R.R. RZAYEV, E.T. ALIYEV
FINANCIAL FRAMEWORK FOR EFFECTIVE COST RECOVERY TO SUPPORT OF FAO UN PROJECTS


The new concept of financial framework for effective cost recovery within the FAO UN is proposed, which moves away from the costs categorization and incremental recovery principles that have been used in the current FAO Support Cost Policy to a proportional full cost recovery model where all costs of delivering the programme of work under all source funds are categorized into three cost categories: Direct Operational Costs; Direct Support Costs; and Indirect Support Costs. Within this classification of costs, we develop a model of financial mechanism for effective cost recovery to support of FAO projects, which is based on the principle of proportionality.

Keywords: direct operational costs; direct support costs, indirect support costs, financial framework for effective cost recovery
Institute of Control Systems of the Ministry of Science and Education of the Republic of Azerbaijan
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