CHAPTER 2106. INDIRECT COST RECOVERY PROGRAM
GOVERNMENT CODE
TITLE 10. GENERAL GOVERNMENT
SUBTITLE C. STATE ACCOUNTING, FISCAL MANAGEMENT, AND PRODUCTIVITY
CHAPTER 2106. INDIRECT COST RECOVERY PROGRAM
Sec. 2106.001. DEFINITIONS. In this chapter:
(1) "Federally reimbursable indirect cost" means a cost, as
defined by Office of Management and Budget Circular No. A-87 or a
subsequent revision of or successor to that circular, that is:
(A) incurred by a state agency in support of a federally funded
program, other than a research program funded by a federal grant
at an institution of higher education; and
(B) eligible for reimbursement from the federal government.
(2) "Indirect cost" means the cost of administering a state or
federally funded program and includes a cost of providing a
statewide support service. The term does not include the actual
costs of the program.
(3) "State agency" means a department, board, commission, or
other entity in the executive branch of state government that has
statewide jurisdiction and administers a program to provide a
service to the public or to regulate persons engaged in an
occupation or activity.
(4) "Support service" includes accounting, auditing, budgeting,
centralized purchasing, and legal services.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,
1993.
Sec. 2106.002. STATEWIDE COST ALLOCATION PLAN. (a) The office
of the governor shall prepare annually a statewide cost
allocation plan.
(b) The plan must:
(1) identify the costs of providing statewide support services
to each state agency;
(2) allocate to each state agency an appropriate portion of the
total costs of statewide support services, including costs
identified under Subdivision (1);
(3) identify, to the extent possible, the amount of federally
reimbursable indirect costs in each allocated portion; and
(4) develop and prescribe a billing procedure that ensures each
state agency is billed for all costs allocated to the agency
under Subdivision (2) for which the agency is not obligated to
pay another state agency under other law.
(c) The office of the governor shall distribute a copy of the
plan to each state agency.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,
1993. Amended by Acts 2001, 77th Leg., ch. 419, Sec. 1, eff.
Sept. 1, 2001.
Sec. 2106.003. AGENCY INDIRECT COST RECOVERY PLAN. (a) A state
agency that receives federal money or charges a fee for a service
it provides shall prepare annually an indirect cost recovery
plan.
(b) The plan must include proposals to recover the indirect
costs of the agency's programs, including the portion of
statewide support service costs allocated to the agency under the
statewide cost allocation plan.
(c) A state agency that receives federal money shall also
prepare a separate schedule indicating its federally reimbursable
indirect costs.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,
1993.
Sec. 2106.004. TECHNICAL ASSISTANCE. The office of the governor
shall provide to a state agency on request technical assistance
for developing the agency's indirect cost recovery plan.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,
1993.
Sec. 2106.005. AGENCY RECOVERY OF INDIRECT COSTS. A state
agency shall implement its indirect cost recovery plan by:
(1) applying for reimbursement for federally reimbursable
indirect costs; and
(2) when permitted by law, setting fees and billing rates at
amounts sufficient to recover the indirect costs of the agency.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,
1993.
Sec. 2106.006. GENERAL REVENUE FUND REIMBURSEMENT. (a) Subject
to Subsection (c), a state agency shall send to the comptroller
for deposit to the credit of the general revenue fund:
(1) the amount of federal money received by the agency for
federally reimbursable indirect costs to the extent that the
indirect costs are statewide allocated costs for which the agency
is billed under Section 2106.002(b);
(2) the amount the agency has received in fees:
(A) that in accordance with Section 2106.005(2) should be
accounted for as payment for the cost of providing statewide
support services to the agency; and
(B) to the extent the agency is billed for those amounts under
Section 2106.002(b); and
(3) any remaining amounts still necessary to pay the amount
billed under Section 2106.002(b).
(b) Subject to Subsection (c), to the extent the amount billed
under Section 2106.002(b) is not totally paid under Subsections
(a)(1) and (a)(2), the comptroller shall transfer to the general
revenue fund the appropriate amount charged against items of
appropriation in connection with which the remaining unpaid
statewide allocated costs were incurred.
(c) The legislature may provide in the General Appropriations
Act that payment of the amount billed under Section 2106.002(b)
is waived to the extent payment would be made from a state
agency's general revenue appropriation.
(d) A state agency shall send to the comptroller information the
comptroller requires to transfer amounts under Subsection (b).
(e) The comptroller shall adopt rules necessary to prescribe:
(1) the timing and method of transfers under this section; and
(2) the manner in which a state agency shall send to the
comptroller information the comptroller requires to transfer
amounts under Subsection (b).
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,
1993. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 8.63, eff.
Sept. 1, 1997; Acts 2001, 77th Leg., ch. 419, Sec. 2, eff. Sept.
1, 2001.
Sec. 2106.007. APPROPRIATION OF FEDERALLY REIMBURSED INDIRECT
COSTS. (a) The legislature may appropriate to a state agency
for any purpose the amount of federal money the agency is
estimated to receive for federally reimbursable indirect costs
during a fiscal biennium.
(b) The appropriation for a state agency may include the amount
of federal money for federally reimbursable indirect costs that
the agency recovers during a fiscal biennium that exceeds the
estimated amount.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,
1993.
Sec. 2106.008. INDIRECT COSTS ASSOCIATED WITH CERTAIN TEXAS
DEPARTMENT OF TRANSPORTATION AGREEMENTS. The executive director
of the Texas Department of Transportation may waive the
application of this chapter to indirect costs of the department
associated with an agreement entered into by the department with
another agency of this state or a local governmental entity if
the agreement relates to:
(1) the development of a transportation project; or
(2) a program administered by the department.
Added by Acts 1997, 75th Leg., ch. 517, Sec. 1, eff. May 31,
1997.