View FileNovember 20, 2002 to New Mexico Department of Health Program Manager Andrew Gomm (MS Word)
Dated November 20, 2002Andrew Gomm, Program ManagerLong Term Services DivisionDepartment of Health1190 St. Francis DrivePO Box 26110Santa Fe, New Mexico 87502-6110Dear Mr. Gomm:This is in response to your letter to Ms. Terese Lilly, in which you provide information concerning New Mexico's negotiated indirect cost rate for the Family Infant Toddler Program, Long Term Services Division of the New Mexico Department of Health. The Family Infant Toddler Program is the recipient of a Federal grant award under Part C of the Individuals with Disabilities Education Act (IDEA). In your letter, you state that the New Mexico Family Infant Toddler Program has negotiated a 5percent indirect cost rate with your cognizant agency as part of the agreement for the Long Term Services Division. However, the documentation you have submitted does not indicate an approval of a restricted indirect cost rate as required by the Education Department General Administrative Regulations (EDGAR). These regulations at 34 CFR 76.563 require that State and local agencies that are grantees under programs with a statutory requirement prohibiting the use of Federal funds to supplant non-Federal funds must adhere to EDGAR 34 CFR 76.564 through 76.569. These regulations require that grantees use a restricted indirect cost rate, and they explain how to calculate that rate. Because IDEA Part C (section 637(b)(5)) prohibits the supplanting of IDEA funds by grant recipients, the EDGAR regulations requireStephanie S. LeeDirectorOffice of Special Education ProgramsEnclosurecc:Steve Holiday, LTSD/ASBJ. Alex Valdez, SecretaryPage 2 - Mr. Andrew Gomm
