May 1, 2012
TO THE ADMINISTRATOR ADDRESSED:
SUBJECT: Changes to calculation of indirect costs
The Texas Education Agency’s (TEA’s) Office for Grants and Fiscal Compliance has recently updated its guidance related to calculation of indirect costs for all grantees.
TEA’s revised guidance, which includes instructions and a worksheet for calculating the maximum in grant funds that may be claimed for indirect costs, is posted on the Division of Grants Administration Grants Management Resources page.
The revised TEA indirect cost guidance aligns with the following Office of Management and Budget (OMB) circulars and US Department of Education and TEA documents:
- OMB Circular A-21 (for institutions of higher education, including open-enrollment charter schools operated by a college or university)
- OMB Circular A-87 (for independent school districts, education service centers, open-enrollment charter schools operated by a governmental entity, and other governmental entities)
- OMB Circular A-122 (for nonprofit organizations, including open-enrollment charter schools operated by a nonprofit organization)
- US Department of Education Cost Allocation Guide for State and Local Governments
- Texas Financial Accountability System Resource Guide; Financial Accounting and Reporting, January 2010
Other costs than those listed on the worksheet may apply under certain circumstances; refer to the OMB circulars, US Department of Education, and TEA guidance listed above for additional information.
For Further Information
If you have any questions about indirect cost rates, please contact the Division of Federal Program Compliance at FPC_Compliance@tea.texas.gov.
If you have any questions about the indirect cost guidance or calculating indirect costs for a particular grant, please contact the Division of Grants Administration at GAFPC@tea.texas.gov.
Cory Green, Chief Grants Administrator
Office for Grants and Fiscal Compliance