Annually, ISDs must request an indirect cost rate by completing and submitting the ICRP Additional Costs Workbook (ACW). The deadline for submitting the workbook, and thus requesting indirect cost rates, was January 19, 2023.

TEA issues two indirect cost rates to local educational agencies (LEAs), a restricted rate and an unrestricted rate.

• Restricted Rate – The restricted indirect cost rate is used for grant programs where the supplement, not supplant requirement applies. The majority of the grants that TEA administers are subject to supplement, not supplant, and the restricted indirect cost rate is applied to them.
• Unrestricted Rate – The unrestricted indirect cost rate is applied to grants not subject to the supplement, not supplant requirement. The SHARS cost report utilizes the Unrestricted Rate.

Texas Education Agency (TEA) has uploaded the completed Indirect Cost Rate Proposals (ICRPs) in GFFC Reports and Data Collections. ISDs that requested an indirect cost rate must review, approve, and certify their ICRP data by May 19, 2023.

If you have questions about the indirect cost rate process, please email compliance@tea.texas.gov.