When one employee supports several grants, salary costs need to be divided in a way that reflects the work actually performed. Charging the same person’s full salary to more than one award is an obvious compliance risk, but overly complicated timesheets are not the only solution.
Start with the real work pattern
Identify which projects the employee supports and whether the pattern is stable or changes significantly by month. A finance officer may support every award, while a project coordinator may work almost entirely on one grant.
Possible allocation methods
- Actual time records where donor rules require them.
- Documented percentage allocations where work patterns are stable and permitted.
- Periodic reconciliation between planned percentages and actual responsibilities.
Watch for common errors
- Allocations that exceed 100% of paid time.
- Charging fundraising or unrelated work to a restricted award.
- Leaving percentages unchanged after responsibilities shift.
- Using the budget percentage as proof of actual work without supporting records.
Keep evidence proportionate
Maintain job descriptions, assignment records, timesheets or equivalent evidence, payroll records and any allocation calculations. The exact evidence should follow donor and legal requirements.
Use the Grant Evidence Inventory to identify missing staffing and payroll evidence before due diligence, and the Grant Budget Sanity Checker to test the proposed staffing budget.
Simple control
At least monthly, reconcile the allocation to current responsibilities. The goal is not paperwork for its own sake; it is a defensible connection between salary charged and work performed.
Frequently Asked Questions
Why does staff time allocation matter?
Salary costs must reflect the work actually performed for each grant. Weak allocation can lead to unsupported charges, double charging or inaccurate donor reports.
What methods can NGOs use?
Common methods include actual hours, documented percentages or another approved allocation basis that is reasonable, consistent and supported by donor rules.
Should staff use timesheets?
Timesheets are a strong control where staff work across several grants because they create a direct record of how effort was divided.
Can planned percentages be used all year?
Planned percentages should be checked against actual work. If responsibilities change, the allocation method should be updated rather than leaving outdated assumptions in place.
Who should approve staff allocations?
The employee and supervisor should confirm the allocation, while finance verifies that the method is consistent with payroll records, budgets and donor requirements.
Conclusion
Staff cost allocation should be based on a documented method that reflects actual effort and can be explained to a donor or auditor. NGOs should review allocations regularly, especially when staff roles or project workloads change.
