Indirect Cost Rates for Local Education Agencies
Indirect cost rates play a crucial role in determining the percentage of allowable general administrative expenses shouldered by each Federal grant. Learn how these rates are calculated and why they are vital for LEAs in Montana to recover indirect costs for grant administration. Explore the concept of restricted rates and the significance of applying for an approved indirect cost rate.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Indirect Cost Rates MASBO Summer Conference 2019
Introduction The Montana Office of Public Instruction (OPI) has, in cooperation with the U.S. Department of Education (ED), developed an indirect cost proposal to be used for Local Education Agencies (LEAs) in Montana. The State Education Agency (SEA) has been delegated authority by ED to calculate indirect costs rates for LEAs. To recover any indirect costs for the administration of federal or state grants an LEA must have an approved indirect cost rate. Rates will be calculated annually based on the annual Trustees Financial Summary (TFS) in accordance with this plan. June 2019 2
Indirect Cost An indirect cost rate is a means of determining, in a reasonable manner, the percentage of allowable general administrative expense that each Federal grant should bear. Generally, an indirect cost rate is the ratio of total indirect costs to total direct and unallowable costs, exclusive of any extraordinary or distorting expenditures such as capital outlay, debt service, and food costs that are not associated with salary or benefits. An indirect cost rate does not increase the grant. It allows a portion of the total grant to reimburse the school district for indirect costs such as accounting, payroll, personnel, etc. June 2019 3
Indirect Cost (Continued) Applications for grants usually involve a request for reimbursement of both direct and indirect costs. Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards contain provisions for determining indirect cost rates for grantees and sub-grantees of Federal grants. LEA's are not required to accept an indirect cost proposal. However, to recover any indirect costs for the administration of federal grants, a LEA must have an approved indirect cost rate. June 2019 4
Indirect Cost Continued An indirect cost rate does not increase the grant. It allows a portion of the total grant to reimburse the school district for indirect costs such as accounting, payroll, personnel, etc. Expenditures for the second preceding fiscal year are used when completing the indirect cost proposal for a given fiscal year. For example, expenditures for FY 2018 will be used to complete the Indirect Cost Proposal for FY 2020. In order to adjust for the use of prior years expenditures, Montana will calculate restricted indirect cost rates using a predetermined rate. June 2019 5
Restricted Rate As defined in the Education Department General and Administrative Regulations (EDGAR) at 34 CFR 75.563 through 76.569, restricted rates apply to grants that are made under federal programs with supplement-not-supplant requirements. This means that the funds are for support in addition to state and local funding. Such amounts are intended to supplement, but in no way replace local funds. Most of the federal grants that the LEA obtains through the department are of supplement-not- supplant requirements and a restricted indirect cost rate must be used on the programs. June 2019 6
Three limitations to recovery 1. The rate negotiated with the OPI is the maximum allowable indirect cost for any federal program in which the school district participates. Federal law or grant conditions may further limit the amount of indirect costs or the indirect cost rate. For example, if the LEA has a restricted rate of 5 percent and the law allows only a 3 percent rate of recovery for that program, then the LEA can recover only indirect costs equal to 3 percent of the direct costs. Some grants may prohibit any recovery of indirect costs. June 2019 7
Three limitations to recovery 2. Recovery of indirect costs on grants is subject to the availability of funds. Most restricted grants are allocated to the State as a block grant in which each LEA is entitled to a maximum grant amount. The total direct costs plus indirect costs cannot exceed the maximum entitlement. June 2019 8
