This CIFR-developed reference guide provides an overview of the IDEA requirements regarding restricted indirect costs that a state may wish to charge to their Part C grant. This guide provides information on key terminology and concepts needed to understand the key components of the IDEA no-supplanting provisions that require indirect costs to be charged on a restricted basis. The guide includes questions for states to consider based on their type of lead agency and suggestions of helpful resources.
Part C – Indirect Cost/Cost Allocation Plan
Finance Glossary
This glossary contains terms relevant to finance for IDEA Part C and Part B Section 619 programs. The terms include those related to IDEA and other related federal fiscal requirements as well as those specific to billing public and private insurance for IDEA services.
Cost Allocation Guide for State and Local Governments
This comprehensive guide includes information on how to determine the allowability of indirect costs, how to calculate a restricted indirect cost rate, and answers to common questions about restricted indirect cost rates. Pages 27–30 describe the method to calculate restricted indirect cost rates and pages 85–92 have links to examples and more specific considerations for calculations. There is also information about how to distinguish between direct and indirect costs. This guide reviews common issues with calculating restricted indirect cost rates disclosed in ED reviews.
Letter to Gomm
This OSEP letter to the Part C lead agency in New Mexico explains the requirement for the lead agency to have an approved restricted indirect cost rate, as opposed to having a negotiated indirect cost rate. There are several citations and references to resources for how a restricted indirect cost rate may be calculated.
System Framework for Building High-Quality Early Intervention and Preschool Special Education Programs: Finance Component
The Early Childhood Technical Assistance Center (ECTA) and the Center for IDEA Early Childhood Data Systems (DaSy) developed a System Framework that details six components of a high-quality IDEA early childhood program. Each component includes indicators of quality and the elements that need to be in place to achieve each indicator. This web page reviews the Finance Component, its sub-components, and quality indicators which address strategic planning and forecasting; access and use of fiscal data; securing funds and resources; and the allocation, use, disbursement, and monitoring of funds.
Restricted Indirect Cost Rate for Part C of IDEA
This OSEP memorandum includes background and guidance for lead agency directors on the restricted indirect cost rate. Restricted indirect cost rates are used under awards, such as IDEA Part C, that have supplement, non-supplant requirements. This guidance includes the formula for calculating the rate and definitions for what is allowable under each category of the formula (general management, fixed costs, and other expenditures). Although this document was released in 1999, it is still used as a relevant resource in OSEP’s annual IDEA Part C grant application materials.
