For compliance with the FCRA Act and Rules, what is the correct classification of project office expenses (e.g., rent, utilities, maintenance): should these be recognized as administrative expenses or can they be legitimately allocated to program costs?
Thanks for the query. Project office expenses you have pointed out are exclusively designated for a specific project/program(s) for the defined project duration and must be considered program expenses. However, such expenses pertaining to your Regd/Head office will be admin expenses. Be consistent in your classification and reporting is suggested.
Please also familiarise yourself with Rule 5 of FCRR 2011.
CS Sharad Bhargava
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