Adoption of New Commissioner’s Rule, 19 Texas Administrative Code Section 109.3001, and Incorporation of Guidance Handbooks

Word Version

March 10, 2014


TO THE ADMINISTRATOR ADDRESSED:

SUBJECT:    Adoption of New Commissioner’s Rule, 19 Texas Administrative Code Section 109.3001, and Incorporation of Guidance Handbooks

A newly adopted commissioner’s rule became effective February 26, 2014, under 19 Texas Administrative Code (TAC) Chapter 109, Subchapter CC. Codified as 19 TAC §109.3001, the new rule will be updated annually as needed to align with subsequent updates, modifications, and amendments to the federal statutory authority and USDE guidance.

19 TAC §109.3001 adopts into rule the Texas Education Agency’s (TEA’s) IDEA-B LEA Maintenance of Effort (MOE) Guidance Handbook, which provides guidance regarding the MOE requirement under the Individuals with Disabilities Education Act (IDEA). The rule also incorporates the Indirect Cost Handbook, which provides guidance to grantees on how to apply for an indirect cost rate.

With their incorporation into the rule, both the IDEA-B LEA Maintenance of Effort (MOE) Guidance Handbook and the Indirect Cost Handbook include guidance changes.

IDEA-B LEA Maintenance of Effort (MOE) Guidance Handbook

The IDEA-B LEA Maintenance of Effort (MOE) Guidance Handbook has been updated as follows:
•    The federal statutory exception for an “exceptionally costly program” is defined as "an amount greater than the average per pupil expenditure (as defined in section 9101 of the ESEA) in Texas." For example, for FY 2014, this amount is $8,685.
•    The School Health and Related Services (SHARS) Medicaid cost share is no longer applicable in the IDEA-B LEA MOE calculations. Thus, the reference to SHARS Medicaid cost share has been removed from Appendix 3: IDEA-B MOE Calculation Methodology.
 
Indirect Cost Handbook

The updated Indirect Cost Handbook provides guidance to independent school districts and open-enrollment charter schools on how to apply for an indirect cost rate.

If an independent school district (ISD) did not complete and submit an Exhibit J-2: Schedule for the Computation of Indirect Cost Rates within the ISD’s Annual Financial Report ending FY 2013, and the ISD would like to receive an indirect rate for the 2014–2015 school year, the ISD is directed to do the following:
1.    Download the electronic 2014-2015 Schedule of Expenditures for Computation of Indirect Cost from the J-2 Revision Template page of the TEA website.  
2.    Complete the J-2 Excel template.
3.    Upload the completed J-2 Excel template to the secure GFFC Reports and Data Collections application in TEASE/TEAL by March 14, 2014.

For open-enrollment charter schools, the SC5010 (due April 7, 2014) will serve as the charter school’s request for an indirect cost rate and will contain the sending district data used to calculate the indirect cost rate.

For Further Information

The IDEA-B LEA Maintenance of Effort (MOE) Guidance Handbook is available on the Division of Federal Fiscal Compliance and Reporting IDEA-B LEA Maintenance of Effort (MOE) page of the TEA website.
The Indirect Cost Handbook is available on the Division of Grants Administration Grant Management Resources page of the TEA website.

With questions regarding the new commissioner’s rule or the incorporation of these two guidance handbooks, email the Division of Federal Fiscal Compliance and Reporting at compliance@tea.texas.gov.

Sincerely,

Cory Green, Chief Grants Administrator
Division of Grants Administration