May indirect costs be charged on the entire amount of subawards or subagreements?
Lead LEAs and LEA subgrantees may use an indirect cost rate (not to exceed their CDE-approved indirect cost rate) to budget and claim indirect costs in the 7300–7399 Object Code in the project budget. Current LEA rates are available on the CDE Indirect Cost Rates Web page. When budgeting and claiming indirect costs, costs in objects 1000-5999 (except Object 5100, Subagreements for Services) may be included in the pool of eligible expenditures to which indirect costs are charged. (Further information on object codes and their definitions may be found in Procedure 330 of the California School Accounting Manual, located on the CDE Definitions, Instructions, and Procedures Web page.) The Lead LEA is responsible for ensuring adherence to these indirect cost criteria. It is necessary to track subagreements (which include subawards) separately from other agreements for reasons related to the indirect cost process. Subagreements are indicated when part or all of an instructional or support act
