001So we can go. >> Good morning everyone. Thanks so much for being here with the federal fiscal compliance and reporting division. Today we're going to walk through the indirect cost rate proposal or also known as the ICRP, the additional cost workbook, also known as ACW, and the certification process for the upcoming 2026 2027 school year. And just a quick note, this training is specifically for school districts. Um, charter schools do have a different p different process. Um, so what we're covering today is for school districts. If you joined us in past trainings, you'll notice that the process itself hasn't changed, just the dates. So therefore, our goal today is to make sure that you feel confident and prepared to submit everything accurately and on time. And we're going to guide you through each step with
002this um slide deck. If you can uh before we begin, if you can go ahead and scan this QR code to check in. This helps us track school system participation. And the form title is ICRPA ACW and certification training. And the date should be November 11th, 2025. And it'll take about a minute. Okay. And then we'll go on to our legal disclaimer slide. And just a quick reminder, this presentation is for guidance only and it reflects TEA's current understanding of applicable laws and federal guidance. It is not legal advice. So therefore, please consult your legal counsel before acting on anything presented today. And here is our AR AI disclaimer. artificial intelligence tea prohibits thirdparty recordings of grant related trainings including the use of AI tools or assistance to attend summarize or record sessions. So therefore
003using training content to train AI technologies is also prohibited. Violations may result in removal and future restrictions. All right, let's go ahead and get started. So, um, first and foremost, presenting today are myself, Ashley Rubio and Sida Dangga. She is the project lead of the indirect cost rate. Um, we also have a couple of our team here to assist us with the um, Q&A who are James Connelly and Trisha Murray. Um, we do ask if you have any questions to please submit them in the Q&A box and we will get to them as um, the presentation goes and if there's any left, we'll address them at the end as well. For today's agenda, it includes the role of USDE in indirect cost rates, an overview of ICRP and the ACW, the timeline and submission process
004and certification steps. So therefore, by the end, you'll understand each step about what's needed to meet the deadlines and how to complete the ICRPACW. Before we jump into the workbook, I wanted to point out a key resource, which is the indirect cost rate web page. It's your one-stop shop for everything related to this process. And here you'll find the Excel workbook for the ICRPACW, the instruction manual, FAQs, and even a PDF to this exact presentation just in case you need to review it for a resource, it is on there. Um, and like I said, this is a one-stop shop with all of the resources. If you have any questions, we do um have people come to this web page and review anything that they might have questions over. Otherwise, we are also more than welcome
005to um get questions via our compliance mailbox. We will send that over at the end of the slide deck. Um, this slide includes clickable links for all the resources I just mentioned. These tools are here to support you whether you're new to the process or just need a refresher. So, like I said, this is a a quick, convenient, clickable source. So, you can click on these links via um the uh workbook. I'm sorry, the um PowerPoint. All right, let's get into some nitty-gritty for the USD methodology. TEA calculates indirect cost rates based on federal law and USDE approved method methodology. TEA is the cognizant agency for all school districts and ESC's and the current agreement received in 2019 is still in effect through 2026 2027 which is why the process hasn't changed. And here's the
006delegation agreement overview with USDT. So since 2020 2021, TEA must calculate rates annually using 3 years of financial data. Extensions are no longer allowed and districts must request rates each year. So for 2627, we'll use data from FY23, FY24, and FY25. So essentially the the important takeaway is that this process is federally approved and consistent. So the steps that you follow today are the same ones required by USD. TEA issues two rate types. Unrestricted and that is for grants not subject to supplement not supplant and restricted rates for grants that are subject to it. So, um, just kind of a a quick overview, most TEA grants are used, uh, they they do use the restricted rates more than unrestricted, which is typically lower. So, just as a reminder in terms of supplement, not supplant, this
007means that federal funds must enhance existing state or local activities and not replace them. So because of the size and complexity of the data required for the indirect cost rate proposal, TEA uses PE's data for most of the information although there is a small amount of data that PES does not capture. So districts will need to provide that through the additional cost workbook. So then at that time TEA combines the ACW data with the PES data to generate a pre-populated ICRP for each district. The ACW captures data that is not available in PS. So this data is pulled by using simple queries from your financial system which no analysis or cost classification is required. So the ACW submission um to request rates for 2627 districts must submit the ACW by January 16th of 2026. This
