The state has now come back with this legal decision. It finds the following:
- the maximum allowable charge is 2.65% (as set by DESE)
- further, "...it would be contrary to purpose of establishing principles of allowable costs for federal funds if the indirect cost rate proposed to and accepted by the USED could be ignored."
- "The school committee, which applies for and receives subgrants of federal funds from ESE, possesses the exclusive authority to decide whether and to what extent it will charge indirect costs to subgrants."
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