The purpose of this letter is to inform local educational agencies (LEAs) that the Texas Education Agency (TEA) has published fiscal year 2014 indirect cost rates for charter schools and independent school districts on the Indirect Cost Rates page of the TEA website. These rates are effective July 1, 2013, through June 30, 2014.
Restricted and Unrestricted Indirect Cost Rates
Two indirect cost rates are published for each LEA, a restricted rate and an unrestricted rate.
- The restricted rate is used for grant programs to which a supplement, not supplant provision applies.
- The unrestricted rate is used for grant programs to which a supplement, not supplant provision does not apply.
Supplement, not supplant provisions require that grantees use state or local funds for all services required by state law, State Board of Education (SBOE) rule, or local policy and prohibit those funds from being diverted for other purposes when federal funds are available. Federal funds must supplement—add to, enhance, expand, increase, extend—the programs and services offered with state and local funds. Federal funds are not permitted to be used to supplant—take the place of, replace—the state and local funds used to offer those programs and services.
A supplement, not supplant provision applies to all federally and state-funded grant programs administered by TEA, unless specifically stated in the request for application. Therefore, grantees will most commonly use the restricted rate.
Indirect Cost Guidance
Information, guidance, and a worksheet for calculating the maximum indirect costs that may be claimed for a particular grant are available on the Grant Management Resources page of the TEA website, in the Grant Management Guidance section.
For Further Information
If you have questions about the issuance of indirect cost rates, please email the Division of Federal Fiscal Compliance and Reporting at email@example.com.
If you have questions about calculating indirect costs, please email the Division of Grants Administration at firstname.lastname@example.org.