March 26, 2008
Dear County Chief Business Officials:
2008-09 APPROVED INDIRECT COST RATES
As the cognizant agency authorized by the United States Department of Education to approve California kindergarten through twelfth grade (K-12) local educational agency (LEA) indirect cost rates, the California Department of Education (CDE) has reviewed the 2006-07 standardized account code structure (SACS) expenditure data and has finalized the approved indirect cost rates. The rates are for use, as allowable, with 2008-09 federal and state programs.
Approved Indirect Cost Rates
Please share the enclosed listing with the school districts and joint powers agencies (JPAs) in your county. The indirect cost rates will also be posted on our Web page at http://www.cde.ca.gov/fg/ac/ic/.
Indirect Cost Rates for JPAs
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.
Statewide Indirect Cost Rates
The 2008-09 statewide average indirect cost rates for the Food Service and Adult Education programs are as follows:
4.96% Food Service
4.90% Adult Education
For these programs, California Education Code sections 38101(c) and 52616.4(a)(3), respectively, limit school district indirect costs to amounts derived using the lesser of a school district's indirect rate or the program's statewide average indirect cost rate. Each district should compare these statewide rates with their individual indirect cost rate to determine the lesser rate for use with these programs.
A listing showing the statewide rates for the last five years will also be available on our Web page.
Charter School Indirect Cost Rates
The approved 2008-09 indirect cost rates for charter schools are also posted on our Web page.
SACS Query Page
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/ includes this information for most programs.
If you have any questions regarding the indirect cost rates, please contact our office at 916-322-1770, or by e-mail at sacsinfo@cde.ca.gov.
Sincerely,
Peggy O’Guin, Administrator
Financial Accountability and Information Services
1430 N Street
Sacramento, CA 95814