Overhead Costs Policy | Family Empowerment Media

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Effective date: July 15, 2024
 

Purpose:

This policy establishes a standardised approach for the payment of overhead costs on sub-grants issued by FEM Inc. This will ensure consistency and help maintain cost-effectiveness in our financial management. 

 

Scope:

This policy applies to all sub-grants issued by FEM Inc to entities incorporated and doing business in non-implementation countries. Implementation countries are defined as countries where FEM Inc’s programs, including but not limited to radio-based education campaigns, and research activities are ongoing.

 

Policy Statement:

FEM Inc. will apply a maximum overhead rate of 15% on all sub-grants issued to partners and other contractors based outside of FEM Inc.'s implementation countries. This rate is applicable to the total direct costs of the sub-grant.

 

Procedure:

During the preparation of grant budgets, the 15% overhead rate must be calculated and included as a separate line item.

 

All sub-grant budgets, including the overhead rate, must be reviewed and approved by an authorised representative of FEM Inc.

 

Implementation Countries:

This policy does not apply to sub-grants issued within implementation countries where FEM Inc. has ongoing programs and/or research. Specific agreements in these countries will follow the budgeting system established for those regions.

 

Grant Agreements:

All sub-grant agreements must explicitly state the applicable overhead rate. If the sub-grantee’s standard overhead rate exceeds 15%, the agreement must specify adherence to the 15% cap unless an exception has been approved.

 

Non-Compliance:

Adherence to this policy is mandatory for all staff involved in the grant administration process. Non-compliance may result in the re-evaluation of the grant terms or potential withdrawal of funding.

 

Review and Amendment:

This policy will be reviewed annually and may be amended as necessary to reflect changes in organisational needs or regulatory requirements.