Gross Day Rate Definition What is a gross day
Description: Gross Day Rate Definition What is a gross day rate? Allowable costs Margin Expenses 330 salary remuneration and benefits including superannuation (pension) and payroll taxes. 50 company central overheads (e.g. rent on shared office)
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slide1. Gross Day Rate Definition
What is a gross day rate? Allowable costs Margin Expenses *£330 salary remuneration and benefits including superannuation (pension) and payroll taxes.
**£50 company central overheads (e.g. rent on shared office) £30 *£330
Salary £1000 Agreed gross day rate of £410 e.g. cost of bus travel to each village and cost of B&B *10 days agreed + Agreed expenses In this example DFID pays £5,100 to audit 10 schools.
Of this the auditor earns £3,300 and the maximum profit for the audit company is £300 “Companies in a number of industries use ‘day rates’ to price work, a practice that applies equally to work for private and public sector clients. DFID uses day rate pricing in some instances.
“The principle is a simple one that would apply if an individual instructed a lawyer to act on their behalf (where the price you pay for 1 days work includes a range of overheads in addition to the individuals salary).
“A typical DFID example might be the cost of employing an auditor in Kenya to check whether 10 new schools have been built to the right standard.”
DFID has invested £1 million to improve school buildings at 10 schools in rural Kenya. Before paying the building contractor DFID hires an experienced auditor to check each school has been built to a good standard. This requires travelling around the various areas to inspect each: The cost to DFID = (agreed gross day rate * agreed days worked) + allowed expenses 1 **£50 NPAC/Central Overheads<br>
What is a gross day rate? Allowable costs Margin Expenses *£330 salary remuneration and benefits including superannuation (pension) and payroll taxes.
**£50 company central overheads (e.g. rent on shared office) £30 *£330
Salary £1000 Agreed gross day rate of £410 e.g. cost of bus travel to each village and cost of B&B *10 days agreed + Agreed expenses In this example DFID pays £5,100 to audit 10 schools.
Of this the auditor earns £3,300 and the maximum profit for the audit company is £300 “Companies in a number of industries use ‘day rates’ to price work, a practice that applies equally to work for private and public sector clients. DFID uses day rate pricing in some instances.
“The principle is a simple one that would apply if an individual instructed a lawyer to act on their behalf (where the price you pay for 1 days work includes a range of overheads in addition to the individuals salary).
“A typical DFID example might be the cost of employing an auditor in Kenya to check whether 10 new schools have been built to the right standard.”
DFID has invested £1 million to improve school buildings at 10 schools in rural Kenya. Before paying the building contractor DFID hires an experienced auditor to check each school has been built to a good standard. This requires travelling around the various areas to inspect each: The cost to DFID = (agreed gross day rate * agreed days worked) + allowed expenses 1 **£50 NPAC/Central Overheads<br>