008submission is our official is your official request. So therefore, without the submission of the ACW, TEA cannot calculate or issue rates. After submission, TEA will then merge your data with the ACW with the PES data and generate the ICRP for review and certification. Once TEA receives your ACW, we'll prepopulate the ICRP into two sources. About 10% of the data comes from your ACW and the rest comes from certified PES data. We then merge these to create the complete ICRP which you'll review and certify. And ju just as a reminder, data accuracy within the ACW is critical. Incorrect data can destroy distort your rate. And we do recommend keeping a copy of all of your financial records that was used to complete the ACW. So, uh, these this is an important timeline. What I like to
009do here is actually print this out and have it by my desk. And, uh, the key dates to remember is October the 30th, the ACW became available on the indirect cost rate web page in teal. January 16th is the deadline to submit the ACW. I know it seems kind of far away, but as time is flying, it seems like that date is tomorrow. So, uh, we do want to get a head start on completing those ACWs. And then in between January and April, April, TEA provides, um, I'm sorry, TEA reviews, submissions, and requests, uh, clarifications. If we need to, um, come back to you for any specific data, we'll go ahead and do that at that time. April 16th, TEA provides completed ICRPs for review and certification. May 15th is the deadline to certify the
010ICRP to be submitted in GFC reports. And July 1st, rates become effective. So again, if uh you could just mark these dates or just print out this page and put it close by you, that way you don't forget these upcoming deadlines. um that would be amazing and awesome for you to avoid any delays um that will be coming up. At this time, I'm going to go ahead and pass the baton to Sida who will continue with how to complete the ICRP ACW. >> Thank you, Ashley. And uh good morning everyone. Uh I'm glad you could join us today. And uh for those who have completed this training before, as Ashley mentioned, consider this uh just a helpful refresher. And for uh those attending for the first time, uh I hope you'll find the information useful
011uh as you work through the indirect course rate application. So in the upcoming slides, uh I'll walk you through the different tabs in the additional cost workbook and highlight the specific information TA requires from districts. uh these are and the the data that we request through the ACW are not available on pins. So this will help ensure your submission is accurate and complete when completing the additional cost workbook. Um it's important to know which years of data you need to provide. So for returning districts uh that already received indirect quot rate for the current school year 2526, you only need to submit one worksheet for FY25 which covers you your 2425 school year because uh we have already um we already have your data for FY23 and FY 24 data. So no no resubmission is
012needed for those years. So the the the key is to make sure that the FY25 worksheet is complete and accurate and there is no missing or incorrect data. Uh to um make sure that there is no delay in processing your request when completing the additional uh course workbook. The requirements uh defer uh for first time and returning districts. As noted in the previous slide, uh districts are only required to submit three years of data in the initial year. Returning districts only need to provide data for any fiscal year that haven't been uh submitted before. Most of the required data can be maintain uh can be pulled, excuse me, can be pulled by running queries in your accounting uh system. Please keep a copy of all your financial records uh used to complete the ACW as
013we may request clarification letter. Uh again, accuracy and documentation are key to avoid uh delays in the process. Uh when filling out the additional cost workbook, make sure the person completing it is familiar with running queries in your district's accounting system. And if there is um no expenditure for an item, please enter a zero and uh don't leave any uh fields blank. Taking the steps will help ensure your submission is complete and moves through the review uh process smoothly. And then again, please double check all entries before submission. Even uh small mistakes can lead to requests for clarification and slow down the approval process. So next uh we'll we'll go over in the next few slides we'll go over the different tabs of the the actual workbook in detail and look at some examples. The
014first tab of the additional course workbook it focuses on the school system information which is important to ensure that all identifying information is accurate and up to date. So please provide the following information for the ISD to confirm the accuracy of all submitted data which is the the name of the school system. You need to select the ISD name in the pull down field and then once the school system is selected the county district number or the CDN will uh populate and the name of the school system and the CDN will uh the CDN number will also populate to the header of each worksheet. So this is the only place you need to select the school district name which uh and then the CDN will populate and the name of the primary contact this will
