R277-424-2. Definitions

  (1) "Direct costs" mean costs that can be easily, obviously, and conveniently identified by the Superintendent with a specific program.

  (2) "Indirect costs" mean the costs of providing indirect services.

  (3) "Indirect Services" mean services that cannot be identified with a specific program.

  (4) "Restricted indirect cost rate" means a rate assigned to each LEA annually based on the ratio of restricted indirect costs to direct costs as reported in the annual financial report for the specific LEA.

  (5) "Unallowable costs" mean expenditures directly attributable to governance, including:

  (a) salaries;

  (b) expenditures of the office of the district superintendent, the governing board, and election expenses; and

  (c) expenditures for fringe benefits, which are associated with unallowable salary expenditures.

  (6) "Unrestricted indirect cost rate" means a rate assigned to each LEA annually, based on the ratio of unrestricted indirect costs to direct costs as reported in the annual financial report for the specific LEA.