Indirect costs are those costs that are not readily identifiable with the activities funded by the grant but are still incurred for the joint benefit of those activities. Examples of services that typically benefit several activities and programs and for which appropriate costs may be attributed by means of an indirect cost are accounting, auditing, payroll, personnel, budgeting, and purchasing.
Formula: The Indirect Cost Rate (ICR) multiplied by the total eligible expenditures equals the amount allowed for indirect costs. (CSAM 915)
Example: A district with an ICR of three percent and with EIA total direct expenditures of $100,000 would have an allowable limit on indirect cost of $3,000 (3 percent times $100,000).
EIA Alternative Programs (5 CCR, Section 4503) the LEA and school must demonstrate that:
- The school parent advisory council has approved and the district parent advisory council has reviewed the implementation of such option.
- The school is proposing to exercise such option is a school which is participating in the SCE program.
- Not more than 25 percent of a district's EIA entitlement is expended to carry out the program options authorized by this section and the school wide program options authorized by 5 CCR, sections 4500 and 4501.
- A school wide needs assessment has been conducted to determine the necessity of providing such option(s)
The LEA may use any or all of these three options:
- Extending student eligibility for SCE services for an additional year for students no longer eligible who were eligible in either of the two preceding years.
- Allowing all students who test below the 90th percentile to receive SCE services in schools with more than 50 percent poverty.
- Allowing a school to conduct a SCE school-wide project to assist EDY students, if the need is adequately documented in a school-wide needs assessment.