015be the person who's completing the workbook the title the phone number email and a date of completion or uh submission and if we need to follow up uh this is the information we'll use. So therefore, please make sure that the person listed here is someone who can respond to questions uh about the data submitted. This slide highlights the checklist tab in the ICRP ACW. The checklist is a built-in tool to help ensure that all required components on the ACW are completed before submission and it's especially useful as a final review. So uh please uh to just help you catch any missing or incomplete sections. We strongly encourage you to review your data entry using the checklist tab before submitting the ICR uh ICRP ACW and this will uh help ensure that all tabs are and
016sections of the ACW are complete reducing the likelihood of errors and avoiding the need for resubmission. Um I know um our team has definitely observed that the school systems who utilize this uh tab uh experience fewer issues during our review process which helps streamline the approval of the workbook. So we highly encourage you to take a look at it and just make sure um you use it as a final review process before you submit your ACW. This slide shows an example of the organizational chart sample in the additional cost workbook. And this is just to show districts the required um type of organizational chart as part of the ACW submission. The the the chart should reflect the structure of leadership and key positions relevant to the indirect quote calculation. This is a sample that serve
017as a reference for districts uh to understand the format and content expected in their organizational chart submission. And every district is required to insert FY25 organizational chart directly into the designated tab within the Excel workbook which uh we'll look at next. Um the process for submitting the organizational chart has not changed from previous years and the purpose of this chart is to help previewers understand the structure of your district. So the organizational chart should accurately reflect the district's leadership structure and align with the positions that will be listed in the CEO information section of the workbook. Therefore, uh this year, school systems need to submit again the FY2025 or school year 2425 org chart in this tab. And the instructions on how to insert the ORC chart. The ORC chart is found uh right in
018the highlighted section um of the tab. And remember uh do not upload the organizational chart as a separate document in GFC reports and data collections. it must be embedded in the correct tab of the ACW Excel file. So, this is where we'd expect to see the ORC chart. Again, there's no need to submit a separate one in a JeffFC. Um, can you still hear me Ashley? Okay. Um, so yeah. Okay. Um so there is no need to submit a separate uh or chart in Jeff C reports and data collections. Okay. So uh next we'll be looking at the different sections of the additional cost workbook the FY25 tab. So the first section in function 41 is the general governor governance and direct cost. And in this section of the ACW, uh, districts must enter expenditures
019for org codes 702, 703, and 720 broken down by fund, function, and uh, object code. Except for the excluded cost and or 720 direct cost, expenditure within expenditures within the function 41 are treated as indirect cost for the indirect cost rate calculation. when calculating indirect cost expenditure within uh the function 41 are uh treated as follows. So the ORC 702 school board is excluded cost. The ORC 703 uh tax office is excluded cost and ORC 720 direct cost direct costs and um examples of query in this uh section will be looking we'll be looking at uh two examples. First we'll look at the line item one which is your fun 100 function 41 object 6100 or 702 schoolboard. Uh in this instance you do need to run two queries. The query for fun 100 function
02041 object 6100 or 702 and the second query for fun 100 function 41 object 6144 or 702. And then you need to deduct the object code 6144 total from the object code 6100 total. And then uh report the result in the corresponding cell. And then for um example two look at line item two which is your fun 100 uh function 41 object 6200 or 703 which is tax office. For this this one you only need to run one query. the query for uh fund 100, function 41, object 6200, or 703 and then report the amount in the corresponding cell. And uh these examples illustrates how to uh isolate the correct expenditure for reporting. Next up, uh we have TRS on behalf payments and or Medicare Part D payments. Uh for this section, you need to
021enter expenditures for all TRS on behalf payments and or Medicare uh Medicare Part D payments made during the applicable fiscal year by the appropriate fund function in object 6144 code as requested in the worksheet. These payments are considered excluded in the indirect cost rate calculation. And an example query will uh look at line item one here as well for fun fund 100 object 6144 for function 1x one query is needed the query expenditure for fund 100 function 1x object 6144 then you report the resulting amount in the corresponding line item cell. The next section is the food and meal costs of a food service program. And uh this se this section address uh addresses the food and meal costs related uh to your district's food service program. And these costs must be reported reported accurately
