Agency: ISF - Public Education

Line Item: ISF - USOE Indirect Cost Pool

Function

The Indirect Cost Pool funds programs and individuals who administer the State Office of Education. In addition to USOE administrative office functions, the Indirect Cost Pool supports accounting, purchasing, and government/public liaison functions of the State Office of Education.

According to Utah code, an internal service fund agency is defined as 'an agency that provides goods or services to other agencies of state government or to other governmental units on a capital maintenance and cost reimbursement basis, and which recovers costs through interagency billings.' The Indirect Cost Pool operates by charging other USOE programs to support its functions. The Indirect Cost Pool takes a portion of all federal and state funds in the operating divisions that support personal services. The rates assessed by the Indirect Cost Pool reflect the percentage amounts allowed under U.S. Department of Education grant provisions that allow states to use a portion of the grant to support the state administration of the grant program.

Statute prohibits the Indirect Cost Pool from billing another program unless the Legislature reviews its budget request and authorizes its revenue, rates, and FTE counts. Further, the Indirect Cost Pool may not acquire capital unless such acquisition is authorized by the Legislature.

For FY 2008, the Legislature established the rates for the Indirect Cost Pool as follows:

• 14.6 percent of personal costs supported by restricted funds.
• 17.1 percent of personal costs supported by unrestricted funds.

Statutory Authority

The statutory provision governing Internal Service Funds governs the Indirect Cost Pool.

• UCA 63-38-3.5 - Provides for the governance and review of agency internal service funds. The statute details the process for approval of rates, new internal service funds, capital expenditures, etc.

Funding Detail

The Indirect Cost Pool, as stated above, receives its funding from the operating divisions of the State Office of Education. Revenue for the Indirect Cost Pool is represented as Dedicated Credits-Intra-governmental Revenue.