| (a) Pursuant to authorization in 34 Code of Federal
Regulations (CFR), §75.561(b) and §76.561(b), the Texas
Education Agency (TEA) has been delegated the authority by the United
States Department of Education (USDE) to issue indirect cost rates
to local educational agencies (LEAs) and education service centers
(ESCs).
(b) Pursuant to 34 CFR, §75.561(b) and §76.561(b),
to recover any indirect costs for the administration of federal grants,
an entity must have an approved indirect cost rate. Indirect cost
rates will be issued for a one-year period from July 1 to June 30.
A new indirect cost rate must be requested each year.
(c) For the one-year period an entity has been issued
an indirect cost rate, it can claim indirect cost revenue on applicable
grants during that period. 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 the process for requesting
an indirect cost rate for entities where TEA is the cognizant agency,
including LEAs and ESCs, has been developed by TEA in conjunction
with federal statutes and guidance from USDE. The definitions, standards,
and procedures to request an indirect cost rate are outlined in the Indirect Cost Rate Guidance Handbook provided
in this subsection.
Attached Graphic
(e) Guidance provided in the handbook described in
subsection (d) of this section will be updated 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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