Dear Subhash ji,
I would like your inputs or maybe inputs from group members.
A common practice followed by various organisations which certain people
call allocations while others call notional expenses are as follows:
1) Charge against use of own buildings
2) Charge against use of infrastructure, convention centre, conference halls
3) Charge against use of own vehicles
4) Charge against use of photocopier, telephone, computers
5) Providing services at a pre-determined rate etc.
6) apportionment of common expenses
In a nutshell many times expenses are charged to the projects either through
a journal entry or sometimes through actual transfer from the project account
While some donors allow it, others object to it saying: if you pay rent to
a conference hall outside it it permitted, while if you use the facility available
with the organisation it is not.
Here again I find that even professionals – surprisingly when they are
engaged by the donor, they start talking in donors language and call them notional
expenses, while when they are engaged by the project holder they start talking
in terms if self reliance and sustainability.
I want to start a discussion on this – whether it is legally permissible to charge
expenses and what is the common practices followed.
Yours inputs in this regard would be appreciated.