Action Required: TEA released information December 8th that the USDE has rescinded all indirect cost rate extensions beyond the 2017-2018 year. Extension are no longer allowed and districts must file a report annually to receive an indirect cost rate. This impacts independent school districts (ISDs), open-enrollment charter schools and certain other government entities.
In order to receive an indirect cost rate for 2018-2019, the district must file a report with TEA by January 26, 2018. TEA is only asking districts to complete information that is not found in PEIMS. The data must be submitted for the past three fiscal years – 2017, 2016, and 2015. The data includes: Function 41 – General Governance and Direct Costs, TRS On-Behalf payments AND/OR Medicare Part D payments, Food and Milk Costs of Food Service Programs, Intergovernmental Expenses, Depreciation Expenses, Payments to Fiscal Agent/Member Districts of Shared Services Arrangements (SSAs), Federal Subrecipient Items – Federal Subgrants and Federal Grant Pass-Through Funds, Contingencies, Chief Executive Officer Information, and Terminal Leave. A district organization chart must also be submitted.
Additional information including the Indirect Cost Rate Proposal worksheet, instruction manual and training manual can be found here. TASBO will provide updates in Open Forum as well as hold a Q&A Webinar Session online in January.