Cost grouping of cost-inputs;
2. Human Resources grouping of cost inputs; and
3. All others.

The related assumption tab is used for each detailed unit cost. Note that all procurement and supply management (PSM)-related assumptions should be done in a separate PSM template.

Staff costs are calculated and budgeted as follows:

• UNDP’s Proforma Costs for Fixed Term Appointment (FTA)/Technical Assistance (TA)/special condition (SC) positions.

Practice Pointer

All relevant common services costs must also be included in the budget.