022because they are excluded from the indirect cost rate uh calculation. and the report expenditure for food and milk by again here by the appropriate fund function and object 6341 as as requested in the worksheet. An example query uh will be for uh line item one 100 object 6341 F function uh 3x and you only need to run one query which is your fun 100 function 3x object 6341 and then you report the resulting amount in the corresponding line uh item cell. Uh next section is uh depreciation expense amounts. Uh this section requires districts to enter the total depreciation expenses charged to government governmental activities for buildings and improvements and uh furniture, equipment and vehicles. Uh I will uh definitely emphasize over here that accurate reporting of depreciation is really essential and required. Uh under reporting
023or over reporting will significantly distort the calculated indirect cost rates. So please uh pay um attention for to this section. The information is uh located in the notes to the financial statement section of your district's annual financial report AFR under headings um such as uh capital assets or um capital asset activity and what needs to be reported in this uh in this section is the total cost for buildings improve buildings and improvements and uh furniture equipment and vehicles and these amounts cannot exceed the net depreciation amount listed for the assets in the AFR. The steps uh to determine the correct amount is you review the capital assets activity table in your AFR. Then you determine the increase for buildings and improvements including capital lease if uh applicable and itemized. Determine the increase for furniture, equipment,
024and vehicles and ensure the total increase equal the amount of depreciation charged to governmental activities. And then you do need to remove any depreciation expense charged to federal uh funds and then report the remaining amount in this section. The next section is uh payment to fiscal agent uh and or member districts of shared service arrangements or SSS. This section address addresses payments to your uh district's fiscal agent or member districts of shared service arrangements, but only those funded with federal grant funds. So step one is going to be to answer the yes or no question. Did the LA make payments to a fiscal agent and or member district of an SSA funded with uh federal grant funds from function 93. So if you answer no, you can skip this section. But if you answer yes,
025uh you must provide detail for all payments made to fiscal agent or member districts for federally funded SSAs. So the next step will be to gather the data and um you need to run a query of payment history for function 93 object uh 649x and then you report uh this report will show the SSA payments by fund. Then you need to itemize these payments in the worksheet based on uh funding source. And then the step three will be the to include the assistance listing number or ALN which is uh formerly known as a CFDA number. And the ALN confirmed that the payment was made with uh federal funds. And if there is no ALN number, the payment was likely not federal and should not be reported here. Um, these payments are considered excluded cost in
026the indirect cost rate calculation except for the first $25,000 of each payment which is uh counted as direct cost. You will enter the total uh amount here, the total payment amount here, but the ICRP will automatically apply the $25,000 rule during calculation for this section. And next up, the next section is the federal subreient item. Federally federal subgrants and federal grant pass through funds. This section applies only if your district distributed federal grant funds as a subgrant or a pass through funds to another entity. The subreient item is a payment of federal grant funds by the district to another entity to uh carry out part or um all of a federal grant program and the subrecip payee is the entity receiving the subrant. Uh this section is used if your district issued a subgrant for
027food service program and or other pass through funds funds given to other entities that are not your physical agent or member district of an SSA. Uh one thing I would like to highlight here for the purpose of the ICRP we have separated uh payments to fiscal agent SSAs from other federal sub recipient items to define cost. So step one here is going to be to answer again the yes or no question. Did the school district distribute uh federal grant funds as a subgrant or as federal grant pass through funds? And if the answer is no, you can skip to the next uh section and most districts most districts will answer no. But if you uh answer yes, then you need to complete the section by entering all the required details. And um the first one
028would be to select the fund function and object codes from the pulld down lists uh provided in the workbook. Then the pay name and description of the subreient item. The amen number and then which again confirms that uh that it was uh federally funded. a beginning and end date of the subrant and the total amount of the payment. The next section we have is um contingencies and this section is for reporting contingency amounts which are uh your fund set aside for unexpected expenses. And what you need to enter here is again you need to select the fund function and object code from the pulld down lists uh provided in the workbook and then you need to enter a clear description of uh the contingencies and the amounts allocated. uh ensure that the description accurately reflects
