R277-424-3. Standards

  (1) An LEA may charge indirect costs to state funded programs.

  (2) The Superintendent may not authorize or pay indirect costs to higher education institutions for state funded contractual work.

  (3)(a) Prior to the beginning of each fiscal year, the Superintendent shall publish a schedule of the indirect cost rates for state programs.

  (b) The Superintendent shall develop the schedule from information contained in the annual financial reports and specifically identified items submitted by LEAs.

  (c) Each program schedule shall include:

  (i) whether or not the restricted or unrestricted indirect cost rate applies; and

  (ii) whether or not indirect costs are allowable or applicable.

  (4)(a) An LEA may recover indirect costs if funds are available.

  (b) If a combination of direct and indirect costs exceeds funds available, then the LEA may not recover the total cost of the project or program.

  (c) Recovery of indirect costs is not optional for state programs.

  (d) If an LEA elects to recover indirect costs, the LEA shall use the annual rates negotiated by the Superintendent for all applicable federal and state programs.

  (5)(a) An LEA may only recover indirect costs for state programs to the extent that direct costs were incurred.

  (b) The Superintendent shall apply the indirect cost rate to the amount expended, not to the total grant, in order to determine the amount for indirect costs.