What is the distinction between Directly Incurred and Directly Allocated costs?

Hi, Directly Incurred costs (DI) are those costs that are explicitly identifiable as arising from the conduct of the research, are charged on the basis of the cash amount spent and are verifiable and auditable from the accounting records.

Directly Incurred costs (DI) are those costs that are explicitly identifiable as arising from the conduct of the research, are charged on the basis of the cash amount spent and are verifiable and auditable from the accounting records.

Directly allocated costs are a share of the costs of a resource used by a project, where the same resource is also used by other activities. These are different to the Directly Incurred costs listed above because these costs are not exclusively related to any individual project. However, the cost of the resource still needs to be recovered, and making a fair and reasonable charge to all projects using the resource does this. The key difference between Directly Incurred costs and Directly Allocated costs is that the latter will be charged based upon an estimate, rather than actual cash values. Investigator Salary Costs In Step 3. you estimated the time that each investigator will need to devote to the project. This will have been estimated as an, ‘average hours per week’ figure. You will now need to apply this figure to the salary rate of each of the Investigators to calculate the salary cost. Under fEC, each investigator will fall under one of a number of pay groups or bandings. You will need to know, for each investigator, the average hours per week they will devote to the project and your Accounting Team will then be able to apply these hours to the appropriate pay banding in order to calculate a salary cost for each investigator. Get Investigator Salary Cost information from your Accounting Team Please note that if you have an investigator who is going to be 100% funded from the project (such as Research Fellowships) then this cost should be included as Directly Incurred, as these staff will need to be charged as actual costs to the project. Other Directly Allocated Costs 1. Project Specific Staff Costs Pool Technicians Estimate the amount of time (in days) you will require of the services of school technicians, and multiply by one of the following rates: Salary £30,000 + Salary £25,000 – 29,999 Salary £20,000 - £24,999 Salary £15,000 - £19,999 Salary less than £15,000 £200 per day £150 per day £125 per day £100 per day £75 per day

Directly Incurred costs (DI) are those costs that are explicitly identifiable as arising from the conduct of the research, are charged on the basis of the cash amount spent and are verifiable and auditable from the accounting records. Directly Allocated costs (DA) are shared costs charged on estimates, and do not represent directly auditable costs on a project-by-project basis. Thanks