The creation of costs or an estimation of creation of costs, or incurrence of pecuniary obligations or estimation of incurrence of obligatory incurrence by “MUNICIPALITY” will be enlisted in the plan of a PROJECT in the form of Enhancements or Functions related to public matters inside a “TAX INCREMENTAL DISTRICT” and all such expenditures are called “PROJECT COSTS”.
Such types of expenditures also include Incidental Costs that are being reduced by some REVENUES, INCOME or particular kind of ASSESSMENT by the MUNICIPALITY in accordance with the plan application and implementation. The Increments in the Tax monies that have been received or inevitably expected to be collected, will not be the part of Project Costs.
- There is an evident distinguishing line that exists between the “PROJECT COSTING and the “CORE COSTING” which will be drawn by “Not-For-Profit organizations” as well as numerous “Charities”.
- Certain kind of Funders affiliated with the organizations that functions to execute Charitable Work, will not be rendering the total expenditures for the deliverance of a PROJECT thus they restrict their cost contributions to Overhead Costs to a minor added proportion of the “DIRECT COST”.
The evaluation and calculation of the Factual Cost of every PROGRAM or PROJECT will then be a challenging responsibility of the “VOLUNTARY ORGANIZATIONS”.
- The DIRECT COSTS affiliated with a particular type of PROJECT, inclusive of the project share of the Staff Expenditures as well as the project share of Overhead expenses, will collectively be calculated as a “TOTAL PROJECT COST” in the mechanism of PROJECT COSTING.
THE EVALUATION AND CALCULATION OF “DIRECT COSTS”:
The procedure is adopted for the identification of “DIRECT COSTS” for every Program or Project will be a simplified process.
The diverse factors that are associated with the Calculation of “DIRECT COSTS” include;
- The expenses related to the renting process of Equipment, Devices and Aiding Tools.
- The costs for the deployment of efficient “Trainers”.
- The expenditures for conducting a “SURVEY”.
- The expenses for traveling.
- The costs for “PRINTING” mechanisms.
The all above-mentioned expenses will be presented in the form of a “SINGE FIGURE” in the “ANNUAL ACCOUNTS” more probably while these Costs are required to be assigned to the correct and suitable PROJECTS in case of “MANAGEMENTS ACCOUNTS”.
ESTIMATION AND CALCULATION OF “STAFF COSTS”:
- You are required to be well-informed regarding the “STAFF COST” for every Project.
- By adding the “SALARY COSTS”, the Daily Rate for every Grade or person will be calculated.
- The “Pension Contributions” will be added to “National Insurance” of the Employer along with the addition of any other forms of “Benefits” taken by staff members and then the sum will be divided by the total “Chargeable Number of Days”.
- The number of the Days for every person will be assessed for every single Program or Project as well as the “STAFF COST” and then it will be added to the entire “BUDGET” for the specific Program or Project.
THE ANALYSIS AND CALCULATION OF “OVERHEAD COSTS”:
- The Total operating/running costs for extra items or needs (overheads) must be precisely calculated as a portion of your entire “Budgeting Process” right at the initiation of every year.
- The expenses for Staff Time that are “Non-Chargeable” as well as costs of “Depreciation” must also be essentially included in the “OVERHEAD COSTS”.
- The assurance of appropriately covering all types of “OVERHEAD COSTS” by Fund Raising Mechanism will be dependent upon the fact that either the total “Overhead Costs” are fairly be distributed over the entire Programs or Projects that are in operation.