COMPTROLLER'S SEAL STATE OF CONNECTICUT

STATE OF CONNECTICUT

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

MEMORANDUM NO. 2006-25

July 19, 2006

TO THE HEADS OF ALL STATE AGENCIES

Attention: Chief Administrative Officers, Chief Fiscal Officers and Business Managers
Subject: Fiscal Year 2005-2006 Workers' Compensation Costs

I. BACKGROUND

All state agencies receiving Federal or other grants, any 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. An indirect cost rate shall enable the state to recover both agency and statewide indirect costs as permitted by Federal regulations.

II. AGENCY RESPONSIBILITY

Workers' Compensation Costs. Any Indirect Cost Proposal or Cost Allocation Plan prepared by an agency that includes the 2005-2006 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 2005-2006 fiscal year. Please see the attached schedule for workers' compensation expenditures by state agency.

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.

III. QUESTIONS

If you have any questions regarding this memorandum please call the Budget and Financial Analysis Division's Cost Reporting Unit at (860) 702-3352.

NANCY WYMAN
STATE COMPTROLLER

NW:BWJ

Attachment

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