Grants and Other Financial Assistance Programs
Indirect Cost Rates - FY 2017
Grant Recipients (non-LEAs, Cities or Towns)
April 12, 2016
The Massachusetts Department of Elementary and Secondary Education has been granted authority to assign annual restricted indirect cost rates to be applied to grants issued by the Department. This authority has been delegated by the U.S. Department of Education. This procedure is for all entities except traditional Local Educational Agencies (LEAs) and other municipalities. Cities and towns will be assigned the same rate as their Local Educational Agency. The procedures for LEAs are based on their annual End of Year Report.
Rates for grants issued by the Department will be assigned for grant years commencing on or after July 1, 2016 in the following manner:
Any entity having a separately approved, negotiated rate with the Federal Government must send a copy of its current approval letter with the attached form. This rate may then be adjusted downward by the Department based on specific requirements of the grant(s) being applied for. An adjusted rate will only be deemed appropriate for grants issued by the Department, and should not be construed as an adjusted rate for grants from any other funding sources.
Any entity that does not have a current Federal rate may apply to the Massachusetts Department of Elementary and Secondary Education for a maximum five percent (5%) indirect cost rate using the attached form. This rate is only to be used for grants issued by the Massachusetts Department of Elementary and Secondary Education and can not be considered as an overall indirect cost rate to be used with any other funding sources from the Department or any other entity.
In order to receive this approval the entity must be current in all documents related to the filing of its Final Reports (FR1) for prior grants awarded by the Department, including repayment of any unused funds. In addition, the entity must have sent the Department of Elementary and Secondary Education its latest, completed audit report. These are long standing compliance issues, and do not represent any extra requirements to this approval process.
These indirect cost rates will apply to both state and federal funding and are subject to an annual application process and review by the Massachusetts Department of Elementary and Secondary Education. A separate application will be published and required each successive year. If you have any questions please contact David LeBlanc at 781-338-6485.
Downloadable Application Forms