We have un-utilised Fc grant as on 31.03.2024 (FY 2023-24) both program and Adm cost.
We received fc grant from same agency in FY 2024-25.
We utilised the adm expenses from the CB as on 31.03.2024 (2023-24) and from the year 2024-25 with Program expenses also.
So the auto calculation Adm Exp i.e. 20% on Grant received FY 2024-25, and the excess Amount spent notified in FC4.
Pl suggest me the fill up is made by me is correct or not???
There is no carry forward of unutilised admin expenses for FY 2023-24. This facility has been introduced only in FY 24-25 effective 1.1.2025, please see clause 4(iv) of FC 4. In FC 4 for FY 24-25, unutilized brough forward balance of admin expenses will be zero (sl. no. 1 of clause 4(iv)). Since the facility of carry forward unutilised admin exp was effective 1.1.2025, it should apply from that date for FY 2024-25. The carry forward of unutilised admin expense is possible only for the succeeding financial year only.
CS Sharad Bhargava
Sir,
Thanks for your clarification. Two more clarifications I want to get from you. We will put the expenditure made for the FY 2024-25 (Both Program and Adm) met from OB and Current Grant. But the allowable (20%) adm cost will be calculated on current year grant (2024-25), naturally the adm exp is more than the allowable. Am I Right???
Other clarification is we have met FC expenditure from the IC project as the grant was late. The cheque was issued to a vendor from IC for FC Project and audited the figure disclosing the same in IC Project.
While FC Project RP account prepared we have shown Loan from IC in Recept sie and the exact amount shown in Payment side on the specified expenditure head.
As FC4 the direct foreign contribution or any secondary FC will be shown as Total FC Contribution. So, the expenditure amount met from Loan from IC will be shown as expenditure in FC4 or not???
With Regards
Answer to Query 1: as per rules, for FY 24-25, Adrion cost will have a ceiling of 20% of total FC receipts during the year. It is not calculated on total expenditure.
Answer to Query 2: Please note receipts and utilization in FC4 is to be on cash basis based on R&P statement of FC audited financials. FC project expenditure should not be paid from Indian currency (IC). Even if it is shown as a loan and from IC which is like telling MHA you are doing something against law, it cannot be treated as utilization for program or admin exp.
Hope it clarifies.
CS Sharad Bhargava