Section R277-424-3 - Standards(1)(a) An LEA or RESA may charge indirect costs to state funded programs unless prohibited by Utah Code or Board Rule.(b) An LEA or RESA may charge indirect costs to federally funded programs in accordance with 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.(2) The Superintendent may not authorize or pay indirect costs to higher education institutions for state funded contractual work.(3)(a) Prior to the beginning of each fiscal year, the Superintendent shall publish a schedule of the indirect cost rates for state programs.(b) The Superintendent shall develop the schedule from information contained in the annual financial reports and specifically identified items submitted by LEAs.(c) Each program schedule shall include: (i) whether or not the restricted or unrestricted indirect cost rate applies; and(ii) whether or not indirect costs are allowable or applicable.(4)(a) An LEA or RESA may recover indirect costs if funds are available.(b) If a combination of direct and indirect costs exceeds funds available, then the LEA may not recover the total cost of the project or program.(c) Recovery of indirect costs is not optional for state programs.(d) If an LEA or RESA elects to recover indirect costs, the LEA or RESA shall use the annual rates negotiated by the Superintendent for applicable federal and state programs.(5)(a) An LEA or RESA may only recover indirect costs for state programs to the extent that direct costs were incurred.(b) The Superintendent shall apply the indirect cost rate to the amount expended, not to theUtah Admin. Code R277-424-3
Amended by Utah State Bulletin Number 2017-23, effective 11/7/2017Amended by Utah State Bulletin Number 2022-02, effective 1/11/2022