Johnny Key

Commissioner of Education

Read Bio  

Indirect Cost

Calculation of Indirect Cost Rates

Indirect cost rates are calculated each year for all school districts, educational cooperatives, and open-enrollment charter schools.  These rates are based on expenditure data from the second-preceding fiscal year using a carryforward methodology.

Beginning in 2015-16, expenditures on subawards will be treated differently due to changes in these calculations prescribed by the federal agency.  Each LEA will be required to submit a list of these expenditures to FGM.  Any  subaward expenditure amounts above $25,000 will be excluded from the rate calculation.  They should also be excluded from the application of the rate by the LEA when recouping indirect costs.  This methodology replaces a previous practice of excluding expenditures above $25,000 for all purchased services.

  1. ADE delegation agreement with USDE (PDF)
  2. Subaward Examples (PDF)
  3. Subaward Reporting Form (XLSX)
  4. 2017-18 School District Rates (PDF)
  5. 2017-18 Educational Services Cooperative Rates (PDF)
  6. 2017-18 Open Enrollment Charter Rates (PDF)

Application of Indirect Cost Rates

Indirect costs are used to recover expenses related to a federal program that cannot be charged directly. This recovery is still subject to the LEAs budget restrictions. This is a working excel document to help calculate the actual amount of funds the district can take for indirect costs.                

  1. Calculating Indirect Costs with Actual Expenditures (XLSX)

Prior Year Indirect Cost Rates

Districts, charters and educational cooperatives charging indirect costs must keep documentation showing indirect cost rates for audit purposes. The rates listed below are for historical purposes and should not be used on current year expenditures.

  1. 2016-17 School District Rates (PDF)
  2. 2016-17 Educational Services Cooperative Rates (PDF)
  3. 2016-17 Open Enrollment Charter Rates (PDF)

For more information, please contact:

Kristy Hobson, Federal Funding Analyst
Arkansas Department of Education
Federal Funding
Four Capitol Mall, Room 204-A
Little Rock, AR 72201
Phone:  501-682-0116
 
Annette Pearson, Federal Program Analyst
Arkansas Department of Education
Federal Funding
Four Capitol Mall, Room 204-A
Little Rock, AR 72201
Phone:  501-683-1243
 
Bonnie Casey, Fiscal Support Manager-Special Education
Arkansas Department of Education
Federal Funding
Four Capitol Mall, Room 204-A
Little Rock, AR 72201
Phone:  501-682-4482
 
Amy Thomas, Federal Finance Coordinator
Arkansas Department of Education
Federal Funding
Four Capitol Mall, Room 204-A
Little Rock, AR 72201
Phone:  501-682-3636


 

State Standards

Learn more about the standards that define the knowledge and skills Arkansas students should have in order to be ready for college and careers.

Learn More

Licensure & Certification

Find critical information about renewing Arkansas educator licenses, adding areas of licensure, licensing by reciprocity from other states, background checks and more.

Learn More

ESEA Flexibility

Learn More

Latest News & Events

Learn More