Beginning in 2005-06 indirect cost rates were calculated using the "carry-forward" method for all districts.  Because the 2007-08 rates are calculated using 2005-06 data, this is the first year the recovery amount will be reflected. The recovery is calculated by taking the difference of what was computed and compared to the actual amounts computed for that same year. The difference is added or subtracted to the following indirect cost calculation.

The restricted rate can be used to reimburse the general fund for general management costs, such as accounting and bookkeeping expenses incurred at the district office for running a federal program. You will need to verify with the State and Federal Programs team in the Kansas Department of Education that this rate can be used for the particular grant you are receiving.

The unrestricted rate can be used to reimburse the general fund for general management costs, such as accounting and bookkeeping expenses incurred at the district office for food service expenses only. The indirect costs of a program are costs that are not readily identified with a specific program but are incurred by the school district for the benefit of all programs.  Indirect costs for food service include:  utilities, custodial services, telephone, trash, sewer, water and building maintenance.  Indirect costs allow the food service to reimburse the district's General Fund for a fair share of unidentifiable expenses.