029the nature of the contingency. And an example we have here is um legal uh is um unfor unforeseen risks such as uh lawsuit settlements or refunds to TEA. And these funds are excluded from the calculation of the indirect cost rate. And TEA uses this information to confirm that contingency funds are properly classified and accounted for in the the indirect cost calculation. The next section we have is chief executive officer information. And this uh section requires districts to report all expenditures uh for the chief executive officers and their immediate support staff including um the state and local salaries and fixed cost categorized by function and position title and the cost uh facility and administrative associated with this positions are indirect costs when paid with state and local funds. Um however uh when calculating the restricted indirect
030cost rate these costs must be moved uh from the indirect cost uh rate the indirect cost pool to the modified total direct cost or the ba bay which consists of your direct and unallowable cost. Um the key requirements uh is that these positions must correspond to the organizational uh chart insert inserted in the ACW organizational chart tab that we looked at earlier. So uh we will uh verify alignment between the chart and the data entered here. And uh positions to include in this section in are the superintendent and the immediate executive or administrative assistant to the superintendent all and all other staff members who act as CEOs of any district-wide component regardless of their title. Um some examples is your assistant superintendent, your deputy uh superintendent, a CFO or uh your HR executive director and
031any immediate executive or administrative assistance to this uh CEO positions. Uh to complete the section, you do need to select you need to select the function code uh from which the indirect salary and fixed costs are uh paid using the pulld down list. Enter the position title, the salary amount and fixed cost amount paid from state and local funds. And then you also need to enter the staff count for the position. And if p if uh the position is funded from multiple functions, just create multiple line items, but only enter one for the staff count on one line. Uh accuracy here is very critical and incorrect classification or missing positions uh can lead to TA requesting clarification. Uh the next section addresses the terminal leave uh which refers to payments uh made to departing employees
032outside of normal uh payroll. Uh examples include your sever severance pay or dismissal wages or other payments beyond your uh standard salary and wages. Um here again you need to answer the question a yes or no question. Did the LA make payments to one or more departing employees for terminal leave? If no uh you can skip this section and if yes you must provide detailed information for each uh payment. So you need to select the fund function and object code uh from which the payment was made. Then the location job title and the name of the employee. And then you also need to select from the pulld down whether um the payment was uh if it was classified as direct or indirect and then you enter the amount paid. Um most most districts um do
033not have terminal leave because they do not provide formal vacation leave. So payments such as um severance pay or dismissal of wages would fall under uh this category. So this is the last section of the additional course workbook. Uh after this uh we'll move on to common mistakes and then cover how to submit your completed ACW. So I'll go ahead and pass it back to Ashley to go over the common mistakes we come across uh during our review process. Ashley, take it away. >> All right. So, if any of you have been in this training before in previous years, some of you might know that I like to use this section with an analogy. Um, I like to use it as kind of like a recipe, a checklist, like if you were the chef and
034we were the judges that you were about to present us with your meal. So the reason why I focus this section that way is because these are areas of opportunity to avoid resubmissions. Um as we've stated in the beginning of this um presentation, we do um do our best to provide resources for you all so that way we can um ensure that you know we can get a good recipe to us and then we finish the review and then we can follow the next steps. So, with that being said, um I'm going to go over the next few slides um with some common mistakes that we have noticed in the past couple of years um during our reviews. Um um this first one is the depreci depreciation expense. Um we've noticed that some workbooks sometimes
035have come to us with either blank depreciation amounts or the wrong amount was reported. Um so I do want uh you all to kind of focus on this area by using the checklist that Sida had. um mentioned in the beginning, we do have a checklist tab that is embedded in the ACW workbook for y'all to use as a tool. Um like she mentioned, it's good to kind of use that checklist tool at right after you're done completing your data input into the ACW just as a double check to make sure that everything was completed in its entirety. Um in addition to um that tool, we also have incorporated um what is called conditional formatting. Essentially what that does is when you're completing your ACW workbook, um some highlights will come out as a new feature
