The Department for International Development (DFID) has developed a new approach to paying overhead costs of projects (also known as Non Project Attributable Costs, or NPAC), which is available for use in new Accountable Grant Arrangements from October 2018.
We are making this change as part of a series of measures to increase transparency on how UK aid is spent. DFID remains committed to delivering the best value for money in its programmes, which includes supporting sustainability of the projects and organisations we fund. This template will provide a fair, consistent approach that will enable payment for the full cost of programme delivery through grants.
The new template calculates the share of overhead costs that we should pay grantees. The amount payable will be calculated and agreed with the partner using the new template, which should be annexed to their budget for direct costs. A full budget template for Accountable Grant Arrangements, which includes direct costs, will be available in 2019. If you are a delivery partner interested in using the template in your new accountable grant agreement, please discuss it with your DFID Programme Manager.