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Justification for Directly Charging Administrative and Clerical Salaries To Contracts, Grants and Cost Sharing Cost Centers OMB Circular A21, F.6.b. states that under ordinary circumstances the wages/salaries

How to fill out justification for direct charge

How to fill out justification for direct charge:

1. Begin by clearly stating the purpose of the direct charge. Explain why it is necessary to incur this expense outside of the usual procurement processes.
2. Provide a detailed description of the goods or services that will be obtained through the direct charge. Include any specifications or requirements that are relevant to the purchase.
3. Justify the direct charge by outlining the potential benefits or advantages that it will bring to the project or organization. Explain how it aligns with the goals and objectives.
4. Include any supporting evidence or documentation that validates the need for the direct charge. This could be quotations from suppliers, cost comparisons, or testimonials from experts.
5. Specify the amount or budget that is required for the direct charge. Break down the costs and provide a rationale for each component if necessary.
6. Identify the funding source for the direct charge. Clarify whether it will be covered by the project's budget, external funding, or any other sources.
7. If there are any alternative procurement methods that have been considered and ruled out, briefly explain why they are not suitable or feasible in this particular case.
8. Provide any additional information or justifications that may be relevant to the specific circumstances of the direct charge.

Who needs justification for direct charge?

1. Departments or individuals within an organization who are responsible for managing budgets and ensuring financial accountability.
2. Project managers or team leaders who need to justify expenses that are not part of the regular procurement processes.
3. Finance or budgeting departments who require proper documentation and justifications for any direct charges made.
4. Internal or external audit teams who may review the direct charges to ensure compliance with financial regulations and policies.
5. Funding agencies or stakeholders who need transparency and accountability regarding the use of funds for direct charges.

For pdfFiller’s FAQs

What is justification for direct charge?

Justification for direct charge is a document that explains the rationale for charging an expense directly to a specific project or cost center without going through the regular procurement process.

Who is required to file justification for direct charge?

Employees or departments that want to charge an expense directly to a project or cost center are required to file a justification for direct charge.

How to fill out justification for direct charge?

The justification for direct charge should include details such as the reason for the direct charge, the project or cost center to be charged, the amount of the expense, and any necessary approvals.

What is the purpose of justification for direct charge?

The purpose of justification for direct charge is to ensure transparency and accountability in the allocation of expenses and to justify why certain expenses bypass the regular procurement process.

What information must be reported on justification for direct charge?

The justification for direct charge should include details about the expense, the project or cost center to be charged, the reason for the direct charge, and any necessary approvals or documentation.

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