(a) Pursuant to authorization in 34 Code of Federal
Regulations (CFR), §75.561(b), the Texas Education Agency (TEA)
has been delegated the authority by the United States Department of
Education (USDE) to review indirect cost applications and to approve
indirect cost rates.
(b) To recover any indirect costs for the administration
of federal grants, an entity must have an approved indirect cost rate.
A new indirect cost rate must be obtained for every fiscal year.
(c) For the fiscal year an entity has been issued an
indirect cost rate, it can claim indirect cost revenue on applicable
grants in that fiscal year. As indirect cost revenues are earned in
the Special Revenue Fund on federally funded grants, these revenues
can be transferred from the Special Revenue Fund to the General Fund.
After the indirect cost revenue has been recorded in the General Fund,
the revenues can be used for any legal purpose.
(d) Guidance concerning indirect cost rates has been
developed by the TEA in conjunction with federal statutes and guidance
from the USDE to be used for various entities for which the TEA is
the cognizant agency. The definitions, standards, and procedures used
to govern indirect cost rates are described in the Indirect Cost Handbook provided in this
subsection.
Attached Graphic
(e) Guidance provided in the handbook described in
subsection (d) of this section will be updated annually as necessary
by the commissioner of education to align with subsequent updates,
modifications, and amendments to the statutory authority and USDE
guidance.
(f) To the extent that this section conflicts with
any other commissioner or State Board of Education rule, including
the Financial Accountability System Resource Guide, the provisions
of this section control.
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