Indirect Cost Rate Proposal ICRP

Indirect Cost Plan - Effective July 1, 2021
Local Education Agency Submission Documents


Maine will be sharing the Indirect Cost training to all LEAs:

Indirect Cost Training Course FY 21 (


  • Distribution Base:  MTDC Modified Total Direct Cost - Total direct costs excluding equipment, capital expenditures, participant support costs, pass-through funds, and the portion of each subaward (subcontract or subgrant) above $25,000 (each award; each year).
  • Applicable To: Restricted- Restricted rates apply to programs that require a restricted rate per 34 CFR 75.563 and 34 CFR 76.563.
  • Treatment of Fringe Benefits: Fringe benefits applicable to direct salaries and wages are treated as direct costs. Pursuant to 2 CFR 200.431, (b), (3), Paragraph (i), unused leave costs for all employees are allowable in the year of payment. The treatment of unused leave costs should be allocated as an indirect cost except for those employee salaries designated as a direct cost for the restricted rate calculation.
  • Capitalization Policy: Items of equipment are capitalized and depreciated if the initial acquisition cost is equal to or greater than $5,000.



An indirect cost rate is issued by the Maine Department of Education for a specific fiscal year. The rate is valid from July 1 to June 30 of the applicable fiscal year. Indirect costs are recovered only to the extent of direct costs incurred. The indirect cost rate is applied to the direct cost amount expended, not to the grant award. To recover indirect costs, the LEA applies the indirect cost rate in affect for a given fiscal year or the term of the grant award to the direct expenditures less capital outlay during that fiscal year or the term of the grant award.

An indirect cost rate approved during the middle of a grant period may only be applied to grant expenditures made after the approval date. The rate may not be applied retroactively.

The sources of information used to develop an indirect cost rate are the LEA's official annual upload to MEFS and the detail accounts that make up that report. It is essential LEAs classify expenditures uniformly and consistently in accordance with the Financial Accounting for Local School Systems in Maine. The Maine Department of Education will prepare a "preliminary indirect cost rate" for LEA requesting an indirect cost rate and may be requested for certification.

Once preliminary indirect cost rates are provided to the LEA, the LEA shall provide information for subawards and subcontracts so to calculate an adjustment to the indirect cost rate prior to final certification.

Predetermined rates that are certified and the certifications will be published to:

Restricted indirect cost rates are limited to 5%. Unrestricted indirect cost rates are limited to 15%. All preliminary calculated rates outside of the statistical norm are subject to review to ensure the proper classification of costs.