Three limitations to recovery 3. Indirect costs are recovered only to the extent of direct costs incurred. The indirect cost rate is applied to the direct cost amount expended less capital outlay and subgrants, not to the grant award. June 2019 9
How to Obtain an IDC Any LEA that wants to obtain an indirect cost rate has two options. Option 1: The OPI provides the option to accept a preliminary rate calculated from reported TFS expenditures. This process involves review of the provided Schedule A, acceptance of the preliminary rate as calculated by the OPI. Obtain approval from the board or superintendent and submit the Certification form to the OPI. June 2019 10
Option 1 (Continued) June 2019 11
Option 1 (Continued) June 2019 12
How to Obtain an IDC Any LEA that wants to obtain an indirect cost rate has two options. Option 2: The OPI does not collect all expenditures by line item detail, often times there are expenditures that can be claimed as indirect costs that are reported to the base and may be reclassified as indirect. In these situations, a district may request an adjusted rate based on the adjusted ratio of base and indirect expenditures after the reclassification of expenditures. In these situations, the district needs to retain documentation justifying the reclassification for audit purposes. June 2019 13
What can be Reclassified as Indirect Indirect costs as those that are incurred for a common or joint purpose benefiting more than one cost objective. In addition, indirect costs cannot be readily identified as benefiting a particular cost objective. Examples of indirect costs include the salaries and expenses for the following: Data Processing, Accounting, Personnel, Purchasing Indirect costs are normally charged to federal programs through the indirect cost rate. Grantees must be consistent in treating costs as direct or indirect under federal awards. Once a cost is treated as direct or indirect, it should be treated that way for all projects and activities, regardless of the source of funding. June 2019 14
What can be Reclassified as Indirect Salaries and Expenditures for costs which typically benefit several activities and programs. Examples are: Accounting, Budgeting, and Payroll; Personnel management; Purchasing; Labor negotiation contracts; Mailrooms; and Computer networks, or data processing operations. Federal regulations allow auditing costs for districts spending over $750,000 of federal funds to be classified as an indirect cost. June 2019 15
What can be Reclassified as Indirect Once your determine what you will want to reclassify (using caution not to double count expenditures the OPI has already determined to be considered indirect) the OPI has created an Indirect Cost Calculator for your use located at: http://opi.mt.gov/Portals/182/Page%20Files/School%20Finance/ Accounting/FY%202020%20Indirect%20Calculator/FY20IDCCalc.x lsx?ver=2019-01-15-055752-470 June 2019 16
The calculation of an IDC rate from reported TFS expenditures June 2019 17
Column A Total expenditures are determined by summing the general fund and special revenue funds (fund numbered less than 50) excluding object 91X operating transfers and 971 residual equity transfers. The debt service, capital projects, trust, enterprise, and internal service funds are excluded. Columns B,C,D,E, and F must total to column A. June 2019 18
Column B Direct and Unallowable Costs include all expenditures in the general and special revenue funds (funds numbered less than 50) except for capital outlay, debt service, school foods expenditures function 31XX object 1XX or 2XX, resource transfers/sub-grants, sub-contracts in excess of $25,000 with educational vendors and functions 25XX Business Services. June 2019 19
Column C Indirect Costs include all expenditures in functions 25XX Business Services except for capital outlay and debt service for the General (01), Retirement (14), Miscellaneous Programs (15) for programs coded to 1XX or 271 , Metal Mine Tax Reserve (24), State Mining Impact (25), Impact Aid (26), Technology (28), and Flexibility (29) funds. June 2019 20
