8. Do districts and district sponsored charter schools have to calculate their County School Superintendents Indirect Cost Rate as a percentage of their Indirect Cost? How is the percentage of the County School Superintendents Indirect Cost Rate budgeted?

Yes. Arizona State law states that County School Superintendents (CSS) will handle the fiscal activities of districts (Title 15.304) including federal grant funds, unless the district has been approved for fiscal independence (R7-2-902). There are no additional federal appropriations to cover the CSS responsibilities of handling districts’ federal projects. Effective 2008, districts are allowed to charge combined indirect cost rate.

E.g., if the district or district sponsored charter school gets approved for a 2% Indirect Cost Rate and their County School Superintendents Indirect Cost approved rate is 1.75%,the district can charge 3.75% combined indirect cost rate to cover the county’s indirect cost rate.