Indirect Cost

Calculation of Indirect Cost Rates

Indirect cost rates are calculated each year for all school districts, educational cooperatives, and open-enrollment charter schools.  These rates are based on expenditure data from the second-preceding fiscal year using a carryforward methodology.

Effective November 2020, (20-21 subaward form submitted, 22-23 indirect cost rate) the subaward amount increased from $25,000 to $30,000. 

  1. ADE delegation agreement with USDE (PDF)
  2. Subaward Examples (PDF)
  3. Subaward Reporting Form (XLSX)

Current Year Indirect Cost Rates

  1. 2023-24 School District Rates
  2. 2023-24 Educational Services Cooperative Rates
  3. 2023-24 Open Enrollment Charter Rates

Application of Indirect Cost Rates

Indirect costs are used to recover expenses related to a federal program that cannot be charged directly. This recovery is still subject to the LEAs budget restrictions. This is a working excel document to help calculate the actual amount of funds the district can take for indirect costs.                

  1. Calculating Indirect Costs with Actual Expenditures (XLSX)

Prior Year Indirect Cost Rates

Districts, charters and educational cooperatives charging indirect costs must keep documentation showing indirect cost rates for audit purposes. The rates listed below are for historical purposes and should not be used on current year expenditures.

  1. 2022-23 School District Rates
  2. 2022-23 Educational Services Cooperative Rates
  3. 2022-23 Open Enrollment Charter Rates

    For more information, please contact:

    John Bradley, Federal Finance

    Phone:  501-683-1461

    Bianca Porter, Federal Finance

    Phone:  501-683-1287

    Amy ThomasFederal Finance Coordinator
    Phone:  501-682-3636