Columns D,E,F Excluded Costs include all expenditures in the general and special revenue funds (funds numbered less than 50) for function code 4XXX Facilities Acquisition, 5XXX Debt Service and object codes 7XX Capital Outlay and Equipment, 31XX School Foods that are not object 1XX or 2XX, 840 Principal, 850 Interest, 860 Agent Fees, and Resource Transfers/Sub-Grants (62XX-930), and sub-contracts in excess of $25,000 with educational vendors. June 2019 21
Food/ June 2019 22
Funds General and Special Revenue funds Excludes Operating and Residual Equity Transfers Food/ June 2019 23
Funds General and Special Revenue funds Excludes Operating and Residual Equity Transfers Direct Food/ Funds General and Special Revenue funds (Step 1) All Functions but not: 25XX Support Services - Business 28XX Reserved (Historical) 4XXX Facilities Acquisition and Construction Services) 52XX Capital Leases or Long Tern Notes with Board of Investments 62XX Resource Transfers All Object but not: 971 Residual Transfers 910 Operating Transfers 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purchase Existing Building 725 Major Construction 73X Major Equipment New 74X Major Equipment Replacement (Step 2) Funds General and Special Revenue funds in : 62XX Resource Transfers and 940 Indirect Costs (Step 3) All Funds but not: 01 General Fund 14 Retirement Fund 24 Metal Mines Fund 25 State Mining Impact Fund 26 Impact Aid Fund 28 Technology Fund 29 Flexibility Fund And all funds less than fund 50 and in 25XX Support Services - Business and, Object Not in 971 Residual Transfers 910 Operating Transfers 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purchase Existing Building 725 Major Construction 73X Major Equipment New 74X Major Equipment Replacement (Step 4) Function 31XX School Foods Objects 1XX Salary & 2XX Benefits are included all other Function 31XX & Objects are excluded. All summed then minus Indirect Step 2 June 2019 24
Funds General and Special Revenue funds Excludes Operating and Residual Equity Transfers Direct Food/ Funds General and Special Revenue funds (Step 1) All Functions but not: 25XX Support Services - Business 28XX Reserved (Historical) 4XXX Facilities Acquisition and Construction Services) 52XX Capital Leases or Long Tern Notes with Board of Investments 62XX Resource Transfers Indirect (Step 1) Funds In 01 General Fund 14 Retirement Fund 24 Metal Mines Fund 25 State Mining Impact 26 Impact Aid Fund 28 Technology Fund 29 Flexibility Fund And all funds less than fund 50 and in 25XX Support Services - Business and, Object Not in All Object but not: 971 Residual Transfers 910 Operating Transfers 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purchase Existing Building 725 Major Construction 73X Major Equipment New 74X Major Equipment Replacement 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purch Building 725 Major Const 73X Major Equipt New 74X Major Equipt Replace (Step 2) Fund 15 Misc Program Fund in Programs Like 1** All Regular Programs Or 271 Indirect Costs, and Function 25XX Support Services - Business, Object Not In ('7XX','710','715','720','725','73X','74X') see above (Step 2) Funds General and Special Revenue funds in : 62XX Resource Transfers and 940 Indirect Costs (Step 3) All Funds but not: 01 General Fund 14 Retirement Fund 24 Metal Mines Fund 25 State Mining Impact Fund 26 Impact Aid Fund 28 Technology Fund 29 Flexibility Fund And all funds less than fund 50 and in 25XX Support Services - Business and, Object Not in 971 Residual Transfers 910 Operating Transfers 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purchase Existing Building 725 Major Construction 73X Major Equipment New 74X Major Equipment Replacement (Step 4) Function 31XX School Foods Objects 1XX Salary & 2XX Benefits are included all other Function 31XX & Objects are excluded. All summed then minus Indirect Step 2 June 2019 25
Funds General and Special Revenue funds Excludes Operating and Residual Equity Transfers Direct Food/ Funds General and Special Revenue funds (Step 1) All Functions but not: 25XX Support Services - Business 28XX Reserved (Historical) 4XXX Facilities Acquisition and Construction Services) 52XX Capital Leases or Long Tern Notes with Board of Investments 62XX Resource Transfers Indirect (Step 1) Funds In 01 General Fund 14 Retirement Fund 24 Metal Mines Fund 25 State Mining Impact 26 Impact Aid Fund 28 Technology Fund 29 Flexibility Fund And all funds less than fund 50 and in 25XX Support Services - Business and, Object Not in All Object but not: 971 