STATE OF CONNECTICUT
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MEMORANDUM NO. 2003-37
July 1, 2003
TO THE HEADS OF ALL STATE AGENCIES
|Attention:||Fiscal and Administrative Officers, Business Managers, and Payroll and Personnel Officers|
|Subject:||Workers' Compensation Cost Recovery - 2003-04 Reimbursement Rates|
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.
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:
(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.)
|General Fund Appropriations|
|Department of Children and Families||3.50%|
|Department of Corrections||7.76%|
|Department of Mental Health and Addiction Services||2.61%|
|Department of Mental Retardation||4.75%|
|Department of Public Safety||2.98%|
|General Government (All Others)||0.95%|
|Transportation Fund Appropriation|
|Department of Transportation and Department of Motor Vehicles||1.34%|
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.
Please call the Cost Reporting Unit, Budget and Financial Analysis Division, at (860) 702-3364 if you have any questions.
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