ɬÀï·¬

The US Department of Education (USDE) has given ɬÀï·¬authority to issue indirect cost rates for independent school districts (districts), open-enrollment charter schools, and certain other government entities. ÌýTo recover any indirect costs, these grantees must request and receive a new indirect cost rate for every school year.

Grantees that receive their indirect cost rates from ɬÀï·¬use the rates to recover their organization-wide administrative costs of managing federal grants, such as costs related to accounting, budgeting, purchasing, auditing, and payroll processing. ÌýɬÀï·¬allows these grantees to use indirect cost rates to recover the organization-wide administrative costs of managing state grants as well.

Rate Types

ɬÀï·¬issues two indirect cost rates to local educational agencies (LEAs), a restricted rate and an unrestricted rate.

• Restricted Rate - The restricted indirect cost rate is used for grant programs where the supplement, not supplant requirement applies. The majority of the grants that ɬÀï·¬administers are subject to supplement, not supplant, and the restricted indirect cost rate is applied to them.
• Unrestricted Rate - TheÌýunrestricted indirect cost rate isÌýapplied to grants not subject to the supplement, not supplant requirement.

Updates to the Indirect Cost Rate Proposal (ICRP) ProcessÌýfor Districts

ForÌýschool year 2020-2021 and beyond, ɬÀï·¬received a new Delegation Agreement from USDE that specifies the USDE-approved indirect cost rate calculation methodology.

In the delegation agreement, the following provisions are mandated by USDE:

• No indirect cost rate extensions are allowed, and all indirect cost rate extensions beyond 2017-2018Ìýwere rescinded.
• Indirect cost rates must be requested by districts every year, and then calculated by ɬÀï·¬every year.

For further information on the updated ICRP data collection process, please review the November 2, 2023, To The Administrator Addressed letter (TAA)Ìýand the Indirect Cost Rate Guidance Handbook.

ICRP Additional Costs Workbook (ACW)Ìýand Instruction ManualÌý

TheÌýdistrict ICRP and ACWÌýhave been updated.Ìý To assist districts, ɬÀï·¬has developed a data collection methodology that populates PEIMS data into an ICRP.Ìý However, a small amount of the required ICRP data cannot be obtained through PEIMS.Ìý Therefore, districts are asked to provide a small amount of additional costs data to ɬÀï·¬through the submission of an ICRP ACW.Ìý Districts can easily obtain the additional costs data by running simple queries within their financial accounting systems.Ìý Districts will not be required to analyze or classify any costs in the ICRP ACW.

• ICRP Additional Costs Workbook (Excel)
• ICRP Additional Costs Workbook Instruction Manual (PDF)
• ICRP Additional Costs Workbook Frequently Asked Questions (FAQs)

Training Module

ɬÀï·¬has developed a PowerPoint training module explaining theÌýprocess and instructions for completing the ICRP ACW which may be accessed here:

• ICRP Additional Costs Workbook PowerPoint Training (PDF)Ìý

Submission DeadlineÌý

TheÌýprocedure requires that districts must requestÌýindirect cost rates for school year 2024-2025 through the submission of the ICRP ACW.Ìý The submission deadline for the ICRP ACW is January 19, 2024.Ìý Any districtÌýthat does not submit an ICRP ACW by January 19, 2024, may not be issued indirect cost rates for 2024-2025.

Reviewing, Approving, and Certifying the ICRP

The ICRP will be available in Spring 2024 inÌýthe secure GFFC Reports and Data Collections application (accessible through TEAL). Districts are required to review the completed ICRP data and the calculated indirect cost rates contained within the ICRP.

Instructions for completing theÌýdistrict review/approval/certification process are available in the Indirect Cost Rate Proposal Certification Instructions for School Districts.

Requesting an Indirect Cost RateÌýfor Open-Enrollment Charter SchoolsÌý

Open-enrollment charter schools request indirect cost rates from ɬÀï·¬by submitting the Survey.ÌýA TAA letter willÌýnotify open-enrollment charter schools of the survey and the deadline to submit the survey request to receiveÌýindirect cost rates for theÌý2024-2025 school year.

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Current and Prior-Year Indirect Cost Rates for Open Enrollment Charter Schools, Districts, and Education Service Centers

The following links lead to current and prior-year indirect cost rates for districts and open-enrollment charter schools:

• 2024 District and Charter School Indirect Cost Rates, effective 7/1/2023 - 6/30/2024
• 2023 District and Charter School Indirect Cost Rates, effective 7/1/2022 - 6/30/2023
• 2022 District and Charter School Indirect Cost Rates, effective 7/1/2021 - 6/30/2022
• 2021 District and Charter School Indirect Cost Rates, effective 7/1/2020 - 6/30/2021
• 2020ÌýDistrict and Charter School Indirect Cost Rates, effective 7/1/2019 - 6/30/2020
• 2019ÌýDistrict and Charter School Indirect Cost Rates, effective 7/1/2018 - 6/30/2019
• 2018ÌýDistrict and Charter School Indirect Cost Rates, effective 7/1/2017 - 6/30/2018

The following links lead to current and prior-year indirect cost rates for education service centers:

• 2024 Education Service Center Rates, effective 7/1/2023 - 6/30/2024
• 2023 Education Service Center Rates, effective 7/1/2022 - 6/30/2023
• 2022 Education Service Center Rates, effective 7/1/2021 - 6/30/2022
• 2021 Education Service Center Rates, effective 7/1/2020 - 6/30/2021
• 2020 Education Service Center Rates, effective 7/1/2019 - 6/30/2020
• 2019 Education Service Center Rates, effective 7/1/2018 - 6/30/2019Ìý
• 2018 Education Service Center Rates, effective 7/1/2017 - 6/30/2018

Archived Indirect Cost Rates

Indirect cost rates dating to 2013 are available for open-enrollment charter schools, districts, and Education Service Centers.