Residual Transfers 910 Operating Transfers 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purchase Existing Building 725 Major Construction 73X Major Equipment New 74X Major Equipment Replacement 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purch Building 725 Major Const 73X Major Equipt New 74X Major Equipt Replace (Step 2) Fund 15 Misc Program Fund in Programs Like 1** All Regular Programs Or 271 Indirect Costs, and Function 25XX Support Services - Business, Object Not In ('7XX','710','715','720','725','73X','74X') see above (Step 2) Funds General and Special Revenue funds in : 62XX Resource Transfers and 940 Indirect Costs Cap Outlay (Step 3) All Funds but not: 01 General Fund 14 Retirement Fund 24 Metal Mines Fund 25 State Mining Impact Fund 26 Impact Aid Fund 28 Technology Fund 29 Flexibility Fund And all funds less than fund 50 and in (Step 1) Funds General and Special Revenue funds Objects In 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purchase Existing Building 725 Major Construction 73X Major Equipment New 74X Major Equipment Replacement 25XX Support Services - Business and, Object Not in 971 Residual Transfers 910 Operating Transfers 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purchase Existing Building 725 Major Construction 73X Major Equipment New 74X Major Equipment Replacement (Step 2) 62XX Resource Transfers but not in 940 Indirect Costs (Step 3) 4XXX Facilities Acquisition and Construction Services) But Object Not In : 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purchase Existing Building 725 Major Construction 73X Major Equipment New 74X Major Equipment Replacement (Step 4) Function 31XX School Foods Objects 1XX Salary & 2XX Benefits are included all other Function 31XX & Objects are excluded. All summed then minus Indirect Step 2 June 2019 26
Funds General and Special Revenue funds Excludes Operating and Residual Equity Transfers Direct Food/ Funds General and Special Revenue funds (Step 1) All Functions but not: 25XX Support Services - Business 28XX Reserved (Historical) 4XXX Facilities Acquisition and Construction Services) 52XX Capital Leases or Long Tern Notes with Board of Investments 62XX Resource Transfers Indirect (Step 1) Funds In 01 General Fund 14 Retirement Fund 24 Metal Mines Fund 25 State Mining Impact 26 Impact Aid Fund 28 Technology Fund 29 Flexibility Fund And all funds less than fund 50 and in 25XX Support Services - Business and, Object Not in All Object but not: 971 Residual Transfers 910 Operating Transfers 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purchase Existing Building 725 Major Construction 73X Major Equipment New 74X Major Equipment Replacement 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purch Building 725 Major Const 73X Major Equipt New 74X Major Equipt Replace (Step 2) Fund 15 Misc Program Fund in Programs Like 1** All Regular Programs Or 271 Indirect Costs, and Function 25XX Support Services - Business, Object Not In ('7XX','710','715','720','725','73X','74X') see above (Step 2) Funds General and Special Revenue funds in : 62XX Resource Transfers and 940 Indirect Costs Cap Outlay Debt (Step 3) All Funds but not: 01 General Fund 14 Retirement Fund 24 Metal Mines Fund 25 State Mining Impact Fund 26 Impact Aid Fund 28 Technology Fund 29 Flexibility Fund And all funds less than fund 50 and in Funds General and Special Revenue funds (Step 1) Funds General and Special Revenue funds Objects In 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purchase Existing Building 725 Major Construction 73X Major Equipment New 74X Major Equipment Replacement 52XX Capital Leases or Long Tern Notes with Board of Investments 25XX Support Services - Business and, Object Not in 971 Residual Transfers 910 Operating Transfers 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purchase Existing Building 725 Major Construction 73X Major Equipment New 74X Major Equipment Replacement (Step 2) 62XX Resource Transfers but not in 940 Indirect Costs (Step 3) 4XXX Facilities Acquisition and Construction Services) But Object Not In : 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purchase Existing Building 725 Major Construction 73X Major Equipment New 74X Major Equipment Replacement (Step 4) Function 31XX School Foods Objects 1XX Salary & 2XX Benefits are included all other Function 31XX & Objects are excluded. All summed then minus Indirect Step 2 June 2019 27