036indicating that either something wasn't completed um it was left blank or um something wasn't selected in the drop-down or some other specific reason, you'll see that highlight essentially to say that something is missing. Um so that's a feature for y'all as well as an additional tool. So that way you can see if um if you need more input for the ACW. So just as a a reminder for depreciation, we do want you to enter the total depreciation that is charged to governmental funds including expenses for buildings and or improvements, furniture, equipment, vehicles. And again, incorrect incorrect data reporting can distort your indirect cost rates. So please ensure that you're looking at this. Um the next section ne the next section is the payments to fiscal agent member districts of shared services arrangements. Um so in
037this section we have seen as well incomplete data. So you can see here that in the row you're going to need the name of the SSA, the ALN number, the begin date, end date, and the amount. So, please make sure that you're completing this in its entirety because even if you forget to put the begin date, but you have everything else, that will still come back an error. We'll have to go back and ask you to redo that section. Um, also, please ensure that if you select yes to this section, um, there is a little is it this one? Yes, there's a drop-own uh list right there where it says select answer from pulld down on the top right hand corner. You're going to select yes or no. If the answer is no in this
038section, you don't have to complete anything else. But if it's yes, just as I mentioned before, please ensure that you're completing this in its entirety. Okay. Some more areas to focus on are the federal subreient items, federal subrants, and federal grant pass through funds. And again just like the others we have seen incomplete data and no selection from the pulld down list. So uh just ensure that you're selecting from that pulld down list at the top right hand um section. Also there is a pull down list for the fund function and object codes. So please ensure that you're selecting those accordingly. Make sure that there is an ALN number listed here. Um if there is no ALN number then that m that that just means that payment should not be reported in this section. Um
039and then again uh the next section is contingencies. We have noticed no selection from the pull down list for the fund function and object codes or there is missing des uh descriptions or amounts. So please ensure that this section is completed in its entirety. If uh if this section does not apply, please enter zero. Never leave the fields blank because missing data is one of the most common triggers for TEA to follow up on requests. And last but not least, uh I would say this is probably the biggest area area of opportunity to focus on. We do see a lot of common mistakes in this section, which is the CEO section, chief executive officer information. either no selection from the pulld down list, the number of positions are missing, um positions listed that should not
040be under this section. Um so going back to our resources, I do always recommend looking at those. We have a FAQ document in the ICRP web page and in that FAQ document on questions 10 and 11, we do uh provide answers to some examples of positions that should not be listed in this section. some being campus principles, special education programs, federal programs, transportation programs, food service programs, art programs, or board of trustees. Um, so just keep in mind to use that FAQ document and uh list the applicable uh CEOs in this section. All right. So, now we're going to get into uh how now that you've completed the ACW workbook, let's go over how to submit it. So, what we're going to do is we're going to log into Teal. From there, you're going to
041go to GFC reports and data collections. You'll then select upload response documents. You'll choose ICRP additional cost workbook from the template menu. And then you'll submit this in Excel format only. PDFs or other formats won't be accepted. It does need to be in Excel format only. After selecting the correct template in the previous step, you're then going to select the response document as the document type. You're going to choose the school year 2026 2027. You'll click upload document. And as a reminder, before uploading any of your documents, we highly recommend confirming all of the sections are completed in the ACW accurately and in its entirety by using the checklist. And um just as a reminder, the file that must be submitted needs to be in Excel format. Again, PDFs or other formats will not be
042accepted. Also, as an additional reminder, please double check that your organizational chart is embedded in the correct tab within the ACW. Um, we don't uh take a separate organizational tab within GFC reports. We ask that you upload it within the embedded tab within the ACW. So, now I'm going to go ahead and pass it over to Sida. Uh we're almost done with this relay of our uh presentation and she's going to discuss the next steps in the ICRP process. >> Thank you, Ashley. >> Um okay, so once your district uh submits the ICRP additional post workbook by the January 16 uh 2026 uh deadline, uh here's what happens next. So we will collect the final certified PIN data for the 2425 school year in the spring. Then uh the we the data is merged with
