Sharing costs (apportionment) is important when:
Mistakes to avoid! Costs should never be apportioned using:
You must apportion costs properly to:
A cost can only be apportioned to a funder if it is eligible under their rules and included in your agreement with them. For example, if a funder does not allow overheads, then they cannot be apportioned to them and must be funded some other way.
These are costs which apply to the whole organisation and which each activity could be reasonably expected to contribute towards. These might include:
Building costs such as:
Admin and management costs such as:
Costs must be apportioned using methods that are fair and reasonable. There are several generally accepted methods of apportioning costs that you could use. The more complicated your funding situation, the more complicated sharing costs can become.
Uses: Costs are apportioned based on staff hours. Useful for most costs.
What you need to do: Staff must keep detailed timesheets.
Uses: Costs are apportioned based on the space an activity uses. Useful for building related costs such as rent, utility bills, cleaning and repair costs, rates, etc.
What you need to do: Records must be kept about the space used by different activities.
Uses: Measuring and recording actual usage of something. Useful if other methods are not producing realistic results.
What you need to do: Records of usage would need to be kept. For example, photocopier records generated by codes for each project.