(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) [review indirect cost applications
and to approve indirect cost rates].
(b)Pursuant to 34 CFR, §75.561(b) and §76.561(b),
to [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 [obtained for every fiscal] year.
(c)For the one-year period [fiscal
year] an entity has been issued an indirect cost rate, it can
claim indirect cost revenue on applicable grants during that
period [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 the process for requesting
an indirect cost rate for entities where TEA is the cognizant
agency, including LEAs and ESCs, [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 to request an [used to govern]
indirect cost rate are outlined [rates are described]
in the Indirect Cost Rate Guidance Handbook
provided in this subsection.
Attached Graphic
[Figure: 19 TAC §109.3003(d)]
(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.
The agency certifies that legal counsel has reviewed
the proposal and found it to be within the state agency's legal authority
to adopt.
Filed with the Office
of the Secretary of State on March 22, 2021
TRD-202101197 Cristina De La Fuente-Valadez
Director, Rulemaking
Texas Education Agency
Earliest possible date of adoption: May 2, 2021
For further information, please call: (512) 475-1497
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