STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

MEMORANDUM NO. 2003-37

July 1, 2003

TO THE HEADS OF ALL STATE AGENCIES

All State agencies charging personal service expenditures to funds other than General Fund Budgeted Appropriations are required to reimburse the General Fund or Transportation Fund for the cost of Workers' Compensation coverage using the following procedure.

I. RATES

Separate reimbursement rates have been established for each of the individual appropriations for Workers' Compensation claims. These rates are based on the cost of providing Workers' Compensation benefits and all salaries and wages of employees eligible for the benefit. The rates for the 2003-2004 fiscal year are listed below. The 2003-2004 rates reflect adjustments to compensate for over or under recoveries in rates established for fiscal year 2001-02 and all subsequent rates will include a similar adjustment. The determination of which appropriation would pay an employee's Workers' Compensation benefits defines the appropriate rate to be used in the reimbursement calculation.

The rate applies to all personal service expenditures except those coded to the following expenditure objects:

• 01-050 Fees (Core-CT account 50730)
• 01-130 Patient or Inmate Workers (Core-CT account 54750)
• 01-090 Accumulated Sick Leave at Retirement (Core-CT account 50190)
• 01-220 Accumulated Sick Leave at Death or Disability (Core-CT account 50190)
• 01-920 Interest Penalty (Core-CT account 50740)
• 01-950 Buy Back Option (Core-CT account 50510)

(Note - the new Core-CT expenditure account codes that are listed will be used after the HRMS/Payroll module is implemented later in the Fiscal Year.)

2003-2004 Rates

II. REIMBURSEMENT PROCESS

Reimbursements are to be transferred to the General Fund using a Reimbursable Cost Recovery Form, CO-826. Use the Core-CT expenditure account code 50460, Worker Compensation Awards. The amount of the personal service expenditure and the rate used in the calculation of the reimbursement amount must be shown on the cost recovery document. Completed forms are to be sent to the Office of the State Comptroller, Management Services for processing. Please forward a copy of all Workers' Compensation cost recovery documents to the Cost Reporting Unit, Budget and Financial Division.

Transportation Fund - Reimbursement for employees whose coverage would be paid out of the Transportation Fund Workers' Compensation appropriation follows the process described above. This includes employees of the Department of Transportation and the Department of Motor Vehicles. However, reimbursements are to be deposited back into the Transportation Fund Workers' Compensation appropriation.

Reimbursements must be processed at least quarterly.

III. REIMBURSEMENT FROM FEDERAL PROGRAMS

All agencies with Federal Programs must negotiate with their cognizant federal agency for the recovery of Workers' Compensation costs. The cost is allowable under our approved State Wide Cost Allocation Plan. All state agencies are required to include provision for the recovery of the applicable cost in their Cost Allocation Plan or Indirect Cost Proposal.

IV. QUESTIONS

Please call the Cost Reporting Unit, Budget and Financial Analysis Division, at (860) 702-3364 if you have any questions.

NANCY WYMAN
STATE COMPTROLLER

NW:BG 

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