The Texas Education Agency has, in cooperation with the U.S. Department of Education (USDE), developed an indirect cost proposal to be used for the school districts and charter schools in Texas. The agency has been delegated the authority by the USDE to review indirect cost applications and to approve indirect cost rates for school districts and charter schools. To recover any indirect costs for the administration of federal grants, a school district or charter school must have an approved indirect cost rate. A new indirect cost rate must be obtained for every fiscal year.
In order to receive an indirect cost rate certification letter from the TEA, an ISD must include Exhibit J-2 in the submission of the Annual Financial Report. An example of Exhibit J-2 is included below. Charter schools that need an indirect cost rate certification letter should contact the Division of Federal Program Compliance.
Example of Exhibit J-2
For additional information, refer to the Financial Accounting and Reporting (FAR) module in the Financial Accountability System Resource Guide.
Charter School Rates
School District Rates
Division of Federal Fiscal Compliance and Reporting
1701 N. Congress Avenue
Austin, Texas 78701
Phone: 512-463-9127
E-mail: compliance@tea.state.tx.us