May 2, 2012
Dear County Chief Business Officials:
As the cognizant agency authorized by the United States Department of Education to approve California kindergarten through grade twelve (K–12) local educational agency (LEA) indirect cost rates, the California Department of Education (CDE) has reviewed the 2010–11 standardized account code structure (SACS) expenditure data and has finalized the approved indirect cost rates. The rates are for use, as allowable, with 2012–13 federal and state programs.
Please share the enclosed listing with the school districts and joint powers agencies (JPAs) in your county. The indirect cost rates are also posted on the CDE Indirect Cost Rate (ICR) Web page at http://www.cde.ca.gov/fg/ac/ic/index.asp.
As a reminder, because JPAs do not generally meet the guidelines for receiving approved indirect cost rates, they are not given an approved rate unless it is requested during the SACS data submission process. For further information on indirect cost rates applicable to JPAs, including the guidelines that must be met to receive an indirect cost rate, see Procedure 805 of the California School Accounting Manual which is available on our Web page at http://www.cde.ca.gov/fg/ac/sa/.
The approved 2012–13 indirect cost rates for charter schools are also posted on the ICR Web page listed above. Please share them with the applicable school districts and charter schools.
The 2012–13 statewide average indirect cost rate for food service programs is 4.46%.
California Education Code (EC) section 38101(c) limits school district indirect costs to amounts derived using the lesser of a school district's indirect rate or the statewide average indirect cost rate. Each district should compare this statewide average rate with their individual indirect cost rate to determine the lesser rate for use with this program. Please note that the statewide average rate for Adult Education is no longer calculated due to the flexibility provisions of EC Section 42605, currently in effect for fiscal years 2008–09 through 2014–15.
A listing showing the statewide average rates for the last five years is also available on the ICR Web page listed above.
To aid staff in identifying the allowable indirect cost rates for various programs, the SACS Query system available on our Web page at http://www.cde.ca.gov/fg/ac/ac/index.asp includes this information for most programs.
If you have any questions regarding the indirect cost rates, please contact our office by phone at 916-322-1770 or by e-mail at email@example.com.
Peggy O’Guin, Administrator
Financial Accountability and Information Services