Funds General and Special Revenue funds Excludes Operating and Residual Equity Transfers Direct Food/ Funds General and Special Revenue funds (Step 1) All Functions but not: 25XX Support Services - Business 28XX Reserved (Historical) 4XXX Facilities Acquisition and Construction Services) 52XX Capital Leases or Long Tern Notes with Board of Investments 62XX Resource Transfers Indirect (Step 1) Funds In 01 General Fund 14 Retirement Fund 24 Metal Mines Fund 25 State Mining Impact 26 Impact Aid Fund 28 Technology Fund 29 Flexibility Fund And all funds less than fund 50 and in 25XX Support Services - Business and, Object Not in All Object but not: 971 Residual Transfers 910 Operating Transfers 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purchase Existing Building 725 Major Construction 73X Major Equipment New 74X Major Equipment Replacement 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purch Building 725 Major Const 73X Major Equipt New 74X Major Equipt Replace (Step 2) Fund 15 Misc Program Fund in Programs Like 1** All Regular Programs Or 271 Indirect Costs, and Function 25XX Support Services - Business, Object Not In ('7XX','710','715','720','725','73X','74X') see above (Step 2) Funds General and Special Revenue funds in : 62XX Resource Transfers and 940 Indirect Costs Cap Outlay Debt (Step 3) All Funds but not: 01 General Fund 14 Retirement Fund 24 Metal Mines Fund 25 State Mining Impact Fund 26 Impact Aid Fund 28 Technology Fund 29 Flexibility Fund And all funds less than fund 50 and in Funds General and Special Revenue funds (Step 1) Funds General and Special Revenue funds Objects In 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purchase Existing Building 725 Major Construction 73X Major Equipment New 74X Major Equipment Replacement 52XX Capital Leases or Long Tern Notes with Board of Investments 25XX Support Services - Business and, Object Not in 971 Residual Transfers 910 Operating Transfers 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purchase Existing Building 725 Major Construction 73X Major Equipment New 74X Major Equipment Replacement (Step 2) 62XX Resource Transfers but not in 940 Indirect Costs Other (Step 3) 4XXX Facilities Acquisition and Construction Services) But Object Not In : Funds General and Special Revenue funds 7XX Capital Outlay 710 Cap Out Land 715 Cap Out Land Improve 720 Cap Out Purchase Existing Building 725 Major Construction 73X Major Equipment New 74X Major Equipment Replacement (Step 4) Function 31XX School Foods Objects 1XX Salary & 2XX Benefits are included all other Function 31XX & Objects are excluded. 31XX School Foods not Objects 1XX Salary 2XX Benefits All summed then minus Indirect Step 2 June 2019 28
Determination of Preliminary Rate June 2019 29
Schedule A for 07 Cascade SS 0278 Great Fall Public Schools LE 0098 Great Falls EL Total Exp 30,625,326.90 3,043,828.54 784,781.29 1,281,906.37 850,572.87 2,748,267.61 1,781,110.34 6,259,443.63 1,751,611.17 3,010,173.53 28,018.36 437,055.76 2,062.68 52,604,159.05 Direct 30,568,374.92 2,954,147.59 780,847.69 1,281,906.37 850,572.87 2,748,267.61 Indirect Cap Outlay 27,639.25 Debt Other 1XXX 21XX 221X 222X 23XX 24XX 25XX 26XX 27XX 31XX 33XX 35XX 62XX Totals Instruction Support Services Students Improvement of Instruction Services Educational Media Services Support Services General Administration Support Services School Administration Support Services Business Operation and Maintenance of Plant Services Student Transportation Services Food Services Community Services Extracurricular Athletics Resources Transferred to Other School District or Cooperatives 29,312.73 89,680.95 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,933.60 0 0 0 0 1,762,370.11 18,740.23 6,003.00 6,253,440.63 1,751,611.17 3,003,373.53 28,018.36 437,055.76 2,062.68 50,659,679.18 0 0 0 0 0 0 0 6,800.00 0 0 0 1,881,363.79 63,116.08 0.00 0.00 LE 0099 Great Falls HS Total Exp 25,076,819.69 1,977,799.59 1,137,760.20 414,624.99 370,127.41 2,054,429.19 1,213,361.89 4,783,228.32 728,478.04 91,332.87 259,488.44 764,159.55 10,535.90 Direct 25,019,389.87 1,908,389.00 1,135,733.80 414,624.99 370,127.41 2,054,429.19 Indirect Cap Outlay 50,010.02 Debt Other 1XXX 21XX 221X 222X 23XX 24XX 25XX 26XX 27XX 33XX 