043the district submitted ACW data to create a pre-populated indirect post rate proposal or ICRP for each district requesting rates. This process ensure that the ICRP reflects both your submitted additional costs and the official the official PI's financial data. And then on the next slide, we'll cover what happens after TA post the completed ICRPs and how districts will certify uh the acceptance of their uh prep uh preposed rates. So after TA merges your ACW data with PI's data and generates the pre pre-populated ICRP here's what happens. uh will post the completed ICRPs into JeffFC reports and data collections and districts must review the pre-populated ICRP carefully to ensure all data is accurate and once reviewed uh districts must certify acceptance of the proposed indirect post rate. Um key reminders, a certification is required before the the
044rates become effective and the new the new rates will uh go into effect on July 1st of 2026. And uh on the next uh few slides, we'll just quickly w walk through how to review your uh district's ICRP and complete the certification process and uh upload the signed certification page back to TA. So um once DEA post your district's pre prepopulated uh ICRP again it's really important to review the uh the financial worksheets carefully and uh each page is labeled for easy reference. So the key sections to focus on first up we have oh first up we have uh U1 all years which are found on pages two to three which is the summary of the unrestrict the unrestricted rate data averaged AC across all three years and then we have uh your R1 all
045years which are pages which are found on pages 5 to six which is the summary of the restricted rate data averaged across all 3 years. These summaries provide the foundation for your uh indirect quot rate. So, make sure the data aligns with your district's financial records and also the ACW submission. Um, next up we have the restricted rate adjustment over overview. And this slide, this slide focuses on the restricted rate adjustment section of the ICRP which appears on uh page four of the document. And what this is is the restricted rate adjustment summarizes the average adjustment applied across uh all three years of financial data. So uh these are the costs that are moved from the indirect cost pool to the modified total direct cost or the base uh which consists of direct and unallowable
046costs. On the U1 unrestricted rate tab uh uh district expenditures are classified uh as either excluded an allowable direct or indirect cost based on the fund function and object. So the cost that are classified as indirect cost on the U1 tab used for the calculation of the unrestricted rate are adjusted to determine uh the restricted rate. So the cost that are being re reclassified from indirect to the base include your general management cost that are associated with the chief executive officers and their immediate uh officers and their related costs. So these adjustments ensure compliance with the federal uh supplant supplant not I'm sorry supplement not supplant requirement for grants where uh restricted rates apply. So section four of this page um of the restricted average uh adjustment page provides the average amount that is moved
047from the indirect post pool to the modified total direct cost on the restricted rate calculation tab. And uh why this matters is as uh Ashley mentioned earlier the restricted rate is used for most TEA administrated grants. So accuracy is uh critical. This uh this slide shows an example of the yearly data breakdown within the ICRP. This these pages provide supporting financial data used to calculate both the unrestricted and restricted indirect cost rates and specifically your year 1 which is the FY23 data is uh found on pages 7- 10 and your year 2 FY 2024 is found on pages 11- 14 and year 3 FY25 are found on pages 15- 18 And each year section include the data pulled from two sources that will be the district submitted additional cost workbook or the ACW and the
048TSDS PIM's financial data. It's important for districts to uh carefully please review these uh sections to ensure accuracy especially since this data directly impacts impacts the calculated grades and if uh discrepancy is are found districts should reach out to TEA uh for clarification or uh correction. Um okay, filing out the ICRP certification. Uh before we move forward, um it's important to note that the ICRP certification is different from the ACW certification. The ACW certification that we looked at earlier is uh embedded in the additional course workbook and it confirms that all submitted data in the additional course workbook is true and accurate and uh includes the correct uh information of the person completing the workbook. Whereas uh the ICRP certification that you see here on the other hand it's the the district's format certification of
049the information that is contained within the indirect cost rate proposal itself. And this certification page is located on page one of the ICRP document. So to accept and finalize your district 3, this uh certification of indirect cost page must be completed, signed and submitted back to us. And um key points uh here, the certification must be signed by the superintendent, CEO or CFO and it must be uh it must correspond to the correct school year. in this case is needs to be for 2026 2027 and the secret the signature and submission of the ICRP certification affirms that the district accepts of uh the pre-pos rates within the propos within the proposal. uh and this is the formal acknowledgement that the rates will be applied starting July 1st of uh and filling out the ICRP certification.
