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 fiscal 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

Effective September 1, 2014, ISDs must submit their annual requests to TEA for an indirect cost rate using a new Indirect Cost Rate Proposal (ICRP).  The ICRP is part of a new delegation agreement to TEA recently approved by USDE.

The ICRP is a set of three documents:

  • The ICRP Workbook (Excel), and Excel form that ISDs complete to supply TEA with the data it needs to calculate their indirect cost rates.  An accessible version of the ICRP Workbook (PDF) is also available.
  • 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 fiscal 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 the annual deadline to receive their indirect cost rates for the next fiscal year.

Submission Deadline and Negotiation Schedule

TEA extended the ICRP deadline in response to ISDs that needed more time to complete the submission. To meet USDE timelines regarding the issuance of federal indirect cost rates, TEA must review and negotiate all submitted ICRPs by the end of March 2015.

TEA staff will negotiate all required revisions to your ICRP via email from compliance@tea.texas.gov. TEA’s schedule allows no more than three business days for the negotiation of each ICRP. Be prepared to revise your ICRP as required within three business days of receiving a negotiation email. Negotiations not completed within three business days may prevent TEA from issuing the district an indirect cost rate for 2015–2016.

TEA is aware that March is Spring Break month. It is impossible for the agency to schedule negotiations around Spring Break. You must be ready to complete any required revisions to your ICRP within three business days, regardless of whether the negotiation period falls during Spring Break. 

Instructions for Completing and Submitting the ICRP

Refer to the following documents for guidance on properly completing and submitting the ICRP.

Supplemental Instructions

Use these supplemental instructions to the ICRP in conjunction with the instructions in the ICRP Voice-Over PowerPoint Training and ICRP Guidance Handbook, both linked below.

ICRP Voice-Over PowerPoint Training

For background information on indirect cost rates and the ICRP Workbook, refer to the ICRP Voice-Over PowerPoint Training.

ICRP Guidance Handbook

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

Maximum Indirect Costs Worksheet

Use the Maximum Indirect Costs Worksheet (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 open-enrollment charter schools:

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

    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.