[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR76.564]

[Page 174]
 
                           TITLE 34--EDUCATION
 
PART 76--STATE-ADMINISTERED PROGRAMS--Table of Contents
 
Subpart F--What Conditions Must Be Met by the State and Its Subgrantees?
 
Sec. 76.564  Restricted indirect cost rate--formula.

    (a) An indirect cost rate for a grant covered by Sec. 76.563 or 34 
CFR 75.563 is determined by the following formula:

Restricted indirect cost rate = (General management costs + Fixed costs) 
    / (Other expenditures)

    (b) General management costs, fixed costs, and other expenditures 
must be determined under Secs. 76.565 through 76.567.
    (c) Under the programs covered by Sec. 76.563, a subgrantee of an 
agency of a State or a local government (as those terms are defined in 
34 CFR 80.3) or a grantee subject to 34 CFR 75.563 that is not a State 
or local government agency may use--
    (1) An indirect cost rate computed under paragraph (a) of this 
section; or
    (2) An indirect cost rate of eight percent unless the Secretary 
determines that the subgrantee or grantee would have a lower rate under 
paragraph (a) of this section.
    (d) Indirect costs that are unrecovered as a result of these 
restrictions may not be charged directly, used to satisfy matching or 
cost-sharing requirements, or charged to another Federal award.

(Authority: 20 U.S.C. 1221e-3(a)(1), 2831(a), 2974(b), and 3474)

[59 FR 59583, Nov. 17, 1994]