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ET Healthcare Indirect Cost Policy

ET Healthcare Inc. can  fund projects with specific outcomes. The budget for each funded project should reflect all of the expenses that are required for, and can be tracked directly to the project. We call these costs “direct costs.” In addition, we may cover a limited amount of expenses that cannot be tracked directly to the project. We call these costs “indirect costs.”

Our indirect cost policy provides that the indirect cost rate may not exceed 32 percent of the direct costs of the project.

Direct Costs

Direct costs include all of the expenses that are required for, and can be tracked directly to, the grant project, including but not limited to:

· Personnel – “Personnel” is the cost (pro-rated salary and benefits) of all staff directly involved with the project. In general, this includes the time and salary for each staff member on individual line items. Time should be estimated as a percentage of a full-time equivalent employee.

· Consultants and Contractors – “Consultants and contractors” are the costs of hiring workers who are not employees of the grantee to assist the primary grantee with the planning, evaluation, development or implementation of the grant. Consultants and contractors may be individuals or organizations, nonprofit, for-profit or other type of entity. Consultants and contractors should be identified by function or purpose (e.g., communication, evaluation).

· Subgrants – “Subgrants” are funds that will be distributed to other individuals or organizations to conduct their own activities that are coordinated by and support the primary grantee’s activities.

· Other Direct Expenses – “Other direct expenses” are the costs needed to complete the project, including but not limited to the cost of travel, training, conferences, supplies, computers and software.

· Equipment and Capital Expenditures – “Equipment and capital expenditures” are the costs of purchasing equipment or other assets that have a useful life beyond a taxable year. Capital expenditures over $10,000 should be itemized in the budget. The funding team may request that the grantee obtain a sampling of quotes for significant capital expenditures.

Indirect Costs

Indirect costs are expenses that cannot be tracked directly to the grant project. To calculate the indirect cost allocation, multiply the indirect cost rate (0 to 32 percent) by the direct cost of the project.