OMB A-87

 

This page discusses the federal cost principles applicable to all local educational agencies (LEAs), including all open-enrollment charter schools.

Federal Cost Principles and Regulations

On May 13, 2013, TEA received clarifying guidance from the US Department of Education (USDE) regarding the federal cost principles applicable to open-enrollment charter schools. This guidance applies to open-enrollment charter schools operated by a nonprofit organization (NPO) or institution of higher education (IHE).

To the extent that those charters receive funds as local educational agencies (LEAs), they are to be governed by the same cost principles and federal regulations applicable to other LEAs rather than the cost principles and federal regulations applicable to NPOs and IHEs. Since Texas state law considers all charter schools to be LEAs, the federal cost principles and regulations for LEAs apply.

Open-enrollment charter schools operated by an NPO or IHE will be required to make the changes described on this page beginning in the 2013–2014 school year and extending into future school years.

Applicable Cost Principles 

The cost principles applicable to all LEAs, including all open-enrollment charter schools, are OMB Circular A-87: Cost Principles for State, Local, and Indian Tribal Governments (Title 2 of the Code of Federal Regulations [2 CFR] Part 225).

Applicable Part of 34 CFR 

The federal regulations applicable to all LEAs, including all open-enrollment charter schools, are 34 CFR Part 80.

Grants Spanning Multiple School Years 

For grants that span multiple school years, such as Texas Title I Priority Schools, Cycle 2, for school years 2011–2012, 2012–2013, and 2013–2014, OMB Circular A-87: Cost Principles for State, Local, and Indian Tribal Governments (2 CFR Part 225) and 34 CFR Part 80 became applicable beginning in the 2013–2014 school year, as follows:

  • For federally funded grants, the change became applicable on July 1, 2013.
  • For state-funded grants, the change became applicable on September 1, 2013. 

TEA's OMB A-87 Communications 

Refer to the following resources for additional cost principle guidance: 

 

Page last modified on 9/26/2014 03:31:48 PM.