<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=us-ascii">
<meta name="Generator" content="Microsoft Word 15 (filtered medium)">
<!--[if !mso]><style>v\:* {behavior:url(#default#VML);}
o\:* {behavior:url(#default#VML);}
w\:* {behavior:url(#default#VML);}
.shape {behavior:url(#default#VML);}
</style><![endif]--><style><!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:"Franklin Gothic Book";
panose-1:2 11 5 3 2 1 2 2 2 4;}
@font-face
{font-family:"Franklin Gothic Medium";
panose-1:2 11 6 3 2 1 2 2 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
font-size:11.0pt;
font-family:"Calibri",sans-serif;}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:#0563C1;
text-decoration:underline;}
span.EmailStyle20
{mso-style-type:personal-reply;
font-family:"Calibri",sans-serif;
color:windowtext;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1027" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang="EN-US" link="#0563C1" vlink="#954F72" style="word-wrap:break-word">
<div class="WordSection1">
<p class="MsoNormal">Good Morning,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">This memo explains changes to the calculation of indirect amounts in pass-through grants originating from the Federal Department of Education. These changes are effective for the grant applications for Fiscal Year 2024 and beyond.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">These changes originated with reviews done by the Federal Department of Education, so at the moment these changes affect grants originating at DOE. However, it is likely that other Federal departments such as HHS will have the same or similar
guidance and we will need to separately send a memo when that occurs.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">In addition to BAC, this memo will be sent to Instruction Commission, BAR, and WSSSC.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Technical discussion regarding the Modified Total Direct Cost (MTDC) will be sent separately, but you may find it helpful to start looking at 2 CFR 200 for basic definitions.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse">
<tbody>
<tr style="height:26.5pt">
<td width="74" rowspan="4" valign="top" style="width:55.8pt;padding:0in 5.4pt 0in 5.4pt;height:26.5pt">
<p class="MsoNormal"><!--[if gte vml 1]><v:shapetype id="_x0000_t75" coordsize="21600,21600" o:spt="75" o:preferrelative="t" path="m@4@5l@4@11@9@11@9@5xe" filled="f" stroked="f">
<v:stroke joinstyle="miter" />
<v:formulas>
<v:f eqn="if lineDrawn pixelLineWidth 0" />
<v:f eqn="sum @0 1 0" />
<v:f eqn="sum 0 0 @1" />
<v:f eqn="prod @2 1 2" />
<v:f eqn="prod @3 21600 pixelWidth" />
<v:f eqn="prod @3 21600 pixelHeight" />
<v:f eqn="sum @0 0 1" />
<v:f eqn="prod @6 1 2" />
<v:f eqn="prod @7 21600 pixelWidth" />
<v:f eqn="sum @8 21600 0" />
<v:f eqn="prod @7 21600 pixelHeight" />
<v:f eqn="sum @10 21600 0" />
</v:formulas>
<v:path o:extrusionok="f" gradientshapeok="t" o:connecttype="rect" />
<o:lock v:ext="edit" aspectratio="t" />
</v:shapetype><v:shape id="Picture_x0020_4" o:spid="_x0000_s1026" type="#_x0000_t75" alt="Compass" style='position:absolute;margin-left:-4.25pt;margin-top:3.6pt;width:45pt;height:84.25pt;z-index:251659264;visibility:visible;mso-wrap-style:square;mso-width-percent:0;mso-height-percent:0;mso-wrap-distance-left:9pt;mso-wrap-distance-top:0;mso-wrap-distance-right:9pt;mso-wrap-distance-bottom:0;mso-position-horizontal:absolute;mso-position-horizontal-relative:text;mso-position-vertical:absolute;mso-position-vertical-relative:text;mso-width-percent:0;mso-height-percent:0;mso-width-relative:page;mso-height-relative:page'>
<v:imagedata src="cid:image001.jpg@01D94CE7.08B75810" o:title="Compass" />
<w:wrap type="square"/>
</v:shape><![endif]--><![if !vml]><img width="60" height="112" style="width:.625in;height:1.1666in" src="cid:image003.jpg@01D94DAD.C3699DA0" align="left" hspace="12" alt="Compass" v:shapes="Picture_x0020_4"><![endif]><span style="font-size:14.0pt;color:#1F497D"><o:p></o:p></span></p>
</td>
<td width="549" valign="bottom" style="width:411.7pt;padding:0in 5.4pt 0in 5.4pt;height:26.5pt">
<p class="MsoNormal" style="mso-line-height-alt:10.55pt;text-autospace:none"><span style="font-size:14.0pt;font-family:"Franklin Gothic Medium",sans-serif;color:#003764">Choi Halladay<o:p></o:p></span></p>
</td>
</tr>
<tr>
<td width="549" valign="top" style="width:411.7pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" style="line-height:10.55pt;text-autospace:none"><span style="font-size:10.0pt;font-family:"Franklin Gothic Medium",sans-serif;color:#003764">Deputy Executive Director, Business Operations<o:p></o:p></span></p>
</td>
</tr>
<tr>
<td width="549" valign="top" style="width:411.7pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" style="line-height:10.55pt;text-autospace:none"><span style="font-size:10.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#003764">Washington State Board for Community and Technical Colleges<o:p></o:p></span></p>
</td>
</tr>
<tr>
<td width="549" valign="top" style="width:411.7pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" style="line-height:10.55pt;text-autospace:none"><span style="font-size:10.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#003764"><a href="mailto:challaday@sbctc.edu">challaday@sbctc.edu</a> • o: 360-704-4303</span><span style="font-size:12.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#1F497D"><o:p></o:p></span></p>
</td>
</tr>
</tbody>
</table>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
</body>
</html>