TO: Superintendents of Schools
Business Managers of Schools
Directors of Charter Schools
Directors of Education Cooperatives
Directors of Education Districts
FROM: David Day, Education Finance Specialist
Financial Management and Accountability
School Finance Division
DATE: April 10, 2013
SUBJECT: Indirect Cost Rates Applicable for F.Y. 2014
The restricted and the unrestricted indirect cost rates applicable to your district, charter school or cooperative for Fiscal Year 2014 have been calculated and have been posted to the MDE website. View the restricted and unrestricted cost rates. The rates were computed using Fiscal Year 2012 UFARS financial data as reported to the Minnesota Department of Education.
The restricted rate is used for federal grants and contracts that have regulations or guidelines preventing federal funds supplanting local monies. The rates are capped at 8%.
The unrestricted rate is used for grants and contracts that do not have supplement/supplant language in their controlling regulations and guidelines. The unrestricted for all districts including Educational Cooperatives and Education Districts are capped at the statewide average of 22.8%.
Please review UFARS manual, Chapter 13 for an explanation of the calculation process.
If you have any questions, please contact David Day, Financial Management at 651/582-8384.