Procedures for Evaluating Service Quality in Research and Consultancy Fields
Breaking Down Study and Consulting Service Costs
When calculating the costs of studies and consulting services, both direct and indirect (administrative) expenses are factored in, backed by supporting documents like the performer's staffing table, calculations, contracts, and at least three price offers.
Here's a breakdown of what these costs cover:
Direct Expenses:- Personnel salaries from organizations delivering the service, including taxes and mandatory payments.- Value-added tax, mandatory insurance, travel expenses, external expert fees, material purchases, transportation, printing, rent, courier services, bank and communication services, translation services, and more.
Indirect (administrative) Expenses:- Salaries, taxes, and mandatory payments for administrative staff.- Communication, rent, and mandatory insurance costs.
It's important to note that the following expenses should not be included in the costs:- Provisions for potential losses.- Coverage for past period debts and losses.- Advertising and sponsorship expenses.- Penalties, fines, or bonus payments.- Master class fees or representative expenses.
Effective planning of expenses dictates that administrative costs should not exceed 20% of the budget funds allocated for a specific financial year.
Previous reports indicated that the Ministry of Finance had imposed requirements for information technology in the budget process. However, as of now, there are no specific guidelines for direct and indirect expenses for studies and consulting services that came into effect on June 13, 2025. The National Science Foundation (NSF) had planned to implement a new indirect cost policy, yet it has been temporarily paused due to legal challenges. Initially, the policy aimed to set a 15% indirect cost recovery rate for new grants effective May 5, 2025, but the implementation has been postponed until after a hearing scheduled for June 13, 2025[1][3][5].
For federally funded research, such as studies and consulting services, the Uniform Guidance issued by the Office of Management and Budget provides overarching principles for direct and indirect costs. However, it does not specify an effective date of June 13, 2025[2].
Stay tuned for updates from the NSF or relevant government agencies following the scheduled hearing for precise guidelines effective as of June 13, 2025.
[1] NSF Indirect Costs FAQs (n.d.) Retrieved from https://www.nsf.gov/bfa/dias/policy/faqs_indirect_costs.jsp[2] Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2022) Retrieved from https://www.govinfo.gov/content/pkg/CFR-2022-title2-vol19/pdf/CFR-2022-title2-vol19-sec200-300.pdf[3] U.S. House of Representatives, Committee on Science, Space, and Technology (2021, November 15) Hearing on Proposed Changes to NSF Indirect Cost Policy. Retrieved from https://science.house.gov/calendar/eventsingle.aspx?EventID=406059[4] National Science Board (2021, September 23) Data Management and Cybersecurity in the Age of AI: Accelerating the Transition to an AI-Powered Economy. Retrieved from https://www.nsf.gov/news/special_reports/datamanagement/[5] National Science Board (2021, January 14) Triennial Review of NSF's Management of Its Research Grants Programs and Internal Services. Retrieved from https://www.nsf.gov/nsb/news/pdf/2022-14.pdf
In the context of the study and consulting service costs, the television industry may consider indirect expenses such as administrative salaries, communication costs, and rent as potential business costs. Additionally, the finance sector might be interested to know that in the provision of these services, direct expenses could cover costs like external expert fees, material purchases, and transportation, which could impact their financial calculations.
