Indirect Cost Rates

The 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.
  • 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).

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.

One-Time Extension Form 

TEA has authority to approve a one-time extension of a currently negotiated indirect cost rate for a period up tp four years for any school district that requests such an extension using the One-Time Extension Form.  This flexibility is designed to minimize your administrative burden and is authorized in 2 CFR 200.414(g).

Once requested and approved, the one-time extension is binding.  You cannot request a new rate until the extension period ends.  If you want to continue receiving a rate after the end of the extension period, you must submit an ICRP and negotiate another federal 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. 

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.

Once TEA has issued an approved negotiated rate, an LEA may apply in the subsequent year for a one-time extension of that rate for a period of up to four years.

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

Fiscal Year End Date
One-Time Extension
Submission Deadline
ICRP Submission
Deadline
June 30November 1December 31
August 31December 30February 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 Division of Grants Administration through the TEA Help Desk.

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.