FAQs

Health Care

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Q: When can I submit applications for Health Care grants?

A: Applications are accepted year-round. Applications received from eligible institutions by December 15 of each year will be considered by the Health Care Committee at its June meeting, and those received by June 15 of each year will be considered at the Committee's November meeting.

Q: What happens after a decision is made on funding?

A: You will be informed immediately after the Endowment's trustees consider your request. If your request has been approved, you will receive with your notification letter a grant agreement form for your CEO to sign.

Q: With grant application budget forms, what is the definition of "in-kind" revenue and expense?

A: Items designated as "in-kind" on program budgets are non-cash revenue or expenses that are directly attributed to the program. These expenses do not represent a cash revenue or expense because one of the project partners has contributed resources to cover the program expense. For example, a hospital may contribute to a program by making existing office space available to a program without charging rent. In this instance, the budget form should account for office expense by estimating a fair market value for space and accounting for that as an "in-kind" expense with offsetting "in-kind" revenue from the hospital.

Q: What is the difference in a program expense and a capital expense?

A: Program expenses are those expenses that are directly associated with the operation of the program. Examples would include staff salaries, supplies and other expenses. Capital expenses are for tangible fixed assets necessary to the program and typically represent a one-time expense. These normally have a useful life of more than one year. Examples of capital expenses may include facility construction, purchase of computer equipment, etc. Depreciation and amortization of fixed assets are not allowable as a program expense.

Q: What types of expenses should be included in my budget?

A: All expenses that are incurred directly through the operation of the program (direct expenses) should be included. At times, it may be appropriate to include indirect expenses in your program budget. This may include fixed expenses not directly associated with the daily activity of the program, but still necessary to and incurred by the program. Only that portion of expense that can be attributed to the establishment or continued operation and existence of the program may be included. It is not allowable to allocate organizational expense on the basis of a fixed percentage that is not correlated to the consumption of that expense by the program. Some organizations have accounting policies of allocating overhead expenses (typically general administrative expense), on the basis of a fixed percentage. Such policies of expense allocation should not be used when completing a grant application or accounting for annual budgets.

Q: As regards annual reporting, what should my Financial Reporting Period Dates be?

A: The dates for financial reporting should coincide with the terms outlined in the grant agreement contract. These will generally be from the time of the initial award until the time for your next scheduled payment, or the end of the grant. These dates may or may not coincide with the fiscal year of your organization. It also may or may not coincide with the date you actually received the grant funds. For example, if you received a notice of award and a grant agreement in June, your budget year would cover a 12-month period from July 1 to June 30. The Duke Endowment may consider adjustments if the organization has a valid purpose for changing the original grant term. If you have received an extension on the original grant term, your reporting dates would also be extended.

Q: What should I include in the "Actual Year-to-Date" column in my Interim Report Budget?

A: Items in this column include expenses and revenues you have already incurred or received. For example, if your reporting dates cover the calendar year from January to December and you are completing the budget form during the first week of October, then you would include expenses that have already occurred and which can be accounted. This would mean that you would identify your "Actual Dates" as being the nine month period from January 1 through September 30.

Q: What should I include in the Projected Year-End column in my Interim Report Budget?

A: The amounts outlined in this column will include the expenses outlined in the "Actual Year-to-Date" column plus any expenses not yet incurred but forecasted for the remainder of the grant term.

Q: What amount should be reported in the "Carry Over/(Deficit)" line at the bottom of the budget?

A: This amount should be computed as the Total Year End Revenues less the Total Year End Expenses. If Total Revenues exceed total expenses, then the balance represents a carry-over. If Total Revenue is less than total expense, then a deficit would result. If a carry-over or deficit exists, then it should be included as either a positive number or a negative number in the revenue line of the "Next Year's Budget Column." Note: In order to carry excess funds into a future year budget, you must have approval from The Duke Endowment.