Administrative expense classification defines overhead costs, excludes direct welfare and research functions, and allows carry-forward of unspent allowances.

Administrative expenses include remuneration and travel of key functionaries, management personnel costs, office and utility expenditure, fund administration, vehicle maintenance, reporting costs, legal and professional charges, and premises expenses. Exclusions apply to remuneration for research, training and field-data personnel, and to expenditure directly furthering welfare objectives, such as salaries of hospital doctors and school teachers. Unspent allowable administrative expenses may be carried forward to the immediately succeeding financial year with reasons recorded in Form FC-4.

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