2016–2017 (Fiscal Year 2017) Indirect Cost Rate Procedures for LEAs

Word version

August 28, 2015

TO THE ADMINISTRATOR ADDRESSED:

SUBJECT:       School Year 2016–2017 (Fiscal Year 2017) Indirect Cost Rate Procedures for LEAs

In accordance with the new Education Department General Administrative Regulations (EDGAR), including Title 2 of the Code of Federal Regulations (2 CFR) 200, TEA has established new deadlines for local educational agencies (LEAs) interested in obtaining a federal indirect cost rate for school year 2016–2017. The procedures for requesting a rate differ, depending on the LEA’s entity type.

Independent School Districts and Education Service Centers

Independent school districts (ISDs) and education service centers (ESCs) have two options for obtaining a school year 2016–2017 federal indirect cost rate, as follows:

  • Submit an Indirect Cost Rate Proposal (ICRP) to receive a rate for school year 2016–2017 only.
  • Make a one-time request to have a currently negotiated rate (that is, the rate for school year 2015–2016) extended for a period of up to four years.

No action is required of ISDs and ESCs that have an indirect cost rate extended through June 30, 2017, June 30, 2018, or June 30, 2019, based on a prior one-time request to extend indirect cost rates.

Open-Enrollment Charter Schools

Open-enrollment charter schools have two options for obtaining a school year 2016–2017 federal indirect cost rate:

  • Submit the SC5050 Request for Federal Funding and Indirect Cost Rate for Charter Schools to request a rate for school year 2016–2017 only.
  • Make a one-time request to have a currently negotiated rate (that is, the rate for school year 2015–2016) extended for a period of up to four years.

Open-enrollment charter schools that have an indirect cost rate extended through June 30, 2017, June 30, 2018, or June 30, 2019, based on a prior one-time request to extend indirect cost rates, are still required to submit the SC5050 to request that extended indirect cost rate for school year 2016–2017.

Restrictions Applicable to One-time Requests for Rate Extension

The one-time rate extension is designed to minimize administrative burden on LEAs. It is authorized by 2 CFR 200.414(g).

The following restrictions apply to the LEA’s one-time request for an extension of the currently negotiated indirect cost rate:

  • Only LEAs with a currently negotiated rate may request a rate extension.
  • LEAs that extended their school year 2014–2015 indirect cost rate through June 30, 2016, are ineligible to request another rate extension. To receive a rate for school year 2016–2017, the LEA must submit either an ICRP (ISDs or ESCs) or SC5050 (open-enrollment charter schools).
  • LEAs that extended their school year 2014–2015 indirect cost rate beyond 2016 already have their rate for school year 2016–2017. No further indirect cost rate documentation is required from those LEAs until their extension expires.
  • Once requested and approved, the one-time extension is binding. You cannot request a new rate until the extension period ends.

Accessing Indirect Cost Rate Documents

The Indirect Cost Rates page of the TEA website includes links to the ICRP Workbook and guidance handbook, for ISDs to use in requesting an indirect cost rate for school year 2016‑2017, and the form for all LEAs to use in requesting a one-time indirect cost rate extension for school year 2016–2017. Both documents are also accessible through TEAL in the GFFC Reports and Data Collections secure application.

Submission Deadlines

The following table lists deadlines for all LEAs to submit the one-time indirect cost rate extension request and for ISDs and ESCs to submit the ICRP. In accordance with 2 CFR Part 200, TEA establishes these deadlines based on the LEA’s fiscal year end date.

LEA’s Fiscal Year End Date

Deadline for Submitting the One-Time Request for Extension

Deadline for ISDs and ESCs to Submit the ICRP

June 30, 2015

November 1, 2015

December 31, 2015

August 31, 2015

December 30, 2015

February 28, 2016

 

Note that for open-enrollment charter schools, the SC5050 Request for Federal Funding and Indirect Cost Rate for Charter Schools will become available in eGrants in February 2016. A separate To The Administrator Addressed letter will notify open-enrollment charter schools of the availability of the SC5050 and the deadline to submit the SC5050 to request a rate for school year 2016–2017.

For Further Information

If you have any questions about obtaining an indirect cost rate for school year 2016–2017, please email compliance@tea.texas.gov.

Sincerely,

Ed Santiago, Senior Director
Division of Federal Fiscal Compliance and Reporting