DAR File No. 42118
This rule was published in the October 1, 2017, issue (Vol. 2017, No. 19) of the Utah State Bulletin.
Indirect Costs for State Programs
Notice of Proposed Rule
DAR File No.: 42118
Filed: 09/15/2017 08:50:58 AM
Purpose of the rule or reason for the change:
Following a five-year review, the Utah State Board of Education determined that Rule R277-424 continued to be necessary so it was continued. The rule is amended to provide necessary technical and conforming changes to bring the rule into compliance with the Rulewriting Manual for Utah.
Summary of the rule or change:
The amendments to this rule provide technical and conforming changes that include changes to numbering, references, and terminology.
Statutory or constitutional authorization for this rule:
- Subsection 53A-1-402(1)(e)
- Art X Sec 3
- Section 53A-1-401
Anticipated cost or savings to:
the state budget:
The amendments to Rule R277-424 provide technical and conforming changes which will likely not result in a cost or savings to the state budget.
The amendments to Rule R277-424 provide technical and conforming changes which will likely not result in a cost or savings to local governments.
The amendments to Rule R277-424 provide technical and conforming changes which will likely not result in a cost or savings to small businesses.
persons other than small businesses, businesses, or local governmental entities:
The amendments to Rule R277-424 provide technical and conforming changes which will likely not result in a cost or savings to persons other than small businesses, businesses, or local government entities.
Compliance costs for affected persons:
The amendments to Rule R277-424 provide technical and conforming changes which will likely not result in any compliance costs for affected persons.
Comments by the department head on the fiscal impact the rule may have on businesses:
After conducting a thorough analysis, it was determined that the amendments to this rule will not result in a fiscal impact to businesses.
Sydnee Dickson, State Superintendent
The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:Education
250 E 500 S
SALT LAKE CITY, UT 84111-3272
Direct questions regarding this rule to:
- Angela Stallings at the above address, by phone at 801-538-7656, by FAX at 801-538-7768, or by Internet E-mail at email@example.com
Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:
This rule may become effective on:
Angela Stallings, Deputy Superintendent, Policy and Communication
R277. Education, Administration.
R277-424. Indirect Costs for State Programs.
2]. Authority and Purpose.
A.] This rule is authorized by
Article X, Section 3 of the Utah Constitution which vests general control and supervision [
of] public education in the Board[ ,]
(3)] which allows the Board to [ adopt rules in accordance with its
which directs the Board to adopt rules for financial,
statistical, and student accounting requirements[ ; and]
B.] The purpose of this rule is to establish Board standards
for claiming indirect costs for state programs.
A. "Board" means the Utah State Board of
Education. B.] "Direct costs" mean[ s] costs [ which]
can be easily, obviously, and conveniently identified
by the [ Utah State Office of Education]
with a specific program.
C.] "Indirect costs" mean[ s] the costs of providing indirect services. [ Restricted and non-restricted indirect costs are defined in
R277-425, "Budgeting, Accounting and Auditing Handbook for
Utah School Districts."]
D.] "Indirect Services" mean[ s] services [ which]
cannot be identified with a specific program.
E. "LEA" means a local education agency,
including local school boards/public school districts and charter
schools. F. "Non-restricted indirect cost rate" means a
rate assigned to each LEA annually, based on the ratio of
non-restricted indirect costs to direct costs as reported in the
annual financial report for the specific LEA. G.] "Restricted indirect cost rate" means 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.
H.] "Unallowable costs" mean[ s] expenditures directly attributable to
governance[ . Governance includes]
expenditures of the office of the
superintendent, the governing board,
expenditures for fringe benefits which are associated with unallowable salary expenditures.
LEA[ s] may charge indirect costs to state funded
(2) The [
Board] [ shall] not authorize or pay indirect costs to higher education
institutions for state funded contractual work.
B.] Prior to the beginning of each fiscal year, the [ Utah State Office of Education] publish[ es] a schedule of the indirect cost rates for
schedule is] develop[ ed]
from [ data gathered from] the [ A]nnual [ F]inancial [ R]eports
submitted by [ the ]LEAs.
Each program schedule [
whether or not the restricted or [
non-restricted] indirect cost rate applies
whether or not indirect costs are allowable or applicable.
C.] may recover[ y of] indirect costs [ is subject to availability of] funds
If a combination of direct and indirect costs exceeds
funds available, then the LEA may not recover the total cost of the
project or program.[
Recovery of indirect costs for state programs is optional
D.] indirect costs for state
programs [ may be recovered only] to the extent that direct
costs were incurred.
indirect cost rate [
is applied ]to the amount expended, not to the
total grant, in order to determine the amount for indirect
KEY: education finance
Date of Enactment or Last Substantive Amendment: [
November 8, 2012]
Notice of Continuation: September 13, 2017
Authorizing, and Implemented or Interpreted Law: Art X Sec 3;
); 53A-1-401[ (3)]
More information about a Notice of Proposed Rule is available online.
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull_pdf/2017/b20171001.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
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For questions regarding the content or application of this rule, please contact Angela Stallings at the above address, by phone at 801-538-7656, by FAX at 801-538-7768, or by Internet E-mail at firstname.lastname@example.org. For questions about the rulemaking process, please contact the Office of Administrative Rules.