Indirect Cost Rates

2018 Education Service Center Rates, effective 7/1/2017 - 6/30/2018The US Department of Education (USDE) has given TEA authority to issue indirect cost rates for independent school districts (ISDs), open-enrollment charter schools, and certain other government entities.  To 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 TEA 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.  TEA allows these grantees to use indirect cost rates to recover the organization-wide administrative costs of managing state grants as well.

Indirect Cost Rate Proposal for ISDs

ISDs request an indirect cost rate from TEA by submitting an Indirect Cost Rate Proposal (ICRP).

The ICRP is a set of three documents:

  • The ICRP Workbook (Excel), an Excel form that ISDs complete to supply TEA with the data it needs to calculate indirect cost rates. ICRP Workbook (Excel)   ICRP Workbook (PDF)
  • A certification, signed by the superintendent, of the information submitted in the ICRP Workbook. 
  • The organizational chart the ISD had in place during the same school year as that documented in the annual financial and compliance report the ISD used to complete the ICRP Workbook. 

A certification form and description of organizational chart requirements are included as tabs in the ICRP Workbook.  ISDs must submit all three documents by their established submission deadline below to receive their indirect cost rates for the next school year.

ICRP Instruction Manual 

For detailed information on completing the ICRP Workbook and submitting the three ICRP documents, refer to the ICRP Instruction Manual for School Districts (PDF). ICRP Instruction Manual for School Districts (PDF).

Training Module

SC5050 for Open-Enrollment Charter Schools 

Open-enrollment charter schools request an indirect cost rate from TEA by submitting the SC5050 Request for Federal Funding and Indirect Cost Rate for Charter Schools.  The SC5050 becomes available February in eGrants.  A separate To The Administrator Addressed letter will notify open-enrollment charter schools of the availability of the SC5050 and the April deadline to submit the SC5050 to receive their indirect cost rates for the next school year.

    Submission Deadline 

    To receive a new indirect cost rate from TEA, a school district must submit an ICRP Workbook within six months of the close of its fiscal year.

    The following table lists deadlines for ISDs to submit the ICRP.  In accordance with 2 CFR Part 200, TEA establishes these deadlines based on the ISDs fiscal year end date.

    Fiscal Year End Date
    ICRP Submission
    Deadline
    June 30December 31
    August 31February 28

    In accordance with 2 CFR Part 200, TEA has the flexibility to extend deadlines.  For the processing of 2017-2018 (Fiscal Year 2018) indirect cost rates, the deadlines for ISDs with a fiscal year end date of June 30 has been extended.  The due date for the 2017-2018 (Fiscal Year 2018) indirect cost rates are set as:

    Fiscal Year End Date
    Submission
    Deadline
    June 30February 28
    August 31February 28 


    Quick Links to Indirect Cost Rate Documents

    Maximum Indirect Costs Worksheet

    Use the Maximum Indirect Cost Workbook (Word) to calculate the maximum indirect costs that can be claimed for a grant.  For questions regarding the use of the worksheet or claiming indirect costs, contact the Grants Administration Division through the division email (grants@tea.texas.gov) or by phone (512-463-8525).

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

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

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

    Archived Indirect Cost Rates

    Indirect cost rates dating to 2010 are available for open-enrollment charter schools and ISDs.