V.N. – Grants and Contracts – 06-2026

1. Purpose

This policy outlines expectations for the agencies and institutions under the governance of the Board regarding grants and contracts, including indirect cost recovery rates.

2. Definitions

1. Agency: The Office of the State Board of Education and the agencies under the governance of the Board.
2. Agency under the governance of the Board: The State Department of Education, the Division of Career Technical Education, the Public Charter School Commission, the Division of Vocational Rehabilitation, and Idaho Public Television.
3. Indirect costs: Costs incurred for a common or joint purpose that cannot be directly attributed to a specific project, program, or activity, including but not limited to facilities, administrative costs such as human resources and payroll, IT infrastructure, and insurance.
4. Long-term programs or projects: To qualify as a long-term program or project for the purposes of indirect cost recovery rate, a program or project at an Idaho public institution of higher education shall demonstrate prior operations in two or more fiscal years.
5. Short-term programs or projects: Programs and projects with operations in less than two fiscal years.
6. State pass-through funding: Funds in which an agency acts as the intermediary that distributes state funds appropriated to the agency for a specific purpose to a sub-recipient, including pass-through projects typically governed by memorandums of understanding such as funding for educator preparation. State pass-through funding does not include funds originated by or passed from a state agency or other state entity not under the governance of the Board.

3. Approval of Grant and Contract Applications

All applications for grants and contracts in excess of one million dollars ($1,000,000) that require the institution or agency to dedicate current funds or facilities or will obligate the institution or agency or state to dedicate future funding or facilities require approval by the executive director. Cost sharing or other types of in-kind matching requirements are not considered as dedicated commitments. If there is no dedicated funding or facilities obligation, the application may be approved by the chief executive officer of the institution or agency or his or her designee. When requests for approval of such applications are presented to the executive director the following information shall be included:

1. Agency to which application is made.
2. Amount of the proposal.
3. Period of the grant or contract.
4. Purpose of the grant or contract.
5. Nature of obligations including amount of funds involved or facilities to be committed.

4. Acceptance of Grants and Contracts

Grants and contracts accepted by an institution or agency shall be reported to the Board in August of each year, when the amount of the grant or contract award exceeds one million dollars ($1,000,000). The following information must be provided:

1. Name of grantor or contract.
2. Amount of the grant or contract.
3. Grant or contract period.
4. Purpose of the grant or contract.
5. Indicate nature of institution or agency’s obligations in the form of dedicated funding or dedication of significant facilities.

5. Facilities and Administrative Indirect Cost Recovery

1. The following indirect cost recovery rates will be used by institutions, the Office of the State Board of Education, and agencies under the governance of the Board for grant and contract services:
   1. For grants and contracts with the federal government:
      1. The indirect cost recovery rates are those negotiated between the institution or agency and the federal government.
      2. The indirect cost recovery rate may vary from one classification (e.g. research, instruction, public service/outreach, etc.) to another, but institutions and agencies are encouraged to maximize indirect cost recovery rates.
      3. Institutions or agencies may accept indirect cost recovery rates below the institution’s/agency’s negotiated rate when federal laws, federal programs or policies of the federal agencies limit the rate.
   2. For state grants and contracts between an institution and the Office of the State Board of Education or an agency under the governance of the Board, and using state funds, the following will apply:
      1. Long-term programs or projects: The indirect cost recovery rate will be eight (8) percent.
      2. Short-term programs or projects: The indirect cost recovery rate will be four (4) percent.
   3. State pass-through funding from an agency to an institution shall have a zero (0) percent indirect recovery rate.
   4. Except as provided above, for grants and contracts with a State of Idaho office, department, agency, authority, commission, board, institution, hospital, college, university or other instrumentality thereof, the indirect cost recovery rate is twenty percent (20%) of the total direct cost; provided however, if the funding is federal pass-through, then paragraph one (1) applies.
   5. For grants and contracts with any political subdivision of the State of Idaho as defined in Idaho Code §6-902(2):
      1. The indirect cost recovery rate is no less than twenty percent (20%) of the total direct cost unless the funding is federal pass through;
      2. If the funding is federal pass-through, then paragraph (1) applies.
   6. For grants and contracts with private entities, whether for-profit or non-profit, indirect cost recovery shall be charged at the full indirect cost recovery rate proposed to the federal government at the last rate negotiation which represents the institution’s full cost of doing business.
2. Reduction or Waiver of Cost Recoveries
   1. Notwithstanding the indirect cost recovery rates established in 3.a.ii and 3.a.iii, for good cause, the institutional president or agency administrator or his or her designee is authorized to reduce or waive indirect cost recoveries.