February 27, 2015
TO THE ADMINISTRATOR ADDRESSED:
SUBJECT: One-Time Extension of Current Fiscal
Year 2015 Indirect Cost Rates for up to Four Years
This letter is to inform you that TEA now has the authority to
approve a one-time extension of currently approved indirect cost rates, for a
period up to four years, to any local educational agency (LEA) that requests
such an extension. School districts, charter schools, and education service centers
(ESCs) may request the extension. For fiscal year 2015, this would affect the
indirect cost rates that are effective July 1, 2014, through June 30, 2015. This
new flexibility is designed to minimize administrative burden on LEAs, and is
authorized by the new Education Department General Administrative Regulations
(EDGAR), 2 Code of Federal Regulations Part 200, §200.414(g).
So that TEA can begin to
implement the extension process, each school district, charter school, and ESC must
submit the attached One-Time Extension
form to indicate one of the following options:
My LEA requests an extension of its fiscal year
2015 indirect cost rate for up to four years.
My LEA does
not request an extension of its fiscal year 2015 indirect cost rate for up
to four years, and will request a fiscal year 2016 indirect cost rate by
submitting the appropriate request by the deadline established by TEA.
My LEA will not submit a request for a fiscal
year 2016 indirect cost rate.
The One-Time Extension form
must be signed and submitted to TEA by next Friday, March 6, 2015. Please use
the following instructions to submit the form:
1. Log on to the TEA secure environment, TEASE.
2. Select GFFC Reports and Data Collections.
3. Select Upload Response Documents.
4. Select ICRP Certifications.
5. Select the 2015–2016 school year.
6. Select Upload Document.
Fiscal Year 2016 Indirect Cost Rate Proposals for School Districts
For school districts, because
the deadline for requesting an indirect cost rate proposal will have already
passed, there are three possible options:
districts that have already submitted an Indirect Cost Rate Proposal (ICRP) have
the option to submit the one-time extension and rescind their fiscal year 2016 ICRP submission.
school districts that have not submitted an ICRP would not need to submit one
if they choose the one-time extension.
districts that chose to submit the ICRP to obtain a new rate will get the
opportunity for a one-time extension next
year during the new rate negotiation process.
Selection of One-Time Extension is Binding
Once an extension is granted
for a period of up to four years, your LEA will not be able submit an ICRP and
request a new rate until that extension period ends. At that point, your LEA
must reapply and negotiate a new federal indirect cost rate. Therefore, the
one-time extension selection is binding. For example, if your LEA requests an
extension for one year, you cannot
request an extension next year for an additional three years for a total of up
to four years.
For a list of the current
fiscal year 2015 federal indirect cost rates, please visit the Indirect
Cost Rates page of TEA’s website and refer to the section under “Current
and Prior-Year Indirect Cost Rates for Open-Enrollment Charter Schools, ISDs,
and Education Service Centers.” If your LEA is not listed with a fiscal year 2015
indirect cost rate, you must request a rate by the TEA established timeline if you
would like a rate for fiscal year 2016.
For further information
regarding the one-time extension rule, please see the attached excerpt from the
Council on Financial Assistance Reform (COFAR) Frequently Asked Questions.
Ed Santiago, Director
Division of Federal Fiscal
Compliance and Reporting
One Time Extension Form