050Um now that uh we've discussed what the ICRP certification represents um these are the steps to complete and submit it. You need to print the certification page from the ICRP document which is page one. Then enter all required information on the printed page. Have the superintendent, the CEO or CFO sign in date the certification. Scan the signed uh and data page to create a digital copy. And then you upload the scan certification into JeffFC reports and data collections as ICRP certification. And for submitting the ICRP certification, um you need to log into TEA through TIL and here's uh and then navigate to the JFFC reports and data collection. Uh select upload response document. Uh from the response template title dropdown, choose ICRP certification and then from the response duct type dropdown select response document and
051from the school year dropdown select 2026 2027 and then just click upload document to submit the scan certification page. And um that would be the last step. And this uh upload again confirms your district's acceptance of the proposed indirect cost rates. Uh and without this step, your district's indirect cost rate cannot be finalized or become effective on July 1st of 2026. And one final uh reminder before we wrap up. Uh when uploading documents, just a general rule r rule for all documents, just make sure you index your documents with the correct document title and school year. This ensures accurate reporting and uh uh just prevents delays when uh we generate reports for review. Um after all submissions are complete um we will post the approved and certified indirect course rate on the indirect cost rates
052web page and also we'll be uh uploading individual district notification letters into Jeff reports and data collections. Just um to quickly recap uh the the key dates uh again the ACW was made available on October 30th and the due date for the ECW is January 16, 2026 and then um the completed ICRPs are going to be posted in JF for district review by April 16. And then uh we give districts about a month to review and submit the certification and the due date for that is April 15. And then the the rates are going to become effective starting July 1st. Uh we'll post official indirect cost rates on our web page and the rates will become effective. And again, uh, as um, Ashley has emphasized, meeting this deadlines is critical to ensure your district receive
053its indirect cost rates on time. And that concludes our presentation on requesting indirect cost rates for the 2026 2027 school year. We did cover the full process from completing the additional cost workbook to uh certifying the indirect cost rate proposal and submitting all required documents. Uh and if you have any questions uh or need assistant with the workbook, please uh contact us at compliance tea.ex.gov. Uh this uh we monitor this inbox daily and we do aim to respond within one business day. Uh so this makes it the fastest way to to get help from me or uh my team. And just a quick uh heads up, we do just keep an eye out for a gap delivery email with the reg with a registration link uh for our January office hour. We do have an
054office hour that's coming in January and it's another great chance to bring any extra questions you might have um for us. And uh that is the last thing. Uh we'll uh I will u put up a QR code and and uh in the meantime if there are any um questions in the Q Q&A, we'll address those at this time. And uh this is this QR code is we'd love to hear from you. Your feedback really help us make future trainings even better. So please uh before you uh log out take a moment to share your toes totes just scan the QR code to complete a quick feedback form and uh yeah we thank you for being part of today's session.