STATE OF CONNECTICUT
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MEMORANDUM NO. 2004-24
June 14, 2004
TO THE HEADS OF ALL STATE AGENCIES
|Attention:||Chief Fiscal Officers or Business Managers|
|Subject:||Statewide Cost Allocation Plans for the Fiscal Year 2003-2004|
Attached is the approved 2003-2004 Statewide Cost Allocation Plan, dated May 12, 2004.
Section I: Costs Distributed through State/Local-Wide Cost Allocation
This section contains the fixed approved central service costs by grantee agencies as listed in
Exhibit A. The costs are to be incorporated into agency indirect cost proposals prepared using the appropriate fiscal year costs and other cost statements based upon the same fiscal year costs.
All state agencies receiving Federal or any other grants, or private funds, etc., must compute an indirect cost rate for each fiscal year of their Federal or other programs. The proposal is to be submitted for approval to the agency's cognizant Federal department or agency within six months after the close of each fiscal year. Generally, Federal cognizance of a particular state agency is assigned to that Federal department with the largest dollar involvement. This rate shall enable the state to recover both agency and statewide indirect costs as permitted by Federal regulations.
The central service costs are distributed to various "super-agencies" and an "all others" category. REQUESTS FOR A BREAKDOWN OF COSTS ALLOCABLE TO A PARTICULAR AGENCY CONTAINED WITHIN THOSE LARGER ORGANIZATIONAL STRUCTURES SHOULD BE ADDRESSED TO:
Office of the State Comptroller
Budget and Financial Analysis Division - Cost Unit
55 Elm Street
Hartford, Connecticut 06106-1775
Section II: Costs Distributed through Billing Mechanisms
The categories listed herein are approved to have their costs billed to the programs directly as the services or goods provided for herein are used by the programs.
Fringe Benefit Cost Recovery Rates. The approved 2003-2004 fringe benefit recovery rates for covered payroll are listed in Exhibit B. Covered payroll is all personal services for positions paid from Federal grants, Grants other than Federal, and other than General Fund accounts. These negotiated rates will be used for all payrolls paid between July 1, 2003 to October 31, 2003.
Starting with the payroll paid on November 14, 2003, the actual cost for Medical Insurance, Group Life Insurance, FICA-Medicare and Social Security components will be used along with the negotiated rates for Unemployment Compensation and Retirement plans.
For information purposes, listed below are the breakdowns of the statewide fringe benefit rates by fringe benefit component. The rates listed in Exhibit B were originally published under Memorandum No. 2003-29 for the 2003-2004 fiscal year.
|SERS - Regular Employees||25.59%|
|Alternate Retirement Plan||9.43%|
|Teachers Retirement Plan||16.49%|
|SERS - Hazardous Duty||25.12%|
|Group Life Insurance||0.18%|
|FICA - Social Security||5.69%|
|FICA - Medicare||1.39%|
Workers' Compensation Costs. Any Indirect Cost Proposal or Cost Allocation Plan prepared by agency that includes the 2003-2004 Statewide Cost Allocation Plan cost allocated to the agency should also include the actual cost of claims paid on behalf of the agency during the 2003-2004 fiscal year.
Agencies with a specific Worker's Compensation appropriation should use the total expenditures of that appropriation in their Indirect Cost Proposal or Cost Allocation Plan. For all other agencies, a schedule of the amount of Worker's Compensation costs paid on their behalf in 2003-2004 will be published at the later date to be included in their Indirect Cost Proposal or Cost Allocation Plan.
If you have any questions regarding this memorandum please call the Cost Reporting Unit, Budget and Financial Analysis Division at 860-702-3364.
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