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.

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.

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.

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).

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.