The State of Maine Department of Education in collaboration with MAXIMUS Consulting Services has published information related to the calculation of indirect cost rates for Maine public schools. The impact for districts “including indirect costs in discretionary grant application budgets may result in increased funding” according to the January 5, 2017 article posted on the Maine DOE Newsroom website.
MSB assists public schools with school-based Medicaid billing programs in other states where indirect cost rates are includable along with direct costs and submitted for reimbursement.
According to OMB Circular No. A-87, Attachment E “State and Local Indirect Cost Rate Proposals”, (E) 1 (Negotiation and Approval of Rates), other states practices may indicate that indirect cost rates are appropriate to include for purposes of school Medicaid reimbursement when such “Indirect cost rates will be reviewed, negotiated, and approved by the cognizant Federal agency on a timely basis. Once a rate has been agreed upon, it will be accepted and used by all Federal agencies unless prohibited or limited by statute.” It would appear that the State of Maine Department of Education and the US Department of Education have an arrangement whereby the Maine DOE and MAXIMUS are collecting the information from Maine public schools in order to negotiate the indirect cost rates with the US DOE for use by Maine public schools.
MSB is prepared to work with public schools to incorporate the indirect cost rates into school Medicaid claims when approved and available to Maine public schools.
For more information and to learn more about applying for indirect cost rates for your district, please visit Maine DOE’s website.