34XX 35XX 4XXX Instruction Support Services Students Improvement of Instruction Services Educational Media Services Support Services General Administration Support Services School Administration Support Services Business Operation and Maintenance of Plant Services Student Transportation Services Food Services Community Services Extracurricular Athletics Facilities Acquisition and Construction Services 7,419.80 69,410.59 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,026.40 0 0 0 0 1,126,420.89 86,941.00 4,783,228.32 728,478.04 91,332.87 259,488.44 764,159.55 0 0 0 0 0 0 0 0 0 0 0 0 10,535.90 62XX Totals Resources Transferred to Other School District or Cooperatives 860,657.38 39,742,803.46 860,657.38 38,390,038.86 0 0 0 0 1,203,251.28 149,513.32 0.00 0.00 Preliminary Rate Adjusted Rate LE 0098 Great Falls EL LE 0099 Great Falls HS Indirect/Direct Indirect/Direct 3.71% 3.13% June 2019 30
Determination of Calculated Rate June 2019 31
Calculated Rate Line B - Preliminary Indirect Cost Rate SS SS Name LE 0098 0099 2016 0.0439 0.0268 0.0216 0.0346 0.0289 0.0444 0.0335 0.0304 2017 2018 2019 0278 0278 Great Falls Public Schools Great Falls Public Schools Line C - Calculated Indirect Cost Rate SS SS Name LE 0098 0099 2016 0.0592 0.0268 0.0081 0.0346 0.0289 0.0444 0.0335 0.0304 2017 2018 2019 0278 0278 Great Falls Public Schools Great Falls Public Schools June 2019 32
Calculated Rate Line B - Preliminary Indirect Cost Rate SS SS Name LE 0098 0099 2016 0.0439 0.0268 0.0216 0.0346 0.0289 0.0444 0.0335 0.0304 2017 2018 2019 0278 0278 Great Falls Public Schools Great Falls Public Schools Line C - Calculated Indirect Cost Rate SS SS Name LE 0098 0099 2016 0.0592 0.0268 0.0081 0.0346 0.0289 0.0444 0.0335 0.0304 2017 2018 2019 0278 0278 Great Falls Public Schools Great Falls Public Schools June 2019 33
Calculated Rate Line B - Preliminary Indirect Cost Rate SS SS Name LE 0098 0.04390.02680.0216 0.0346 0099 0.02890.04440.0335 0.0304 2016 2017 2018 2019 0278 0278 Great Falls Public Schools Great Falls Public Schools Line C - Calculated Indirect Cost Rate SS SS Name LE 0098 0.05920.02680.0081 0.0346 0099 0.02890.04440.0335 0.0304 2016 2017 2018 2019 0278 0278 Great Falls Public Schools Great Falls Public Schools Line D - Higher of Preliminary or Approved IDC SS SS Name LE 0098 0.05920.0268 0.02160.0346 0099 0.02890.0444 0.03350.0304 2016 2017 2018 2019 0278 0278 Great Falls Public Schools Great Falls Public Schools June 2019 34
Calculated Rate Line D - Higher of Preliminary or Approved Indirect Cost Rate SS SS Name 0278 Great Falls Public Schools 0278 Great Falls Public Schools Line E - Five Year Average with 5% Discount SS SS Name 0278 Great Falls Public Schools 0278 Great Falls Public Schools LE 0098 0.05920.02680.02160.0346 0099 0.02890.04440.03350.0304 2016 2017 2018 2019 LE 0098 0.05920.02680.02160.03460.0402 0099 0.02890.04440.03350.03040.0400 2016 2017 2018 2019 2020 SS SS Name LE 0098 0099 Rate 0.0347 0.0337 SS Calculated Rate 0278 Great Falls Public Schools 0278 Great Falls Public Schools 0278 0.0342 June 2019 35
New Changes Associated with Delegation Agreement Dated 2/3/2017 June 2019 36
Delegation Agreement dated 2/3/2017 Expenditures for school districts that exceed 2,600 enrolled students must reclassify expenditures associated with the business manager to the base for approval of an indirect cost rate. 2600 enrolled students on the fall enrollment count of the year of the TFS expenditures being used for determining the IDC rate. The count is by School System. Reported expenditures to OPI include some business manager expenditures coded to function 25XX. OPI calculates these expenditures as Indirect Costs when determining calculated rates. When the district applies for a new IDC rate the requestor needs to redirect these costs to Direct and Unallowable Costs (Base). Ex. 700 business to function 25XX. Ex. 700 included in indirect. Indirect 5,000- 700 = 4,300 Direct 13,000+700 13,700 Indirect 5,000 Direct 13,000 June 2019 37
Helpful References Federal Green Guide or Cost Allocation Guide for State and Local Governments http://www.ed.gov/about/offices/list/ocfo/fipao/icgindex.html Montana OPI Indirect Cost Rate Information Page http://opi.mt.gov/Leadership/Finance-Grants/School- Finance/School-Finance-Accounting Paul Taylor 444-1257 ptaylor2@mt.gov June 2019 38
