1. (1) "Direct costs" mean costs that can be easily, obviously, and conveniently identified by the Superintendent with a specific program.
2. (2) "Indirect costs" mean the costs of providing indirect services.
3. (3) "Indirect Services" mean services that cannot be identified with a specific program.
4. (4) "Regional education service agency" or "RESA" the same as that term is defined in Section 53G-4-410.

5. (5) "Restricted indirect cost rate" means:

   1. (a) for an LEA, a rate assigned to each LEA annually based on the ratio of restricted indirect costs to direct costs as reported in the annual financial report for the specific LEA; and
   2. (b) for a RESA, a rate determined by the RESA, up to the de-minimis rate when allowable.

6. (6) "Unallowable costs" mean expenditures directly attributable to governance, including:

   1. (a) salaries;
   2. (b) expenditures of the office of the district superintendent, the governing board, and election expenses; and
   3. (c) expenditures for fringe benefits, which are associated with unallowable salary expenditures.

7. (7) "Unrestricted indirect cost rate" means:

   1. (a) for an LEA, a rate assigned to each LEA annually, based on the ratio of unrestricted indirect costs to direct costs as reported in the annual financial report for the specific LEA; and
   2. (b) for a RESA, a rate determined by the RESA, up to the de-minimis rate when allowable.

KEY: education finance

Date of Last Change: January 11, 2022

Notice of Continuation: November 5, 2021

Authorizing, and Implemented or Interpreted Law: Art X Sec 3; 53E-3-501(1)(e); 53E-3-401(4)