Federal Cost Principles and Regulations Applicable to All LEAs, Including All Open-Enrollment Charter Schools
On May 13, 2013, the Texas Education Agency (TEA) received clarifying
guidance from the US Department of Education (USDE) regarding the federal
cost principles applicable to open-enrollment charter schools.
In that guidance, USDE clarified that to the extent that an
open-enrollment charter school operated by a nonprofit organization (NPO) or an
institution of higher education (IHE) was receiving funds as a local
educational agency (LEA), those open-enrollment charter schools were 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
Beginning in the 2013–2014 school year (for 2013-2014 grants, on the beginning date), and extending into
future school years, the cost principles applicable to all LEAs, including all open-enrollment
charter schools, will be 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 Title 34 of the Code of
Federal Regulations (34 CFR)
Also beginning in the 2013–2014 school year, and extending
into future school years, the federal regulations applicable to all LEAs, including all open-enrollment charter schools, will be 34
CFR Part 80.
For 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
Circular A-87: Cost Principles for State, Local, and Indian Tribal Governments
CFR Part 225) and 34
CFR Part 80 will become applicable beginning in the 2013–2014 school year, as follows:
- For federally funded grants, the change becomes applicable on July 1, 2013.
- For state-funded grants, the change becomes applicable on September 1, 2013.
TEA's OMB A-87 Communications
TEA will be updating grant reference material
and supporting documents on an ongoing basis to reflect USDE’s clarifying
guidance. Updated material will be linked to this page.
For Further Information
With any questions, please call the Division of Grants
Administration at (512) 463-8525 or email firstname.lastname@example.org.