Districts that plan to recover indirect costs through federal programs will need to complete the annual indirect cost rate application. The Texas Education Agency (TEA) has released guidance for school districts seeking an indirect cost rate for the 2027-2028 school year, with all required submissions due by January 15, 2027.
What Is Required?
To request an indirect cost rate, districts must complete and submit the Indirect Cost Rate Proposal (ICRP) Additional Costs Workbook (ACW). Districts can access the workbook via the TEA Indirect Cost Rates web page or the GFFC Data Collections application in TEAL.
The current ICRP ACW includes the following worksheets:
- District Information
- Checklist
- Organizational Chart Sample
- Organizational Chart
- Additional Costs (FY 2026 data for the 2025-2026 school year)
One notable change is that districts are no longer required to perform their own analysis or classification of costs within the workbook.
ICRP ACW Training
The Federal Fiscal Compliance and Reporting Division will provide online training opportunities via Zoom for districts interested in learning more about completing the request for indirect cost rates for 2027–2028.
Once scheduled, training sessions will be announced via GovDelivery.
Key Takeaway
-The deadline to request an indirect cost rate for the 2027-2028 school year is January 15, 2027.
-The submission of the ICRP ACW serves as the district’s request for an indirect cost rate. Rates will be calculated only for districts that timely submit a completed ICRP ACW.
-Districts that submitted last year’s proposal will benefit from pre-populated historical financial data, while first-time applicants and districts that skipped the previous cycle should plan ahead to gather additional documentation and coordinate with TEA well before the deadline.
Additional Resources Links:
Questions? email compliance@tea.texas.gov