Applications for grants usually involve a request for reimbursement of both direct and indirect costs. Circular A-87 contains provisions for determining indirect cost rates for grantees and subgrantees of federal grants.
Over the years, the local education agencies (LEAs) and the Connecticut State Department of Education (CSDE) have worked towards developing a process for determining maximum allowable indirect cost rates for federal grant funds. This process, which has been approved by the federal government, has been extended by the CSDE to state grants as well.
LEAs are not required to develop an indirect cost proposal; however, if they fail to do so, they will not be allowed to recover any indirect costs related to federal or state grants. To recover any indirect costs for the administration of federal or state grants, an LEA must have an approved indirect cost rate.