April 30, 2018
TO THE ADMINISTRATOR
SUBJECT: Process for Certification of 2018–2019 Indirect
Cost Rates (Independent School Districts Only)
As stated in the December 8, 2017, To the Administrator
Addressed letter related
to the new process for requesting indirect cost rates for fiscal year
2018–2019, TEA is implementing procedural changes as specified by USDE. In the
new indirect cost rate delegation agreement, the following provisions are mandated
- No indirect cost rate extensions are allowed,
and all indirect cost rate extensions beyond 2017–2018 are rescinded. New rates
must be calculated every fiscal year.
- Three years of financial data must be used to
calculate an indirect cost rate. (For instance, to calculate rates for fiscal
year 2018–2019, financial data from 2014–2015, 2015–2016, and 2016–2017 must be
New Process for Requesting an Indirect Cost Rate for Independent School
Effective with school year 2018–2019, ISDs must request an
indirect cost rate each year by completing and submitting the Indirect Cost Rate Proposal (ICRP) Additional
Costs Workbook (ACW). The deadline for submitting the workbook, and thus
requesting an indirect cost rate, was January 26, 2018.
TEA did receive ICRP ACWs from the majority of ISDs in the
state. The submission of the ICRP ACW serves as an ISD’s request for an
indirect cost rate. Rates will be calculated only for ISDs that submitted a completed
ICRP ACW. If an ISD did not submit a completed ICRP ACW, TEA will not calculate
or issue a rate for that ISD for the 2018–2019 school year.
ACW and PEIMS Data
In completing an ICRP ACW, an ISD provided approximately 10%
of the data required to complete the ICRP. The remaining 90% of the required ICRP
data has been drawn from the ISD’s certified Texas State Data System/Public
Education Information Management System (TSDS/PEIMS) data.
TEA has populated a completed ICRP for each ISD that
submitted an ICRP ACW by merging TSDS/PEIMS data with the ISD’s submitted ACW data.
TEA has also uploaded the completed ICRPs for ISD review, approval, and
Reviewing, Approving, and Certifying the ICRP
The ICRP is available
inthe secure GFFC Reports and Data
Collections application (accessible through TEAL). ISDs are required to review
the completed ICRP data and the calculated indirect cost rates contained within
Instructions for completing the ISD review/approval/certification
process are available in the ICRP Certification Instructions document posted on
Cost Rates webpage. The Certification Instructions document will walk you
through the ICRP review and will include instructions for how to certify and
submit the ICRP Certification, the
document which will serve as your approval of the final restricted and
unrestricted indirect cost rates for 2018–2019.
Additionally, if you have questions/concerns regarding the data and/or
rate, the handbook will outline procedures for ISDs to follow.
2018–2019 Indirect Cost Rates for ISDs Timeline Summary
The following table lists the statuses of milestones for the
indirect cost rate process steps:
December 8, 2017
ICRP ACW is made available via the
Indirect Cost Rate webpage and the secure GFFC Reports and Data Collections
application, accessible through TEAL.
January 26, 2018
Due date for ISDs to submit the ICRP ACW requesting
an indirect cost rate.
TEA reviews ICRP ACWs; requests
clarification and/or re-submissions, as needed; and merges with TSDS/PEIMS
data to create completed ICRPs.
April 27, 2018
TEA posts completed ICRPs in GFFC Reports
and Data Collections for ISD review, approval, and certification.
date for ISDs to submit ICRP Certifications in GFFC Reports and Data
Next LEA step
July 1, 2018
Indirect Cost Rate notification letters
posted in GFFC Reports and Data Collections, accessible through TEAL.
Please refer to the Indirect Cost
Rates page of the TEA website for further information and additional
resources regarding indirect cost rates.
If you have questions about the new indirect cost rate
process, please email email@example.com.
Connolly, Senior Director
Federal Fiscal Compliance and Reporting Division